Chapter 2 Flashcards
ethics
beliefs about what is right and wrong or good and bad in actions that affect others
business ethics
refers to ethical and unethical behaviors by employees in the context of their jobs
ethical behavior
conforms to individual beliefs and social norms about what’s right and wrong
unethical behavior
conforms to individual beliefs and social norms about what is defined as wrong or bad
managerial ethics
standards of behavior that guide individual managers in their work
2 most common approaches to formalizing top management commitment to ethical business practices:
- adopting written codes
- instituting ethics programs
social responsibility
refers to the overall way in which business attempts to balance its commitments to relevant groups and individuals in its social environment
organizational stakeholders
groups, individuals, and organizations that are directly affected by the practices of an organization and who therefore have a stake in its performance
major corporate stakeholders
employees, investors, suppliers, customers, local communities
concept of accountability
expectation of an expanded role for business in protecting and enhancing general welfare of society
areas of social responsibility:
environment, customers, employees, investors
consumer rights
social activism dedicated to protecting the rights of consumers in their dealing with businesses (consumerism)
unfair pricing
two or more firms collaborate on such wrongful acts such as price fixing (collusion); price gouging
insider training
using confidential information to gain from the purchase or sale of stocks
obstructionist stance
involves doing as little as possible and may involve attempts to deny or cover up violations
