Chapter 2: Undrstanding Business Ethics and Social Responsibility Flashcards
Ethics
Beliefs about what is right and wrong or and bad in actions that affects others.
Business Ethics
Refers to ethical or unethical by employees in the context of their jobs.
Ethical Behavior
Behavior conforming to generally accepted social norms concerning beneficial and harmful actions.
Unethical Behavior
Behavior that does not conform to generally accepted social norms concerning beneficial and harmful actions.
Utility
Does a particular act optimize the benefits to those who are affected by it? (Do all relevant parties receive “Fair” benefits.)
Rights
Does it respect the rights of all individuals?
Justice
Is it consistent with what’s fair?
Caring
Is it consistent with peoples responsibilities to each other?
Social responsibilities
The attempt of a business to balance its commitments to groups and individuals in its environment, including customers, other businesses, employees, investors and local communities.
Organizational Stake Holders
Those groups, individuals, and organizations that are directly affected by practices of an organization and who therefore have a stake in its performance.
Managerial Ethics
Standards of behavior that guide individual managers in their work.
Collusion
Two or more firms collaborate on such wrongful acts as price fixing.
The Concept of Accountability
The expectation of an expanded role for business in protecting and enhancing the general welfare of society.
Insider trading
Using confidential information to gain from the purchase or sale or stocks.
Obstructionist Stance
Involves doing as little as possible and may involve attempts to deny or cover up violations.
