Chapter 3: Ethics and Social Responsibility Flashcards
Define individual character
personal integrity, deserves constant attention
Define ethics
the code of moral principles that sets standards of good or bad, or right or wrong
Define ethical behavior
is right or good in the context of a governing moral code
Define values
underlying beliefs and judgments regarding what is right or desirable and that influence individual attitudes and behaviors
Define terminal values
preferences about desired end states
Give examples of terminal values
• Examples include self-respect, family security, freedom, inner harmony, and happiness
Define instrumental values
the preferences regarding the means to desired ends
Give examples of instrumental values
• Examples include honesty, ambition, courage, imagination, and self-discipline
Define utilitarian view
considers ethical behavior to be that which delivers the greatest good to the greatest number of people
Define individualism view
ethical behavior advances long-term self-interests
Define justice view
ethical behavior treats people impartially and fairly
Define procedural justice
involves the fair administration of policies and rules
Define distributive justice
focuses on treating peoples the same regardless of personal characteristics
Define interactional justice
focuses on treating everyone with dignity and respect
Define commutative justice
focuses on the fairness of exchanges or transactions
Define moral rights view
ethical behavior respects and protects fundamental rights
Define pecuniary ethic
push the law to its outer limit
Define ethical dilemma
a situation requiring a decision about a course of actions that, although offering potential benefits, may be considered unethical
Define ethical framework
well-thoughtout personal rules and strategies for ethical decision making
Define preconventional stage of moral development
• In preconventional stage of moral development the individual is self-centered
Define conventional stage of moral development
• In the conventional stage of moral development, attention broadens to include more social concerns
Define postconventional stage of moral development
• In the postconventional stage of moral development also known as the principled stage, the individual is strongly driven by core principles and personal beliefs
Define ethics training
seeks to help people understand the ethical aspects of decision making and to incorporate high ethical standards into their daily behavior
Define spotlight questions
highlight the risks from public disclosure of one’s action
Define whistleblowers
persons who expose organizational misdeeds in order to preserve ethical standards and protect against wasteful, harmful, or illegal acts
Define immoral manager
chooses to behave unethically
Define amoral manager
fails to consider the ethics of her or his behavior
Define moral manager
makes ethical behavior a personal goal
Define code of ethics
formal statement of values and ethical standards
Define stakeholders
people and institutions most directly affected by an organization’s performance
Define corporate social responsibility
obligation of the organization to act in ways that serve both its own interests and the interests of its stakeholders, representing society at large
Define triple bottom line
organizational performance including financial, social, and environmental criteria
Define 3 Ps of Organizational performance
profit, people, and planet
Define classical view of CSR
management’s only responsibility in running a business is to maximize profits and shareholder value
Define socioeconomic view of CSR
management of any organization should be concerned for the broader social welfare, not just corporate profits
Define virtuous circle
corporate social responsibility leads to improved financial performance that leads to more socially responsible actions in the future
Define shared value
business executives should make decisions that show full understanding that economic and social progress are fundamentally interconnected
Define social responsibility audit
measures and reports on an organization’s performance in various areas of corporate social responsibility
Define sustainability
a goal that addresses the rights of present and future generations as stakeholders of the world’s natural resource
Define sustainable business
where firms operate in ways that both meet the needs of customers and protect or advance the well-being of our natural environment
Define sustainable development
making use of natural resources to meet today’s needs while also preserving and protecting the environment for use by future generations
Define environmental capital/natural capital
the storehouse of natural resources that we use to sustain life and produce goods and services for society
Define ISO 14001
a global quality standard that requires certified organizations to set environmental objectives and targets; account for the environmental impact of their activities, products, or services; and continuously improve environmental performance
Define social business
the underlying business model directly addresses a social problem
Define social entrepreneurs
take business risks to find more novel ways to solve pressing social problems
