ethics Flashcards
Ethics
study of the general nature of morals and specific moral choices
Morality
deals with what’s right and what’s wrong. The concept of what’s right and wrong is often generalized by a culture and this serves to regulate the behavior of its members.
Business ethics
comprises principles that guide behavior in the world of business.
Social responsibility
defines the obligation a business assumes towards society.
Corporate social responsibility (CSR)
helps a company to be socially accountable to itself, its stakeholders, and the public. Companies can be conscious of the kind of impact they are having on all aspects of society including economic, social, and environmental.
Social responsibility: LEGAL DIMENSION
Businesses need to obey local, state, and federal laws
social responsibility: ETHICAL DIMENSION
behaviors or activities that are expected of business by society but are not always codified by law.
social responsibility: THE ECONOMIC DIMENSION
Businesses produce goods and services that society needs and wants at a price that can perpetuate business
social responsibility: THE PHILANTHROPIC DIMENSION
behaviors and activities that society desired and business values dictate
Green investing/ ESG investing
investment which prioritizes optimal environmental, social, and governance(=ESG) factors or outcomes
Ex: investing in a company that tries to reduce carbon emissions, improves its labor practices, and supports workforce diversity.
Green investing/ impact investing
investments made with the intention to generate positive measurable social and environmental impact alongside a financial return.
Ex: investing in a company that produces products that helps avoid greenhouse gas emission.
Unethical business:
business activities that are very profitable but are either against the law or contradict the ethical code of certain groups involved.
Ethical issues
problems, situations, or opportunities that require a person or organization to choose among several actions that must be evaluated as right or wrong
→ businesses have become more aware of ethical issues since they could hurt the company through negative publicity.
Consumer as kings
assumes that consumers are the ones in charge of market demands which need to be fulfilled. Consumers have combined economic power.
consumers as victims
consumers are weak and companies are strong. Consumer need to be protected from the companies
