Intro To Cdn Business And Society Flashcards
What is integrity in business?
a corporations behavior and its adherence to moral guide lines acceptable to society such as honesty, fairness and justice.
Who are stakeholders?
an individual, or group who can influence and or is influenced by the achievement of an organizations purpose.
Ethics of business?
The rules, standards codes, or principles that provide guidance for moral behavior in managerial decision making relating to the operation of the corporation and business’s relationship with society
Corporate Social Responsibility (CSR)
A company’s sense of responsibility towards the community and environment (both ecological and social) in which it operates
Corporate Sustainability (CS)
Corporate Sustainability is a business approach that creates long-term shareholder value by embracing opportunities and managing risks deriving from economic, environmental and social developments.
Triple-P bottom line (3P)
an evaluation of the corporations performance according to profits, people and planet
Triple bottom line (3E)
is the evaluation of a corporations performance according to the economic, social or ethical, and environmental value the business adds or destroys.
3 Main approaches to ethical thinking?
- Deontological ethics
- Teleological ethics
- Virtue ethics
Corporate citizenship
The extent to which businesses are socially responsible for meeting legal, ethical and economic responsibilities placed on them by shareholders.
Teleological ethics
An approach to ethics that focuses on outcomes, or results of actions.
Deontological ethics
rule based approach to ethics that determines goodness or rightness form examining the acts, rather than from the consequences or the acts.
Virtue ethics
Emphasizes the individual’s character or identity, and focuses on being instead of doing.
Economic system
An organized way in which a state or nation allocates its resources and apportions goods and services in the national community.
Capitalism
A system of economics based on the private ownership of capital and production inputs, and on the production of goods and services for profit.
Free enterprise system
An economic system where few restrictions are placed on business activities and ownership. In this system, governments generally have minimal ownership of enterprises in the market place.
Laissez-faire capitalism (allow to do capitalism)
An economic theory from the 18th century that is strongly opposed to any government intervention in business affairs.. Government is strictly limited to providing essential services such as police and fire protection.
Responsible enterprise system
a economic system operating as a free enterprise system but incorporating the element of accountability.
Three stakeholders that are primarily responsible for the operations and morality of Canadian business
- Owners
- Boars of directors
- Managers
Stakeholder capitalism
an economic system in which a corporation accepts broader obligations beyond financial ones for shareholders.
Boards of directors
Elected by shareholders
Must fulfill legal and fiduciary obligations
Owners
Direct ownership (e.g., shareholders); or Indirect ownership (e.g., mutual fund holders)
Managers
Hired by boards of directors
Oversee operations of corporation
8 Factors influencing attitudes toward business
- Standard of living
- Decentralized decision making
- Allocation of resources
- Self-interest
- Inequities in society
- Business cycle
- Unemployment
- Innovation
Standard of living
The level of wealth, comfort, material goods and necessities available to a certain socioeconomic class in a certain geographic area
Decentralized Decision Making
is any process where the decision-making authority is distributed throughout a larger group
Allocation of Resources
is a process and strategy involving a company deciding where scarce resources should be used in the production of goods or services.
Self-interest
concern only for getting what you want or need and not about what happens to other people
Inequities in society
is the existence of unequal opportunities and rewards for different social positions or statuses within a group or society
Business cycle
The fluctuations in economic activity that an economy experiences over a period of time. A business cycle is basically defined in terms of periods of expansion or recession.
Integration of business and society
Business needs society and society needs business
Unemployment
occurs when business lays off or fails to hire employees as business activity declines.
