Introduction to Business Ethics Flashcards
What is business ethics?
It is the study of business situations, activities and decisions where issues of right and wrong are addressed.
What is business ethics? (ans 2)
It is a study of appropriate business policies and practices including corporate governance, insider trading, bribery, discrimination and corporate social responsibility
What are ethics?
Ethics refers to the guidelines for conduct, that address questions of morality
What is the difference between ethics and law?
Ethics are a set of moral values an individual establishes for one’s self and your own personal behavior. Laws are structured rules utilized to govern all of society.
Why is business ethics important?
- It ensures that the public gets fair treatment and consideration through the building of a level of trust between consumers and the business.
- Businesses power over society
- Potential contribution to society
- Potential harm to the society
- Demand from stakeholders
- Pressure on employees to compromise ethical standards
- Businesses faces a trust deficit
What is Globalization?
It is the process which diminishes the necessity of a common and shared territorial basis for social, economical and political activities, processes and relations
How are business ethics and globalization connected?
- Cultural issues (race, gender, religious diversity, business practices, labor practices and work conditions)
- Legal issues: different legal frameworks in host and home countries
What are the ethical impacts of globalization?
- Shareholders: Greater profitability
- Employees: provides jobs but may lead to exploitation
- Consumers: Cheaper prices, social benefits, but could face exploitation by huge MNCs
Suppliers/Competitors: Small scale competitors have to face powerful players - Civil society: Possibility of erosion of traditional communities.
Government: weakens governments and promotes CSR
What is sustainable development?
It is the development that meets the needs of the present without compromising the ability of future generations to meet their own needs
What are the 3 components of sustainability?
Environment
Economic
Social