Key Terms Ch 5 Flashcards
The moral principles and standards that guide behavior in the world of business
Business Ethics
Ethical principles established by international executives based in Caux, Switzerland, in collaboration with business leaders from Japan, Europe, and the United States
Caux Principles
The output of carbon dioxide and other greenhouse gases
Carbon Footprint
Company mechanisms typically designed by corporate counsel to prevent, detect, and punish legal violations
Compliance-based ethics programs
Obligation toward society assumed by business
Corporate Social Responsibility
Its goal is the creation of sustainable economic development and improvement of quality of life worldwide for all organizational stakeholders
Ecocentric Management
To produce goods and services that society wants at a price that perpetuates the business and satisfies its obligations to investors
Economic Responsibilities
An ethical system defining acceptable behavior as that which maximizes consequences for the individual
Egoism
In an organization, the processes by which decisions are evaluated and made on the basis of right and wrong
Ethical Climate
Situation, problem, or opportunity in which an individual must choose among several actions that must be evaluated as morally right or wrong
Ethical Issue
One who is both a moral person and a moral manager influencing others to behave ethically
Ethical Leader
Meeting other social expectations, not written as law
Ethical Responsibilities
The system of rules that governs the ordering of values
Ethics
Company mechanisms designed to instill in people a personal responsibility for ethical behavior
Integrity-Based Ethics Programs
Perspective that what is moral comes from what a mature person with “good” moral character would deem right
Kohlberg’s model of cognitive moral development
To obey local, state, federal, and relevant international laws
Legal Responsibilities
A process of analyzing all inputs and outputs, through the entire “cradle-to-grave” life of a product, to determine total environmental impact
Life-Cycle Analysis (LCA)
Principles, rules, and values people use in deciding what is right or wrong
Moral Philosophy
Additional behaviors and activities that society finds desirable and that the values of the business support
Philanthropic Responsibilities
Philosophy that bases ethical behavior on the opinions and behaviors of relevant other people
Relativism
An act passed into law by Congress in 2002 to establish strict accounting and reporting rules in order to make senior managers more accountable and to improve and maintain investor confidence
Sarbanes-Oxley Act
Economic growth and development that meet present needs without harming the needs of future generations
Sustainable Growth
An education with five higher goals that balance self-interest with responsibility to others
Transcendent Education
Economic, social, and environmental performance
Triple Bottom Line
