Week 5: Ethics, Stakeholders, Sustainability and CSR Flashcards
What is social responsibility in a business context?
A business’s obligation to pursue policies, make decisions, and take actions that benefit society.
Define the Shareholder Model.
Businesses should focus only on maximizing profits for shareholders.
What is the Stakeholder Model?
Businesses should consider multiple stakeholders (employees, customers, community, environment) to ensure long-term survival.
List the four components of Corporate Social Responsibilities (CSR).
- Economic – Make a profit by providing a valued product or service.
- Legal – Follow laws and regulations.
- Ethical – Avoid violating moral standards.
- Discretionary – Voluntary contributions to social causes.
What is the primary focus of the Shareholder Model?
Maximizing profits.
What are Primary Stakeholders?
Primary stakeholders are individuals or groups directly affected by a business’s actions, such as employees, customers, investors, and suppliers. They have a strong interest in the company’s performance and decisions.
What is the definition of Long-term Value Creation in the context of sustainability?
Companies that integrate sustainability often perform better financially.
Describe the Reactive Social Responsiveness Strategy.
Do less than expected.
What is the Defensive Social Responsiveness Strategy?
Admit responsibility but do the bare minimum.
What does the Accommodative Social Responsiveness Strategy entail?
Accept responsibility and meet expectations.
What characterizes the Proactive Social Responsiveness Strategy?
Anticipate responsibility and exceed expectations.
True or False: Ethical behavior enhances trust and long-term success.
True.
What are the Three Pillars of Sustainability according to the UN Model?
- Environmental Sustainability
- Social Sustainability
- Economic Sustainability
What was the outcome of the Bhopal Disaster?
Thousands of deaths and long-term health/environmental consequences.
What are the four CSR Approaches?
- Obstructionist – Ignores CSR obligations.
- Defensive – Meets legal minimums only.
- Accommodative – Goes beyond minimum requirements.
- Proactive – Sets industry benchmarks for sustainability.
What is the Triple Bottom Line (TBL)?
- Profit: Financial sustainability.
- People: Social responsibility.
- Planet: Environmental sustainability.
Fill in the blank: The __________ View suggests that businesses should balance profits with broader societal contributions.
Socioeconomic
What does a Social Responsibility Audit evaluate?
Company performance in economic, legal, ethical, and discretionary areas.
List examples of Ethical Failures.
- Volkswagen emissions scandal
- Union Carbide (Bhopal Disaster)
- BP (Gulf of Mexico 2010 Oil Spill)
What are the four Moral Reasoning Approaches?
- Utilitarian View
- Individualism View
- Justice View
- Moral Rights View
What is the significance of ethical leadership in business?
Balances profitability and responsibility.
What ethical issue does the #MeToo Movement address?
Workplace harassment.
What is the main idea behind the Shared Value Approach?
Aligning business success with societal progress.
What is the impact of fast fashion on sustainability?
Addresses labor rights and ethical supply chains.
