Ethics in Business, Morality of Profit, and CSR (Lecture Notes)

Flashcards cover key concepts from ethics in business, relationship between ethics and business, morality of profit, CSR concepts, benefits, challenges, CSR categories, and example companies.

Why are ethics important in business?

They build trust and credibility with stakeholders, supporting long-term relationships.

How does ethical behavior affect reputation in the digital age?

Maintains a positive public image and helps prevent rapid, widespread reputational damage.

What is the link between ethics and legal/regulatory compliance?

Ethical companies are more likely to comply with laws and avoid penalties, promoting fairness.

How do ethical practices affect employee morale and productivity?

They create a positive workplace, increasing motivation, respect, engagement, and reducing turnover.

How do ethics influence customer loyalty and satisfaction?

They build trust, leading to loyalty and positive word-of-mouth.

What are the foundations of ethical business practices?

Moral principles and values (honesty, integrity, fairness, respect) and Corporate Social Responsibility (CSR).

What is CSR?

A concept where businesses consider social, environmental, and economic impacts and strive to be socially responsible.

What is CSR in simple terms?

A holistic approach to integrating environmental, social, and economic responsibilities into strategy and operations.

How does CSR contribute to risk management?

Proactively addresses social and environmental concerns, reducing legal, regulatory, and reputational risks.

What is the impact of ethics on employee relations?

Creates a positive work environment, higher job satisfaction, increased morale, lower turnover, and greater commitment.

What are the two ethical decision-making frameworks mentioned?

Utilitarianism and deontological ethics.

What does utilitarianism emphasize in business decisions?

Maximizing overall happiness for the greatest number; profits are justified if they promote well-being and avoid harm.

What does deontological ethics emphasize in business?

Following duties and rules; profits are moral when they respect principles and stakeholder rights.

What are the long-term benefits of ethics in business?

Sustainable growth, ongoing innovation, and positive community and societal impact.

What challenges does globalization pose for business ethics?

Navigating cultural differences and varying legal standards while maintaining core values.

What are the three CSR components?

Environmental responsibility, Social responsibility, and Economic responsibility.

What is stakeholder engagement in CSR?

Engaging with employees, customers, suppliers, communities, and investors to understand needs and concerns and build trust.

What are examples of Environmental Responsibility initiatives?

Energy efficiency, waste management, sustainable sourcing, pollution reduction, and renewable energy.

What is an example of Ethical Responsibility in CSR?

Starbucks's comprehensive ethical sourcing policy.

What is an example of Philanthropic Responsibility in CSR?

Microsoft's philanthropic focus, including donations and employee volunteering.

What is an example of Economic Responsibility in CSR?

Unilever's practices such as fair trade, local hiring, supporting small businesses, and long-term planning.

What is Unilever’s sustainability example mentioned in the notes?

The Sustainable Living Plan, which aims to decouple growth from environmental impact while increasing positive social impact.

What are the four categories of CSR?

Environmental, Ethical, Philanthropic, Economic.

What is the overall conclusion about the morality of profit?

Profit is not inherently immoral; its ethical status depends on how it is pursued and whether it respects ethics and stakeholders through CSR.

What is the role of leadership in ethical decision-making?

Ethical leadership sets the tone, culture, and accountability, guiding the organization toward ethical choices.