Corporate Social Responsibility and Workplace Models

A comprehensive set of flashcards covering key concepts related to corporate social responsibility, workplace models, and associated arguments.

Stockholder Model

A business exists to maximize the goals of its owners/stockholders, operating within law and morality.

Milton Friedman

Economist most closely associated with the stockholder model of corporate social responsibility.

Invisible Hand

A concept by Adam Smith suggesting that self-interested actions in free markets promote overall good.

Negative Externalities

Costs imposed on third parties not involved in a transaction.

Public Goods

Goods that are non-excludable and non-rivalrous.

First-Generation Problem

Markets fail to protect vulnerable groups who cannot effectively participate.

Philanthropic Model

Businesses voluntarily give to charity or promote social good, but it is not required.

Supererogatory

Morally good actions that go beyond what is required.

Moral Minimum Model

Businesses must avoid causing harm and meet basic ethical standards before pursuing profit.

Stakeholder

Any group affected by business decisions, such as employees, customers, suppliers, or the community.

Accommodation Argument

Businesses already consider stakeholders in practice, so they should formally adopt this model.

Utilitarian Argument for Stakeholder Model

Considering all stakeholders leads to the greatest overall happiness.

Implementation Problem

There is no clear way to identify or balance all stakeholder interests.

Efficiency Problem

Considering many stakeholders slows decision-making and reduces productivity.

Sustainability Model

Businesses should prioritize environmental and social goals, especially preserving resources for future generations.

Malthusian Theory

Population growth will outpace resources, leading to scarcity and collapse.

Julian Simon's Response

Human innovation and technology increase resources and prevent scarcity.

Creative Destruction

Innovation destroys old industries and drives economic growth, led by entrepreneurs.

Yellow Dog Contract

An agreement where an employee promises not to join a union.

Closed Shop

Employees must be union members to be hired.

Union Shop

Employees must join a union after being hired.

Right-to-Work Law

Employees cannot be forced to join or pay a union.

Free Rider Argument

Non-union members benefit from union efforts without contributing.

Bad Deal Argument

Union agreements may not benefit all workers.

Beck Rights

Workers can refuse to fund union political activities.

Right to Life Argument for a Job

People need jobs to survive.

Crowding Out Problem

Government jobs may reduce private sector jobs.

Social Justice Argument for Minimum Wage

It reduces inequality.

Due Process Argument

Due process prevents employer abuse.

Workplace Democracy

Employees have a say in workplace decisions.

OSHA

A U.S. agency that enforces workplace safety standards.

Safest Feasible Standards

Workplaces should be as safe as possible without making business impractical.