Business Ethics – Chapter 1: Key Vocabulary

30 vocabulary flashcards covering definitions and key terms from Chapter 1 of the Business Ethics lecture notes.

Ethics

The study of moral standards and values used to judge what is right or wrong in human behaviour.

Morality

Practical rules and customs that govern actual behaviour; often used interchangeably with ethics but refers more to lived conduct.

Ethos

Greek root of the word ethics, meaning the character, spirit or attitudes of a group or culture.

Ethical Behaviour

Conduct that goes beyond mere legal compliance, rooted in conscience, accountability and a commitment to do good under all circumstances.

Ethics vs. Legality

Ethics is above the law; legality focuses on compliance, whereas ethics demands higher moral responsibility.

Individual Ethical Development

Influenced by upbringing, socialisation, experiences, critical reflection and cultural standards (Shaw, 2011).

Religion and Ethics

Faith traditions provide world-views, codes of conduct and values that strongly shape individual ethical standards.

Golden Rule

Universal moral maxim found in all major religions: treat others as you wish to be treated yourself.

Five Pillars of Islam

Foundation of Muslim life: Shahadah, Solat, Zakat, Sawm (Ramadhan fast) and Hajj.

Iman

Islamic term for faith or belief in Allah, angels, revealed books, messengers, resurrection and predestination.

Taqwa

Quranic concept of God-consciousness involving fear, respect and reverence for Allah leading to sincere obedience.

Rukun Negara

Malaysia’s National Principles that include Belief in God, Loyalty to King and Country, the Rule of Law, etc.

Western Perspective on Ethics

Emphasises secularism, universalism, human rights and rational ethical theories over religious guidance.

Eastern Perspective on Ethics

Relies more on religious and cultural principles when resolving ethical issues.

Categorical Imperative

Immanuel Kant’s principle that one should act only according to maxims that can be universalised.

Risk Aversion Principle

Ethical guideline favouring choices that minimise potential harm or risk.

Good Values

Traits such as compassion, courage, honesty, integrity, respect for life and self-control.

Bad Values

Traits such as cheating, cowardice, cruelty, deceit, greed, lying and selfishness.

Code of Ethics

A formal statement of principles or rules that guide behaviour within an organisation or profession.

Compliance-Based Code

Code of ethics focused on adherence to laws, regulations and external standards.

Integrity-Based Code

Code of ethics centred on self-governance, shared values and personal responsibility.

Business Ethics

Application of ethical principles to business situations; demonstrates that profit seeking must align with moral conduct.

Global Business Challenges

Pressures of profit maximisation, cultural value shifts, and managing an ethically diverse workforce.

Generation Y & Ethics

Cohort raised in the ICT era, more likely to justify unethical acts to achieve goals.

Enron Collapse

High-profile example illustrating consequences of unethical corporate behaviour.

Stakeholder Loyalty

Ethical conduct helps retain customers, attract new ones, reduce lawsuits and lower employee turnover.

Transcendent Reality

Religious idea of a higher reality that gives meaning to life and informs moral purpose (Chandra Muzaffar).

Professional Values

Work-related virtues such as education, skill, honesty, punctuality, trustworthiness and consultation (syura).

Personal Values

Individual virtues including accountability, moderation, excellence, patience, tolerance and humility.

Quality Values

Work-quality virtues like productivity, efficiency, creativity, innovation, itqan (quality workmanship) and istiqamah (steadfastness).