Social Responsibility (Chapter 2)

Vocabulary flashcards covering key concepts from Chapter 2 notes on Social Responsibility.

Social responsibility

The overall way a business balances commitments to its stakeholders.

Organizational stakeholders

Entities directly affected by a company’s practices (customers, employees, investors, suppliers, local community, environment).

Consumerism

Protecting the rights of consumers in their dealings with businesses.

Consumer Bill of Rights

Rights include safe products, be informed, be heard, to choose, be educated, and courteous service.

Price gouging

Responding to an increase in demand with an overly steep price increase.

Collusion

Illegal agreement between companies to commit a wrongful act.

Ethical advertising

Advertising that is not exaggerated, not using confusing or misleading terms, and not being inappropriate or offensive.

Work-life balance

Providing a balance between work responsibilities and personal life.

Professional development

Opportunities for employees to improve skills and advance careers.

Whistleblower

An employee who uncovers and publicizes a company’s unethical actions to regulators or the media.

Insider trading

Using confidential information to gain from stock purchases or sales.

Misrepresentation of finances

Not following accounting standards or inflating/deflating numbers.

Supplier partnerships

Creating mutually beneficial arrangements with suppliers.

Local and international communities

Involvement in programs and charities to maximize positive impact and minimize negative impact.

Green marketing

Marketing environmentally friendly goods; promoting sustainable products and packaging; eco-friendly production and materials; carbon offset and environmental restoration.

Pollution reduction

Efforts to reduce air, water, and land pollution.

Obstructionist stance

Doing as little as possible, denying and deflecting social responsibility.

Defensive stance

Meeting only minimum legal requirements.

Accommodative stance

Exceeding minimum responsibilities when asked.

Proactive stance

Actively seeking opportunities to contribute to the community and environment.

Corporate Social Audit

An analysis of a firm’s social performance and how well funds were used to achieve social responsibility goals.

Contemporary social consciousness

The expectation of an expanded role for business to protect welfare of society and the environment and hold business accountable.