Chapter 2: Ethics and Corporate Social Responsibility

These flashcards cover key concepts related to ethics and corporate social responsibility, providing definitions and context for major terms discussed in the lecture.

Ethics

How people SHOULD behave, based on a sense of right and wrong.

Life Principles

The rules by which you live your life; they help you make ethical decisions.

Shareholders

The owners of the company.

Stakeholders

Individuals or groups that are affected by a company's actions, including employees, customers, and communities.

Utilitarian Ethics

A theory which determines the rightness of an action based on its ability to maximize overall happiness and minimize pain.

Deontological Ethics

Ethical theory that emphasizes the duty to do the right thing, regardless of outcomes.

Rawlsian Justice

The concept that ethical rules should be determined without knowing one's place in society.

Front Page Test

A method to evaluate an action by considering how one would feel if it were reported on the front page of a newspaper.

Moral Universalism

The belief that some acts are always right or always wrong, regardless of context.

Moral Relativism

The belief that ethical decisions can vary based on cultural or individual standards.

Ethics Traps

Situations that lead to unethical decisions, such as money, competition, and rationalization.

Conflicts of Interest

A situation where an individual's obligations conflict with their personal interests.

Euphemisms and Reframing

The use of vague or misleading terms to mask the reality of unethical behavior.

Loyalty

A potential reaction to unethical behavior where one chooses to stay silent or support the unethical act.

Personal versus Work Ethics

The debate over whether one should maintain the same ethical standards at work as in personal life.

The Organization's Responsibility

The ethical obligations that an organization has towards its employees, customers, and society as a whole.