Business Ethics and Social Responsibility Flashcards

Flashcards for business ethics and social responsibility.

Ethics

The principles, values, and moral standards that guide individuals and organizations in determining right and wrong conduct.

Ethical Behavior

Adhering to principles of honesty, integrity, fairness, and respect in all business activities and interactions.

Social Responsibility

The obligation of organizations to consider the impact of their actions on society, the environment, and stakeholders beyond financial profitability.

Ethical Conduct and Social Responsibility

Essential elements of corporate culture, shaping the values, behaviors, and decisions of organizations.

Ethical Decision-Making

Crucial in business operations for maintaining trust, ensuring compliance, fostering a positive work environment, enhancing morale, and strengthening customer relationships.

Unethical Behavior

Can lead to loss of trust, financial consequences, and legal/regulatory risks.

Legal Considerations in Business Ethics

Laws, regulations, and legal standards that govern ethical conduct in business.

Compliance with Laws and Regulations

Essential for organizations to operate ethically, responsibly, and within the boundaries of the law.

Ethical Dilemmas

Arise when there is a conflict between different ethical principles or when competing interests must be balanced.

Conflict of Interest

A situation in which a person's personal interests or affiliations could potentially compromise their judgment, decisions, or actions in a professional or business setting.

Whistleblowing

The act of reporting wrongdoing, misconduct, or illegal activities within an organization to internal or external authorities.

Fair Treatment of Employees

Ensuring that employees are treated fairly, without discrimination, and with respect for their rights and dignity.

Environmental Responsibilities

Managing and minimizing the environmental impact of business operations and products.

Product Safety and Quality

Ensuring that products and services meet quality standards and are safe for consumers.

Corporate Social Responsibility

A business approach that considers the interests of society by taking responsibility for the impact of the organization's activities on customers, employees, shareholders, communities, and the environment.

Privacy and Data Protection

Protecting the confidentiality and security of personal information collected and processed by businesses.

Balancing Competing Interests

A challenge faced by businesses when trying to balance the pursuit of maximum profits with ethical considerations.

Profit Maximization

The primary goal of a business is to maximize profits for its owners and shareholders.

Ethical Conduct

Following moral principles and values in business decisions and actions.

Toyota Unethical Actions

Included delayed recalls, concealment of safety issues, and lack of transparency.

Volkswagen Dieselgate

A scandal involving emissions cheating to bypass environmental regulations.

Social Responsibility Areas

Environmental sustainability, ethical labor practices, community engagement, corporate governance, and product responsibility.

Corporate Social Responsibility Initiatives

Initiatives which enhance reputation, employee engagement, risk management, and sustainable development.

Advantages of Integrating Social Responsibility

Enhanced reputation, competitive advantage, risk mitigation, and improved financial performance.

Legal Framework for Social Responsibility

Laws and regulations that guide ethical conduct, sustainability, and social responsibility.

Reporting Requirements

Reporting requirements for sustainability and corporate social responsibility (CSR) disclosures are essential components of transparent and accountable business practices.

Sustainability Reporting

Providing stakeholders with information about a company's environmental, social, and governance (ESG) performance, impacts, and initiatives.

Legal Implications of Non-Compliance

Reveals non-compliance can lead to regulatory penalties, legal liabilities, and reputational damage.

Wells Fargo Scandal

Opening millions of unauthorized accounts and credit cards for customers without their consent.

Business Ethics

A guide for individuals and organizations in determining right and wrong conduct.

Social Responsibility in Business

Involves proactively addressing social, environmental, and ethical issues through business practices.

Importance of Ethical Conduct

Shaping the values, behaviors, and decisions of organizations.

Ethical Decision-Making Importance

It helps in maintaining trust, compliance, and creating a positive work environment.

Impacted Stakeholders

Customers, investors, suppliers, and communities.

Impact of Unethical Behavior

Can result in loss of trust, financial losses, and legal risks.

Legal Considerations in Business Ethics

Provide a framework for organizations to uphold ethical principles while complying with legal requirements.

Compliance with Laws and Regulations steps

Understanding laws, developing programs, training, monitoring, and enforcing compliance.

Ethical Dilemmas in Business

A conflict between ethical principles or competing interests.

Conflict of Interest Dilemma

When personal interests conflict with professional duties.

Whistleblowing Dilemma

Reporting misconduct to internal or external authorities.

Fair Treatment of Employees Dilemma

Ensuring equitable treatment of all employees.

Environmental Responsibilities Dilemma

Minimizing environmental impact via responsible practices.

Product Safety and Quality Dilemma

Ensuring safety and quality in products and services.

Corporate Social Responsibility Dilemma

Integrating societal and environmental concerns into business operations.

Privacy and Data Protection Dilemma

Protecting personal information and ensuring data security.

Competing Interests

Balancing profit goals with ethical practices.

Profit Maximization definition

The goal is to maximize profits for owners and shareholders.

Ethical Conduct definition

Includes integrity, fairness, and respect in business actions.

Toyota Unethical Actions context

Related to safety issues and unintended acceleration.

Volkswagen Scandal details

Involved emissions cheating and misrepresentation of data.

Aspects of Social Responsibility

Areas include environmental care, labor practices, and community involvement.

Benefits of CSR Initiatives

Enhances brand image, boosts engagement, and protects reputation.

Advantages of Social Responsibility

Including better stakeholder relations and sustainable growth.

Types of Legal Frameworks

They include governance, securities, and environmental laws.

Focus of Reporting Requirements

For environmental, social, and governance (ESG) factors.

Consequences of Non-Compliance

Includes penalties, lawsuits, and damage to reputation.

Details of Wells Fargo Scandal

Employees opened unauthorized accounts due to sales targets.

Ethical principles

Honesty, integrity, fairness, and respect.

Social Responsibility focus

Environmental and social concerns.

Elements of corporate culture

Values, behaviors and decisions of organizations.

Ethical decision-making importance

Success and sustainability of organization.

Stakeholders and corporate reputation

Trust, credibility, and long-term success.

Legal frameworks in business

Laws, regulations, and legal standards.

Compliance importance

Operating within the law.

Ethical dilemmas arises

Conflicts between ethical principles.

Conflict of interest danger

Compromise their judgment.

Wrongdoing reporting

Within an organization

Employees treated fairly

Without discrimination.

Environmental impact

Impact of business operations.

Products and services

Safe for consumers.

Integrating societal

Concerns into business operations.

Protecting personal

Data security.

Balancing profit

Ethical considerations.

Primary goal

Maximize profits.

Fairness and respect

Business actions.

Unethical actions

Safety issues.

Data Misrepresentation

Environmental regulations.

Areas of concern

Community involvement.

Brand image boosts

Reputation protects.

Better relations

Sustainable growth.

Governance impacts

Environmental laws.

Environmental factors

Transparent accountability.

Lawsuits results

Reputation damage.

Scandal accounts

Due to sales.