Business Ethics and Social Responsibility

Flashcards covering key definitions, concepts, framework models, and case studies on Business Ethics and Social Responsibility from the lecture notes.

What happens to a society that has low regard for morals according to the lecture notes?

It will disintegrate after a period of time.

How is "Ethics" defined in the lecture notes?

The study of morals and moral choices of human beings.

How is "Business Ethics" defined regarding businesspersons and their agents?

The moral principles defining right and wrong behavior of businesspersons and their agents.

What are the three specific definitions of Business Ethics listed in Section A.1?

1) The study of what is right and wrong human behavior and conduct in business; 2) The study of perceptions of people about morality, moral norms, moral rules, and ethical principles as applied to people and institutions in business; 3) The study, evaluation, analysis, and questioning of ethical standards, policies, moral norms, and ethical theories used by managers and decision makers in resolving moral issues and ethical dilemmas.

What is the primary difference in origin between Ethics (Morality) and Law?

Ethics (Morality) comes from religion or personal or cultural secular origins, whereas laws come from government officials voting or decreeing them.

What distinguishes the enforcement power of law from that of morality?

The law has the enforcement power of the state behind it (yielding fines or jail time), whereas violating moral rules affords personal shame, hate, or disrespect.

What are the four main factors that influence business ethics?

Leadership, Performance and Working Environment, Deontology, and Legal Rights.

How is "Deontology" described in the context of business ethics?

The philosophy stating that people should meet their obligations and duties when analyzing an ethical dilemma because upholding one's duty is considered ethically correct.

What quote is attributed to Peter Drucker in the lecture notes?

"Start with what is right rather than what is acceptable."

What are four methods used to improve ethical performance in an organization?

Ethics training, hiring or appointing an ethical advocate, establishing ethical codes, and supporting whistleblowing.

What is an "ethical advocate" in a business organization?

A person knowledgeable about business ethics who is employed by the company and acts as the company's conscience.

What is "whistleblowing" as defined in the notes?

When an employee reports a perceived unethical practice to outsiders such as the press, government agencies, or public interest groups.

What is the difference between social obligation and social responsiveness?

Social obligation refers to complying with legal and ethical standards to uphold social welfare, while social responsiveness goes beyond prescribed standards to adapt to social conditions and respond to pressing social needs.

Which diagram represents Carroll's Pyramid of Corporate Social Responsibility showing its four levels?

The Pyramid of Corporate Social Responsibility illustrates Economic Responsibility (Be profitable) at the foundation, followed by Legal Responsibility (Obey the law), Ethical Responsibility (Be ethical), and Philanthropic Responsibility (Be a good corporate citizen) at the top.

Who created the four-part framework known as the Pyramid of Corporate Social Responsibility, and in what year?

Archie Carroll (Carroll, A.B.) in 1991.

What are the four levels of responsibility in Carroll's Pyramid of Corporate Social Responsibility?

1) Economic responsibility (Be profitable); 2) Legal responsibility (Obey the law); 3) Ethical responsibility (Be ethical); 4) Philanthropic responsibility (Be a good corporate citizen).

Which diagram illustrates the continuum of Social Responsibility Strategies ranging from "Do Nothing" to "Do Much"?

The continuum includes Reaction, Defense, Accommodation, and Proaction strategies.

What is a "Reaction strategy" in Corporate Social Responsibility?

A strategy where the company allows a condition or problem to go unresolved until the public finds out, then reacts by denying responsibility, attempting to resolve it, dealing with consequences, and minimizing negative impact.

How does a "Defense strategy" differ from an "Accommodation strategy" in CSR?

In a Defense strategy, the company uses legal maneuvering and supportive groups to minimize or avoid obligations; in an Accommodation strategy, the business assumes responsibility when pressured by special interest groups or potential congressional legislation.

What is a "Proactive strategy" in Corporate Social Responsibility?

A strategy where the firm goes beyond legal and ethical requirements through voluntary initiatives like sponsoring free cultural shows, offering scholarships, or funding endangered species protection.

What water conservation project was constructed by Cadbury's Bangalore factory?

A check dam to store rainwater, which replenished bore wells in the factories and surrounding community, and served as a stopover for migratory birds.

What recognition did Karnataka State Pollution Control Board grant to Cadbury's Bangalore factory?

The Parisara Premi (Preserver of the Environment) Award for two consecutive years.

What was the purpose of Cadbury's Sarvam Program in Pondicherry?

It established a Tsunami Regeneration Programme contributing to the redevelopment of two Tsunami-affected coastal villages in Pondicherry, focusing on education, health, economic development, vocational training, organic farming, water harvesting, and women's empowerment.

What community initiative did Cadbury establish in Baddi?

A non-formal school for the children of migrant workers in Baddi.

What quote regarding Corporate Social Responsibility is attributed to Niall Fitzgerald?

"Corporate social responsibility is a hard-edged business decision. Not because it is a nice thing to do or because people are forcing us to do it…but because it is good for our business"