Understanding Business Ethics and Social Responsibility - Video Notes

Vocabulary flashcards covering key terms and concepts from the chapter on ethics and social responsibility.

Ethics

Beliefs about what is right and wrong or good and bad in actions that affect others.

Business ethics

Ethical or unethical behaviors by employees in the context of their jobs.

Ethical behavior

Behavior that conforms to individual beliefs and social norms about what’s right and good.

Unethical behavior

Behavior that conforms to beliefs about what is defined as wrong and bad.

Managerial Ethics

Standards of behavior that guide individual managers in their work.

Stakeholders

Groups or individuals affected by a company’s actions and who have a stake in its performance.

Organizational Stakeholders

Customers, employees, investors, suppliers, and local communities directly affected by the organization.

Stakeholder model of responsibility

An approach focusing on the interests of key stakeholder groups in decisions.

Social Responsibility

The overall way a business balances commitments to groups and individuals in its social environment.

Environmental Responsibility

A firm’s actions toward protecting the environment (pollution, waste, sustainability).

Environmental Sustainability

Using renewable resources and managing resources wisely to protect the environment.

Green Marketing

Marketing that emphasizes environmentally friendly production, products, and practices.

Production processes (green marketing)

Modifying production to save energy and reduce waste and pollution.

Product modification (green marketing)

Changing products to use environmentally friendly materials.

Packaging reduction (green marketing)

Reducing packaging materials to cut waste.

Carbon offsets

Programs to offset CO2 emissions (e.g., planting trees) to replenish damaged environments.

Consumer rights

Rights related to safety, information, redress, and courteous service for consumers.

Consumer Bill of Rights

Rights: safe products, be informed, be heard, choose, be educated, courtesy in service.

Consumerism

A form of social activism dedicated to protecting consumer rights.

Price gouging

Unwarranted, steep price increases during high demand.

Collusion

Illegal agreement between two or more companies to commit a wrongful act.

Insider trading

Using confidential information to gain from stock purchases or sales.

GAAP

Generally Accepted Accounting Principles for financial reporting.

Sarbanes-Oxley Act

Requires CFOs to personally guarantee the accuracy of financial reporting.

Obstructionist stance

Doing as little as possible; denying or covering up violations.

Defensive stance

Meeting only minimum legal requirements in social responsibility commitments.

Accommodative stance

Exceeding legal minimums when asked to do so.

Proactive stance

Actively seeking opportunities to contribute to stakeholders’ well-being.

Codes of ethics

Written codes formalizing top management commitment to ethical conduct.

Ethics programs

Structured activities and policies to promote ethical behavior across the organization.

Core Principles

Unchanging, foundational values that guide behavior.

Organizational Values

Shared beliefs in a organization that guide decisions and actions.

Core Principles and Organizational Values

Concept showing enduring principles vs. changing values within a company.

Frequency of principles change

Core principles are unchanging and revised infrequently; values may change more often.

The Elements of Green Marketing

Production processes, product modification, packaging reduction, carbon offsets, sustainability.

Regulation

Laws and rules that dictate what organizations can and cannot do.

PACs

Political Action Committees that solicit and distribute political contributions.

Lobbying

Representing an organization to political bodies to influence policy.

Legal Compliance

Extent to which the organization conforms to laws at all levels.

Ethical Compliance

Extent to which members follow ethical standards (and laws) of behavior.

Philanthropic giving

Donating funds or resources to charities and worthy causes.

Whistle-Blowing

An employee who exposes unethical, illegal, or irresponsible actions.

Organizational Leadership and Culture

The leadership and culture that define and shape an organization’s social responsibility stance.

Corporate Social Audit

Systematic analysis of a firm’s success in achieving its social responsibility goals.