Business Ethics and Corporate Governance

This set of flashcards covers key concepts in business ethics, corporate governance, and social responsibility.

Business Definition

Business involves producing goods and services to fulfill societal needs and generate profits.

Core Elements of Business

Customers, Employees, Suppliers, Investors, Government regulations, Communities.

Functions of Business

Includes Marketing, Finance, Operations, Human resources, Supply chain management.

Fair Competition

Competing honestly without unfair practices.

Corporate Social Responsibility (CSR)

Going beyond profit to contribute positively to society.

Ethical Leadership

The role of business leaders in setting ethical standards.

Transparency

Openness in business actions and decisions.

Sole Proprietorship

A business owned and operated by a single individual.

Partnership

A business owned by two or more individuals.

Corporate Governance

A system of rules, policies, and processes that direct and control a company.

Agency Theory

Explains the relationship between principals (owners) and agents (managers) and conflicts of interest.

Stewardship Theory

Suggests managers act in the best interests of the company and its stakeholders.

Stakeholder Theory

Asserts that businesses should consider the interests of all stakeholders in decision-making.

Kohlberg's Theory of Moral Development

Describes the stages of moral reasoning from self-interest to principled ethics.

Utilitarian Approach

Maximizes benefits for the greatest number by focusing on consequences.

Ethical Decision-Making Model

Frameworks that guide ethical decision-making, such as the Five-Step Model.

Corporate Accountability

The extent to which a company is responsible for its actions and transparent in communicating performance.

Carroll’s Pyramid of CSR

A model that outlines the four responsibilities of businesses: Economic, Legal, Ethical, Philanthropic.

Greenwashing

Deceptive marketing that prioritizes appearance over real social responsibility action.

Transparency and Disclosure

Open communication about a company's financial performance and risks to stakeholders.

Environmental Sustainability

Business practices that minimize environmental impact and promote renewable resources.