Understanding Canadian Business: Ethics and Social Responsibility

These flashcards cover key vocabulary and concepts from the lecture on business ethics and social responsibility, helping to reinforce understanding and prepare for the exam.

Ethics

Standards of moral behaviour accepted by society as right versus wrong.

Corporate Social Responsibility (CSR)

A concern businesses have for the welfare of society, based on integrity, fairness, and respect.

Compliance-based ethics code

An ethics code emphasizing prevention of unlawful behaviour through control and penalization.

Integrity-based ethics code

An ethics code that defines an organization’s guiding values and encourages ethical behaviour.

Whistleblower

A person who reports illegal or unethical behaviour within an organization.

Triple Bottom Line (TBL)

A framework for measuring corporate performance against economic, social, and environmental criteria.

Sarbanes-Oxley Act (SOX)

U.S. federal legislation established to prevent corporate misconduct and improve governance.

Social Audit

A systematic evaluation of an organization’s social responsibility programs and their effectiveness.

Sustainable Development

A process that integrates environmental, economic, and social considerations into decision-making.

Insider Trading

The act of insiders using private company information for personal gain.

Expected ethical behaviour in business

Maintain reputation, retain customers, avoid lawsuits, and satisfy stakeholders.

Ethical Checklist questions

1. Is it legal? 2. Is it balanced? 3. How will it make me feel about myself?

Importance of ethical behaviour

Ethical behaviour contributes to corporate reputation and long-term success.

Corporate Philanthropy

Charitable donations made by a business to non-profit organizations.

Corporate responsibility

The obligation of a business to act ethically and sustainably within society.

Management's role in ethics

To set ethical standards and instill corporate values among employees.

Environmental issues faced by businesses

Problems like deforestation, waste disposal, and ozone depletion caused by business activities.

Consumer rights

Basic rights of consumers including safety, informed choice, and a right to be heard.

Ethics in global markets

The significance of ethical conduct and social responsibility in international business practices.

Unethical behaviour consequences

Leads to financial damage and can guarantee eventual failure of businesses.

Factors influencing corporate effectiveness

Human resource management and employee treatment directly affect a company's success.