Business Ethics and Economic Systems

These flashcards cover key vocabulary related to business ethics and economic systems as discussed in the lecture.

Profit

The amount a business earns over and above what it spends for salaries and other expenses.

Ethics

Standards of moral behavior that guide individuals and organizations.

Corporate Social Responsibility

A firm's concern for the welfare of society.

Whistleblower

Someone who reports illegal or unethical behavior.

Compliance-based ethics code

An ethics code that emphasizes the prevention of unlawful behavior by increasing control and penalizing wrongdoers.

Integrity-based ethics code

An ethics code that defines corporate values and stresses shared accountability among employees.

Social Responsibility

The obligation of a business to contribute to the welfare of society.

Corporate Philanthropy

Charitable donations by corporations to nonprofit organizations.

Sub prime mortgage

Loans given to individuals with poor credit history.

Invisible Hand

A theory by Adam Smith that suggests individuals pursuing their own interests can benefit society as a whole.

Cyclical unemployment

Unemployment caused by a recession or similar downturn.

GDP (Gross Domestic Product)

The total value of goods and services produced in a country in a given year.

Macroeconomics

The study of the economy as a whole.

Microeconomics

The study of how market conditions determine the price of a specific product.

Free market economy

An economic system where prices are driven by supply and demand.

Comparative advantage

The ability of a country to produce a good at a lower opportunity cost than another country.

Deflation

A condition in which the average level of prices is actually falling.

Oligopoly

A market structure dominated by a few large sellers.

Command Economy

An economic system where the government owns and operates most businesses.