Business ethics

What is business ethics?

The application of ethical principles to business decisions and practices.

What is corporate social responsibility (CSR)?

The responsibility of businesses to consider social and environmental impacts.

What is a stakeholder?

Anyone affected by a business's actions.

Who are stakeholders?

Employees, customers, shareholders, suppliers, governments, and communities.

What is the shareholder theory?

The view that a business's primary responsibility is to maximise profits for shareholders.

Who is associated with shareholder theory?

Milton Friedman

What did Friedman argue?

The social responsibility of business is to increase profits within the law.

What is stakeholder theory?

The view that businesses have responsibilities to all stakeholders.

Who is associated with stakeholder theory?

Edward Freeman

What is whistleblowing?

Reporting illegal or unethical behaviour within an organisation.

What is corporate governance?

The system through which businesses are directed and controlled.

What is sustainability?

Meeting present needs without compromising future generations.

What is ethical consumerism?

Buying products based on moral considerations.

What is greenwashing?

Misleading consumers about environmental performance.

What is bribery?

Offering incentives to gain unfair advantage.

What is corruption?

The abuse of power for personal gain.

How would Utilitarianism approach business ethics?

By choosing actions that maximise overall wellbeing.

How would Kantian Ethics approach business ethics?

By treating all stakeholders as ends in themselves.

How would Natural Law approach business ethics?

By promoting human flourishing and the common good.

How would Situation Ethics approach business ethics?

By choosing the most loving action in each circumstance.

What is an ethical issue linked to globalisation?

Worker exploitation in developing countries.

What is fair trade?

A trading system promoting fair wages and working conditions.

What is one strength of CSR?

It improves trust, reputation, and long-term sustainability.

What is one criticism of CSR?

It may reduce short-term profitability.

What is one Kantian criticism of unethical business practices?

They often use people merely as means to profit.

What is one Utilitarian defence of CSR?

Responsible business practices can maximise happiness for the greatest number.