Business Ethics and Corporate Social Responsibility Glossary

A comprehensive vocabulary list of terms related to Corporate Social Responsibility, Business Ethics, and economic models as presented in the lecture notes.

CSR

Corporate social responsibility is a self-regulating business model that helps a company to be socially accountable to it self, its stakeholders and the public.

Self-regulating

Means that companies voluntarily integrate social, environmental, and ethical considerations into their operations and decision-making processes, beyond mere compliance with legal requirements.

Business ethics

The moral principles, policies, and values that govern the way companies and individuals engage in business activity.

Ethical dilemma

A situation in which an individual or organisation faces a conflict between moral principles or values, making it challenging to determine the right course of action because each possible choice may compromise different ethical standards.

Capitalism

An economic and political system in which a country’s trade and industry are controlled by private owners for profit.

Dignity

To talk about the dignity of people means they are valuable and worthy of respect.

Environmental degradation

Defined as any change or disturbance to the environment perceived to be harmful or undesirable (pollution, extinction of wildlife).

Fiduciary duty

Involves actions taken in the best interests of another person/entity.

Partisanship

Support for a group (e.g. a political party) without a fair consideration of the facts and circumstances.

Stockholder / Shareholder

A person who Owen’s shares in a company and therefore gets part of the company’s profits and the right to vote on how the company is controlled.

Corporate citizenship

Practicing CSR is also called citizenship; it involves the social responsibility of businesses and the extent to which they meet legal, ethical and economic responsibilities.

ESG

Stands for environmental, social, and governance. It is a set of ideas or policies that consider the effects on the environment and on society of how businesses operates.

TBL (triple bottom line)

In economics, the triple bottom line (TBL) maintains that companies should commit to focusing as much on social and environmental concerns as they do on profits, based on three bottom lines: profit, people, and the planet.

Shared value creation

The process of generating economic value in a way that also produces value for society by addressing its needs and challenges.

Shareholder value theory

Posits that a corporation’s primary responsibility is to generate profits for its owners.

Liberal economics

An economic philosophy advocating free markets, minimal government intervention, and the protection of private enterprise.

Welfare capitalism

Voluntary initiatives aimed at improving worker welfare, fostering social stability, and maintaining corporate legitimacy.

SMEs

Small and medium-sized enterprises.

SRI

Socially responsible investing.

Globalisation

The speedup of movements and exchanges (of human beings, goods, and services, capital, technologies or cultural practices) all over the planet.

Sustainability

The practice of meeting current needs without compromising the ability of future generations to meet their own needs, balancing environmental, economic, and social factors; the ability to maintain or support a process over time.

Stakeholder

A person or entity that has a vested (strong and personal) interest in a company and can affect or be affected by its operations and performance.

Stakeholder Theory

A concept in business ethics and management that posits that organisations should consider the interests and impacts of all their stakeholders, not just shareholders.

Corporate accountability

Refers to a public company’s performance in non-financial areas such as social responsibility, sustainability, and corporate governance.

Socially responsible investment (SRI)

Involves investing in companies that promote ethical and socially conscious themes including environmental sustainability, social justice, and corporate ethics.

Generation Z (Gen Z)

The demographic cohort born roughly between the mid-$1990s$ and early $2010s$, characterised by growing up with advanced digital technology and social media.

Middle Ground

A balance between two extremes (choosing a moderate path), which in business involves being ethical most of the time but sometimes making unethical decisions between morals and results.

Resilience

The corporation’s ability to withstand, adapt to, and recover from challenges, disruptions, or adverse conditions, emphasizing long-term stability and sustainability.

Social Market Economy

An economic order seeking a middle path between socialism and capitalism, aiming for social security and social equity through political intervention within a market economy framework.

Social Enterprise

A business with specific social objectives as its primary purpose, seeking to maximise profits while maximising benefits to society and the environment.

Neo Liberalism

A policy model that encompasses politics and economics, favoring private enterprise and seeking to transfer control of economic factors from the government to the private sector.

Utilitarianism

A theory of morality that advocates actions that foster happiness or pleasure and oppose actions that cause unhappiness and harm.

Creative accounting

Accounting practices that follow required laws but capitalise on loopholes in accounting standards to falsely portray a better financial image of a company.

Insider trading

Involves trading in a public company’s stock or other securities by someone with non-public, material information about the company.

Discrimination

The practice of treating one person or group of people less fairly or less well than other people or groups.

Sexual harassment

Unwanted or offensive sexual attention, suggestions, or talk, especially from an employer or person in a position of power.

Neuromarketing

The study of how people’s brains respond to advertising by scientifically monitoring brainwave activity, eye tracking, and skin response.

Anti-competitive practices

Any practice that reduces the degree of competition in a market.

Types of shareholder value

$1$. Tactical (avoiding problems), $2$. Compliant (complying with laws/principles), $3$. Enlightened (stakeholder focus/CSR orientation).

Values

Principles that serve as guiding principles influencing behaviour, decision-making, and judgements, including moral beliefs and cultural norms.

Business values

The core principles and beliefs that guide an organisation’s behaviour, decision-making, and culture.

Common business values

Integrity, innovation, customer focus, teamwork, and sustainability.

Morals

The principles or standards of right and wrong that guide an individual’s behaviour and conscience.

Moral values

Principles that focus on social impact and define positive principles for business operations and the common good, serving as a link between business and society.

Core moral values

Trustworthiness, fairness, respect for people, respect for property, and respect for the environment.

Trustworthiness

Based on honesty and reliability; involves telling the truth and keeping promises.

Three dimensions of Fairness

$1$. Proportional fairness (getting a fair share), $2$. Equality (equal rights/no unfair privileges), $3$. Procedural fairness (following rules).

Respect

Implies politeness, honour, and care shown towards someone or something important, involving awareness of the effects of decisions and actions.

Descriptive (analytical) ethics

Concerned with facts about the moral judgements or moral beliefs of a person or a group of people.

Normative ethics

Concerned with the question of what kinds of acts are right and should be performed.

Consequentialism

The theory that the rightness or wrongness of an act is determined by its consequences.

Non-consequentialism

The theory that an act is right or wrong because it is performed for morally right motives.

Cultural relativism

The concept that morality varies from one culture to another and practices are differentially defined as right or wrong by particular cultures.

Ethical / cultural absolutism

The concept that there is a single list of truths and values that should guide behaviour around the world.

Social Contract theory

The idea that people live together in accordance with an agreement establishing moral and political rules; businesses are viewed as 'corporate citizens' with duties based on an implied contract.

Sin industries

Sectors involved in the production or sale of goods and services considered morally questionable, controversial, or socially harmful, such as those viewed as socially unacceptable despite being legal.

Psychological contract

The set of unwritten expectations and understandings between an individual employee and the organisation.

Distributive justice

A form of fairness concerned with the total distribution of value from all transactions with a stakeholder group.

Foreign direct investment (FDI)

An ownership stake in a foreign company or project made by an investor, company, or government from another country.

Conflict of relative development

Conflict arising from different stages of economic and social development.

Conflict of cultural tradition

Conflict resulting from deeply entrenched elements within a specific culture.

Whistleblowing

Reporting questionable, illegal, or unethical actions within an organisation.