Ethics and Social Responsibility in International Business

Flashcards for reviewing key vocabulary related to ethics and social responsibility in international business.

Ethics

An individual’s personal beliefs about whether a decision, behavior, or action is right or wrong.

Ethical behavior

Behavior that conforms to generally accepted social norms.

Unethical behavior

Behavior that does not conform to generally accepted social norms.

Conflict of Interest

A situation in which a person's personal interests could compromise their judgment or actions in the workplace.

Confidentiality

Protecting sensitive information from unauthorized access or disclosure.

Corporate social responsibility (CSR)

The set of obligations a corporation undertakes to protect and enhance the society in which it functions.

Shareholder Model

A view of social responsibility that focuses on maximizing profits for the benefit of shareholders.

Stakeholder Model

A view of social responsibility that considers the interests of all stakeholders, including employees, customers, and the community.

Primary Stakeholders

Groups or individuals who are directly affected by an organization's actions and have a significant stake in its performance.

Secondary Stakeholders

Groups or individuals who are indirectly affected by an organization's actions.

Obstructionist stance

An approach to social responsibility where firms do as little as possible to address social or environmental problems.

Defensive stance

An approach to social responsibility where firms meet only the minimum legal requirements in their commitments to groups and individuals in society.

Accommodative stance

An approach to social responsibility where firms go beyond legal requirements and try to balance the interests of different stakeholders.

Proactive stance

An approach to social responsibility where firms actively seek opportunities to contribute to the well-being of society.

Legal Compliance

Adhering to the laws and regulations of the countries in which a business operates.

Ethical Compliance

Adhering to moral principles and standards of behavior.

Philanthropic Compliance

Contributing to charitable causes and community projects.

The Foreign Corrupt Practices Act

A U.S. law that prohibits bribery of foreign officials.

Whistle-Blower

An employee who reports unethical or illegal activities within their organization to authorities or the public.