Business Ethics and Social Responsibility - Vocabulary Flashcards (Module Overview)

Vocabulary flashcards covering forms of business organizations, governance, stewardship, ethics, classical philosophies, belief systems, and Filipino values as presented in the lecture notes.

Sole Proprietorship

A business owned by a single person with no legal distinction between owner and business; simplest form; unlimited liability; easy to establish and dismantle.

General Partnership

Two or more persons pool labor and capital and share profits, losses, and liability.

Limited Partnership

Two or more partners with at least one general partner and one or more partners liable only up to their investment.

Joint Venture

A general partnership formed for a specific project or limited period; all partners share control and profits/losses.

Corporation

A legal entity chartered by the state; separate from owners; can be taxed, sued, and enter contracts; owners are shareholders who elect a board.

Limited Liability Company (LLC)

A hybrid form combining features of a corporation and a partnership; owners have limited liability and usually enjoy pass-through taxation; life may be shorter than a corporation.

Cooperative

A member owned and controlled organization run for the benefit of its members; service centered; may be incorporated or unincorporated.

Board of Directors

Elected representatives who oversee major policies and decisions of a corporation.

Shareholders

Owners of a corporation who elect the board of directors and have a claim to profits.

Open-Book Management (OBM)

A governance practice that shares financial information with employees to build transparency, empowerment, and accountability.

Corporate Governance

The system by which businesses are directed and controlled; affects trust, performance, and accountability.

Fairness

Treating all stakeholders equally and justly, including equal pay for equal work and non-discriminatory practices.

Transparency

Openness in sharing information with stakeholders; clarity about plans, risks, and performance.

Accountability

Obligation to explain, justify, and take responsibility for actions and outcomes.

Responsibility

Duty to perform tasks and duties; can be shared; relates to completing obligations and outcomes.

Stewardship

Taking care of business and its effects on society, going beyond profit to responsible management.

Corporate Stewardship

Stewardship practices at the corporate level, including social responsibility and ethical governance.

Environmental Stewardship

Adopting sustainable and eco-friendly business practices to protect the environment.

Service-Oriented Stewardship

Managing interactions with customers, suppliers, and the community to serve stakeholders well.

Code of Ethics

A document outlining the core values, mission, and standards guiding ethical conduct within an organization.

Compliance-Based Code

A code that emphasizes clear rules, penalties, and formal training to ensure adherence.

Value-Based Code

A code grounded in core company values; may require self-regulation and ethical judgment.

Fiduciary Duty

Legal obligation to act in the best interests of clients or beneficiaries.

Coca-Cola Code of Conduct

An example of an ethics code emphasizing living the code, reporting concerns, and following the law.

CFA Institute Code of Ethics

Ethical standards for investment professionals focusing on integrity and client interests.

Deontology

Ethical theory that uses rules to distinguish right from wrong and emphasizes duty.

Categorical Imperative

Kantian principle to act only on maxims that could be universal laws.

Formula of the Law of Nature

One formulation of Kant's imperative: act as if your action could become a universal natural law.

Formula of the End Itself

Treat humanity always as an end and never merely as a means.

Formula of Autonomy

Act so that your will could become a universal law through your own autonomy.

Formula of the Kingdom of Ends

Act as if you were a lawmaking member of a community where everyone is an end.

Utilitarianism

Ethical theory where actions are right if they promote happiness or reduce harm; consequences matter.

Act Utilitarianism

Judging each act by its specific consequences to produce the greatest good.

Rule Utilitarianism

Guided by rules that, if followed, produce the greatest good for the most people.

Jeremy Bentham

Founder of utilitarianism; emphasized consequences and overall happiness.

John Stuart Mill

Advocate and refining voice of utilitarianism; emphasized greatest happiness principle.

Socratic Method

Questioning method used by Socrates to stimulate critical thinking and examine beliefs.

Theory of Forms

Plato’s idea that non-physical forms are perfect blueprints; the physical world is imperfect.

Form of Human

An example in the Theory of Forms illustrating the Form of humanity as perfect.

Aristotle – Virtues

Ethical virtues (courage, temperance, justice, etc.) developed through habituation.

Courage

Virtue between cowardice and recklessness; facing danger with prudence.

Temperance

Virtue between excess and insensitivity; self-control and moderation.

Justice (Virtue)

Fairness and equitable treatment; balance between self-interest and others' needs.

Ren (Confucian)

Benevolence or humanity; core Confucian virtue promoting social harmony.

Li (Confucian)

Rites, propriety, and social norms guiding proper behavior.

Xin (Confucian)

Integrity; honesty and trustworthiness in dealings.

Five Constants

Confucian virtues: Ren, Yi, Li, Zhi, Xin guiding ethical conduct.

Tao (Taoism)

The Way; natural order and harmony; leadership by non-interference and example.

Shintoism – Four Rings

Four concentric circles of business relations: family, fellows, Japan, world.

Suki System

Filipino practice of loyal customers and suppliers with favorable terms.

Padrino System (Palakasan)

Patronage and nepotism; hiring or promoting through family or friends.

Bahala Na

Filipino fatalism; trust in God’s will; can lead to procrastination.

Mañana Habit

Procrastination; delaying tasks which can harm productivity.

Utang Na Loob

Debt of gratitude influencing business loyalties and relationships.

Judaism – Core Principles

Six guiding principles: legitimate wealth, divine origin of wealth, life sanctity, consumer protection, anti-fraud, beyond letter of law.

Christian Stewardship

Belief that business is governed by God and Christians act as stewards of resources.

Islamic Ethics in Business

Principles include honesty, mutual consent, fair weights and measures, avoiding monopolies.

Hinduism Ethics (Ahimsa, Karma)

Non-violence, truthfulness, non-stealing, and belief in karmic consequences.

Buddhism – Eightfold Path

Right views, intentions, speech, action, livelihood, effort, mindfulness, concentration.

Tata Values

Core values of the Tata group: Integrity, Understanding, Excellence, Unity, Responsibility.

Documentation

Systematic recording of processes to provide consistency and clarity.

Regular Team Meetings

Scheduled gatherings to share progress, feedback, and coordinate efforts.