Week Two Business Ethics & Social Responsibility Key Terms

Censorship

According to the American Civil Liberties Union (ACLU), it is the "Suppression of words, images, or ideas that are 'offensive.'

Enlightened Self-interest School of Social Responsibility

Advises managers to be responsible to shareholders by being responsive to the larger society.

Inherence School of Social Responsibility

Advises managers to serve shareholders and to act only with shareholders' interests in mind.

Invisible Hand School of Social Responsibility

Role of business is to serve larger society and it does so best when serving shareholders only.

Social Responsibility School of Social Responsibility

Role of business is to serve larger society, so it should serve the needs of the larger society.

Morals clause

Part of a contract for actors, athletes and others that prohibits private conduct that would subject that person to public ridicule.

Shareholders

Owners of shares of stock in a corporation.

Stakeholders

Groups of people who are impacted by a company's business decisions including customers, suppliers and the government.

Steroids

Prescription medication often used illegally to increase the performance of competitive athletes.

"Toes to the Line" philosophy

Doing no more than what is required under the law while violating the spirit (or intent) of the law.