Chapter 3

Business Ethics

The principles and standards that guide behavior in the business world.

Corporate Social Responsibility (CSR)

A business model that helps a company be socially accountable to itself, its stakeholders, and the public.

Code of Conduct

A set of guidelines that establish expected behavior for individuals within an organization.

Triple Bottom Line (TBL)

A sustainability framework that considers social, environmental, and economic impacts.

Ethical Decision-Making Policies

Procedures that organizations use to ensure that decisions are made based on ethical considerations.

Transparency

The practice of openly sharing information about business practices and policies with stakeholders.

Stakeholders

Anyone who has an interest in the decisions made by a company, including employees, customers, investors, and the community.

Executive Compensation

The financial payment and benefits received by high-ranking executives.

Social Responsibility

The obligation of a business to contribute to the well-being of a community.

Professional Behaviors

Actions that align with the norms and values of professionalism within a workplace.

Value-Based Ethics

Ethics that are rooted in the values of the organization and shape its corporate culture.

Whistleblower Policy

A procedure that allows employees to report unethical behavior without fear of retaliation.

Fair Compensation

Payment that is commensurate with the work performed, taking into account living costs and market rates.

Corporate Governance

The system by which companies are directed and controlled, incorporating policies and practices for ethical behavior.

Record Keeping of Ethics Programs

Maintaining documentation of ethical practices and compliance efforts within an organization.

Environmental Responsibility

A company's duty to mitigate its impact on the environment through sustainable practices.

Cultural Values

The shared beliefs and norms that shape the behavior of individuals within an organization.