Business Ethics

Business Ethics

Ethical or unethical behaviour by a business’s managers or employees.

Individual Ethics

A person's own principles regarding right and wrong.

Conflict of Interest

When an activity benefits an employee at the expense of the employer.

Utility

Does a particular act optimize what is best for those affected by it?

Rights

Does the action respect the rights of all individuals involved?

Justice

Is the action consistent with what is regarded as fair?

Caring

Is the action consistent with people’s responsibilities to each other?

Corporate Social Responsibility

The way a business tries to balance its commitments to important individuals and groups in its external environment.

Managerial Capitalism

When a company’s only responsibility is to maximize profit for its shareholders.

Fair Trade Movement

A movement advocating fair treatment, payment, and labor conditions for workers in developing countries.

Organizational Stakeholder

Individuals and groups directly affected by the practices of an organization and have a stake in its performance.

Consumerism

A movement dedicated to protecting the rights of consumers in their dealings with businesses.

Truth in Advertising

Advertising claims must be demonstrably true.

Whistle-Blowers

Employees who report unethical, illegal, or socially irresponsible actions within their organization.

Improper Financial Management

Bad decisions or outlandish salaries that executives might make at the expense of the company.

Insider Trading

Using non-public information to gain an unfair advantage in trading stocks.

Social Audit

A systematic analysis of how a firm is using funds for its social responsibility goals.

Sustainable Development

Activities that meet current needs without compromising the ability of future generations to meet theirs.

Proactive Stance

Organizations that actively seek to contribute to societal good.

Obstructionist Stance

Organizations that do the bare minimum to address social or environmental issues.

Defensive Stance

Organizations that comply with legal requirements but do nothing beyond that.

Accommodative Stance

Organizations that meet legal and ethical requirements, going further when asked.

Social Responsibility Program

Initiatives by firms to demonstrate their commitment to ethical and social responsibilities.