Ethics and Social Responsibility in Business

A set of flashcards to help review key concepts related to ethics and social responsibility in business.

What is the definition of business ethics?

The application of moral standards to business situations.

What are the key ethical issues in business?

Issues often arise from relationships with stakeholders such as investors, customers, employees, creditors, suppliers, and competitors.

What does 'conflict of interest' mean in a business context?

When businesspeople take advantage of a situation for their own personal interest rather than for the employer’s interest.

What is the role of the government in encouraging ethical behavior in businesses?

The government can enact regulations such as the Sarbanes-Oxley Act to protect whistle-blowers and promote ethical conduct.

What is a code of ethics?

A guide to acceptable and ethical behavior as defined by an organization.

What is social responsibility in business?

The recognition that business activities impact society and the consideration of that impact in decision-making.

What does the socioeconomic model of social responsibility emphasize?

It emphasizes not only profits but also the impact of its decisions on society.

What are the basic rights of consumers?

Rights include the right to safety, to be informed, to choose, to be heard, to consumer education, and to service.

What is environmental legislation's role in business?

It plays a crucial role in pollution control and establishing standards for clean air and water.

What are the steps to implement a program of social responsibility in a business?

Securing top executives' commitment, planning, appointing a director, and preparing a social audit.