Business Ethics ABM 008

Flashcards covering key concepts from Business Ethics and Social Responsibility lecture notes.

Child Labor

Employment of children, often due to poverty.

Hazardous Child Labor

Work that is dangerous, such as operating heavy machinery.

Contractualization

Hiring workers temporarily without full benefits.

Agency Relationship

The relationship between a principal (owner) and an agent (employee/manager).

Principal

The owner in the agency relationship.

Agent

The employee or manager in the agency relationship.

Fiduciary Duties

Duties that include loyalty, care, and candor towards the principal.

Duty of Loyalty

The obligation to act in the best interest of the company.

Duty of Care

The obligation to avoid negligence and protect company resources.

Duty of Candor

The obligation to be honest and transparent.

Right to Safety

Consumer right to protection from harmful products.

Right to Be Heard

Consumer right to complain.

Right to Redress

Consumer right to compensation for damages.

Right to Consumer Education

Consumer entitlement to knowledge about products.

Minimum Wage

The legally required pay for employees.

Living Wage

A wage sufficient to cover basic needs.

Just Wage

Fair pay based on skills and effort.

Labor Union

An organization that protects workers' rights.

Economic Strike

A strike aimed at securing better wages.

Unfair Labor Practice Strikes

Against illegal actions

Sympathy Strike

Supporting other workers

General Strike

Strike that protest nationwide

Collective Bargaining

Negotiation between workers and employers.

Democratization of Power

Balanced authority

Corporate Social Responsibility (CSR)

The business responsibility to society, also known as corporate citizenship.

Triple Bottom Line

The three pillars of CSR: People, Planet, Profit.

Stakeholders

Individuals or groups affected by business decisions, including employees and customers.

Stockholders

Owners of the company

Shared Value (CSV)

Business approach that seeks profit while addressing social issues.

CSR Practices

Responsible sourcing

Anti corruption

Environmental sustainability

Four types of CSR

Economic

Legal

Ethical

Philanthropic

Philanthropy

Short-term donations aimed towards social good.

Eco-efficiency

Reducing environmental impact while maintaining profitability.

Role of Business in Society

The obligation of businesses to create jobs, help communities, and act ethically.

Market foothold

Initial goal of the business

Salvage value

Product retains value overtime