Ethics, Stakeholders, Corporate Strategy, and Agency

Vocabulary flashcards covering business ethics trends, stakeholder framework levels, and employer-employee agency paradigms.

Economic De-regulation

four major trends affecting business #1

reduced support for government control of private business.

Political Liberalization

the four major trends affecting business #2

defined by capitalism becoming more widespread throughout the world.

Environmental Stewardship

the four major trends affecting business #3
the realization that society must take better care of the environment.

Shareholder Capitalism

A business approach

creating value for shareholders and increasing earnings

Separation Fallacy

Edward Freeman's concept

most theories of business mistakenly rely on separating business decisions from ethical decisions.

The Open Question Argument

An ethical evaluation

who is harmed or benefited, and whose rights and values are enabled by this business decision?

Integration Thesis I

most business decisions have an implicit ethical view, and most ethical decisions have an implicit view about business.

Integration Thesis II

it makes no sense to talk about

business without ethics

ethics without business

either without human beings.

The Responsibility Principle

most people want to and do accept responsibility for the effects of their actions on others

Value Chain/definitional Stakeholders

the stakeholders that directly affect every business.

Instrumental Stakeholders

Stakeholders that are important to a business because

they affect → Value Chain/Definitional stakeholders.

Value Proposition of the Organization

The first level of the Stakeholder Framework

defining the goals and ends toward which a firm strives to enable profitability and inspire stakeholders.

Principles for Stakeholder Cooperation

The second level of the Stakeholder Framework

outlining the core positive values and means a firm uses to do business with key stakeholders.

Respect for Societal Standards of Conduct

The third level of the Stakeholder Framework

understanding, engaging, and respecting external value systems and social constraints.

Submissive Model

An employer-employee relations paradigm

employees emphasize extreme loyalty and obedience

authority > personal values.

Altruistic Sinning

laying aside one's own ethical standards or values to please authority or employer.

Purist Model

employees maintain their morals

they refuse to compromise personal ethics

obligations to God > employer demands.

Partial Inclusion

A concept describing the condition wherein purist agents are capable of offering only limited loyalty to their employers.

Legalistic Purist

An agent who applies the purist model strictly by refusing compliance whenever conscience is bothered, but often suffers from perfectionism, self-righteousness, and lack of creative solutions.

Accommodating Purist

An agent who applies the purist model by viewing employers as neighbors, tolerating moral ambiguity, avoiding paternalism, and facilitating positive ethical solutions.