Chapter 2: Business Ethics and Social Responsibility (Vocabulary Flashcards)

Vocabulary flashcards covering key terms from the notes on Chapter 2 and 2A (Business Ethics and Social Responsibility).

Business ethics

The principles and standards that determine acceptable conduct in business organizations.

Social responsibility

A business’s obligation to maximize its positive impact and minimize its negative impact on society.

Ethical culture

An organizational culture that promotes integrity and adherence to a company’s values and ethics.

Tone at the top

The visible commitment to ethics and compliance by an organization’s senior leadership.

Ethical leadership

Leaders who model ethical conduct and set expectations for others to follow.

Trust

Confidence in the reliability and integrity of a business and its relationships.

Ethics vs. social responsibility

Ethics refers to right vs. wrong decisions; social responsibility concerns the broader impact of a firm’s actions on society.

Bribery

Payments or favors intended to influence a decision, often illegal in many jurisdictions.

Foreign Corrupt Practices Act (FCPA)

U.S. law prohibiting bribery of foreign government officials by U.S. firms.

Time theft

Misusing work time for non-work activities, reducing productivity.

Abusive and intimidating behavior

Harassment or hostile conduct that undermines a respectful workplace.

Bullying

Repeated abusive behavior toward a coworker that creates a hostile work environment.

Sexual harassment

Unwelcome sexual conduct or advances that create a hostile work environment.

Misuse of company resources

Using company assets for personal or illicit purposes.

Conflicts of interest

When personal interests could interfere with professional duties.

Insider trading

Trading securities based on material nonpublic information.

Fairness and honesty

Core ethical values involving truthfulness, integrity, and fair dealing.

Dishonesty

Lack of integrity, deception, or lying in business actions.

Plagiarism

Using someone else’s work or ideas without proper attribution.

Code of ethics

Formal rules outlining expected ethical standards and behavior for employees.

Ethics training

Education programs teaching employees how to apply ethics in decision making.

Ethics officer

A designated person responsible for guiding and enforcing a company’s ethics program.

Whistleblowing

Exposing an employer’s wrongdoing to outsiders or authorities.

Whistleblower bounty

Financial rewards offered to whistleblowers when misconduct is detected and penalized.

Corporate citizenship

The degree to which a business meets its legal, ethical, economic, and voluntary responsibilities.

ESG framework

A framework for evaluating environmental, social, and governance performance.

Environmental sustainability

Practices that protect the natural environment and promote long-term health.

Greenwashing

Misleading claims that a product or company is environmentally friendly.

Stakeholders

People or groups with an interest in or affected by a company’s actions.

Right to safety

Consumer right to be protected from dangerous products and unsafe shopping environments.

Right to be informed

Consumer right to receive complete information about risks and usage of a product.

Right to choose

Consumer right to access a variety of goods and services at fair prices.

Right to be heard

Consumer right to have interests considered in policy decisions.

Federal Trade Commission (FTC)

U.S. agency protecting consumers from unfair or deceptive practices.

COPPA

Children’s Online Privacy Protection Act; restricts collection of personal information from kids under 13.

GDPR

General Data Protection Regulation; EU-wide data privacy law governing personal data.

Uniform Commercial Code (UCC)

A set of laws governing commercial transactions, including sales of goods.

Offer

A proposal to enter into a contract.

Acceptance

Agreeing to the terms of an offer; forms the contract if valid.

Consideration

Something of value exchanged to support a contract.

Capacity

Legal ability to enter into a contract.

Legality

The contract’s purpose and consideration must be lawful.

Agency

A relationship where one person acts on behalf of another under control.

Principal

The party who authorizes the agent to act.

Agent

The person who acts on behalf of the principal.

Power of attorney

A legal document authorizing an agent to act for the principal.

Fiduciary duties

Duty of care and loyalty to act in the best interests of the company and stakeholders.

Intellectual property

Creations protected by law, including copyrights, patents, and trademarks.

Copyright

Protection for authors’ rights in their original works.

Patent

Exclusive rights to an invention, typically lasting 20 years.

Trademark

A legally protected brand name or symbol.

Trade dress

The distinctive visual appearance of a product or its packaging protected by law.

Bankruptcy

Legal process for dealing with debt when an individual or business cannot pay obligations.

Chapter 7 bankruptcy

Liquidation of assets to pay debts.

Chapter 11 bankruptcy

Reorganization of a company’s debts while continuing operations.

Chapter 13 bankruptcy

Individual bankruptcy with a court-approved repayment plan.