Module 5: Business Ethics
Q: Why should businesses be ethical?
A: Builds trust, protects reputation, reduces legal risk, and supports long-term success.
Q: Why do ethical problems occur in business?
A: Conflicting interests, pressure to meet goals, unclear guidelines, or personal character flaws.
Q: What are the four methods of ethical reasoning?
A: Virtue ethics, Utilitarian reasoning, Rights-based reasoning, Justice-based reasoning.
Q: What is virtue ethics?
A: Focuses on character traits that are morally valued.
Q: What is utilitarian reasoning?
A: The greatest good for the greatest number of people.
Q: What is an ethics and compliance officer?
A: A person responsible for overseeing ethical standards and legal compliance in a business.
Module 6: Public Policy
Q: What are the four elements of public policy?
A: Inputs, goals, tools, and effects.
Q: What is market failure?
A: When markets don’t allocate resources efficiently on their own.
Q: What are common reasons for new regulation?
A: Market failures, negative externalities, public interest, and the need for fair competition.
Q: What is a natural monopoly?
A: A market dominated by one provider due to high infrastructure costs.
Q: What is the difference between regulation and deregulation?
A: Regulation imposes rules; deregulation removes or reduces those rules.
Module 7: Corporate Political Strategy
Q: What are the key arguments for political involvement by business?
A: Businesses are affected by government policy and have a right to participate.
Q: What are the key arguments against political involvement by business?
A: Can distort democracy and give unfair advantages.
Q: What tactics are used in an information strategy?
A: Lobbying, research reports, position papers.
Q: What tactics are used in a financial-incentives strategy?
A: PAC contributions, hiring former government officials.
Q: What tactics are used in a constituency-building strategy?
A: Grassroots efforts, advocacy ads, working with trade associations.
Q: What is dark money?
A: Political spending by undisclosed donors.
Module 8: The Environment
Q: What is the tragedy of the commons?
A: Overuse of shared resources leads to depletion, requiring regulation.
Q: What are five global environmental problems?
A: Climate change, ozone depletion, biodiversity loss, water pollution, decline of marine ecosystems.
Q: What are the advantages of command-and-control regulation?
A: Clear standards and enforcement.
Q: What is a disadvantage of command-and-control regulation?
A: Inflexibility and higher costs.
Q: What are the benefits of market-based mechanisms?
A: Cost-effectiveness and incentive-driven compliance.
Q: How does sustainability management give a competitive advantage?
A: Through cost savings, brand reputation, customer attraction, and innovation.
Module 5: Business Ethics – Definitions
Term | Definition |
Business ethics | Principles and standards guiding behavior in business. |
Corporate culture | Shared values, norms, and practices within a company. |
Employee ethics training | Programs that teach employees how to recognize and respond to ethical issues. |
Ethical leadership | Leading by example in demonstrating ethical conduct. |
Ethics | Moral principles that define right and wrong behavior. |
Ethics and compliance officer | A company employee responsible for ensuring ethical behavior and compliance with laws. |
Ethics policies or codes | Formal guidelines outlining expectations for ethical behavior in a company. |
Ethics reporting mechanisms | Systems allowing employees to report unethical or illegal activities (e.g., hotlines). |
Human rights | Basic freedoms and rights to which all humans are entitled. |
Justice | The pursuit of fairness and equitable treatment in decisions and policies. |
Stages of moral development | A framework (by Kohlberg) describing how individuals grow in moral reasoning. |
Utilitarian reasoning | Decision-making that focuses on outcomes benefiting the majority. |
Virtue ethics | Focus on character and virtues in making ethical decisions. |
Module 6: Public Policy – Definitions
Term | Definition |
Antitrust laws | Laws designed to promote competition and prevent monopolies. |
Deregulation | Removal or reduction of government rules and regulations. |
Economic regulation | Government rules that influence business behavior in economic matters (prices, entry). |
Fiscal policy | Government decisions on taxation and spending. |
Market failure | When markets fail to allocate resources efficiently or fairly on their own. |
Monetary policy | The Federal Reserve’s actions to manage the money supply and interest rates. |
Natural monopoly | A market where one provider dominates due to high infrastructure costs. |
Negative externality | Harmful side effect of business activity that affects others. |
Public policy | A plan or action by government to solve societal problems. |
Regulation | Rules established by government to control business conduct. |
Reregulation | Reintroduction or strengthening of government regulations. |
Social assistance policies | Programs designed to support vulnerable populations (welfare, food assistance). |
Social regulation | Rules focused on protecting health, safety, and the environment. |
Module 7: Corporate Political Strategy – Definitions
Term | Definition |
Advocacy advertising | Ads that promote a company’s views on public issues to shape public opinion. |
Corporate political strategy | Actions businesses take to influence public policy or government decisions. |
Dark money | Political spending by organizations that do not disclose their donors. |
Economic leverage | Using financial power or market influence to sway political decisions. |
Lobbying | Direct efforts to influence policymakers' decisions. |
Political action committee (PAC) | Organization that raises and donates money to political candidates or parties. |
Revolving door | Movement of individuals between roles in government and private industry. |
Super PAC | Political action committee that can raise unlimited funds but can't coordinate directly with candidates. |
Trade association | Group of businesses in a specific industry that advocate for common interests. |
Module 8: The Environment – Definitions
Term | Definition |
Biodiversity | Variety of plant and animal life in ecosystems. |
Carbon neutrality | Achieving net-zero carbon emissions by balancing emissions with removal or offsets. |
Carbon offsets | Investments in environmental projects to compensate for carbon emissions. |
Climate change | Long-term changes in temperature and weather patterns caused by human activity. |
Command-and-control regulation | Government-imposed rules with specific limits and penalties for non-compliance. |
Commons | Shared resources (such as air or oceans) that are vulnerable to overuse. |
Environmental justice | The fair distribution of environmental benefits and burdens across populations. |
Environmental Protection Agency (EPA) | U.S. government agency responsible for protecting human health and the environment. |
Extended product responsibility | The idea that manufacturers are responsible for their products throughout their lifecycle. |
Global warming | The rise in Earth's average temperature caused by increased greenhouse gases. |
Industrial ecology | Designing industrial systems to minimize environmental impact. |
Life-cycle analysis | Assessing environmental impacts from creation to disposal of a product. |
Marine ecosystems | Ocean habitats and the organisms living within them. |
Market-based mechanisms | Using financial incentives (like carbon taxes) to reduce pollution. |
Ozone | A layer of gas in the atmosphere that protects against harmful UV rays. |
Technology cooperation | Sharing technological innovations between nations or organizations to address environmental problems. |