business ethics

what constitutes right or wrong behavior and the application of moral principles in a business context

categorical imperative

 an ethical guideline developed by Immanuel Kant under which an action is evaluated in terms of what would happen if everybody else in the same situation, or category, acted the same way

corporate social responsibility

the idea that corporations can and should act ethically and be accountable to society for their actions

cost-benefit analysis

a decision-making technique that involves weighing the costs of a given action against the benefits of that action

ethical reasoning

a reasoning process in which an individual links his or her moral convictions or ethical standards to the particular situation at hand

moral principles and values applied to social behavior

moral minimum

the minimum degree of ethical behavior expected of a businessperson, which is usually defined as compliance with the law

principle of rights

the belief that human beings have certain fundamental rights. Whether a business action or decision is ethical depends on how it affects the rights of various groups, such as owners, employees, consumers, suppliers, the community, and society

stock buyback

the purchase of shares of a company’s own stock by that company on the open market

stock option

a right to buy a given number of shares of stock at a set price, usually within a specified period of time

utilitarianism

an approach to ethical reasoning in which an action is evaluated in terms of its consequences for those whom it will affect. A “good” action is one that results in the greatest good for the greatest number of people