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Definition
| proposes that a private corporation has responsibilities to society that extend beyond making a profit. |
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| Friedman's Traditional View of Business Responsibility |
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Definition
| argues against the concept of social responsibility. Acting from motives other than economic and may, in the long run, harm the very society the firm is trying to help. By taking on the burden of these social costs, the business becomes less efficient. |
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| Carroll's Four Responsibilities of Business |
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Definition
1. Economic- Goods & Services(MUST DO)
2. Legal- Obey the law(Have to Do)
3. Ethical- Generally held beliefs of society(Should Do)
4. Discretionary- Voluntary Obligations(Might Do) |
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| Economic Responsibilities |
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Definition
| responsibilities of a business organization's management are to produce goods and services of value to society so that the firm may repay its creditors and shareholders |
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Definition
| responsibilities defined by governments in laws that management is expected to obey. |
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Definition
| responsibilities that management should follow the generally held beliefs about behavior in a society. |
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Term
| Discretionary responsibilities |
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Definition
| responsibilities that are purely voluntary obligations a corporation assumes. |
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Term
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Definition
| individuals, groups, or organizations that influence or are influenced by a business |
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Definition
| an overarching strategy that explicitly articulates the firm's ethical relationship with its stakeholders |
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Term
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Definition
the identification and evaluation of corporate stakeholders, which can be done in a three step process:
1. ID Primary stakeholders
2. ID Secondary stakeholders
3. Estimate the effect on each stakeholder group from any particular strategic decision |
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Term
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Definition
| those who have a direct connection with the corporation and who have sufficient bargaining power to directly affect corporate activities |
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Term
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Definition
those who have an indirect stake in the corporation but who are also affected by corporate activities.
Examples: NGOs, local communities, and governments |
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Term
| Relationship based countries |
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Definition
| countries that tend to be less transparent and have a higher degree of corruption than other countries. |
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Term
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Definition
| consensually accepted standards of behavior |
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Term
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Definition
| claim that morality is relative to some personal, social, or cultural standard and that there is no method for deciding whether one decision is better than another. |
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Term
| 4 Types of Moral Relativism |
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Definition
1. Naive relativism- individuals rule their own lives
2. Role relativism- social roles have certain obligations
3. Social group relativism- following norms of a peer group or social group
4. Cultural relativism- morality varies between cultures, societies, but not to judge them |
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Term
| Kohlberg's Levels of Moral Development |
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Definition
1. Pre-Conventional level: avoiding punishment & quid pro quo, concern for self...children
2. The conventional level: considerations of society's laws and norms. Actions are justified by an external code of conduct
3. The principled level: person's adherence to an internal moral code. An individual at this level looks beyond norms or laws to find universal values or principles. |
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Term
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Definition
| specifies how an organization expects its employees to behave while on the job |
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Term
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Definition
| employees who report illegal or unethical behavior on the part of others |
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Term
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Definition
| the precepts of personal behavior based on religious or philosophical grounds |
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Term
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Definition
| refers to formal codes that permit or forbid certain behaviors and may or may not enforce ethics or morality |
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Term
| 3 basic approaches to ethical behavior |
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Definition
1. Utilitarian approach
2. Individual rights approach
3. Justice approach |
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Term
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Definition
| proposes that actions and plans should be judged by their consequences. People should therefore behave in a way that will produce the greatest benefit to society and produce the least harm or the lowest cost. |
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Term
| Individual rights approach |
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Definition
| proposes that human beings have certain fundamental rights that should be respected in all decisions. It encourages selfish behavior |
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Term
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Definition
| proposes that decision makers be equitable, fair, and impartial in the distribution of costs and benefits to individuals and groups. |
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Term
| 3 questions for solving ethical problems |
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Definition
1. Utility: Does it optimize the satisfactions of all stakeholders?
2. Rights: Does it respect the rights of the individuals involved?
3. Justice: Is it consistent with the canons of justice? |
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Term
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Definition
1. Treat others as you would have them treat you
2. A person should never treat another human being simply as a means but always as an end. |
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