Session:2 Making Ethical Decisions and Managing a Socially Responsible Business
Key Terms
Introduction to Business | Leadership Development – Micro-Learning Session
Rice University 2020 | Michael Laverty, Colorado State University Global Chris Littel, North Carolina State University| https://openstax.org/details/books/introduction-business
- code of ethics
- A set of guidelines prepared by a firm to provide its employees with the knowledge of what the firm expects in terms of their responsibilities and behavior toward fellow employees, customers, and suppliers.
- corporate philanthropy
- The practice of charitable giving by corporations; includes contributing cash, donating equipment and products, and supporting the volunteer efforts of company employees.
- corporate social responsibility (CSR)
- The concern of businesses for the welfare of society as a whole; consists of obligations beyond those required by law or contracts.
- deontology
- A philosophy in which a person will follow his or her obligations to an individual or society because upholding one’s duty is what is ethically correct.
- ethical issue
- A situation where a person must choose from a set of actions that may be ethical or unethical.
- ethics
- A set of moral standards for judging whether something is right or wrong.
- justice
- What is considered fair according to the prevailing standards of society; an equitable distribution of the burdens and rewards that society has to offer.
- social investing
- The practice of limiting investments to securities of companies that behave in accordance with the investor’s beliefs about ethical and social responsibility to encourage businesses to be more socially responsible.
- stakeholders
- Individuals or groups to whom a business has a responsibility; include employees, customers, the general public, and investors.
- strategic giving
- The practice of tying philanthropy and corporate social responsibility efforts closely to a company’s mission or goals and targeting donations to the communities where a company does business.
- utilitarianism
- A philosophy that focuses on the consequences of an action to determine whether it is right or wrong; holds that an action that affects the majority adversely is morally wrong.