Business Law Test One Chapter 5 Vocab (ethics) – Flashcards
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Business Ethics
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ethics in a business context; a consensus of what constitutes right or wrong behavior in the world of business and the application of moral principles to situations that arise in the business setting.
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categorical imperative
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a concept developed by Kant as an ethical guideline for behavior. In deciding whether an action is right or wrong, a person should evaluate the action in terms of what would happen if everybody else in the same situation acted in the same way
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corporate social responsibility
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a concept that corporations can and should act ethically and be accountable to society for their actions
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cost-benefit analysis
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a decision making technique that involves weighing the costs of a given action against the benefits of the action
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duty-based ethics
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an ethical philosophy rooted in the idea that every person has certain duties to others, including both humans and the planet. those duties can be derived from religious principles or philosophical reasoning.
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ethical reasoning
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a reasoning process in which an individual links his or her moral convictions or ethical standards to the situation at hand.
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ethics
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moral principles and values applied to social behavior
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moral minimum
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the minimum degree of ethical behavior expected of a business firm, which is usually defined as compliance with the law.
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outcome-based ethics
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an ethical philosophy that focuses on the impacts of a decision on society or on key stakeholders
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principle of rights
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the principle that human beings have certain fundamental rights (to life, freedom, and the pursuit of happiness).
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stakeholders
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groups, other than the companies shareholders, that are affected by corporate decisions. can include employees, customers, creditors, suppliers, and the community in which the company operates
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triple bottom line
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the idea that investors and others should consider not only corporate profits, but also the corporations impact on people and on the planet in assessing the firm. (the bottom line is people, planet, profits)
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utilitarianism
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an approach to ethical reasoning in which ethically correct behavior is related to an evaluation of the consequences of a given action on those who will be affected by it. in utilitarian reasoning, a good decision is one that results in the greatest good for the greatest number of people affected by the decision.
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ethical fundamentalism
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a person looks to an outside source (bible, torah) or central figure (jesus, marx, mao) for ethical guidance
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kantian ethics
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a set of universal rules establishing ethical duties, which are based on reasoning and require consistency (based on do onto others as they do onto you)
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rawls social justice
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ethical duties are based on an implied justice (we have obligations to not harm each other and be fair)
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ethical relativism
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individuals decide what is ethical based on what is right or wrong. (problem: people wont be honest/some morals are different than others)
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maximizing profits
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business goal is to _____ ______
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stakeholder interest
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maximize profits while keeping in mind stakeholders wellbeing and interests
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corporate citizenship
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business goal in which to do well and solve social problems
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foreign corrupt practices act (FPCA)
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established penalties for bribery in international commerce
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sarbanes-oxley act
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makes corporate officers personally responsible for criminal acts of subordinates acting in the interest of the company. (requires corporation has a "code of ethics)
