Chapter 5: Ethics, Corporate Social Responsibility, and Sustainability Test Questions – Flashcards
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Business Ethics
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accepted principles of right or wrong governing the conduct of businesspeople.
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Ethical Strategy
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A course of action that does not violate a company's businesses ethics
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Foreign Corrupt Practices Act
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U.S. law regulating behavior regarding the conduct of international business in the taking of bribes and other unethical actions
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Convention on Combating Bribery of Foreign Public Officials in International Business Transactions
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An Organization for Economic Cooperation and Development (OECD) convention that establishes legally binding standards to criminalize bribery of foreign public officials in international business transactions and provides for a host of related measures that make this effective.
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Ethical Dilemma
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A situation in which there is no ethically acceptable solution
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Personal Ethics
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Generally accepted principles of right and wrong governing the conduct of individuals
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Organizational Culture
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The values and norms shared among an organization's employees
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Culture Relativism
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The belief that ethics are culturally determined and that firms should adopt the ethics of the cultures in which they operate.
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Righteous Moralist
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One who claims that a multinational's home-country standards of ethics are the appropriate ones for companies to follow in foreign countries.
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Naïve Immoralist
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One who asserts that if a manager of a multinational sees that firms from other nations not following ethical norms in a host nation, that manager should not either.
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Utilitarian and Kantian Ethics
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These hold that the moral worth of actions or practices is determined by their consequences
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Kantian Ethics
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The belief that people should be treated as ends and never as means to the ends of others
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Rights Theories
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A twentieth-century that recognizes that human beings have fundamental rights and privileges that transcend national boundaries and cultures
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Universal Declaration of Human Rights
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A United Nations document that lays down the basic principles of human rights that should be adhered to.
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Veil of Ignorance
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Everyone is imagined to be ignorant of all of his or her particular characteristics, for example, race, sex, intelligence, nationality, family background, and special talents.
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Difference Principle
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Inequalities are justified if they benefit the position of the least-advantaged person.
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Code of Ethics
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A business's formal statement of ethical priorities.
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Stakeholders
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The individuals or groups that have an interest, stake or claim in the actions and overall performance of a company
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Internal Stakeholders
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people who work for or own the business as employees, directors, and stockholders.
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External Stakeholders
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individuals or groups that have some claim on a firm such as customers, suppliers, and unions.
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Moral Imagination
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standing in the shoes of a stakeholder and asking how a proposal decision might impact that stakeholder.
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Corporate Social Responsibility
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Refers to the idea that businesspeople should consider the social consequences of economic actions when making business decisions and that there should be a presumption in favor of decisions that have both good economic and social consequences.
