Business ethics Flashcards
(23 cards)
define capitalism?
an economic based system where private ownership of how things are made and sold and other businesses compete between one another to make a profit
define a shareholder?
a person who has invested money in a business in the return for a share of profit
whats corporate social responsibility?
a sense that a business has a wider responsibility then to their shareholders including the communities they live in and work environment
define whistle blowing?
when an employee discloses wrongdoing to the employer or public
define globalisation?
the integration of economies, industries, markets, cultures and
policymaking around the world
define a stakeholder?
a person who is affected or involved in some form of relationship with the business
whats consumerism?
set of social beliefs that put a high value on acquiring material things
what is corporate social responsibility?
business has the responsibility to the environment and community
what is globalisation?
issues that businesses are global entities giving them tremendous power
what are the two main types of corporate social responsibility?
environmental CSR
community CSR
whats environmental corporate social responsibility?
reducing a negative impact on the environment by a business using renewable and sustainable energy and products
having a business being carbon neutral
donating to pro-environmental groups
whats community corporate social responsibility?
how is this achieved?
responsibility has to social community and respecting human rights and avoiding exploitation
eg: no child labour, treatment of employees (minimum wage) , donating to charities
why is CSR and ESG (environmental, social and governance) promoted?
way of linking good business with good ethics
minimises risk of government stepping in and regulating business allowing business to maximise profit
why was Milton Friedman against CSR?
argued taking money away to fund for CSR was equivalent to stealing money from shareholders
the money instead needed for shareholders and thats the main CSR for the business
why do businesses take on corporate social responsibility?
3 ways
- improve image with customers
- improve image with investors
- improve image with certain types of employees
- fear if not viewed negatively by customer
whats the role of the FTSE4Good index series?
provides information for investors on businesses that demonstrate ‘strong environmental, social and governance practices’
includes businesses making efforts to reduce green house gas emissions
why would a business improve facilities for their employers?
worried if they don’t, employees will go and work for competition
why would a business have CSR out of fear from the government?
whats an example of this?
because fear they will have more restrictive regulation on their activities by the government
ie: newspaper businesses may agree to restrict their intrusion into the lives of celebs who are vulnerable because fear they may be banned from intruding on all peoples lives
who defines what a stakeholder is, there are two people and what book?
Crane and Mitten
‘Business ethics: a European perspective’
finish the quote about a stakeholder
“ is harmed or…..”
“is harmed or benefitted from the corporation” - Crane and Mitten
what is philanthropic corporate social responsibility?
voluntary actions a business takes to promote the welfare of others ie: through charitable donation
whats the difference between importance of philanthropic CSR and stakeholders
PCSR = voluntary
stakeholders = necessary, obligations a business cannot reject without serious damage to their repretation
why do businesses have to thoroughly think through a decision like shutting Uk steel works?
advantages and disadvantages (mainly dis)
