Chapter 2 Flashcards
(47 cards)
Corporate governance
the way in which an organization is governed, directed, and administered; requires balancing the interests of all stakeholders
Business integrity
the ability to act honestly, ethically, and in a socially responsible manner
Ethics
the study of right and wrong, and of the morality of the choices individuals make
Business ethics
the application of moral standards to business situations
Social responsibility audits
comprehensive reports of what an organization is doing in regard to social issues that affect it
Conflict of interest
occurs when a businessperson takes advantage of a situation for their own personal interests rather than for the employer’s interests
Transparency
the free flow of information inside and outside the company
Preconventional ethics
a stage in the ethical development of individuals in which people behave in a childlike manner and make ethical decisions in a calculating, self-centred, selfish way based on the possibility of immediate punishment or reward
Conventional ethics
the second stage in the ethical development of individuals in which people move from an egocentric viewpoint to consider the expectations of an organization or society
Postconventional ethics
the third stage in the ethical development of individuals in which people adhere to the ethical standards of a mature adult and are less concerned about how others view their behaviour than about how they will judge themselves in the long run
Code of ethics
a written guide to acceptable and ethical behaviour as defined by an organization
Whistle-blowers
an employee who exposes or reports unethical practices within the organization
Ethical dilemmas
decisions where every alternative impacts various stakeholders in unpleasant ways
Economic model of social responsibility
the view that society will benefit most when business is left alone to produce and market profitable products that society needs
Social responsibility
the recognition that business activities have an impact on society and the consideration of that impact in business decision making
Socioeconomic model of social responsibility
the concept that business should emphasize not only profits but also the impact of its decisions on society
Social investing
investors looking for opportunities that align with their beliefs and values
Stakeholder
anyone who is impacted by the activities of the business, including investors, employees, customers, suppliers, and the general public (i.e., government and society)
Strategic giving
a strategy to positively impact the company by giving with an expectation of a gain
Philanthropic initiatives are integrated into the company’s overall business strategy, rather than being treated as separate activities.
* This ensures that giving efforts are sustainable and contribute to the company’s long-term success.
Minority
a racial, religious, political, national, or other group regarded as different from the larger group of which it is a part and that is often singled out for unfavourable treatment
Employment equity
increased representation of minority groups in the workplace through provision of equal employment opportunities for all
Canadian Human Rights Commission (CHRC)
ensures federally regulated employers are fulfilling their legal obligation to provide equal employment opportunities to women, people with disabilities, Aboriginal peoples, and visible minorities
Caveat emptor
a Latin phrase meaning ‘let the buyer beware’
placing the responsibility on the buyer to perform due diligence before making a purchase.
Recycling
converting used materials into reusable materials to prevent their unnecessary disposal
