Ch. 4 Business Ethics

Front 1

ethics

Back 1

study of what constitutes right and wrong behavior

Front 2

business ethics

Back 2

looks at the decisions businesses make or have to make and whether those decisions are right or wrong. Has to do with how businesspersons apply moral and ethical principles in making their decisions.

Front 3

triple bottom line

Back 3

a corporation's profits, it's impact on people, and its impact on the planet

Front 4

moral minimum

Back 4

the minimum degree of ethical behavior expected of a business firm, which is usually defined as compliance with the law.

Front 5

ethical reasoning

Back 5

the application of morals and ethics to a situation

Front 6

duty based ethics

Back 6

is rooted in the idea that every person has certain duties to others, including both humans and the planet.

Front 7

outcome-based ethics

Back 7

focuses on the impacts of a decision on society or on key stakeholders

Front 8

principles of rights

Back 8

believe that a key factor in determining whether a business decision is ethical is how that decision affects the rights of others.

Front 9

categorical imperative

Back 9

concept developed by Immanuel Kant as an ethical guidleline for behavior. In deciding whether an action ir right or wrong , or desirable or undesirable, a person should evaluate the action in terms of what would happen if everybody else in the same situation, or category, acted the same way.

Front 10

utilitarianism

Back 10

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 this philosphy, a "good" decision is one that results in the greates goods for the greatest number of people affected by the decision.

Front 11

cost benefit analysis

Back 11

involves an assesment of the negative and positive effects of alternative actions on these individuals.

Front 12

corporate social responsibilty

Back 12

combines a commitment to making ethical decisions, improving society, and minimizing environmental impact.

Front 13

stakeholders

Back 13

groups others than the company's shareholders, that are affected by corporate decisions. Stakeholders include employees, customers, creditors, suppliers, and the community in which the corporation operates.

Front 14

inquiry

Back 14

(step 1 in the systematic approach)

the decisions maker must understand the problem. To do this, one must identify the parties involved ( the stakeholders) anc collect the relevant facts.

Front 15

discussion

Back 15

(Step 2 in the systematic approach)

decision maker lists possible actions. The ultimate goals for the decision are determined, and each option is evaluated using the laws and ethical principles listed.

Front 16

decision

Back 16

those participating in the decisions making work together to craft a consensus decision or consensus plan of action for the corporation.

Front 17

justification

Back 17

the decision maker articulates the reasons for the proposed action or series of actions. Generally these reasons should come from the analysis done in step 3. This step essentially results in documentation to be shared with stakeholders explaining why the proposal is an ethical solution to the problem.

Front 18

evaluation

Back 18

this final step occurs once the deicions had been made and implemented. The solution should ne analyzed to determine if it was effecrtive. The results of this evalutation may be used in making future decisions.