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143 Cards in this Set
- Front
- Back
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Integrity
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Appropriateness of a corporation's behaviour and its adherence to moral guidelines acceptable to society such as honesty, fairness and justice.
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Responsible Corporation
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A business undertaking that responds to social, ethical and environmental responsibilities in addition to its economic obligations.
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Economic System
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Arrangement using land, labour and capital to produce, distribute and exchange goods and services to meet the needs & wants of people in society.
The objective of an economic system - to use a society's resources to meet the society's needs. |
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Capitalism
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Economic system allowing private ownership of the means of production (land, labour and capital) and assumes that economic decision making is in the hands of individuals or enterprises who make decisions expecting to earn a profit.
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Free Enterprise System
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Economic system characterized by:
- ownership of private property by individuals and enterprises - the profit motive - a competitive market system - a limited involvement by government |
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Laissez-Faire Capitalism
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Economic system operating with absolute minimum interference by government in the affairs of business.
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Responsible Enterprise System
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Economic system operating as a free enterprise system but incorporating the element of accountability.
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Stakeholder Capitalism
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Economic system in which corporations accept broader obligations beyond financial ones for shareholders.
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Legitimacy
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Belief in the rightness of an institution, in this case the appropriateness of our business system to supply goods and services wanted by Canadian society.
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Three main approaches to ethical thinking
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1. Deontological - determines goodness or rightness from examining the acts rather than from the consequences of the acts.
2. Teleological - focuses on outcomes or results of actions 3. Virtue Ethics - emphasizes the individuals character or identity and focuses on being instead of doing. |
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Three most important stakeholders in operations of a corporation?
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1. Owners
2. Board of Directors 3. Managers |
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Eight fundamental elements of Canadian capitalism
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The right of:
1. Private property 2. Individualism & Economic Freedom 3. Equality of Opportunity 4. Competition 5. Profits 6. Work Ethic 7. Consumer Sovereignty 8. Role of Government. |
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Right of Private Property
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- legal right to own and use economic goods (i.e. land, buildings)
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Intellectual Property
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Umbrella term for patents, copyright, trademarks, industrial designs, integrated circuit topographies and plant breeders' rights.
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Individualism
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View that the individual (not society or a collective) is the paramount decision maker in society and assumes that the individual is inherently decent and rational.
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Economic Freedoms
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Exist when the business system operates with fee restrictions on its activities.
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Equality of Opportunity
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Assumption that all individuals or groups have an even chance at responding to some condition in society.
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Competition
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Condition in a market system in which many rival sellers seek to provide goods and services to many buyers.
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Oligopoly
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Type of competition where the few sellers in an industry behave similarly.
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Profit
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Excess of revenues over expenses; closely associated with competition.
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Work Ethic
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Code of values (body of moral principles) claiming that work is a desirable, natural activity which is good in and of itself.
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Customer Sovereignty
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Assumption existing in an economy that consumers have and exercise power over producers through the decisions they make in purchasing goods and services provided by corporations.
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Creative Capitalism
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Places resolution of social needs as primary instead of secondary to economic activity and performance.
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State Capitalism
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Economic system where governments manipulate market outcomes for political purposes.
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Greed
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Excessive desire to acquire of possess more than one needs or deserves; especially more material wealth.
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Business Ethics
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Rules, standards, codes or principles that provide guidelines for morally right behaviour and truthfulness in specific situations.
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Value Judgements
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Subjective evaluations of what is considered important; are based on how managers intuitively feel about the goodness or rightness of various jobs.
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Moral Standards
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Means by which individuals judge their actions and the actions of others based upon accepted behaviour in society.
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Ethical Relativism
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Belief that ethical answers depend on the situation and there are no universal standards or rules to guide or evaluate morality.
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Self-Interest Ethic
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Individuals or corporations set their own standards for judging the ethical implications of their actions; only the individuals values and standards are the basis for the actions.
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Personal Values Ethic
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Individuals or corporations behaviour is based upon being a good person or corporate citizen with traits such as courage, honesty, wisdom, temperance and generosity.
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Ethics of Caring
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Gives attention to specific individuals or stakeholders harmed or disadvantaged and their particular circumstances.
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Government Requirements Ethic
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Acceptance of a code of laws as the governing rules of society or as a contract with society that determines what is considered right or appropriate behaviour.
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Utilitarian Ethic
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Focuses on the distribution of benefits and harms to all stakeholders with the view to maximizing benefits.
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Universal Rules Ethic
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Ensures that managers of corporations have the same moral obligations in morally similar situations.
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Individual Rights Ethic
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Relies on a list of agreed-upon rights for everyone that will be upheld by everyone and that becomes the basis for deciding what is right, just or fair.
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Economic Efficiency Ethic
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Judges the moral implications of a decision by its economic consequences and provides the moral justification for a market system.
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Ethics of Justice
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Considers that moral decisions are based on the primacy of a single value: justice.
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Moral Reasoning
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Systematic approach to thinking or reasoning through the implications of a moral problem or issue.
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Three Levels of Ethical Assessment
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1. Awareness of moral or ethical implications
2. Ethical implications assessed upon individual and societal influences described as value judgements and moral standards. 3. Implications assessed upon use of ethical principles. |
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Nine Theoretical Bases/Ethics for Understanding Ethical Conduct
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1. Self-Interest
2. Personal Virtues 3. Caring 4. Government Requirements 5. Utilitarian 6. Universal Rules 7. Individual Rights 8. Economic Efficiency 9. Justice |
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Kohlbergs Theory
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1. Preventional Level
- Stage 1: Punishment and obedience orientation - Stage 2: Individual instrumental purpose and exchange orientation. 2. Conventional Level - Stage 3: Mutual interpersonal expectations, relationships and conformity orientation - Stage 4: Law and order orientation 3. Post-Conventional Level - Stage 5: Social contract orientation - Stage 6: Universal ethical principle orientation |
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Preventional Level
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Stage 1 - Punishment and obedience orientation: Good/bad decided in terms of the power to determine the rules. Authority is exercised & fear used as an influencer.
Stage 2 - Individual instrumental purpose and exchange orientation: situation is evaluated on basis of fairness to self or self-satisfaction ("what's in it for me") |
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Conventional Level
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Stage 3: Mutual interpersonal expectations, relationships and conformity orientation
- concerned with being a good person - group norms are followed - loyalty and belonging important Stage 4: Law and order orientation - laws viewed as promoting societal welfare and thus observed - what is right determined by a sense of duty to society |
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Post Conventional Level
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Stage 5: Social Contract Orientation
- laws and morals may be in conflict; another bias more appropriate for determining what is right is necessary - societal standards apply that are established through consensus Stage 6: Universal Ethical Principle Orientation - ethical principles chosen as basis for what's right regardless of society's views. - decisions based upon ones conscience; logical ethical principles are used. |
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Corporate Ethics Programs
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Some combination of a statement of values, codes of conduct and/or ethics, ethics, training, ethics audits and consulting services, ethics officers and committees, and ethics reporting systems
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Statement of Values
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Description of the beliefs, principles, and basic assumptions about what is desirable or worth striving for in an organization.
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Code of Conduct
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Explicitly states what appropriate behaviour is by identifying what is acceptable and unacceptable.
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Code of Ethics
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Statement of principles or values that guide behaviour by describing the general value system within which a corporation attempts to operate in a given environment.
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Code of Interest
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Situation in which an individual has a private or personal interest that is sufficient to appear to influence the objective exercise of that individuals duties.
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Ethics Audit
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A systematic effort to discover actual or potential unethical behaviour in an organization.
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Ethics Officer
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Independent manager, reporting to the board of directors or CEO, who reviews complaints or information from anyone in the organization or any stakeholder, studies the situation and recommends action if necessary.
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Ethics Committee
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A group, comprising of directors, managers, or staff, formed to monitor ethical standards and behaviour.
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Whistle blowing
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Act of voluntary disclosure disclosure of inappropriate behaviour or decisions to persons in positions of authority in an organization.
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Integrity Management
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An ethics program that combines a compliance-based and values-based approach.
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Corporate Social Responsibility (CSR)
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The way a corporation achieves a balance among its economic, social and environmental responsibilities in its operations so as to address shareholder and other stakeholder expectations.
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Corporate Sustainability (CS)
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Corporate activities demonstrating the inclusion of social and environmental as well as economic responsibilities in business operations as they impact all stakeholders.
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Reputation Management
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Any effort to enhance the corporation's image and good name; in the past, the focus of these efforts was on media and public relations, and to some extent, crisis management.
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Social Impact Management
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Defined by the Aspen Institute as "the field of inquiry at the intersection of business needs and wider societal concerns that reflects and respects the complex interdependency between the two.
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Triple-E (Economic, Ethical, and Environmental) Bottom Line
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Evaluates a corporation's performance according to a summary of the economic, social and environmental value the corporation adds or destroys.
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Corporate Citizenship
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The demonstration by a corporation that it takes into account its complete impact on society and the environmental as well as its economic influence.
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Business Citizenship
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Includes the responsibilities of corporate citizenship on a local and national basis and extends it to a global or universal scope.
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Corporate Ethics Programs
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combination of a statement of values, codes of conduct and/or ethics, ethics training, ethics audits and consulting services, ethics officers and committees, and ethics reporting systems
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Statement of Values
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description of the beliefs, principles and basic assumptions about what is desirable or worth striving for in an organization
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Code of Conduct
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explicitly states what appropriate behaviour is by identifying what is acceptable and unacceptable
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Code of Ethics
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statement of principles or values that guide behaviour by describing the general value system within which a corporation attempts to operate in a given environment
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Conflict of Interest
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situation in which an individual has a private or personal interest that is sufficient to appear to influence the objective exercise of that individual's duties
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Ethics Audit
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systematic effort to discover actual or potential unethical behaviour in an organization
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Ethics Officer
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independent manager who reviews complaints or information from anyone in the organization or any stakeholder; studies the situation and recommends action if needed
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Ethics Committee
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group comprising of directors, managers or staff that is formed to monitor ethical standards and behaviour
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Whistleblowing
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act of voluntary disclosure of inappropriate behaviour or decisions to persons in positions of authority in an organization
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Integrity Management
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ethics program that combines a compliance-based and values-based approach
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Corporate Social Responsibility
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the way a corporation achieves a balance among it's economic, social and environmental responsibilities in its operations so as to address shareholder and other stakeholder expectations
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Corporate Sustainability
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corporate activities demonstrating the inclusion of social and environmental as well as economic responsibilities in business operations as they impact all stakeholders to ensure the long-term survival of the corporation
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Corporate Citizenship
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a corporation demonstrating that it takes into account its role in and complete impact on society and the environment as well as its economic influence
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Business Citizenship
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includes responsibilities of corporate citizenship on a local and national basis and extends it to a global or universal scope
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Reputation Management
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any effort to enhance the corporations image and good name; in the past, the focus of these efforts was on media and public relations - to some extend crisis management as well.
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Social Impact Management
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"the field of enquiry at the intersection of business needs and wider societal concerns that reflects and respects the complex interdependency between the two"
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Triple-E Bottom Line
(economic, ethical and environmental) |
the evaluation of a corporation's performance according to a summary of the economic, social or ethical and environmental value the corporation adds or destroys.
Variation - triple P = profits, people & planet) |
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Corporate Philanthropy
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effort a business makes to contribute socially to a society (i.e. donations, volunteerism, sponsorship).
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Charitable Foundation
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corporation or trust constituted and operated exclusively for charitable purposes.
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Cause Related Marketing
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purchase of particular product results in donations being made by a corporation to a non profit organization's program.
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Corporate Voluntarism
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the time and talent employees commit to community organizations with support or consent from employers who recognize the value of such volunteerism.
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Corporate Sponsorship
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partnership established for mutual benefit between a business sponsor and an event for non-profit.
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Social Venture Philanthropy
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investment of human and financial resources by corporations in non-profit community development agencies to generate a social return instead of only a financial one.
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Social Enterprise
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model of business operation where some or all profits are deliberately used to further social aims.
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Social Entrepreneur
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innovative, visionary leader of a non-profit with real-world problem solving creativity and a high awareness to ethical considerations.
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Strategic Giving
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attempt to rationalize the shareholder interest with corporate philanthropy where the corporation benefits directly from the funds given.
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Philanthrocapitalism
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draws upon modern business practices and an entrepreneurial spirit to get more from corporate social responsibility.
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Community Investment
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efforts of a corporation to help develop a community and create economic opportunities
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Chosen Instrument
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corporation within a particular industry that receives some form of special attention from government through grants, loans, purchasing policy or tax incentives
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Corporate Public Affairs
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management function responsible for monitoring and interpreting the governmental environment of the corporation/industry and for managing the responses necessary to protect the interests of the corporation or industry.
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Corporate Agenda
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the real or imagined alleged domination of public policy or government programs by corporations or business organization sin their own best interests
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Corporate Welfare
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any action by government that gives a specific corporation or an entire industry a benefit not offered to others.
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Self-Regulation
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regulation imposed by the corporation or industry and not bey the government or market forces
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Self-Regulatory Organizations (SROs)
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industry groups delegated or designated a regulatory function including the development, use and enforcement of standards.
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Tax Expenditures (tax credits)
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potential revenues the government chooses not to collect and are any form of incentive or relief grants through the tax system rather than through government expenditures
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Mixed Enterprises
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government owns equity in a private sector enterprise
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Public-Private Partnership (PPP)
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cooperative venture between the public and private sectors, built on expertise of each partner, that best meets clearly defined public needs through appropriate allocation of resources, risks and rewards.
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Lobbying
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attempts to influence directly or indirectly any government activity and includes any attempt to influence legislators, staff members, public administrators, and members of regulatory agencies.
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Privatization
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"strengthening of the market at the expense of the state"
- Heald |
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Governing System
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the process, structures and relationships through which decisions are made
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Investors
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individuals who personally hold equity interests for investment purposes and who are not involved in the corporation as entrepreneurs or managers
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Mutual Fund
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pool of money from many individual investors that is invested on their behalf, usually in a specific kind of investment
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Labour-Supported Investment Funds (LSIFs)
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funds that provide venture capital primarily to private corporations to create employment
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Private Equity Firms
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firms that manage large pools of money acquired from wealthy individuals or families and big institutions such as pension and mutual funds.
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Venture Capital Company
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type of private equity firm that usually a quires part ownership of business enterprises
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Sovereign Wealth Fund
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government owned pool of financial instruments including assets such as stocks, bonds, and property that are purchased from wealth accumulated from resource sales (petroleum) or government sponsored pension funds.
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Dual-Class Stock
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more than one type of share or stock with different voting rights and dividend payments is issued by a single corporation
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Non-Voting Shares
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common shares without voting privileges
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Passive Shareholders
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those who do not attempt to influence the affairs on the corporation even though they have a legal right to do so
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Active Shareholder
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participate in the governance to the full extent allowed by the law
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Worker Capitalism
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employee ownership as workers are turned into capitalists through stock ownership
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Shareholder Democracy
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exercise of power by owners to ensure they are treated fairly and enjoy equally the privileges and duties of ownership
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Responsible Investing
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screening investments in corporations of mutual and pension funds for their response to social or ethical responsibilities in addition to its economic obligations
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Corporate Governance
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processes, structures, and relationships through which the shareholders as represented by a board of directors, oversee the activities of the corporation
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Board of Directors
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group of individuals elected by shareholders to govern or oversee the corporation's affairs
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Fiduciary Duties
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obligations owed by directors to shareholders that are prescribed by laws or regulations
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Independent (unrelated) Director
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director free from any interest and any business or other relationship which could materially interfere with the director's ability to act in the best interests of the corporation
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Audit Committee
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members of the board of directors; oversees the internal & external accounting auditing function to ensure that financial statements accurately represent the condition of the corporation
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Work Ethic
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code of values or body of moral principles claiming that work is desirable, natural and good
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Discrimination
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preferential treatment on bases not directly related to qualifications of the job or performance of the job
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Employment Equity
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fair and equal treatment of employees
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Diversity Management
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voluntary initiative that goes beyond what is required by law to eliminate workplace discrimination
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Consumerism
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social movement to protect and augment the rights and powers of buyers in relation to sellers
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Business to Business
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commercial activity where one corporation sells goods or services to another corporation rather than to consumers
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Supply (value) Chain
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route that a product travels from procurement of raw materials to it's disposal by consumers
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Extended Producer Responsibility
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environmental policy approach; producers responsibility carries past the disposal of their product by consumers
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Sustainability Purchasing
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acquisition of goods/services that is environmentally and socially responsible.
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Fair Trade
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identifies products that are involved with sustainability purchasing but usually focuses on the beginning of the product chain
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Environmental Ethic
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set of values/principles that all individuals/groups have an even chance at responding to some condition in society
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Sustainable Development
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using resources that do not damage prospects for the use of resources by future generations
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Acid Rain
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high concentration of sulphuric & nitric acid
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Ecosystem
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biological community of interacting organisms and their physical environment
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Ozone
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naturally occurring gas that protects the earth by filtering out UV radiation from the sun
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Waste Management
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disposal processing, controlling, recycling, and reusing the solid, liquid and gaseous wastes of plants, animals, and humans
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Environmental Non-Governmental Organizations (ENGOs)
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groups that hold shared values/attitudes about the challenges confronting the natural environment and advocate for changes to improve environmental conditions
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Standard Environmentalism
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occurs when government regulation is necessary
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Market Environmentalism
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exists where economic incentives created by the market are more effective at protecting the environment than government regulation
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Emissions Trading
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system whereby corporations set targets for greenhouse gas reduction; if one cannot meet target, it purchases credits form those that have met targets
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Offsets (emissions-reduction credits)
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credits purchased form other corporations to mitigate greenhouse gases released into the environment
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Green Marketing
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selling environmentally friendly goods & services to consumers
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Greenwashing
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corporation does not seriously address environmental issues; only talks about them.
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