business ethics and social responsibility Ch 2

social responsibility

a business's obligation to maximize its positive impact and minimize its negative impact on society

appellate court

a court that deals with solely with appeals relating to the interpretation of law

Sarbanes-Oxley Act

a law that criminalized securities fraud and strengthened penalties for corporate fraud

mediation

a method of outside resolution of labor and management differences in which the third party's role is to suggest or propose a solution to the problem

contract

a mutual agreement between two or more parties that can be enforced in a court if one party chooses not to comply with the terms of the contract

fraud

a purposefully unlawful act to deceive or manipulate in order to damage others

Uniform Commercial Code (UCC)

a set of statutory laws covering several business law topics

mini-trial

a situation in which both parties agree to present a summarized version of their case to an independent third party.

personal property

all other property that is not real property

ethical issue

an identifiable problem, situation, or opportunity that requires a person to choose from among several actions that may be evaluated as right or wrong, ethical or unethical

product liability

businesses' legal responsibility for any negligence in the design, production, sale, and consumption of products

Sustainability

conducting activities in a way that allows for the long-term well-being of the natural environment, including all biological entities

real property

consists of real estate and everything permanently attached to it

intangible property

consists of rights and duties, its existence may be represented by a document or by some other tangible item

the extent to which businesses meet the four dimensions of social responsibility placed on them by stakeholders is referred to as ______ citizenship.

corporate

the extend to which businesses meet the legal, ethical, economic, and voluntary responsibilities placed on them by their stakeholders is referred to as _______.

corporate citizenship

civil law

defines all the laws not classified as criminal and it specifies the rights and duties of individuals and organizations.

Abusive Behavior

difficult to assess and manage because of diversity in culture and lifestyle

organizational _______ initiatives have been supportive of many positive and diverse organizational objectives, such as profitability, hiring, employee satisfaction, and customer loyalty

ethics

Four stages of social responsibility

financial, legal compliances, ethics, and philanthropic. Also as , economic, legal, ethical, and voluntary.

codes of ethics

formalized rules and standards that describe what a company expects of its employees

implies warranty

imposed on the producer or seller by law. although it may not be written document provided at the time of sale

type(s) of property is covered by property law?

intellectual property personal property real property

tangible properties

items that have a physical existence, such as automobiles, business inventory, and clothing

the legal power of a court , through a judge, to interpret and apply the law and make a binding decision in a particular case is referred to as _______.

jurisdiction

the current-trend is to move away from ______-based ethical initiatives in organizations to _____-based initiatives that make ethics a part of core organizational values

legally; cultural

bribes

payments, gifts, or special favors intended to influence the outcome of a decision

abusive behavior is difficult to assess and manage because _____.

people have very diverse cultures and lifestyles

business ethics

principles and standards that determine acceptable conduct in business

tort

private or civil wrong other than a breach of conduct

criminal law

prohibits a specific kind of action, such as unfair competition or mail fraud, also imposes a fine or imprisonment as punishment for violating the law

intellectual property

refers to property, such as musical works, artworks, books, and computer software, that is generated by a person's creative activities.

business law

refers to the laws and regulations that govern the conduct of business.

arbitration

settlement of a labor/management dispute by a third party whose solution is legally binding and enforceable.

private court system

similar to arbitration in that an independent third party resolves the case after hearing both sides of the story

what do studies show about the relationship between social responsibility and profitability?

social responsibility is associated with improved business performance

express warranty

stipulates the specific terms the seller will honor

whistleblowing

the act of an employee exposing an employer's wrongdoing to outsiders, such as the media or government regulatory agencies

consumerism

the activities that independent individuals, groups, and organizations undertake to protect their rights as consumers

Corporate Citizenship

the extent to which businesses meet the legal, ethical, economic, and voluntary responsibilities placed on them by their stakeholders

Jurisdiction

the legal power of a court, through a judge, to interpret and apply the law and make a binding decision in a particular case

trial court

when a court must determine the facts of the case, decide which law or set of laws is pertinent to the case, and apply those laws to resolve the dispute

lawsuits

where one individual or organization takes another to court using civil laws

congress passed the _________ Act, which includes a "whistleblower bounty program"

Dodd-Frank