Intro to Business - Chapter 2 Vocab & Concepts

Economic Responsibilities

Bottom of the social responsibility pyramid

stakeholders

Individuals or groups to whom a business has a responsibility; include employees, customers, the general public, and investors.

Legal Responsibilities

Second (from the bottom) tier of the social responsibility pyramid

corporate social responsibility (CSR)

The concern of businesses for the welfare of society as a whole; consists of obligations beyond those required by law or contracts. Two important aspects of social responsibility are that the obligation is both voluntary and broad

corporate philanthropy

The practice of charitable giving by corporations; includes contributing cash, donating equipment and products, and supporting the volunteer efforts of company employees.

social investing

The practice of limiting investments to securities of companies that behave in accordance with the investor's beliefs about ethical and social responsibility to encourage businesses to be more socially responsible.

strategic giving

The practice of tying philanthropy and corporate social responsibility efforts closely to a company's mission or goals and targeting donations to the communities where a company does business.

Ethical Responsibilities

Third tier (second from the top) of the social responsibility pyramid

Philanthropic Responsibilities

Top tier of the social responsibility pyramid

justice

What is considered fair according to the prevailing standards of society; an equitable distribution of the burdens and rewards that society has to offer.

deontology

A philosophy in which a person will follow his or her obligations to an individual or society because upholding one's duty is what is ethically correct.

utilitarianism

A philosophy that focuses on the consequences of an action to determine whether it is right or wrong; holds that an action that affects the majority adversely is morally wrong.

code of ethics

A set of guidelines prepared by a firm to provide its employees with the knowledge of what the firm expects in terms of their responsibilities and behavior toward fellow employees, customers, and suppliers.

ethics

A set of moral standards for judging whether something is right or wrong.

ethical issue

A situation where a person must choose from a set of actions that may be ethical or unethical.