Chapter 3 Ethics and Corporate Social Responsibility Flashcards Preview

Commerce 100 > Chapter 3 Ethics and Corporate Social Responsibility > Flashcards

Flashcards in Chapter 3 Ethics and Corporate Social Responsibility Deck (4)
Loading flashcards...
1
Q

Social Trends
Social Responsibility
Ethics

A

Social changes and their impact on the business environment.
The responsibilities a firm has to its stakeholders.
A set of moral standards for judging whether an action is right or wrong.

2
Q

Responsibilities to Stakeholders

A
Customers
Employees
Suppliers
Investors
Government
General Public
3
Q

Neo-Liberal School

A

Maximise profit, obey law.
A firm exists to maximise shareholder value, and must obey the “laws of the land”.
Improvements in health, freedom, etc. are due to economic growth arising from free enterprise.
CSR is a distraction that reduces positive effects of a market economy.
Video: Milton Friedman

4
Q

CSR School:

A

Include public interest in decision-making.
Maximise shareholder value, obey laws, uphold ethical standards, follow international norms.
Triple-bottom-line decision-making: Economic, Environmental, Societal.
Firms voluntarily embrace responsibility for the impact of their activities.