Chapter 1
Customers, employees, shareholders, suppliers, and communities are also known as this in business.
Who are stakeholders of a business.
This acronym stands for corporate social responsibility.
What is CSR
The principles and standards that determine acceptable conduct in business.
What are business ethics.
A formal statement outlining an organization’s ethical standards and expectations.
What is a code of ethics.
These stakeholders engage in economic transactions with the firm, while nonmarket stakeholders do not but are affected by its actions.
Who are market stakeholders?
This maxim says those who do not use power responsibly will eventually lose it.
What is the iron law of responsibility.
This ethical framework focuses on characteristics like honesty and integrity.
What is the virtues framework.
The act of reporting unethical or illegal activities within an organization.
What is whistleblowing
It refers to the importance of a stakeholder, determined by power, legitimacy, and urgency.
What is stakeholder salience.
This gap grows larger when organizations fail to understand what their stakeholders want.
What is the performance-expectations gap.
This ethical framework focuses on making decisions based on the greatest good for the greatest number of people.
What is utilitarianism
This phrase implies ethical leadership is essential in the workplace.
What is tone at the top
The purpose of this tool is to visually identify stakeholders, their interests, and their level of influence on a business.
What is a stakeholder map.
In this process, a company identifies the issue, analyzes the issue, generates options, takes action, and evaluates results.
What is the issue management process.
Children at an early stage of moral development apply this type of reasoning.
What is egocentric reasoning.
This type of employee is most likely to report ethical issues in an organization.
Who are executives.
This argument for the stakeholder theory of the firm says that the stakeholder view is simply a more realistic description of how companies really work.
What is the descriptive argument.
Stakeholder salience is how much attention stakeholders get based on power, legitimacy, and urgency. In contrast, this term refers to the significance of a stakeholder's concerns in relation to the company's economic, environmental, and social impacts, essentially determining which issues are most important to address for the company's overall sustainability.
What is stakeholder materiality
This factor in determining the moral intensity of an ethical issue revolves around how quickly the consequences take effect.
What is temporal immediacy.
This type of program combines concern for the law with an emphasis on employee responsibility.
What are integrity-based ethics programs.