Value Systems
This term refers to the formalized set of personal principles that guide an individual's behavior.
What is a Value System?
Any group or individual with a vested interest in the success or failure of a business.
Who are Stakeholders?
Within the value chain, these activities (like R&D and Sales) directly create and deliver the product.
What are Primary Activities?
The belief that a corporation’s only social duty is to make money for its owners.
What is the Instrumental Approach?
The board committee that oversees the company's financial reporting and external auditors.
What is the Audit Committee?
Unlike intrinsic values, these items (like money) are valuable only because they lead to something else.
What is Extrinsic Value?
This primary stakeholder group actually owns equity in the corporation.
Who are Stockholders/Shareholders?
Functions like HR and Legal that provide the foundation for primary activities to happen.
What are Support Activities?
The status a firm reaches when it offsets its total environmental impact via credits.
What is Carbon Neutrality?
Board members who are also employees of the firm, such as the CEO or CFO.
Who are Inside Directors?
This type of value is considered a good in itself, such as happiness or health.
What is Intrinsic Value?
These groups, like the local community or the government, are outside the daily operations of the firm.
Who are External Stakeholders?
This department is responsible for the "financial ethics" of the firm and following GAAP.
What is Accounting/Finance?
A report that tracks a company's success through Social, Environmental, and Economic metrics.
What is the Triple Bottom Line?
The committee responsible for deciding the pay and bonuses of top-level executives.
What is the Compensation Committee?
The branch of ethics that focuses on how people actually behave in the real world.
What is Descriptive Ethics?
The moral dilemma that occurs when your own values don't match your company’s culture.
What is a Clash of Ethical Standards
The department usually tasked with the creation and training of the Code of Ethics.
What is Human Resources?
CSR used specifically as a marketing tool to generate a positive brand image.
What is Strategic CSR?
The governance model that lets companies explain why they didn't follow a specific rule.
What is "Comply or Explain"?
This specific perspective in ethics looks at how people should live their lives.
What is Normative Ethics?
The CEO's main duty according to the "Shareholder Prime" approach.
What is Profit Maximization?
A situation where a personal relationship interferes with a professional duty.
What is a Conflict of Interest?
The "Social Contract" view where a company helps society because it is the right thing to do.
What is Altruistic CSR?
The strict governance approach where failure to follow rules leads to massive fines.
What is "Comply or Else"?