Ethics
Personal principles that guide an individual's sense of right and wrong are known as.
What are Morals?
The general term that you call someone who owns part of a company
What is a shareholder?
Any individual or group affected by a company's action is known as
What is a stakeholder?
A legal entity that engages in commerce
What is a business?
The process of production from raw materials to goods for customers including production, transportation, and distribution
What is the supply chain?
What are the principles that determine what is right or wrong based on standards created by some sort of structure (ex. societal norms)
What is Ethics?
What Friedman argues is the primary duty of a corporation
What is maximizing shareholder value?
Edward Freeman argued that a corporation’s duty extends beyond shareholders to these groups
What is all stakeholders?
This type of business structure is owned and operated by one individual with full liability
What is a sole proprietorship?
Adam Smith used this metaphor to describe how the free market naturally regulates itself
What is the invisible hand?
The acronym ROE stands for
What is Return on Ethics?
Milton Friedman believes that a business should do everything it can to maximize shareholder value EXCEPT
What is break the law?
Freeman's view of the purpose of business
What is create financial, social, and environmental value?
Law firms commonly operate under this type of business structure where there are multiple owners
What is a partnership?
The directive by management at Wells Fargo that led to bas business practices to meet unrealistic quotas
What is 8 is great?
Patagonia retaining customers because of its social outreach and ethical practices is an example of this concept
What is ROE (Return on Ethics)?
Milton Friedman had this opinion on government involvement in business
What is opposition to regulation?
A customer, government, or media outlet would be considered what type of stakeholder?
What is an external stakeholder?
A publicly traded company that is separate and distinct from its owners
What is a corporation?
This term refers to a business using socially responsible messaging as a disguise while really being motivated by profits
What is the Cloak of Responsibility?
This concept involves understanding how different parts of the "big picture" interact and influence each other
What is Systems Thinking?
Friedman described a corporation spending money on social causes without the shareholders' approval as
What is taxation without representation?
Using stakeholder analysis, where would an employee of McDonalds be on the power interest grid?
What is high interest low power (bottom right corner of the grid)?
This business structure provides limited liability (certain legal protections) while maintaining flexibility in management among its owner(s)
What is an LLC?
The idea that business decisions can be made without considering ethics
What is the Separation Fallacy?