Buisness Law Chapter 3

Term Definition
Ethics Moral principles and values applied to social behavior
Business Ethics What constitutes right or wrong behavior and the application of moral principles ion a business context.
Triple Bottom Line Focuses on a corporation's profits, its impact on people, and its impact on the planet.
Moral Minimum The minimum degree of ethical behavior expected of a business firm, which is usually defined as compliance with the law.
Ethical Reasoning A reasoning process in which an individual links his or her moral convictions or ethical standards to the particular situation at hand.
Duty-Based Ethics An ethical philosophy rooted in the idea that every person has certain duties to others, including both humans and the planet. Those duties may be derived from religious principles or from other philosophical reasoning.
Outcome-Based Ethics An ethical philosophy that focuses on the impacts of a decision on society or on key stakeholders.
Principle of Rights The belief that human beings have certain fundamental rights, Whether an action or decision is ethical depends on how it affects the rights of various groups, such as owners, employees, consumers, suppliers, the community, and society.
Categorical Imperative An ethical guideline developed by Immanuel Kant under which an action is evaluated in terms of what would happen if everybody else in the same situation, or category, acted the same way.
Utilitarianism An approach to ethical reasoning in which an action is evaluated in terms of its consequences for those whom it will affect, A "good" action is one that results in the greatest good for the greatest number of people.
Cost-Benefit Analysis A decision-making technique that involves weighing the costs of a given action against the benefits of that nation.
Corporate Social Responsibility (CSR) The idea that corporations can and should act ethically and be accountable to society for their actions.
Stakeholders Groups, other than the company's shareholders, that are affected by corporate decision. Stakeholders include employees, customers, creditors, suppliers, and the community in which the corporation operates.