Chapter 10
UNDERSTANDING BUSINESS ETHICS & SOCIAL RESPONSIBILITY
Important Terms
1. 1. Business Ethics Ethics as applied to business, with regard to the treatment of
employees, society, stockholders, and consumers
2. 2. Code of Ethics The principles on which members of an organization base their
behaviour
3. 3. Corporate Social Responsibility (CSR) Corporate standards and practices
regarding human rights, the environment, human resources, and community
relations
4. 4. Corporate Philanthropy Policies by which companies donate financial and
material resources to support social causes
5. 5. Corruption Perceptions Index A publication of Transparency International in
which 102 countries are ranked according to their degree of corruption as seen by
business people, academics, and risk analysts
6. 6. Cultural Relativism The belief that behaviour should be governed by what will
bring about the greatest good for the greatest number of people
7. 7. Dumping The practice of selling goods at a price that is unfairly lower than
market value
8. 8. Ethical Dilemmas A difficult decision between tow or more "right" options
9. 9. Ethical Imperialism The belief that certain forms of behaviour are categorically
(absolutely) right or wrong
10. 10. Legislated Codes Laws of a country, compliance with which is mandatory
11. 11. Lobbying The attempt to influence business or government’s decisions toward
an organization's desired goals
12. 12. Non-governmental Organization (NGO) Groups that are not associated with
government and that work to bring about change
13. 13. Not-for-profit Organization (NPO) An organization not created for or involved in
making a profit
14. 14. Rule of Law Written laws that set standards that citizens are expected to follow
15. 15. Social Marketing Promotion of a company so that it is recognized as being
socially responsible
16. 16. Stakeholders The persons or groups affected by the performance of an
organization, including employees, customers, suppliers, investors, and society in
general
17. 17. Voluntary Code of Conduct Initiatives, guidelines, and agreements that are not
regulatory