Intro to Business - Chapter 2 Key Terms

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Code of Ethics

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A set of guidelines prepared by a firm to provide its employees with the knowledge of what the firm expects in terms of their responsibilities and behavior toward fellow employees, customers, and suppliers.

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Corporate Philanthropy

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The practice of charitable giving by corporations; includes contributing cash, donating equipment and products, and supporting the volunteer efforts of company employees.

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Corporate Social Responsibility (CSR)

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The concern of businesses for the welfare of society as a whole; consists of obligations beyond those required by law or contracts.

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Deontology

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A philosophy in which a person follows obligations to an individual or society because upholding one’s duty is ethically correct.

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Ethical Issue

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A situation where a person must choose from a set of actions that may be ethical or unethical.

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Ethics

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A set of moral standards for judging whether something is right or wrong.

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Justice

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What is considered fair according to the prevailing standards of society; an equitable distribution of the burdens and rewards that society has to offer.

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Social Investing

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The practice of limiting investments to securities of companies that behave in accordance with the investor’s beliefs about ethical and social responsibility to encourage businesses to be more socially responsible.

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Stakeholders

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Individuals or groups to whom a business has a responsibility; include employees, customers, the general public, and investors.

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Strategic Giving

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The practice of tying philanthropy and corporate social responsibility efforts closely to a company’s mission or goals and targeting donations to the communities where a company does business.