COMM 216 FINAL STUDY GUIDE
integrity - Answers - the appropriateness of a corporation's behaviour and its adherence
to moral guidelines acceptable to society such as honesty, fairness, and justice
ethics of business - Answers - The rules, standards, codes, or principles that provide
guidance for morally appropriate behaviour in managerial decision making relating to
the operation of the business enterprise's and business' relationship with society.
stakeholder - Answers - An individual, group, or organization who may affect, be
affected by, or perceive itself to be affected by a decision, activity, or outcome of a
project.
Corporate Social Responsibility (CSR) - Answers - the way a corporation achieves a
balance among its economic, social, and environmental responsibilities in its operations
so as to address stakeholder expectations
triple bottom line triple-E - Answers - evaluates a corporation's performance according
to a summary of the economic, social, and environmental value the corporation adds or
destroy
corporate citizenship - Answers - also referred to a corporate social responsibility, refers
to a firm's responsibility to the community in which they operate and to society in
general
a corporation demonstrating that it takes into account its role in and complete impact on
society and the environment as well as its economic influence
Responsible Corporation - Answers - A business undertaking that responds to social,
ethical, and environmental responsibilities in addition to its economic obligations.
main approaches to ethical thinking - Answers - Deontological, Teleological, Virtue
deontological - Answers - Actions are ethical if done for sake of what is good without
regard for consequences of the act
▪ Decisions based upon duty and adherence to universal principles
▪ Individuals have duty to do the right thing even if the consequences of another action
are preferable
▪ "Veil of ignorance
teleological (consequential theories) - Answers - Focuses on outcomes or results of
actions
▪ Utilitarianism → individuals make decisions based on consequences of an action
▪ Decision believed to be good if end result is good
,▪ Decisions should result in the greatest good for the greatest number
virtue ethics - Answers - ▪ Emphasizes individual's character or identity
▪ Focuses on being instead of doing
▪ Morality based on development of good character traits (virtues)
▪ Assumes "good" person will act ethically
▪ Absolute rules unlikely to apply in all situations
economic system - Answers - an arrangement using land, labour, and capital to
produce, distribute, and exchange goods and services to meet the needs and wants of
people in society
types of economic systems - Answers - capitalism, free-enterprise system, laissez-faire
capitalism, responsible enterprise system
capitalism - Answers - an economic system that allows for private ownership of the
means of production (land, labour, and capital) and assumes that economic decision
making is in the hands of individuals or enterprises who make decisions expecting to
earn a profit
free-enterprise system - Answers - private enterprise system
- characterized by ownership of private property by individuals and enterprises, the
profit motive, a competitive market system, and a limited involvement by government
laissez-faire capitalism - Answers - operates with absolute minimum interference by the
government in the affairs of business
- government involvement is strictly limited to providing essential services such as
police and fire protection
responsible enterprise system - Answers - operates as a free enterprise system but
incorporating the element of accountability
legitimacy - Answers - belief in the rightness of an institution, in this case the
appropriateness of our business system to supply the goods and services wanted by
Canadian society
▪ To be legitimate, the business enterprise system must respond to the changing values
and expectations in society
▪ Attitudes (criticisms) must be monitored
▪ Management should take actions to counter negative views
social license - Answers - privilege of operating in society with minimal formalized
restrictions
▪ Based on maintaining public trust by doing what is acceptable to stakeholders in the
business and society relationship
▪ Must be earned and maintained—it is non-permanent because society's beliefs,
perceptions, and opinions change
, ▪ To assess society's permission, measure trust Canadians have in business enterprise
system
Factors influencing attitudes toward business: - Answers - Standard of living
▪ Decentralized decision making
▪ Allocation of resources
▪ Self-interest
▪ Business cycle
▪ Business wrongdoing
▪ Globalization
▪ Unemployment
▪ Technological innovation
▪ Media coverage
▪ Government
social contract - Answers - set of two-way understandings that characterizes the
relationship between two major institutions
Business and society need each other
▪ Must be a shared value in which both business and society benefit
▪ Goal is to reduce friction between society and business and to increase the benefits
for both
right of private property - Answers - the legal right to own and use economic goods, for
example land and buildings
intellectual property - Answers - umbrella term for patents, copyrights, trademarks,
industrial designs, integrated circuit topographies, and plant breeders' rights
individualism - Answers - the view that the individual is the paramount decision maker in
society
- assumes that the individual is inherently decent and rational
economic freedom - Answers - exist when the business system operates with few
restrictions on its activities
equality of opportunity - Answers - the assumption that all individuals or groups have an
even chance at responding to some conditions in society
competition - Answers - the condition in a market system in which many rival sellers
seek to provide goods and services to many buyers
oligopoly: type of competition where the few sellers in an industry behave similarly
profits - Answers - The excess of revenues over expenses; closely associated with
competition.
integrity - Answers - the appropriateness of a corporation's behaviour and its adherence
to moral guidelines acceptable to society such as honesty, fairness, and justice
ethics of business - Answers - The rules, standards, codes, or principles that provide
guidance for morally appropriate behaviour in managerial decision making relating to
the operation of the business enterprise's and business' relationship with society.
stakeholder - Answers - An individual, group, or organization who may affect, be
affected by, or perceive itself to be affected by a decision, activity, or outcome of a
project.
Corporate Social Responsibility (CSR) - Answers - the way a corporation achieves a
balance among its economic, social, and environmental responsibilities in its operations
so as to address stakeholder expectations
triple bottom line triple-E - Answers - evaluates a corporation's performance according
to a summary of the economic, social, and environmental value the corporation adds or
destroy
corporate citizenship - Answers - also referred to a corporate social responsibility, refers
to a firm's responsibility to the community in which they operate and to society in
general
a corporation demonstrating that it takes into account its role in and complete impact on
society and the environment as well as its economic influence
Responsible Corporation - Answers - A business undertaking that responds to social,
ethical, and environmental responsibilities in addition to its economic obligations.
main approaches to ethical thinking - Answers - Deontological, Teleological, Virtue
deontological - Answers - Actions are ethical if done for sake of what is good without
regard for consequences of the act
▪ Decisions based upon duty and adherence to universal principles
▪ Individuals have duty to do the right thing even if the consequences of another action
are preferable
▪ "Veil of ignorance
teleological (consequential theories) - Answers - Focuses on outcomes or results of
actions
▪ Utilitarianism → individuals make decisions based on consequences of an action
▪ Decision believed to be good if end result is good
,▪ Decisions should result in the greatest good for the greatest number
virtue ethics - Answers - ▪ Emphasizes individual's character or identity
▪ Focuses on being instead of doing
▪ Morality based on development of good character traits (virtues)
▪ Assumes "good" person will act ethically
▪ Absolute rules unlikely to apply in all situations
economic system - Answers - an arrangement using land, labour, and capital to
produce, distribute, and exchange goods and services to meet the needs and wants of
people in society
types of economic systems - Answers - capitalism, free-enterprise system, laissez-faire
capitalism, responsible enterprise system
capitalism - Answers - an economic system that allows for private ownership of the
means of production (land, labour, and capital) and assumes that economic decision
making is in the hands of individuals or enterprises who make decisions expecting to
earn a profit
free-enterprise system - Answers - private enterprise system
- characterized by ownership of private property by individuals and enterprises, the
profit motive, a competitive market system, and a limited involvement by government
laissez-faire capitalism - Answers - operates with absolute minimum interference by the
government in the affairs of business
- government involvement is strictly limited to providing essential services such as
police and fire protection
responsible enterprise system - Answers - operates as a free enterprise system but
incorporating the element of accountability
legitimacy - Answers - belief in the rightness of an institution, in this case the
appropriateness of our business system to supply the goods and services wanted by
Canadian society
▪ To be legitimate, the business enterprise system must respond to the changing values
and expectations in society
▪ Attitudes (criticisms) must be monitored
▪ Management should take actions to counter negative views
social license - Answers - privilege of operating in society with minimal formalized
restrictions
▪ Based on maintaining public trust by doing what is acceptable to stakeholders in the
business and society relationship
▪ Must be earned and maintained—it is non-permanent because society's beliefs,
perceptions, and opinions change
, ▪ To assess society's permission, measure trust Canadians have in business enterprise
system
Factors influencing attitudes toward business: - Answers - Standard of living
▪ Decentralized decision making
▪ Allocation of resources
▪ Self-interest
▪ Business cycle
▪ Business wrongdoing
▪ Globalization
▪ Unemployment
▪ Technological innovation
▪ Media coverage
▪ Government
social contract - Answers - set of two-way understandings that characterizes the
relationship between two major institutions
Business and society need each other
▪ Must be a shared value in which both business and society benefit
▪ Goal is to reduce friction between society and business and to increase the benefits
for both
right of private property - Answers - the legal right to own and use economic goods, for
example land and buildings
intellectual property - Answers - umbrella term for patents, copyrights, trademarks,
industrial designs, integrated circuit topographies, and plant breeders' rights
individualism - Answers - the view that the individual is the paramount decision maker in
society
- assumes that the individual is inherently decent and rational
economic freedom - Answers - exist when the business system operates with few
restrictions on its activities
equality of opportunity - Answers - the assumption that all individuals or groups have an
even chance at responding to some conditions in society
competition - Answers - the condition in a market system in which many rival sellers
seek to provide goods and services to many buyers
oligopoly: type of competition where the few sellers in an industry behave similarly
profits - Answers - The excess of revenues over expenses; closely associated with
competition.
