Business Ethics Fundamentals

Compliance refers to obeying the law because we necessarily agree with it.

Deontology is an ethical theory that uses rules to distinguish right from wrong.

Utilitarianism advocates actions that cause unhappiness or harm.

Virtue theory suggests that one should behave based on personal interest rather than moral principles.

Stakeholders are individuals or organizations that are only affected by the organization.

Stockholder theory argues that a corporation's sole obligation is to maximize shareholder wealth.

Goodwill promotes discrimination based on race, color, creed, sexual orientation, disability or national origin.

Acting with integrity involves doing the right thing even when it's challenging or not popular.

Corporate culture encourages secrecy and lack of transparency within the organization.

Utilitarianism supports actions that contribute to happiness and pleasure while opposing those that cause harm or unhappiness.

Deontology relies on individual subjective judgment rather than following established rules to determine right from wrong.

Social contract theory establishes agreements that define moral and political rules of behavior within society.