Podcast
Questions and Answers
What is one primary expectation for a corporation as stated in the economic aspect?
What is one primary expectation for a corporation as stated in the economic aspect?
- To engage in ethical practices
- To generate investment opportunities
- To fulfill philanthropic responsibilities
- To maximize profit (correct)
What defines regulation in the context of business activities?
What defines regulation in the context of business activities?
- A system that encourages government inaction
- A set of voluntary principles adopted by businesses
- A legal framework that governs business conduct (correct)
- An informal set of guidelines set by corporations
Which legislation was introduced to enhance corporate governance in the United States?
Which legislation was introduced to enhance corporate governance in the United States?
- Philippine Corporate Code
- Free Market Act
- Sarbanes-Oxley Act (correct)
- Corporate Social Responsibility Act
According to business ethics, which category addresses issues related to individuals?
According to business ethics, which category addresses issues related to individuals?
What is the viewpoint of economist Milton Friedman regarding corporate responsibility?
What is the viewpoint of economist Milton Friedman regarding corporate responsibility?
Flashcards
Corporation
Corporation
A legal entity owned by shareholders, aiming for profit, following legal rules, ethical conduct, and philanthropy.
Regulation
Regulation
Legal rules controlling business activities.
Sarbanes-Oxley Act (SOX)
Sarbanes-Oxley Act (SOX)
American legislation defining rules for corporate accounting and finance.
Business Ethics
Business Ethics
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Corporate Social Responsibility (CSR)
Corporate Social Responsibility (CSR)
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Study Notes
Corporations
- A corporation is a legal entity created by individuals or a group of shareholders who own the corporation.
- Corporations are created through law and are bound by these legal rules.
- Corporations are expected to be profitable.
- Corporations maintain ethical conduct, which is doing what is right.
- They practice philanthropy to fulfill their responsibilities.
- Corporate Social Responsibility (CSR) is a growing concern for the well-being of society.
- Milton Friedman (1970) argued that a corporation's sole responsibility is to generate profit.
Regulation
- Regulation is a legal system that controls and governs business activities.
- Free markets are an essential part of capitalism, but they are often subject to government restrictions.
Legislation
- The Sarbanes-Oxley Act (SOX) is American legislation.
- The Philippines Corporate Code outlines rules and regulations for corporations, and was revised in 2019.
Ethics
- Ethics studies moral principles (what is right or wrong).
- Business ethics examines ethical issues within a business context.
- Systemic issues are challenges that affect various social groups.
- Corporate issues are for the company to resolve and individual issues are for the individual to resolve.
- Ethics is a blend of practice and knowledge.
Psychology
- Lawrence Kohlberg, a psychologist, described moral development in six stages.
- Right refers to a person's claim to something.
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