CSR Exam
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Questions and Answers

What is a key component of contemporary CSR strategies?

  • Link to value creation (correct)
  • Reactive approach
  • Distribution of created value
  • Focus on risk

What is the term used to describe CSR as a distinct activity of companies in the US?

  • Reactive CSR
  • Implicit CSR
  • Explicit CSR (correct)
  • Traditional CSR

What does the acronym ESG stand for?

  • Ethical, Sustainable, Green
  • Environmental, Sustainable, Growth
  • Environmental, Social, Governance (correct)
  • Economic, Social, Governance

What is a core component of the academic understanding of sustainability?

<p>Balancing inter and intra-generational justice (D)</p> Signup and view all the answers

What ways can companies contribute to social welfare?

<p>Providing goods and services (B)</p> Signup and view all the answers

What does the term 'stakeholder' refer to in the context of stakeholder theory?

<p>Groups and individuals impacted by a company's actions (B)</p> Signup and view all the answers

According to Milton Friedman, what is the social responsibility of business?

<p>To increase profits (C)</p> Signup and view all the answers

Which ethical philosopher is associated with the concept of the categorical imperative?

<p>Immanuel Kant (C)</p> Signup and view all the answers

Which aspect of business ethics is moral imagination most directly beneficial for?

<p>Developing innovative solutions to complex ethical dilemmas (C)</p> Signup and view all the answers

What term describes a company that only hires individuals under 35 years old?

<p>Ageism (A)</p> Signup and view all the answers

The phrase 'race to the bottom' in business refers to what?

<p>Countries competing for foreign investment by reducing social and environmental standards (D)</p> Signup and view all the answers

According to Carroll, corporate social responsibility can be categorized into which four aspects?

<p>Economic, Legal, Ethical, and Philanthropic (D)</p> Signup and view all the answers

What is the term used for the acknowledgment and visibility of corporate decisions and policies to stakeholders?

<p>Corporate Transparency (B)</p> Signup and view all the answers

Under ethical absolutism, how are objective moral principles regarded?

<p>They are universally applicable and determined rationally (D)</p> Signup and view all the answers

What insight did the Milgram Studies provide?

<p>They illuminated human obedience to authority figures (C)</p> Signup and view all the answers

What is the key difference between shareholder activism and socially responsible investing (SRI)?

<p>Shareholder activism focuses on specific issues, while SRI considers multiple ethical factors (C)</p> Signup and view all the answers

What distinguishes unemployment from misemployment?

<p>Unemployment refers to being without a job, while misemployment refers to being employed in a job that does not match one's skills or interests (C)</p> Signup and view all the answers

What does the term 'glass ceiling' specifically refer to?

<p>A barrier that prevents women from advancing to senior management positions (B)</p> Signup and view all the answers

What is one key ethical issue related to employee monitoring?

<p>It may violate employee privacy (A)</p> Signup and view all the answers

What ethical problem is commonly associated with workplace discrimination?

<p>It creates an unfair advantage for certain groups (A)</p> Signup and view all the answers

What social issue does the 'Brown Eyes, Blue Eyes' experiment aim to highlight?

<p>The impact of social conditioning on prejudice (C)</p> Signup and view all the answers

What is a critical ethical concern regarding Airbnb's operations in local communities?

<p>Destruction of the housing market (D)</p> Signup and view all the answers

What scope does procedural justice cover compared to distributive justice?

<p>Procedural justice emphasizes the fairness of the process, while distributive justice emphasizes the fairness of the outcome (C)</p> Signup and view all the answers

What are the implications of a gig economy structure?

<p>Temporary work arrangements (C)</p> Signup and view all the answers

How can companies evaluate the morality of their operations in new markets?

<p>By conducting human rights impact assessments (D)</p> Signup and view all the answers

What is a potential downside of globalization for multinational corporations regarding labor standards?

<p>Race to the bottom in social standards (B)</p> Signup and view all the answers

What was the ethical concern in the Tide Pod case?

<p>Product safety (C)</p> Signup and view all the answers

What is a primary goal of microcredit programs?

<p>To offer financial services to low-income individuals (B)</p> Signup and view all the answers

What aspect of the gig economy raises concerns about worker rights?

<p>It often results in lack of protections and benefits (A)</p> Signup and view all the answers

What defines an individual who works for a company, but is not regarded as an employee?

<p>A contractor (B)</p> Signup and view all the answers

What is a key ethical issue in inclusive marketing?

<p>Representing all demographics (C)</p> Signup and view all the answers

How is greenwashing defined in corporate ethics?

<p>Misleading consumers about the actual environmental benefits of products (C)</p> Signup and view all the answers

What is a common ethical issue associated with pricing in marketing?

<p>Price fixing (A)</p> Signup and view all the answers

What are the ethical problems associated with targeting vulnerable consumers?

<p>All of the above (B)</p> Signup and view all the answers

What are some ethical issues in marketing communications?

<p>Deception (A), Intrusiveness (B), Misleading claims (D)</p> Signup and view all the answers

What are some moral complications of contemporary consumerism?

<p>Reinforcing stereotypes (B), Creation of artificial wants (C), Perpetuating dissatisfaction (D)</p> Signup and view all the answers

What is the 'circular economy' and how does it relate to supply chains?

<p>A business model that aims to reduce waste by reusing and recycling materials therein (C)</p> Signup and view all the answers

What is the main goal of the Fair Trade movement?

<p>To protect the rights of workers in developing countries (C)</p> Signup and view all the answers

What is the 'triple bottom line' concept and how does it apply to sustainable supply chains?

<p>It emphasizes the importance of considering economic, social, and environmental factors (A)</p> Signup and view all the answers

What is a 'Global Production Network'?

<p>A network of firms, suppliers, and competitors interconnected through global distribution (D)</p> Signup and view all the answers

Which tactic is commonly associated with radical Civil Society Organizations (CSOs)?

<p>Boycotts (B)</p> Signup and view all the answers

What is the primary goal of a 'buycott' in relation to consumer behavior?

<p>To encourage consumers to support better products (C)</p> Signup and view all the answers

What is the 'Race to the Bottom' phenomenon?

<p>A competition among countries to attract foreign investment by lowering standards (B)</p> Signup and view all the answers

What are the potential drawbacks of 'choice editing' as a strategy for promoting sustainable consumption?

<p>It can lead to higher prices for consumers (A), It can limit consumer choice and freedom (B), It can be seen as manipulative and paternalistic (C)</p> Signup and view all the answers

What defines the main purpose of Civil Society Organizations (CSOs)?

<p>To promote specific interests, causes, or goals (C)</p> Signup and view all the answers

What does the term 'Social License to Operate' imply in business contexts?

<p>Community acceptance of a company's activities (A)</p> Signup and view all the answers

What is the role of consumers in promoting ethical and sustainable supply chains?

<p>All of the above (A)</p> Signup and view all the answers

Which of the following is NOT a stakeholder in a company's supply chain?

<p>Employees of the company's competitors (B)</p> Signup and view all the answers

What is a significant drawback for CSOs that engage closely with businesses?

<p>Compromised independence (C)</p> Signup and view all the answers

Which statement accurately describes the government's role concerning businesses?

<p>To act as a stakeholder with its own interests (D)</p> Signup and view all the answers

How do CSOs typically represent the interests of stakeholders?

<p>By advocating for the needs of individual and non-human stakeholders (C)</p> Signup and view all the answers

What is the primary objective of regulations in the business sector?

<p>To control and influence business behavior (B)</p> Signup and view all the answers

Which of the following is NOT typically considered a function of policy instruments?

<p>Promoting competition among all suppliers (C)</p> Signup and view all the answers

In the context of business and government, what is a major issue related to corruption?

<p>Businesses influencing government policies through improper means (C)</p> Signup and view all the answers

What describes the concept of market failures?

<p>Inefficient distribution of goods and services in a competitive market (A)</p> Signup and view all the answers

What ethical issue arises from Juan's decision to construct a swimming pool for Santiago?

<p>Making a decision influenced by unethical bribes (D)</p> Signup and view all the answers

Which of the following presents a strong utilitarian argument against building Santiago's pool?

<p>It undermines public trust in the local economy (B)</p> Signup and view all the answers

How is the Kantian ethical perspective relevant to Juan's dilemma?

<p>It advocates for adherence to moral duties and universal principles (D)</p> Signup and view all the answers

What differentiates business-to-business (B2B) relationships from business-to-government (B2G) interactions?

<p>B2G relationships are typically more influenced by political factors than B2B (C)</p> Signup and view all the answers

The statement that something ethical must also be legal is best described as:

<p>Not true, as legality does not determine ethicality (D)</p> Signup and view all the answers

What is the purpose of a human rights impact assessment in the business sector?

<p>To evaluate potential human rights risks and impacts (D)</p> Signup and view all the answers

What is the main criticism of ethical egoism?

<p>It prioritizes self-interest over the interests of others (D)</p> Signup and view all the answers

Which ethical theory involves the 'veil of ignorance' concept?

<p>Social Contract Theory (D)</p> Signup and view all the answers

How does the ethics of rights differ from Kantian ethics?

<p>It is based on pre-established rights rather than duties derived from the categorical imperative (A)</p> Signup and view all the answers

Which ethical theory justifies actions that benefit the majority but harm a minority?

<p>Utilitarianism (B)</p> Signup and view all the answers

According to deontology, what determines the morality of an action?

<p>The adherence to moral rules or duties (A)</p> Signup and view all the answers

What is ethical absolutism?

<p>Morality is based on universally applicable principles (C)</p> Signup and view all the answers

What is the 'agentic state' in the context of obedience to authority?

<p>A state where individuals see themselves as executing orders rather than acting on personal responsibility (D)</p> Signup and view all the answers

What is the main ethical dilemma faced by the engineers in the Volkswagen Emissions Scandal?

<p>Balancing their loyalty to their company with their responsibility to the public (B)</p> Signup and view all the answers

What is the main focus of descriptive ethical theory?

<p>How ethical decisions are actually made in businesses (B)</p> Signup and view all the answers

What is 'groupthink'?

<p>A phenomenon where groups make decisions based on consensus, even if it is irrational (A)</p> Signup and view all the answers

What is the main implication of the 'Friedman-Freeman debate' for ESG investing?

<p>It highlights the tension between shareholder interests and stakeholder interests (C)</p> Signup and view all the answers

What is the main difference between a traditional for-profit company and a steward-owned company?

<p>A steward-owned company is more focused on social responsibility (C)</p> Signup and view all the answers

Which of the following is NOT a right of shareholders?

<p>The right to determine the company's strategy (A)</p> Signup and view all the answers

What is a key concern regarding ESG ratings?

<p>The overemphasis on financial performance over ethical considerations (A)</p> Signup and view all the answers

What is the main argument for shareholder democracy?

<p>Shareholders are the ultimate owners of the company and should have a say in its governance (B)</p> Signup and view all the answers

Flashcards

CSR strategies' link to value creation

Contemporary Corporate Social Responsibility (CSR) strategies often connect to creating value for both the company and society.

Carroll's CSR Pyramid responsibilities

Carroll's pyramid outlines a framework for corporate social responsibility, with economic and legal responsibilities being foundational.

Explicit CSR in the US

Explicit CSR is a distinct and recognized approach to corporate social responsibility in the US.

ESG acronym meaning

ESG stands for Environmental, Social, and Governance and refers to crucial factors in assessing a company's sustainability and ethical performance.

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Sustainability's core component

A core component of sustainability is the balancing of inter and intra-generational justice.

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Stakeholder theory definition

Stakeholder theory considers the various groups and individuals impacted by a company's operations.

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Corporation's legal status

In the eyes of the law, a corporation is typically viewed as an artificial person, separate from its owners.

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Social License to Operate (SLO)

The Social License to Operate (SLO) describes ongoing stakeholder acceptance of a company's practices to operate.

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Shareholder activism vs. SRI

Shareholder activism focuses on specific issues and engages with management, while Socially Responsible Investing (SRI) considers multiple ethical factors without direct engagement.

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Unemployment vs. misemployment

Unemployment means not having a job, while misemployment means having a job that doesn't match your skills or interests.

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Meaningful work and well-being

Employees who find their jobs meaningful tend to have better well-being, are more productive, positively impact communities, and are more engaged.

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Glass ceiling

A barrier preventing advancement, especially for women and minorities, to senior management positions.

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Workplace discrimination

Treating people unfairly in the workplace due to various factors.

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Employee monitoring ethics

Monitoring employees raises ethical concerns about privacy violations, unfairly disciplining, and creating distrust.

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Brown Eyes/Blue Eyes experiment

Demonstrates how social conditioning can lead to prejudice and stereotyping.

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Non-employee worker

Someone who works for a company but is not considered an employee (like contractors or volunteers).

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Procedural vs. Distributive Justice

Procedural justice focuses on fairness in the process, while distributive justice focuses on fairness of the outcome.

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Airbnb's impact on communities

A large concern is the potential for Airbnb to negatively affect local housing markets and communities.

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Gig economy

Temporary or freelance work arrangements.

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Assessing business morality

Companies should evaluate the ethical consequences of their actions in unfamiliar territories.

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Globalization and MNCs

Globalization can lead to a 'race to the bottom' where MNCs prioritize costs over social standards in different countries.

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Migrant workers COVID vulnerability

Migrant workers often faced difficulties in accessing safety and support during lockdowns.

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Airbnb benefit

Provides a home-like accommodation experience.

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Ethical responsibility to migrant workers

Companies have a responsibility to uphold human rights standards for migrant workers.

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Greenwashing

Misleading consumers about the environmental benefits of products or policies.

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Ethical concern in Tide Pod case

Product safety was the primary ethical concern, not honest communication, fair pricing, consumer privacy, or distribution ethics.

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Microcredit program goal

Microcredit programs aim to provide financial services to low-income individuals.

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Key ethical issue in inclusive marketing

Representing all demographics is a crucial ethical consideration in inclusive marketing.

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Common ethical pricing issue

Price fixing is a common ethical issue associated with pricing in marketing.

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Ethical problems with targeting vulnerable consumers

Targeting vulnerable consumers raises ethical concerns, including discrimination, excessive pricing, and deceptive pricing, which ultimately leads to consumer exclusion.

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Ethical issues in marketing communications

Deception, misleading claims, and intrusiveness are ethical concerns in marketing communications.

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Moral complications of consumerism

Creating artificial wants, perpetuating dissatisfaction, and reinforcing harmful stereotypes are moral complications of contemporary consumerism.

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Circular economy and supply chains

The circular economy aims to reduce waste through reuse and recycling, fundamentally changing how we think about supply chains.

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Fair Trade movement goal

The Fair Trade movement primarily aims to protect the rights of workers in developing countries.

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Triple bottom line in supply chains

The triple bottom line emphasizes a holistic approach to sustainability by balancing profits with social and environmental responsibility, including consideration of economic, social, and environmental factors.

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Global Production Network

A Global Production Network is a network of firms, suppliers, and competitors interconnected through global distribution.

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Race to the Bottom

The race to the bottom is a competition among countries to attract foreign investment by lowering environmental and labor standards.

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Choice Editing & Sustainable Consumption

Choice editing, a strategy to promote sustainable consumption, can be seen as manipulative and paternalistic, potentially limiting consumer choice and freedom.

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Consumer role in ethical supply chains

Consumers play a crucial role in promoting ethical and sustainable supply chains by supporting organizations, boycotting unethical companies, and demanding transparency.

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Stakeholder in a supply chain

Competitors, consumers, government agencies, and suppliers are all stakeholders in a company's supply chain. Importantly, employees of competitors are not.

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Categorical Imperative

A moral principle by Immanuel Kant suggesting that ethical actions should be based on universal principles, regardless of consequences.

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Moral Imagination

The ability to envision and creatively solve complex ethical dilemmas, considering various perspectives and potential outcomes.

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Ageism

Discrimination based on a person's age, often favoring younger individuals.

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Carroll's CSR Pyramid

A framework for corporate social responsibility that outlines four levels of responsibility: economic, legal, ethical, and philanthropic.

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Corporate Transparency

The degree to which a company openly communicates its decisions, policies, and impacts to stakeholders.

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Ethical Relativism

The belief that morality is subjective and dependent on cultural, social, or individual contexts.

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Milgram Studies

A series of experiments exploring obedience to authority figures, revealing how individuals can be influenced to commit harmful acts.

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Radical CSO tactics

Radical Civil Society Organizations (CSOs) employ various tactics to achieve their goals, including boycotts, public awareness campaigns, and non-violent protests, but they generally avoid collaborations with businesses.

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Purpose of 'buycotts'

'Buycotts' are used by CSOs to encourage consumers to support companies aligned with their values, often by promoting ethically-sourced or responsibly produced goods.

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CSO's primary role

The main purpose of Civil Society Organizations (CSOs) is to promote specific interests, causes, or goals, often advocating for social change or raising awareness about critical issues.

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Social License to Operate

The Social License to Operate refers to the community's and stakeholders' acceptance and approval of a company's activities and practices.

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Risk of CSO-business collaboration

A potential risk for CSOs working closely with businesses is a compromise of their independence and neutrality, possibly impacting public perception and credibility.

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Government's role in business

The government acts as a key stakeholder in business, balancing its own interests with the need to enable business growth, regulate activities, and ensure ethical practices.

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Primary function of regulation

Regulation helps control and influence business behavior by setting standards, promoting responsible practices, and addressing market failures.

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Policy instruments' functions

Policy instruments are used to set standards, encourage sustainability, promote transparency, and restrict harmful substances, but they do not eliminate competition entirely.

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Corruption in business-government

Corruption arises when businesses influence government policies through payments or private gain, jeopardizing fair competition and undermining public trust.

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Market failures and government intervention

Market failures occur when the market fails to distribute goods and services efficiently. Governments can address them by intervening through policies.

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Ethical dilemma in Juan and Santiago's case

Juan faces an ethical dilemma when asked to build Santiago's swimming pool, knowing it's unethical because it could represent a bribe and undermine fairness.

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Utilitarian argument for/against Juan's decision

A utilitarian perspective weighs the potential benefits (economic growth, jobs) against the potential harm (undermining public trust, unfairness to others) of building the pool.

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Kantian perspective on Juan's decision

From a Kantian perspective, Juan should act according to universal principles of morality, meaning he should not compromise his ethics for personal gain.

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B2B vs. B2G relationship

Business-to-business (B2B) relationships are less influenced by politics, while business-to-government (B2G) relationships are influenced by political factors and require navigating government policies.

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Ethics and legality

Ethical behavior does not always guarantee legality, and legal actions can sometimes be unethical. There's a difference between what's right and what's allowed by law.

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Human rights impact assessment in business

A human rights impact assessment aims to identify potential human rights risks and impacts within a business's operations, ensuring responsible and ethical practices.

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Ethical Egoism

A moral philosophy that promotes acting in one's own self-interest as the primary ethical principle.

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Veil of Ignorance

A thought experiment used in social contract theory, imagining individuals creating societal rules without knowing their own position or advantages.

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Ethics of Rights

A moral framework emphasizing individual rights and their protection, regardless of consequences.

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Utilitarianism

An ethical theory prioritizing actions that maximize overall happiness and well-being for the greatest number of people.

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Deontology

A philosophy that emphasizes moral duty and adherence to rules, regardless of the outcome, to determine what is right.

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Ethical Absolutism

The belief that moral principles are universal and unchanging, applying across all cultures and situations.

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Agentic State

A psychological state where individuals see themselves as carrying out orders from authority figures, rather than acting independently.

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Moral Intensity

The perceived severity of an ethical issue, influencing the likelihood of ethical action.

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Rest's Model of Ethical Decision-Making

A framework consisting of stages: awareness, judgement, intent, behavior, and moral imagination, illustrating ethical decision-making in practice.

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Descriptive Ethical Theory

The study of how people actually make ethical decisions, focusing on real-world observations rather than prescribing what is right.

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Groupthink

A phenomenon where group members prioritize consensus over critical thinking, leading to potentially flawed decision-making.

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Friedman-Freeman Debate

A discussion about the role of corporations in society, highlighting the tension between shareholder interests (profit maximization) and broader stakeholder concerns.

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Steward-Owned Company

A business model where ownership is structured to prioritize long-term sustainability and consider stakeholders' interests beyond just financial returns.

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Shareholder Democracy

The idea that shareholders, as owners of the company, should have greater influence over its governance and decision-making.

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ESG Ratings

Evaluations of companies based on their environmental, social, and governance practices, providing investors with information about their sustainability.

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Study Notes

Key Concepts in Business Ethics and CSR

  • Contemporary CSR strategies: Crucial component is the link to value creation.

Carroll's CSR Pyramid

  • Responsibilities: Economic and legal responsibilities are foundational elements of Carroll's pyramid.

CSR in the US

  • Explicit CSR: Defined as a distinct corporate activity differentiating it from implicit forms of social responsibility common in other nations.

ESG

  • ESG Acronym: Environmental, Social, and Governance.

Sustainability

  • Core Component: Balancing inter- and intra-generational justice is a key component of academic sustainability understanding.

Social Welfare Contribution

  • Company Contribution: Providing goods and services is a primary way companies contribute to social welfare.

Stakeholder Theory

  • Stakeholders: Groups and individuals impacted by a company's actions are considered stakeholders.
  • Legal Personhood: Corporations are typically regarded as artificial persons under the law.

Social License to Operate (SLO)

  • Definition: Ongoing acceptance of a company's practices by stakeholders constitutes its social license to operate.

Friedman's View on Business Responsibility

  • Profit Maximization: Milton Friedman believed the social responsibility of business is to increase profits.

Social Contract Theory

  • Difference Principle: The difference principle in social contract theory aims to benefit the least advantaged in society.

Ethical Theories

  • Consequentialism: Focuses on the consequences of actions.
  • Deontology: Centers on adhering to moral rules or duties.
  • Virtue Ethics: Emphasizes the character of the person acting.
  • Ethics of Rights: Emphasizes pre-established rights, rather than duties.
  • Utilitarianism: Justifies actions that benefit the majority.
  • Ethical Absolutism: Morality is based on universally applicable principles.
  • Ethical Egoism: Prioritizes individual self-interest over the interests of others.
  • Social Contract Theory (again): Underlies the concept of the 'veil of ignorance.'

Obedience to Authority

  • Agentic State: A state where individuals see themselves as executing orders rather than acting on personal responsibility.

Ethical Decision-Making

  • Rest's Model: Does not include Moral Imagination as a stage.

Volkswagen Emissions Scandal

  • Ethical Dilemma: Balancing loyalty to the company with responsibility to the public.

Descriptive Ethical Theory

  • Focus: How ethical decisions are made in businesses.

Decision-Making Biases

  • Groupthink: A bias where groups make decisions based on consensus, even if it is irrational.

Friedman-Freeman Debate

  • Stakeholder vs. Shareholder: Highlights tension between shareholder interests and stakeholder interests.

Steward-Owned Companies

  • Focus: Steward-owned companies prioritize social responsibility over profit maximization.

Shareholder Rights

  • Shareholder Management Rights: Shareholders cannot determine company strategies.

Globalization and Financial Markets

  • Ethical Issues: Potential for money laundering, worker exploitation, financial instability, and unfair competition.

ESG Ratings

  • Concerns: Lack of transparency, standardization, and verification of information.

Shareholder Democracy

  • Right and Ownership: Shareholders are the ultimate owners of the company and should have a say in its governance.

Shareholder Activism vs. SRI

  • Engagement: Shareholder activism focuses on specific issues while socially responsible investing (SRI) considers multiple ethical factors.

Unemployment and Misemployment

  • Definition: Unemployment is the lack of a job, while misemployment is having a job that doesn't fit skills or interests.

Meaningful Work and Employee Well-being

  • Connection: Meaningful work contributes to positive impacts on communities, productivity, engagement, and overall well-being.

Glass Ceiling

  • Barrier: A barrier preventing women and other underrepresented groups from advancing to senior management positions.

Workplace Discrimination

  • Ethical Problems: Leads to legal consequences, unfair advantages, and hindering talent attraction/retention.

Employee Monitoring

  • Ethical Issues: Potential for unfair discipline, privacy violation, distrust, stress, and anxiety.

"Brown Eyes, Blue Eyes" Experiment

  • Demonstrates: The impact of social conditioning on prejudice.

Non-Employee Workers

  • Examples: Contractors and volunteers are not considered employees.

Procedural vs. Distributive Justice

  • Justice Focus: Procedural justice focuses on the fairness of the process, while distributive justice focuses on the fairness of the outcome.

Airbnb's Impact

  • Ethical Issue: Potential to decrease availability of housing and increase competition in the housing market.

Gig Economy

  • Characteristic: Temporary work arrangements.

Human Rights Impact Assessments

  • Purpose: Assessing potential human rights risks and impacts.

Multinational Corporations (MNCs) and Globalization

  • Race to the Bottom: Competition among countries for foreign investment by lowering labor and environmental standards.

Migrant Worker Vulnerabilities

  • Challenge: Inability to work or social distance during the COVID-19 lockdowns.

Airbnb Benefits

  • Positive Impact: Providing home-like accommodation.

Corporate Responsibility to Migrant Workers

  • Key Responsibility: Upholding human rights standards.

Greenwashing

  • Definition: Misleading consumers about actual environmental impact of products.

Tide Pod Case

  • Ethical Concern: Product safety.

Microcredit Programs

  • Goal: Providing financial services to low-income individuals.

Inclusive Marketing

  • Ethical Issue: Representing all demographics.

Marketing Pricing Issues

  • Ethical Issue: Price fixing.

Targeting Vulnerable Consumers

  • Ethical Problems: Discrimination, excessive pricing, deceptive pricing, and exclusion.

Marketing Communications Issues

  • Problems: Deception, misleading claims, and intrusiveness.

Contemporary Consumerism

  • Moral Complications: Creation of artificial wants, perpetuation of dissatisfaction, and reinforcement of stereotypes.

Circular Economy and Supply Chains

  • Definition: Circular economy reduces waste by reusing and recycling materials, fundamentally changing the way we think about supply chains.

Fair Trade Movement

  • Goal: Protecting the rights of workers in developing countries.

Triple Bottom Line

  • Concept: Balancing economic, social, and environmental factors in sustainable supply chains.

Global Production Network (GPN)

  • Definition: Network of firms, suppliers, and other interconnected global businesses through distribution.

"Race to the Bottom" Phenomenon

  • Description: Competition among countries to attract foreign investment by lowering environmental and labor standards.

Choice Editing

  • Potential Drawbacks: Considered manipulative and paternalistic, limiting consumer choice and freedom.

Consumer Role in Supply Chains

  • Active Role: Consumers can choose ethical products, support organizations promoting ethical practices, and boycott unethical companies.

Supply Chain Stakeholders

  • Parties Involved: Includes competitors, consumers, government agencies, and suppliers along the supply chain.

CSO Stakeholder Representation

  • Role: CSOs advocate for individual and non-human stakeholders.

Social Entrepreneurship

  • Rise: Due to failure of traditional markets and governments to address social issues.

CSO-Business Involvement

  • Collaborative Approach: CSOs can collaborate with businesses as one of the ways for them to be involved.

Brent Spar Case

  • Outcome: Raised awareness about waste regulations.

Radical CSO Tactics

  • Non-collaborative Tactics: Boycotts, public awareness campaigns, and (sometimes) violent direct action are all tactics CSOs employ.

Buycotts

  • Purpose: To encourage consumers to support better products.

CSO Primary Role

  • Advocacy: Promoting specific interests, causes, or goals.

"Social License to Operate" (again)

  • Community Acceptance: Community acceptance of a company's activity.

CSO Risks in Business Collaborations

  • Compromised Independence: Possible compromises in maintaining independence when working with businesses.

Government and Business

  • Stakeholder Role: Government acts as a stakeholder representing its own interests alongside businesses and the public.

Regulation Function

  • Influence: Controlling and influencing business behavior.

Corruption and Business-Government Interactions

  • Issue: Businesses influencing government policies through payments or other forms of private gain.

Market Failures and Government Intervention

  • Addressing Market Failures: Government intervention through policies addresses market failures that prevent efficient allocation of goods and services.

Juan and Santiago Case

  • Ethical Dilemma: Juan's decision to build Santiago's pool even though it is unethical.

Utilitarian Perspective (Juan and Santiago)

  • Arguments For and Against: For - improved community; Against - harm to the taxpayer

Kantian Perspective (Juan and Santiago)

  • Moral Principles: Juan should act according to universal moral principles.

B2B vs. B2G Relationships

  • Influence: B2G relationships are more influenced by political factors than B2B counterparts.

Ethics and Legality

  • Relationship: Ethical behavior is not always legally mandated.

Human Rights Impact Assessment

  • Purpose of Assessment: Identifying potential human rights risks and impacts.

Shareholder Value Maximization

  • Prominent Advocate: Milton Friedman championed prioritizing shareholder value.

Categorical Imperative

  • Ethical Philosopher: Immanuel Kant associated with the categorical imperative.

Moral Imagination

  • Application: Developing innovative solutions to complex ethical dilemmas.

Ageism

  • Description: Example of discrimination based on age preferences in hiring.

Race to the Bottom

  • Globalization Impact: Countries competing for foreign investment by weakening their social and environmental standards due to globalization.

Carroll's Four Categorical Aspects of Corporate Social Responsibility

  • Aspects: Economic, legal, ethical, and philanthropic responsibilities.

Corporate Transparency

  • Definition: The degree to which corporate decisions, policies, activities, and impacts are visible to stakeholders.

Ethical Absolutism vs. Relativism

  • Perspectives: Ethical absolutism assumes universally applicable principles, while ethical relativism considers morality context-dependent and subjective.

Milgram Studies

  • Outcome: Provided insights into authority and human obedience.

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This quiz explores the fundamental concepts of business ethics and Corporate Social Responsibility (CSR), including Carroll's CSR Pyramid, the ESG framework, and stakeholder theory. Dive into the critical components that influence a company's ethical responsibilities and its social welfare contributions.

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