Midterm (3 part written assignment)

KEY TERMS

· behavior: The way a living creature acts.

· ethics: The study of principles relating to right and wrong conduct.

· values: A collection of guiding principles; what one deems to be correct, important, and desirable in life, especially regarding personal conduct.

· The normative approach identifies ethical guidelines that dictate how firms ought to treat stakeholders. Principles and values provide direction.

· The descriptive approach focuses on the firm’s and usually addresses how decisions and strategies are made for stakeholder relationships.

· The instrumental approach describes what will happen if firms behave in a particular way.

· Primary stakeholders are those whose continued association is necessary for a firm’s survival (employees, customers, investors, and stockholders, governments and communities that provide necessary infrastructure).

· Secondary stakeholders do not typically engage in transactions and are not essential for its survival (the media, trade associations, and special-interest groups).

· Integrity - refers to being whole, sound, and in an unimpaired condition. In an organization, it means uncompromising adherence to ethical values.

· Honesty - refers to truthfulness or trustworthiness. Issues related to honesty also arise because business is sometimes regarded as a “game,” governed by its own rules rather than by those of society.

· Fairness - is the quality of being just, equitable, and impartial.

KEY CONCEPT

Unethical business practices

? (Other appropriate concept can be used)