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Business Law 2
Chapter 2
Term | Definition |
---|---|
Ethics | Moral principles and values applied to social behavior. |
Business Ethics | A consensus of what constitutes right or wrong behavior in the world of business and how moral principles are applied by businesspersons. |
Stock Buyback | A company's purchase of shares of its own stock on the open market. |
Stock Option | An agreement that grants the owner the option to buy a given number of shares of stock, usually within a set time period. |
Moral Minimum | The minimum degree of ethical behavior expected of a business firm. |
Categorical Imperitive | An ethical guideline according to which an action is evaluated in terms of what would happen if everybody else in the same situation, or category acted the same way. |
Principle of rights | The principle that human beings have certain fundamental rights. A key factor in determining whether an action is ethical is how it affects others' rights. |
Utilitaianism | An approach to ethical reasoning in which an action is evaluated in terms of its consequences for those whom it will affect. A "good" action is one that results in the greatest good for the greatest number of people. |
Cost-Benefit Analysis | A decision-making technique that involves weighing the costs of a given action against the benefits of the action. |
Corporate Social Responsibility | The idea that those who run corporations can and should act ethically and be accountable to society for their actions. |