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Business Law 2

Chapter 2

TermDefinition
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.
Created by: kndandress
 

 



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