ETHICS: the study of morals.
MORALITY: The standards that an individual or group has about what is right or wrong.
BUSINESS ETHICS: Specialized study of what is right or wrong. It concentrates on moral standards as
they apply to the business policies, institutions, and behaviour.
MORAL RELATIVISM: Normative ethical theory which maintains that truth or falsity of ethical norms
depends on what the society, or individual, has decided.
DIVERSITY THESIS: People disagree on moral beliefs.
RELATIVISM THESIS: The rightfulness or wrongfulness of beliefs can be determined only relatively to the
culture or moral traditions of a group.
TOLERANCE THESIS: People should adopt tolerant attitudes towards other groups or individuals who
hold different beliefs.
PSYCHOLOGICAL EGOISM: The view that all individuals ultimately act only for selfish reasons and are
not capable of other motivations.
ETHICAL THEORY OF EGOISM: Moral rightness or wrongness of action/rule depends on whether it
serves the interests of the person or promotes their own well-being. The only moral obligation one has
is to oneself.
UTILITARIANISM: Ethical significance of an act can be determined by looking at the consequences of
that act. It is typically defined with the policy of maximizing the overall good or producing the greatest
good for the greatest number.
DEONTOLOGICAL ETHICS: Stresses the ethical centrality of things such as duties, principles,
commitments and obligations. It denies that all ethical judgements can be made in terms of
MORAL STANDARDS of this theory:
1. Act in a way that you can accept that others do the same thing as a rule.
2. Treat others with respect for their interests, freedom and dignity.
GOLDEN RULE (POSITIVE): Do unto others as you would have them do unto you.
SILVER RULE (NEGATIVE): Do to no one what you yourself dislike.
PLATINUM RULE (REASONABLENESS): The golden rule is a good standard which is further improved by
doing unto others, wherever reasonable, as they want to be done by.
STOCKHOLDER MODEL: The stockholder model of CSR says that corporate responsibility is to the
stockholders. The proper role of business is to maximize profits within the law.
STAKEHOLDER MODEL: Manager should represent the best interests of the company, not just the
financial desires of t