Business Ethics glossary (partial)

actionable
subject to (or providing grounds for) an action or lawsuit: e.g., slander is actionable; letting air out of the tires of SUVs is not.


affirmative action
positive programs which are aimed at eliminating the effects of past discrimination; as opposed to negative policies which are aimed at preventing further discrimination.


alienation
the effect, according to marx, of capitalist systems which do not allow the working class to develop their productive potential or satisfy their real human needs.


antitrust
the view that large oligopolistic or monopolistic companies should be broken up into smaller firms to reinstate competitive pressures.


bourgeoisie
according to Marx, the class that owns the means of production.


brand loyalty
the result of effective advertising campaigns on consumers, which gives large corporations control over a major portion of the market.


bribe
in business, a consideration (money, goods, preferential treatment, or the like) given to an individual by a person outside the organization on the understanding that when the individual acts on behalf of the organization, the employee will deal favorably with the person or his/her firm.


business ethics
a specialized study of the moral standards that apply to business policies, institutions, and behavior.


but-for cause
a cause without which the result would not have occurred


capitalist justice
the belief that benefits should be distributed according to the value of the contribution made by the individual to a group.


categorical imperative
the requirement that i must act such that the maxim of my action could be made universal law (or the requirement that in acting i always treat others as ends in themselves and never as a means to an end).


caveat emptor
"let the buyer beware."


caveat vendor
"let the seller beware."


command economy
a system where a single authority makes the decisions about what is produced, and by whom, and to whom it is distributed.


communitarianism
the belief that government should be authoritative, defining the needs of the community and seeing that those needs are met.


comparable pay
a program that attempts to place higher salaries on positions that most women already hold (as opposed to an affirmative action program that would attempt to place more women into positions paying more).


compensatory justice
the belief that persons should have restored to them what they lose as the result of another's wrong action.


conflict of interest
any conflict between private interests and official responsibilities. It arises in business when an employee has a private interest in a task she completes for a business that is possibly antagonistic to the best interests of the company and substantial enough that it might affect the employee's independent judgment. Any conflict between the private interests and the official or professional responsibilities of a person in a position of trust.


conflict of interest (actual)
occurs when a person does discharge her duties in a way that is prejudicial to the firm out of self-interest.


conflict of interest (potential)
occurs when a person is merely motivated or tempted to do discharge her duties in a way that is prejudicial to the firm out of self-interest.


conservation
saving or rationing natural resources for future use.


consistency requirement
the necessity of moral principles to be applied the same way to everyone in similar circumstances.


contract
legally enforceable promise


contractual theory (of a seller's duties)
the view that the relationship between a business and its customers is a contractual one; the moral duties to the customer are those created by this contract.


copyright
a person's exclusive right to reproduce, publish, or sell his or her original work of authorship (as a literary, musical, dramatic, artistic, or architectural work)


cost-benefit analysis
a method of determining the relative worth of an action, recognizing that the costs of actions are often inversely related to the benefits derived from completing them.


countervailing power
according to john kenneth galbraith, the force that balances and restrains the economic power of any large corporation or other large corporate group (for example, a union, or the government).


crime
conduct that is prohibited and has a specific punishment (as incarceration or fine) prescribed by public law; public wrongs (acts prohibited by the state that are punishable) - conviction ONLY IF (1) state demonstrates that alleged actions violate criminal statutes, (2) prove beyond reasonable doubt person did what is alleged, (3) demonstrate person had capacity (excluding infancy, insanty, intoxication) for criminal intent (malicious, reckless, negligent [failing to see reasonbable and substantial risk of harm])


defamation
communication to third parties of false statements about a person that injure the reputation of or deter others from associating with that person


depraved-heart murder
a murder that is the result of an act which is dangerous to others and shows that the perpetrator has a depraved mind and no regard for human life


disclaimer
a statement made by a seller explicitly disclaiming that the product is reliable, serviceable, or safe.


discriminatory practice
an employment practice which has the effect of wrongful discrimination, regardless of whether it is intentional or systematic; the practice may deal with recruitment, screening, promotion, discharge, and/or conditions of employment.


distributive justice
concerned with the fair distribution of society's benefits and burdens; the belief that individuals who are similar in all relevant respects should be given similar benefits and burdens.


do-nothing
the view that, in the face of monopolies, governments should take no action whatsoever.


due care
the care that an ordinarily reasonable and prudent person would use under the same or similar circumstances


due care theory (of a seller's duties)
the theory that, since consumers must depend on the greater expertise of the manufacturer, the manufacturer not only has a duty to deliver a product that lives up to the express and implied claims about it, but also has a duty to exercise due care to prevent others from being injured by the product - even if the manufacturer explicitly disclaims such responsibility.


due diligence
such diligence as a reasonable person under the same circumstances would use: use of reasonable but not necessarily exhaustive efforts; the care that a prudent person might be expected to exercise in the examination and evaluation of risks affecting a business transaction


due process (procedural)
a course of formal proceedings (as judicial proceedings) carried out regularly, fairly, and in accordance with established rules and principles


due process (substantive)
a requirement that laws and regulations must be related to a legitimate government interest (as crime prevention) and may not contain provisions that result in the unfair or arbitrary treatment of an individual


duty
an obligation assumed (as by contract) or imposed by law to conduct oneself in conformance with a certain standard or to act in a particular way


duty not to coerce
the duty of a seller not to take advantage of gullibility, immaturity, ignorance, or any other factor that might reduce the buyer's ability to make a rational choice.


duty not to misrepresent
the duty of a seller not to deliberately deceive the buyer into thinking something about a product that the seller knows is false.


duty of disclosure
the duty of a seller to inform the buyer of any facts about the product that would affect the decision to purchase it.


duty to comply
according to the contractual theory, the seller has a duty to carry through on any implied claims he knowingly makes about the product.


ecological ethics
the idea that the environment should be protected for its own sake (also known as deep ecology).


ecological system
an interrelated and interdependent set of organisms and environments.


egalitarian justice
the belief that every person should be given exactly equal shares of a group's benefits and burdens.


equilibrium price
the point at which the supply and demand curves meet (also known as the point of equilibrium); at this point, the price buyers are willing to pay for a certain amount of goods exactly matches the price sellers must take to cover the costs of producing that same amount.


ethical relativism
the belief that morality varies according to culture or time.


ethics
the study of morality or the moral standards of a society or an individual.


evidence
something that furnishes or tends to furnish proof; esp: something (as testimony, writings, or objects) presented at a judicial or administrative proceeding for the purpose of establishing the truth or falsity of an alleged matter of fact (see also admissible best evidence rule exclusionary rule exhibit foundation objection, preponderance of the evidence relevant scintilla state's evidence suppress testimony witness Federal Rules of Evidence in the Important Laws section) (compare allegation argument proof). Q.v., kinds of evidence.

evidence, burden of proof
the responsibility of producing sufficient evidence in support of a fact or issue and favorably persuading the trier of fact (as a judge or jury) regarding that fact or issue Example: the burden of proof is sometimes upon the defendant to show his incompetency -- W. R. LaFave and A. W. Scott, Jr. (compare standard of proof). Note: The legal concept of the burden of proof encompasses both the burdens of production and persuasion. Burden of proof is often used to refer to one or the other. Burden of proof and burden of persuasion are also sometimes used to refer to the standard of proof.


evidence, clear and convincing
a conforming to or being the standard of proof required for some civil cases or motions in which the party bearing the burden of proof must show that the truth of the allegations is highly probable. Example: clear and convincing proof.


evidence, preponderance of
the standard of proof in most civil cases in which the party bearing the burden of proof must present evidence which is more credible and convincing than that presented by the other party or which shows that the fact to be proven is more probable than not; also: the evidence meeting this standard. Example: Plaintiffs must show by a preponderance of the evidence that defendant's negligence proximately caused the injuriesfact that is part of the situation from which a case arises and that is established by testimony or other evidence.


evidence, reasonable doubt
a doubt esp. about the guilt of a criminal defendant that arises or remains upon fair and thorough consideration of the evidence or lack thereof. Example: all persons are presumed to be innocent and no person may be convicted of an offense unless each element of the offense is proved beyond a reasonable doubt -- Texas Penal Code. Note: Proof of guilt beyond a reasonable doubt is required for conviction of a criminal defendant. A reasonable doubt exists when a factfinder cannot say with moral certainty that a person is guilty or a particular fact exists. It must be more than an imaginary doubt, and it is often defined judicially as such doubt as would cause a reasonable person to hesitate before acting in a matter of importance.


evidence, standard of proof
the level of certainty and the degree of evidence necessary to establish proof in a criminal or civil proceeding. Example: the standard of proof to convict is proof beyond a reasonable doubt (see also clear and convincing, preponderance of the evidence) (compare burden of proof clear and convincing evidence at evidence reasonable doubt). Note: Preponderance of the evidence is the least demanding standard of proof and is used for most civil actions and some criminal defenses (as insanity). Clear and convincing proof is a more demanding standard of proof and is used in certain civil actions (as a civil fraud suit). Proof beyond a reasonable doubt is the most demanding standard and the one that must be met for a criminal conviction.


evidentiary fact
a fact that is part of the situation from which a case arises and that is established by testimony or other evidence


exponential depletion
the theory that a resource will be used up more and more quickly.


external cost
the cost that those other than a manufacturer must bear for the production of a product.


extortion
to obtain (as money) from a person by force, intimidation, or undue or unlawful use of authority or power; when the payee demands the payment by threatening injury to the payer's interests; it is not a bribe, and the payer's moral responsibility may be diminished in proportion to the severity of the threat; in business, when an individual demands a consideration from persons outside the firm as a condition for favorably dealing with them.


fact
a matter of objective reality: any of the circumstances of a case that exist or are alleged to exist in reality: a thing whose actual occurrence or existence is to be determined by the evidence presented at trial


fact (evidentiary)
a fact that is part of the situation from which a case arises and that is established by testimony or other evidence


fact (material)
a fact that affects decision making: a fact that would influence a reasonable person under the circumstances in making an investment decision (as in purchasing a security or voting for a corporate officer or action);


fair use
a use of copyrighted material that does not constitute an infringement of the copyright provided the use is fair and reasonable and does not substantially impair the value of the work or the profits expected from it by its owner


fair wage
the moral wage to pay an employee; based on an area's (and industry's) going wage, the capabilities of the firm, minimum wage laws, and other considerations.


false statement
a statement that is known or believed by its maker to be incorrect or untrue and is made esp. with intent to deceive or mislead: the federal crime of concealing a material fact, making a false statement, or using documents known to be falsified


false swearing
the making of false statements under oath or affirmation in a setting other than a judicial proceeding


felony
serious moral offenses punishable by long-term confinement or loss of civil rights [e.g. murder, rape, arson]; a federal crime for which the punishment may be death or imprisonment for more than a year


felony murder
a murder that occurs in the commission of a serious felony (as burglary or sexual battery)


fiduciary
one often in a position of authority who obligates himself or herself to act on behalf of another (as in managing money or property) and assumes a duty to act in good faith and with care, candor, and loyalty in fulfilling the obligation: one (as an agent) having a fiduciary duty to another


fiduciary duty
a duty obligating a fiduciary (as an agent or trustee) to act with loyalty and honesty and in a manner consistent with the best interests of the beneficiary of the fiduciary relationship (as a principal or trust beneficiary)


fiduciary relationship
a relationship in which one party places special trust, confidence, and reliance in and is influenced by another who has a fiduciary duty to act for the benefit of the party


first-degree murder
murder that is committed with premeditation or during the course of a serious felony (as kidnapping) or that otherwise (as because of extreme cruelty) requires the most serious punishment under the law


fraud
any act, expression, omission, or concealment calculated to deceive another to his or her disadvantage: a misrepresentation or concealment with reference to some fact material to a transaction that is made with knowledge of its falsity or in reckless disregard of its truth or falsity and with the intent to deceive another and that is reasonably relied on by the other who is injured thereby


free goods
goods that no one owns.


free market system
a system where individual firms, privately owned, make their own decisions about what they will produce and how they will produce it.


hearsay
a statement made out of court and not under oath (or in any other unreliable circumstance) which is offered as proof that what is stated is true.


historical materialism
the belief that history is determined by changes in the economic methods by which humanity.


hostile environment harassment
employment discrimination consisting of unwelcome verbal or physical conduct (as comments, jokes, or acts) relating to the victim's constitutionally or statutorily protected classification (as race, religion, ethnic origin, or age) that has the effect of substantially interfering with a person's work performance or of creating a hostile work environment


ideology
a system of normative beliefs shared by a group, expressing answers to questions about human nature, the purpose of society, and the values of the group.


implied claim
a claim about the quality or character of a product that is knowingly - though not explicitly- made by a seller.


implied warranty
the indirect contractual relationship made between a company and its customers by its advertisements.


insider information
confidential and proprietary information about a company which has a material or significant impact on the price of the company's stock.


insider trading
the illegal use of esp. material inside information for profit in financial trading


institutionalized discrimination
wrongful discrimination which is part of the routine behavior of a group or corporation; it may be either intentional or unintentional.


intellectual property
the property that consists of an abstract, nonphysical object; such property, unlike physical property, is nonexclusive.


intentional discrimination
wrongful discrimination which is done knowingly either by an individual or a group.


invidious contempt
the belief that members of another sexual or racial group are inferior or less worthy of respect.


involuntary manslaughter
manslaughter resulting from the failure to perform a legal duty expressly required to safeguard human life, from the commission of an unlawful act not amounting to a felony, or from the commission of a lawful act involving a risk of injury or death that is done in an unlawful, reckless, or grossly


isolated discrimination
wrongful discrimination which is part of the isolated behavior of a single individual; it may be either intentional or unintentional.


job discrimination
the wrongful act of discriminating in employment on the basis of prejudice or some other morally reprehensible attitude; it is discrimination not based on individual merit, derived at least in part from racial or sexual prejudice, and having a negative impact on the interest of the employee.


job satisfaction
a measure of how workers perceive their own jobs; it is determined by experienced meaningfulness, responsibility, and an employee's knowledge of results.


justice as fairness
associated with john rawls the belief that the distribution of benefits and burdens in a society is just only if each person has an equal right to the most extensive basic liberties compatible with similar liberties for all, and social and economic inequalities are arranged so that they are both to the greatest benefit of the least advantaged and attached to offices and positions open to all fairly and equally.


law of agency
the law that specifies the legal duties of employees ("agents") toward their employers ("principals"); it states that "an agent is subject to a duty to his principal to act solely for the benefit of the principal in all matters connected with his agency" and prohibits the agent from acting "for persons whose interests conflict" with those of his principle.


law of nature
according to locke, the moral principle that since all men are free and equal, no one ought to harm another in his life, health, liberty, or possessions.


libel
a defamatory statement or representation esp. in the form of written or printed words : a false published statement that injures an individual's reputation (as in business) or otherwise exposes him or her to public contempt


libertarianism
the belief that freedom from human constraint is necessarily good, and thus that constraints imposed by others are necessarily evil.


maintainability
the ease with which a product can be repaired and kept in operating condition.


malfeasance
the commission (as by a public official) of a wrongful or unlawful act (beyond negligence) involving or affecting the performance of one's duties e.g. accepting bribes or personal favors for business advantage--a malfeasor does something illegal)


manipulation of supply
when firms operating in an oligopolistic market agree to limit their production so that prices rise to higher levels than they would in free competition.


manslaughter
the unlawful killing of a human being without malice


misdemeanor
a crime punishable by a fine and by a term of imprisonment not to be served in a penitentiary and not to exceed one year; less serious moral offenses punishable by fines or short-term confinement


misfeasance
the performance of a lawful action in an illegal or improper manner: the performance of an official duty in an improper or unlawful manner or with an improper or corrupt motive (e.g. auto maker not installing gas tanks less subject to explode on impact--they create a problem)


misrepresentation
an intentionally or sometimes negligently false representation made verbally, by conduct, or sometimes by nondisclosure or concealment and often for the purpose of deceiving, defrauding, or causing another to rely on it detrimentally


mixed economy
an economy with both free market and central planning attributes.


monopoly competition
a market system where one seller has a substantial share of the market (close to 100%) and no other sellers can enter.


moral responsibility
the idea that agents are culpable for acting or neglecting to act.


morality
the standards that an individual or a group has about what is right and wrong (also, the subject that ethics investigates).


multiple access
when a resource can be used by several separate extractors, their shared access will lead to the resource being depleted more quickly than if only one extractor had access.


murder
the crime of unlawfully and unjustifiably killing another under circumstances defined by statute (as with premeditation): such a crime committed purposely, knowingly, and recklessly with extreme indifference to human life or during the course of a serious felony (as robbery or rape)


natural rights
the rights that nature teaches each man that he has according to the law of nature.


naturalistic fallacy
the logical error made when what exists is equated to what should exist.


negligence
failure to exercise the degree of care expected of a person of ordinary prudence in like circumstances in protecting others from a foreseeable and unreasonable risk of harm in a particular situation. Passive negligence: failure to do something (as to discover a dangerous condition on one's property) that is not a breach of an affirmative duty and that in combination with another's act is a cause of injury. Collateral negligence: negligence on the part of an independent contractor that is not connected with a manner of working or risk ordinarily associated with particular work and for which the employer of the contractor is not liable. Gross negligence: negligence marked by conduct that presents an unreasonably high degree of risk to others and by a failure to exercise even the slightest care in protecting them from it and that is sometimes associated with conscious and willful indifference to their rights.

nonfeasance
failure or omission to do something (due to negligence or incompetence) that should be done or esp. something that one is under a duty or obligation to do: (e.g. city council not placing a stop sign at a lethal pedestrian crossing--they neglect a known problem)

nonintential discrimination
wrongful discrimination which is done unthinkingly or unintentionally either by an individual or a group.


oligopolistic competition
a market system where a small group of sellers has a substantial share of the market and no other sellers can enter; such markets are said to be highly concentrated.


original position
according to rawls, the situation of a group that would say a principle is morally justified; they must be rational self-interested persons who know they will live in a society governed by the principles they accept but who do not know the race, sex, religion, social position, interests, or abilities that they will have.


osha
the occupational safety and health administration, founded in 1970 by congress to "assure ...every working man and woman in the nation safe and healthful working conditions."


peaked depletion
the theory that a resource will be used up quickly at first, and then more slowly as it becomes more difficult to extract.


perfect competition
a market system in which no buyer or seller has the power to significantly affect the prices at which goods are being exchanged.


perjury
the act or crime of knowingly making a false statement (as about a material matter) while under oath or bound by an affirmation or other officially prescribed declaration that what one says, writes, or claims is true


political model
the model of business organizations that emphasizes competing power coalitions and formal and informal lines of influence and communication; generally, this model is a more complex network of relationships than that represented by an organizational chart.


pollution
the undesirable and unintended contamination of the environment.


price discrimination
when a seller charges different prices to different buyers for identical goods or services.


price fixing
when firms operating in an oligopolistic market secretly agree to set prices at artificially high levels.


price leadership
related to price setting; when oligopolistic industries recognize one firm as the firm that sets the price, that firm is the price leader.


price setting
when firms in an oligopolistic market conclude that cooperation, rather than competition, is in their collective best interests, they may reach the independent conclusion that they will all benefit if, when one firm raises its prices, the others will follow.


private cost
the cost a manufacturer bears to produce a product.


private property system
a system that maintains a system of property laws to assign private individuals the right to make decisions about what they own.


production costs / selling costs
with reference to advertising, production costs are the costs of the resources consumed in producing a product; selling costs are the additional costs of resources that do not go into changing the product but rather are invested in persuading people to buy it.


proletariat
according to marx, the alienated working class.


rational model
the model of business organizations which defines them as structures of formal relationships designed to achieve a technical or economic goal with maximum efficiency; often associated with a firm's organizational chart.


reasonable risk
a risk that is known and judged to be acceptable by the buyer.


regulation
the view that large companies should not be broken up to reinstate competitive pressures; instead, regulatory agencies should be set up to restrain and control their activities.


reliability
the probability that a product will function as the consumer is led to expect.


resource depletion
the consumption of finite or scarce resources.


retail price maintenance
when a manufacturer sells to a retailer only on condition that they agree to charge the same set retail prices for its goods.


retributive justice
the belief that agents should be punished or blamed for wrongdoing.


reverse discrimination
a term used by opponents of affirmative action; the idea that affirmative action's effects are preferential treatment for minorities and discrimination against white males on the basis of an irrelevant characteristic--race or sex.


right to privacy
the personal right to limit information about oneself, balanced in business organizations against other legitimate rights by considering relevance, consent, and method.


rights
in general, an individual's entitlement to something; legal rights are those dictated by a system of laws; moral rights are those that permit or allow all humans to do or to have something done for them; negative rights prohibit others from interfering with an individual's actions; positive rights grant others the duty to provide an individual with something she or he needs.


rule-utilitarianism
the view that an individual action is right when it is required by correct moral rules and if the sum total of utilities produced if everyone were to follow the rule is greater than the sum total utilities produced if everyone did not follow the rule.


second-degree murder
a murder that is committed without premeditation but with some intent (as general or transferred intent) or other circumstances not covered by the first-degree murder statute


service life
the period of time during which a product will function as effectively as the consumer is led to expect it to function.


slander
defamation of a person by unprivileged oral communication made to a third party: defamatory oral statements


social audit
a regular measurement and recording of the impacts of a corporation's activities upon society.


social cost
the cost which society bears to produce a product.


social costs theory (of a seller's duties)
the theory that the duties of the manufacturer extend far beyond those imposed by contractual and due care duties; manufacturers should pay the cost of any injuries sustained through any defects in their products, even when they exercise due care and have taken all reasonable precautions. (related to the legal doctrine of strict liability.)


socialist justice
the belief that benefits should be distributed according to need and burdens according to ability.


state of nature
according to locke, the state where each man is the political equal of all others, perfectly free of any constraints except the law of nature.


supply curve
a line on a graph indicating the prices producers must charge to cover the average costs of supplying a given amount of a commodity.


surplus value
the difference between the value of labor and the wage paid for it.


third-degree murder
a murder that is not first- or second-degree murder: as a murder committed in the perpetration of a felony not listed in the first-degree murder statute


to internalize costs
to move external costs inward, making them part of the private cost of a commodity.


toxic substance
a substance harmful to some form of life.


tying arrangement
when a firm sells a buyer a certain good only on condition that the buyer also purchase other goods from the firm.


unlimited goods
goods that seem to be limitless, like the environment.


utilitarianism
the view that actions are right when they produce the greatest net benefits or the lowest net costs.


vice
defect; a moral fault or failing; immoral activity (as prostitution).


virtue
strength, an acquired disposition that is valued as a part of the character of a morally good human being and that is exhibited in the person's habitual behavior.


whistleblowing
the act of attempting to disclose wrongdoing in or by an organization; it can be either internal, when the act is reported to the organization, or external, when it is reported to an outside source.