TERM 1
Ethical Universalism
DEFINITION 1
The school of ethical universalism holds that common
understandings across multiple cultures and countries about
what constitutes right and wrong give rise to universal
ethical standards that apply to members of all societies, all
companies, and all businesses.
TERM 2
Ethical Relativism
DEFINITION 2
The school of ethical relativism holds that differeing religious
beleifs, customs and behavioral norm s across countries and
cultures give rise to multiple sets of st andards concerning what is
ethically right and wrong. These diffe ring standards mean that
whether business-related actions are right or wrong depends on
the prevailing local ethical standards.
TERM 3
Integrated Social Contracts Theory
DEFINITION 3
According to integrated social contra cts theory, universal ethical
principles based on the collective vie ws of multiple societies form
a "social contract" that all individuals a nd organizations have a
duty to observe in all situations. Within the boundaries of this
social contract, local cultures or grou ps can specify what additional
actions may or may not be ethically permissible.
TERM 4
Self-dealing
DEFINITION 4
...occurs when managers take advantage of their position to
further their own private interests rather than those of the
firm.
TERM 5
Short-termism
DEFINITION 5
is the tendency for managers to focus excessively on short-
term performance objectives at the expense of longer-term
strategic objectives. It has negative implications for the
likelihood of ethical lapses as well as company performance
in the longer run.
