Business Ethics Cheat Sheet

The core ideas of Business Ethics distilled into a single, scannable reference — perfect for review or quick lookup.

PiqCue — piqcue.com/business-ethics/cheatsheet

Quick Reference

Corporate Social Responsibility (CSR)

A self-regulating business model that holds companies accountable for their social, environmental, and economic impact. CSR goes beyond profit maximization to consider the welfare of employees, communities, and the environment.

Stakeholder Theory

The view that a company should create value for all stakeholders, not just shareholders. Stakeholders include employees, customers, suppliers, communities, and the environment, all of whom have legitimate interests in the firm's activities.

Corporate Governance

The system of rules, practices, and processes by which a company is directed and controlled. It involves balancing the interests of stakeholders and establishing accountability, transparency, and fairness in a company's relationship with all its constituents.

Whistleblowing

The act of an employee or insider reporting unethical, illegal, or harmful activities within an organization to internal authorities or external bodies. Whistleblowers play a critical role in exposing corporate misconduct but often face significant personal and professional risks.

Utilitarianism in Business

An ethical framework based on the principle that the right action is the one that produces the greatest good for the greatest number. In business, this involves weighing the consequences of decisions on all affected parties and choosing the option that maximizes overall welfare.

Deontological Ethics (Duty-Based Ethics)

An ethical approach holding that certain actions are inherently right or wrong regardless of their consequences. In business, this means following moral rules and duties such as honesty, promise-keeping, and respect for persons, even when doing so may not maximize profit.

Conflict of Interest

A situation in which a person or organization has multiple interests, one of which could potentially corrupt the motivation or decision-making of that individual or entity. Managing conflicts of interest is fundamental to maintaining trust and integrity in business.

Environmental, Social, and Governance (ESG)

A framework for evaluating corporate behavior and sustainability based on three pillars: environmental impact (carbon emissions, resource use), social responsibility (labor practices, community engagement), and governance quality (board diversity, transparency, executive compensation).

Ethical Relativism vs. Ethical Universalism

Ethical relativism holds that moral standards vary by culture, time, and context, while ethical universalism argues that certain moral principles apply to all people regardless of context. This tension is central to international business ethics where cultural norms differ significantly.

Triple Bottom Line

A framework that expands the traditional measure of business success beyond financial profit to include social and environmental performance. The three Ps are People, Planet, and Profit, encouraging firms to account for their full impact on society and the environment.

Key Terms at a Glance

Agency Problem:A conflict arising when agents (managers) act in their own interest rather than the interest of principals (shareholders).

Bribery:Offering, giving, receiving, or soliciting something of value to influence the actions of an official or other person in a position of authority.

Business Ethics:The study and application of moral principles and standards to business activities, decisions, and relationships.

Code of Conduct:A set of rules outlining the social norms, responsibilities, and proper practices for an organization and its members.

Conflict of Interest:A situation in which personal interests could improperly influence professional duties and decision-making.

Corporate Governance:The system of rules, practices, and processes by which a firm is directed and controlled.

Corporate Social Responsibility:A business model in which companies integrate social and environmental concerns into their operations and stakeholder interactions.

Deontological Ethics:An ethical theory holding that the morality of an action is determined by adherence to rules and duties rather than outcomes.

ESG Criteria:Environmental, Social, and Governance standards used to evaluate corporate behavior and sustainability for investment purposes.

Ethical Relativism:The philosophical position that moral judgments are not universal but are shaped by cultural and social context.

Fiduciary Duty:The legal obligation to act in the best interest of another party, such as shareholders or clients.

Greenwashing:Misleading marketing that exaggerates or fabricates a company's environmental responsibility.

Insider Trading:Buying or selling securities based on material, non-public information in violation of trust and fiduciary duty.

Moral Hazard:A situation where one party takes on excessive risk because another party bears the cost of failure.

Normative Ethics:The branch of ethics concerned with establishing how things should be and what actions are morally right or wrong.

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