Business Ethics Glossary

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

The doctrine that a corporation's primary obligation is to maximize value for its shareholders.

The implicit agreement between business and society in which companies gain legitimacy and resources in exchange for responsible behavior.

Any individual or group who is affected by or can affect the achievement of an organization's objectives.

Meeting present needs without compromising the ability of future generations to meet their own needs.

The practice of openly disclosing information about operations, decisions, and performance to stakeholders.

A framework measuring corporate success across three dimensions: social (People), environmental (Planet), and financial (Profit).

An ethical theory that determines right from wrong based on the outcomes that produce the greatest good for the greatest number.

An ethical approach emphasizing the development of good character traits as the basis for moral behavior.

A person who reports unethical or illegal conduct within an organization to internal or external authorities.

Legal safeguards shielding individuals who report corporate misconduct from retaliation by their employers.