CHAPTER 6 KEY TERMS  

CORPORATE SOCIAL  The duty of a companies management to work in the best 

RESPONSIBILITY (CSR)  interests of the society it relies on for its resources (human, 
material, and environmental), to advance the welfare of society, 
and to act as a good global citizen through its policies.  

BUSINESS ETHICS  A set of rules or guidelines that management or individuals 

follow when making decisions facing their company.  

ETHICAL  Also known as ethical absolutism, a view of culture based on the 

IMPERIALISM  idea that there are certain universal truths or values that are 
standard across cultures; if something is wrong in one country, 
it is wrong in all countries. 

CULTURAL  A view of culture based on the idea that a culture’s different 

RELATIVISM  values should be respected, as the ethics of one culture are not 
better than those of another. 

POLLUTION  The contamination of the environment caused by the 

manufacture or use of commodities. It can take many forms 
such as ozone depletion; acid rain; air, water, and land pollution; 
and nuclear waste. 

RESOURCE  The consumption of scarce or non-renewable resources. These 

DEPLETION  include fossil fuels, minerals, forests, fish, and water. 

SWEATSHOPS  Factories in underdeveloped and developing countries in which 

employees work in unsafe environments, are treated unfairly, 
and have no chance to address these conditions. 

CORPORATE  The involvement in illegal activities, such as bribery and fraud, 

CORRUPTION  to further one’s business interest. 

DUMPING  In an international business context, selling products and 

foreign country bellow the cost of production or below the price 
in the home country. 

PREDATORY  An anti-competitive business practice in which foreign 

DUMPING  companies price their products below market value to increase 
sales and force domestic competition out of business, then raise 
their prices.  

MICROCREDIT  The granting of very small loans (often as little as $100) to those 
in poverty to spur entrepreneurship. Entrepreneurs, who do not 
require a down payment or a credit history, use the microloans 
to start small businesses such as farms. 

NON-GOVERNMENTAL  Non-profit organizations with a service and development focus 

ORGANIZATIONS  that are composed mostly of volunteers. These organizations 
(NGOS)  work for the benefit of their members or other groups in the 
world’s population.