Business Ethics
Chapter 1: The Corporation and Its Stakeholders
Key Terms:
Stakeholder All those who affect, or are affected by the actions of the firm.
Business Any organization that is engaged in making a product or providing a
service for profit.
Society Human beings and the social structures collectively created. Segments of
humankind or members of a particularly community, nation, or interest group.
General Systems Theory A theory that argues that all organisms are open to, and
interact with, their external environments. (Although most organisms have clear
boundaries, they cannot be understood in isolation, but only in relationship to their
surroundings.)
Interactive Social System System where each needs the other, and each influence
the other.
Ownership Theory Of The Firm (Property of finance theory) The firm is seen as
the property of its owners.
Stakeholder Theory Of The Firm A theory that argues corporations serves a
broad public purpose: to create value for society.
Stakeholder Refers to persons and groups that affect, or are affected by an
