Contact:
Guide Editor
University of Colorado Boulder
Guide Editor
Guide Editor
Guide Editor
Created by Judith Faust, California State University, Hayward
The Committee reviews this guide on a three-year cycle. To report broken links, please send an email to rusa@ala.org and put “BRASS Education Committee” in the subject line.
Scope
This guide covers Business Ethics and Corporate Social Responsibility.
Business Ethics
Refers to business philosophy and conduct, particularly regarding controversial issues that may present a moral or ethical dilemma.
Corporate Social Responsibility
Implies a corporation's commitment to play a beneficial role in the environments, economies, and the societies in which they have an impact.
Glossary - Concepts
Insider trading
Trading of securities, such as stocks, based on nonpublic information.
Foreign Corrupt Practices Act of 1977
Prohibits U.S. citizens, corporations, and their employees from bribing foreign government officials. Later amendments prohibit foreign firms and persons from engaging in corrupt payments within the US.
Sarbanes-Oxley Act
Referred to as the US Senate "Public Company Accounting Reform and Investor Protection Act" and the US House "Corporate and Auditing Accountability, Responsibility, and Transparency Act." This legislation expanded requirements on US public company boards, management, and accounting firms in the wake of major accounting scandals such as at Enron and WorldCom. .
Corporate governance
Deals with structures and practices in place to assure operating managers act in the best interest of shareholders. Typically, a board of directors, elected by shareholders, review and advise operating managers. The study of corporate governance looks at the expertise, diversity, and potential bias of corporate board members, as well as the ability of shareholders to influence policy and action
Stakeholder Theory
Maintains that customers, suppliers, employees, investors, communities, and others have a stake in organizations. This is in contrast to the view that businesses should only take account in the interest of shareholders. See Freeman, RE and Reed, DL (1983) "Stockholders and Stakeholders: A New Perspective on Corporate Governance," California Management Review, v.25, Issue 3, p.88-106, and book, Strategic Management: A Stakeholder Approach, 1984.
Triple Bottom Line
An accounting framework that takes into account social, environmental (or ecological), and financial performance. This concept was introduced by Freer.
Corporate philanthropy
Charitable contributions or funds and resources such as the use of corporate facilities or volunteer time by a firm's employees. A corporation may give funds directly or through a foundation created by the firm.
Environmental, Social, & Governance (ESG) Investing
Investing in companies with high ESG scores relative to peers.
Impact Investing
Investing in companies with high ESG scores and excluding investments in companies engaged in undesirable practices.
Socially responsible investing (SRI)
Adding social, ethical, and/or environmental criteria in the selection of investments..
Reference Work(s)
- Encyclopedia of Corporate Social Responsibility (2013)The publisher's website notes "The Encyclopedia of Corporate Social Responsibility has been conceived to assist researchers and practitioners to align business and societal objectives. All actors in the field will find reliable and up to date definitions and explanations of the key terms of CSR in this authoritative and comprehensive reference work."
The Blackwell Encyclopedia of Management: Business Ethics by ISBN: 1405100133Publication Date: 2006-06-30A thoroughly updated new edition, now reflecting the currentbusiness climate of featured countries Features entries from over 220 philosophers, theologians,social scientists, management professors, and practitioners Maintains the standard terms and concepts in businessethics Interweaves the lessons learned from recent instances offinancial malfeasance by companies such as Enron, WorldCom, GlobalCrossing, and Tyco Includes many new subjects such as corporate citizenship, theSarbanes-Oxley Act, and socially responsible investing Contains entries pertaining to the increasingly sophisticatedtechnology and science of today's world: E-Business, Internet andBusiness Ethics, nanotechnology, and biodiversity
