Business Ethics Ch.2

Front 1

Stakeholder framework

Back 1

Helps identify internal and external stakeholders. Helps monitor and respond to needs, values, and expectations, of stake hold groups

Front 2

Corporate governance

Back 2

The formal system of accountability and control of ethical and socially responsible behavior

Front 3

Stakeholders

Back 3

Those who have a stake or claim in some aspect of a company's products, operations, markets, industry, and outcomes

Front 4

Types of stakeholders

Back 4

Customers, employees, investors, suppliers, government agencies communities

Front 5

Stakeholders and the organization

Back 5

1. Assessing the corporate culture

2. Identifying stakeholder groups

3. Identifying stakeholder issues

4. Assessing organizational commitment tosocial responsibility

5. Identifying resources and determining urgency

6. Gaining stakeholder feedback

Front 6

3 approaches to stakeholder theory:

Back 6

Normative, descriptive, and instrumental

Front 7

Normative

Back 7

Principles and values help identify ethical guidelines that dictate how to treat stakeholders

Front 8

Descriptive

Back 8

Focuses on actual behavior, addressing decisions and strategies in stakeholder relationships

Front 9

Instrumental

Back 9

Examines stakeholder relationships and describes outcomes for particular behaviors

Front 10

Primary stakeholders

Back 10

Those whose continued association is absolutely necessary for a firm's survival

-employees, customers, investors, governments, and communities

Front 11

Secondary stakeholders

Back 11

Do not typically engage in a transactions with the firm and are not essential to a firm's survival

-media, trade associations, and special interest groups

Front 12

Steps of social responsibility

Back 12

1. Philanthropic: giving back to society

2. Ethical: following standards of acceptable behavior

3. Legal: abiding by laws

4. Economic: maximizing stakeholder wealth

Front 13

Reputation

Back 13

One of an organization's greatest intangible assets with tangible value

Front 14

Corporate governance

Back 14

Formal systems of accountability, oversight, and control

Front 15

Shareholder model

Back 15

Maximizing wealth for investors and owners

Front 16

Stakeholder model

Back 16

Includes satisfying concerns of business stakeholders

Front 17

Role of board of directors

Back 17

Holds final responsibility for its firm's success, failure, and ethicality of actions

-in reality, boards rarely manage but instead monitor executive decisions