Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
70 Cards in this Set
- Front
- Back
|
Business |
any org that makes a product/service for a profit |
|
|
General Systems Theory |
all organisms are open to and interact with their external environments |
|
|
interactive social system |
business and society need each other to grow and live |
|
|
Stakeholder |
any person that is affected by an orgs decisions and operations |
|
|
Market stakeholders |
those engaging in economic transactions with a company |
|
|
Nonmarket stakeholders |
community, various levels of govt and general public |
|
|
internal stakeholders |
inside the firm |
|
|
external stakeholders |
outside the firm |
|
|
Robber baron |
person who made a lot of money through business |
|
|
Stakeholder analysis |
identify relevant stakeholders and to understand both their interests and the power they have |
|
|
stakeholder coalitions |
temporary aliiances to pursue a common goal |
|
|
Stakeholder Salience |
stakeholders that stand out the most to managers |
|
|
Why do stakeholder analysis? |
-Allows everyone to have an opinion
-fair to everyone -prevent being blindsided with ideas you were not aware of -create connections among diverse groups |
|
|
Public Issues |
-global warming -executive pay and bonuses -food safety -privacy |
|
|
Environmental Analysis
|
gather info from external issues |
|
|
Environmental intelligence |
acquisition of info gained from analyzing the external environments |
|
|
Competitive intelligence |
gather and analyze as much info about the competitors to stay current |
|
|
Issue management process |
1.Identify Issue 2.Analyze issue 3.Generate options 4.Take Action 5.Evaluate Results |
|
|
Stages in stakeholder relationship |
1.Inactive-company ignores stakeholders 2.Reactive-Only change if forced 3.Proactive-Anticipate concerns 4.Interactive-engage with stakeholders a lot |
|
|
Drivers of stakeholder engagement |
1.Goal-to improve reputation 2.Motivation-need stakeholders because of expertise 3.Organizational Capacity-Top leaders committed to engagement |
|
|
Engaging w/ stakeholders is good for business by |
brings in expertise, enhances legitimacy, give creative solutions to common problems. |
|
|
Corporate Social Responsibility |
Company should act in a way that enhances society, the community, and environment |
|
|
Corporate Power |
Power company has in government, economy, and society |
|
|
iron law of responsibility |
those w/ power who don't use it to better society will lose it |
|
|
Phases or CSR |
Corporate social stewardship Corporate social responsiveness Coporate Ethics Corporate citizenship |
|
|
Corporate social stewardship |
1950-1960 Corporate philanthropy -acts of charity -managers as public trustee stewards that are balancing social pressures |
|
|
Corporate Social Responsiveness |
60-70s -Social impact analysis -Strategic social response -organizational redesign -training for responsiveness |
|
|
Corporate Ethics |
80-90s Form Ethical Corporate strucuture mission statements recognize common ethical principles |
|
|
Corporate citizenship |
90s-Present Global trade Stakeholder partnerships in the environments Global Audits |
|
|
Socially responsible companies balance |
Social Legal Economic responsibilities |
|
|
Pros for CSR |
-Balance corporate power w/ responsibility -discourage govt regulation -promote long term profits -improve stakeholder relationships -enhance reputation |
|
|
Cons for CSR |
-Lowers profit -give unequal cost among competitors -hidden costs to stakeholders -requires skill -place responsibility on business rather than individuals |
|
|
Social enterprise |
org uses strategies to improve human/environmental well being |
|
|
Why should a business be ethical |
1.Meet demand of business stakeholders
2.Enhance business performance 3.Comply w/ legal requirements 4.Minimize harm 5.Promote personal morality |
|
|
Sarbanes-Oxley Act |
Firm must maintain high ethical standards in business operations |
|
|
Why Ethical Problems occur in business? |
1.Personal gain (ethical egoist) 2.Competitive pressure on profit (bottom line) 3.Conflicts of interest 4.Cross Cultural contradictions (bribes) |
|
|
Stages of moral development/ethical reasoning |
1.Childhood 2.Adolescence 3.Early Adulthood 4.Adulthood 5.Mature adulthood |
|
|
Childhood |
ego-centered thinking |
|
|
adolescence |
ego centered reasoning |
|
|
early adulthood |
group-centered reasoning |
|
|
adulthood |
society/law reasoning |
|
|
Mature adulthood |
Principle centered reasoning |
|
|
Four Methods of Ethical Reasoning |
Virtue Utilitarian Rights Justice |
|
|
Virtue Ethics |
Values and good character |
|
|
Utilitarian Ethics |
Good outways the bad costs |
|
|
Rights Ethics |
Ethical as long as basic human rights are respected |
|
|
Justice |
Benefits and costs are fairly distributed |
|
|
Ethical Climates |
1.Egoism 2.Benevolence 3.Principle |
|
|
Egoism |
Self-interest |
|
|
Benevolence |
Team interest |
|
|
Principle |
Personal Morality, laws, and codes |
|
|
Improve ethical performance |
Create value based ethics Top mgmt leadership encorporate ethics codes or policies, and ethics training |
|
|
Globalization
|
A company becomes international |
|
|
Ways Globalization works |
1.Build business in home country 2.Export to other countries 3.Establishing plants abroad |
|
|
Transnational Corporations |
Businesses where their pressence is global |
|
|
Foreign direct investment |
When a company invests money into another country |
|
|
International financial and trade institutions |
Where global commerce occurs |
|
|
World bank |
provides economic loans to member nations |
|
|
World Trade Organization |
Help promote free trade among different nations |
|
|
Pros of globalization |
1.increase economic pruductivity 2.Reduce price for customers 3.Gives develop countries foreign investment funds for economic development |
|
|
Cons of globalization |
1.Erodes certain cultures (americanize) 2.prevents individual nations from promoting environmental objectives 3.globalize corps often favor antidemocratic or military regimes because they control labor |
|
|
Global Corporate Citizenship |
Put organization's commitment to social responsibility into practice worldwide |
|
|
Stages of global corporate citizenship |
1.Elementary 2.Engaged 3.Innovative 4.Integrated 5.Transforming |
|
|
Elementary stage |
Company obeys the law, but do not go beyond Transparency: Flank protection |
|
|
Engaged Stage |
Company wants to change public expectations. Interact and listen to stakeholders Transparency: Public Relations |
|
|
Innovative Stage |
Create new programs and structural innovation. Report efforts to stakeholders Transparency: Public reporting |
|
|
Integrated Stage |
Focus on triple bottom line and enter partnership with stakeholders Transparency: Assurance |
|
|
Transforming Stage |
Market creation and social change. Motivated by higher sense of coporate purpose Transparency: Full Disclosure |
|
|
Corporate social reporting |
publicize info collected in social audit |
|
|
Triple bottom line |
report environmental and social impacts in addition to profits |
