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59 Cards in this Set
- Front
- Back
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Macroenvironment of Business
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Everything that resides outside the business itself.
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Four Categories of Macroenvironment
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Social Environment, Economic environment, Political environment, and Technical environment
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7 Major Factors Leading to business Criticism
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Affluence, Education, Television, Revolution of Rising expectations, Entitlement mentality, Rights Movement, and Revolution of Rising sensitivities(victimization mentality).
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Affluence
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Wealth and Standard of Living
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Education
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As people become more educated they have higher expectations
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Television
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Three forms create criticism. Media, Prime Time TV, and Commercials
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Revolution of Rising Expectations
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The general belief that things should get better over time (per generation)
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Entitlement Mentality
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Belief that your entitled to something greater that what you have.
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Rights Movements
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Groups seeking rights based on age, sex, race, habits, etc
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Revolution of Rising Sensitivities
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Victimization mentality
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Spheres of Corporate Power
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economy, culture, individual, environment, technology, and politics
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Levels of Power
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macroenvironment, intermediate (industry level), micro (firm level), and individual
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Iron Law of Responsibility
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If there is an imbalance of power and responsibility then forces will act to realign the two
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Social Contract
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Shared expectations as well as laws that serve as an understanding to how society and business should interact
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Pyramid of CSR
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Economic Responsibility, Legal Responsibility, Ethical Responsibility, Philanthropic Responsibility
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WalkerInformations Top 5 Characteristics of Socially Responsible Firms
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1.products are safe 2. not polluting air or water 3. obeying laws that relate to all parts of the business 4. promoting ethical and honest behavior from employees 5. creating a safe work environment for employees.
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Stakeholder Inclusiveness
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Concept of stakeholder management where all stakeholders, customers, employees, and shareholders have a loyal relationship with company.
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Stakeholder Management Capability
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1. Rational Level: Stakeholders are identified and power/urgency are determined 2. Process Level: Process or strategy for dealing with stakeholders 3. Transactional Level:How often your interacting with stakeholders.
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Trends That Have Led to Development of Issues Management
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1. Food, Beverage, and Product public safety 2. Health related products 3. Corporate Fraud and Ethics
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Two Approaches to Issues Management
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Strategic and Conventional
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Conventional Issues Management
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Considers issues based on how they fall in public policy. Stand-alone decision making.
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Strategic Issues Management
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Emphasis on issues identification and prevention.
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Changing Issues Mix
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issues have evolved from financial and economic to include technology, social, ethical, and political issues.
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Issues Mix Strategy
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Portfolio approach allows you to learn from past issues as well as see big picture issue roots and not just on an individual issue by issue basis.
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Characteristics of Emerging Issue
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Unclear terms of debate not lending itself to automatic resolution through expert knowledge. Usually issues of values and beliefs and not logic and reason
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Components of Issues Management Process
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1: Identify the Issues
2: Analyze the Issues 3: Prioritize the Issues 4: Formulating Response 5: Implementing Response 6: Evaluation, Monitoring, and Control |
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Five Leading Forces of Social Change
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1. Leading Events 2. Leading Authorities/Advocates 3. Leading Literature 4. Leading Organzations 5. Leading Political Jurisdiction
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Issues Management Life Cycle
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Stage 1: Felt Need (leading forces)
Stage 2: Media Coverage Stage 3: Political Jursidiction Stage 4: Regulation |
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Four Stages of Crises Managment
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1. Prodromal
2. Acute 3. Chronic 4. Crises Resolution |
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Prodromal Stage
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Warning or Symptom stage. watching for signs of pending crises
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Acute Stage
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Crises actually occurs and is beyond prevention
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Chronic Stage
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Damage and implications are still looming overhead
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Crises Resolution Stage
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When everything is over and done with
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Five Steps for Managing a Crises
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Step 1: Identify areas of vulerability
Step 2: Develop a plan for dealing with threats Step 3: Form Crises Teams Step 4: Simulation |
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Business Ethics
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Related to issues of right and wrong and moral duty as it pertains to business
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Descriptive Ethics
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This is studying actions as they are to determine what people believe to be ethical.
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Normative Ethics
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Goes beyond what is and tries to determine what should be considered ethical based on guiding principles
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Conventional Approach to Business Ethics
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Approaching ethics in a ways that society things in general. Typically this means deciding what norms are prevailing.
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Immoral Management
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Managing without ethical principle and laws are simple barriers to get around.
Operating Stategy: Exploitation for personal gains. |
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Moral Management
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Managers conform to a very high standard of ethical behavior and professional standards
OperationStategy: Being ethical leaders, sponsoring programs, and stand out ethically |
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Amoral Management
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Managers who separate ethics and business (intentional) or don't see the ethical implications of their business (unintentional).
Operation Strategy: Compliance driven |
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Two Hypothesis Concerning the Moral Management models.
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Population Hypothesis, Individual Hypothesis
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Types of Ethical Principle Theories
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Teleological - Outcome of Actions
Deontological - Duties of Individuals |
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Utilitarian Principle
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You should always act to produce the greatest amount of good. The end justifies the means
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Rights Principle
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Individuals and groups have a set of moral rights that are justifiable entitlements.
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Justice Principle
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The Fair treatment of each person. Difficult to determine what is exactly fair to each person.
distributive: give everyone an equal shair compensatory: compensating for past injustices |
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Best practices for improving ethical climate
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1. Setting Moral Tone from Top
2. Effective communication of key ethical principles 3. Establishing Ethics programs and offices 4. Setting realistic goals 5. Having ethical decision making process 6. Code of Conduct 7. Disciplining ethical violations 8. Ethics Hotlines 9. Business Ethics Training 10. Ethical Audits and Assessments 11. Corporate Transparency |
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Technical Determinism
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Idea that technology will constantly be advancing
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Ethical Lag
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The idea that ethical development cannot keep up with technological development
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Key ethical issues regarding e-commerce
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access, intellectual property, privacy/informed consent, protection of children, security of info, trust
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Controversies of Genetic Engineering
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Stem Cells Research : Life and Death
Theraputic Cloning : Price of Human life |
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Controversy of Genetic Profiling
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People getting denied rights or privileges based on genetic information
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Backlash of Globalization
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Countries that have greater economic power will take advantage of developing countries.
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Corporate Legitimacy
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Fulfilling all corporate social responsibilities in a foreign country. Issues can include clashing management styles as well no win situations for the developing country
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Two Concepts of Integrative Social Contract Theory
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Hypernorms and Moral Free Space
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Hypernorms
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Fundamentals of ethical values and are prevalent in all industries and economic cultures
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Moral Free Space
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Norms that conflict or are inconsistent with hyper norms
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Four Strategies for Improving Global Ethics
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1. Creating Global Code of Conduct
2. Having Ethics and Global Strategy 3. Suspension of activities when actions are beginning to be seen as unfavorable by hosting countries 4. Ethical impact statements and audits |
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DeGeorge's seven moral guidelines for international operations
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1. No intentional harm
2. Produce more good than 3. Contribute to counties development 4. Respect rights of employees 5. Pay fair share of taxes 6. Respect the local culture 7. Cooperate with local government |
