All chapters Flashcards
(183 cards)
1
Q
What is a stakeholder?
A
Those who affect or are affected by the actions of a firm
2
Q
An important part of mgmt is to identify a firm’s relevant stakeholders and understand the nature of the stakeholder’s…
A
interests, power and alliances
3
Q
What is the General Systems Theory?
A
Argues that all organisms are open to, and interact w/their external enviornment
4
Q
Explain Shareholder theory of the firm
A
When the purpose of the firm is to maximize its long-term market value/make money
5
Q
What is stakeholder theory of the firm?
A
Argues that corporations should create value for society
6
Q
Market stakeholders are…
A
Those that engage in ECONOMIC transactions with the company
7
Q
Nonmarket stakeholder are…
A
People and groups who DO NOT engage in DIRECT economic exchange with the firm but are still affected by its actions. (govt. communities, gen. public etc)
8
Q
T/F: Internal stakeholders are employed by the firm.
A
T
9
Q
External stakeholders are those who are ____ directly employed the firm.
A
Not
10
Q
Explain stakeholder analysis:
A
The process of identifying relevant stakeholders and their interests & power
11
Q
What is a focal org?
A
Org. from whose perspective the analysis is conducted from
12
Q
What are the 5 stakeholder powers?
A
Voting power, economic power, political power, legal power, and informational power
13
Q
A visual representation of the relationships among stakeholders’ interests, power and coalitions w/respect to a particular issue is known as…
A
Stakeholder mapping
14
Q
Evolving govt. regulations of bus, Globalization, growing ethical values, new tech, societal expectations and the dynamic natural environment are examples of
A
Business and its stakeholders
15
Q
What does the emergence of a new public issue indicate?
A
That there is a gap between what the firm wants to do and what is actually happening and what stakeholders expect
16
Q
what do you call the gap between stakeholder expectations v firm expectations?
A
performance-expectation gap
17
Q
When do performance-expectation gaps occur?
A
when stakeholder concerns aren’t understood
18
Q
A method used to gather info about EXTERNAL issues and trends in order to develop strategy that minimizes threats and takes advantage of new opportunities is known as:
A
Enviornmental analysis
19
Q
Enviornmental intelligence is :
A
the Acquistion of info gained from analyzing the multiple environments affecting an org.
20
Q
T/F: Competitive intelligence is a systematic and continuous process of gathering, analyzing and managing external info about a company’s competitors.
A
T
21
Q
A method used to prioritize the relevance of stakeholders and their issues to the company is known as:
A
Stakeholder materiality
22
Q
What are the 4 stages in business-stakeholder relationship?
A
Inactive, Reactive, Proactive and Interactive
23
Q
describe every stage of the business-stakeholder relationship:
A
Inactive: companies that ignore stakeholder concerns
Reactive: companies act only when being forced to do so
Proactive: companies try to anticipate stakeholder concerns
Interactive: Companies actively engage stakeholders in an ongoing relationship of mutual respect
24
Q
Stakeholder dialogue is…
A
The art of thinking together!
25
What is corporate power?
Capability of corps to influence govt, economy and society based on their org. resources
26
"In the long run, those who do not use their power in a way that society considers responsible will tend to lose it" described the...
iron law of responsibility
27
corps should be held accountable for any actions affecting people, their communities and their environment is called...
Corporate social responsibility
28
What is corporate citizenship?
When the actions of a corp. take put their commitments to corp. social responsibility to work
29
Enlightened self-interest is the view that holds that...
it's in a company's self-interest in the long run to provide value to its stakeholders
30
Social entrepreneurs are driven by
a core mission to create and sustain social value over economic value
31
Organizations founded by social entrepreneurs are called
social ventures
32
B corporations focus on...
social responsibility and corp. citizenship by blending their social and environmental goals with financial goals
33
T/F: B crops must meet the B-lab standards
T
34
What is B-Lab?
A nonprofit org. that assesses a corporation's social and enviornmental performance standards
35
Global corporate citizenship is an opportunity to:
create value for an org, gain a competitive advantage, and helps address some of the world's biggest challenges
36
Explain Stage 1 of corporate citizenship:
Elementary stage: underdeveloped stage, managers aren't interested in social issues
37
Stage 2 of corp. citizenship: Engaged
Companie become aware of changing public expectations
38
Innovative stage 3:
Companies begin to understand reasons to engage with corp. citizenship
39
Transforming stage 5:
Companies have visionary leaders and are motivated by a higher sense of prupose
40
stage 4: Intergrated
companies see the need to build initiatives
41
What is evaluated during a social auditing?
an org social, ethical and environmental performance
42
When companies clearly and openly report their performance, this is called
Transparency
43
What are ethical principles?
Guides to moral behavior
44
The conception of right and wrong conduct is known as
Ethics
45
A belief that ethical right and wrong are defined by various periods of time in history, a societies traditions, specific circumstances or personal opinion is known as
Ethical relativism
46
T/F: Laws are the same as ethics.
F
47
List the sources of ethics:
Religion, family, education, community, media and institution
48
The application of ethical ideas to business behavior is known as
business ethics
49
what % of employees observe unethical behavior at work?
50%
50
What is the MOST unethical practice?
Conflict of interest
51
Abusive behavior, safety & health violations and corruption are all examples of what?
unethical practices
52
why should business strive to be ethical?
to enhance business performance, to comply with the law, to meet demands of business stakeholders, to prevent/minimize harm, and to promote personal morality
53
what did the Sarbanes-Oxley Act of 2002 do?
makes it illegal for retaliation against whistle blowing
54
why do ethical problems typically occur in business?
personal gain/self-interest, competitive pressures on profit, conflicts of interest, and cross-cultural contradicitons
55
Do managers values impact the ethics of the workplace?
yes
56
List Manager's Moral development stages:
1. Childhood- punishment avoidant
2. Adolescence- Reward seeking
3. Early adulthood- Social groups
4. Adulthood- Society at large
5. Mature adulthood- Moral beliefs above/beyond social custom
6. Mature adulthood- Universal principles: justice/fairness/human rights
57
What are the 4 methods of ethical reasoning?
1. Virtues - focus on character traits that a good person should have
2. Utility- Compares benefits and costs that can be produced by and action/decision
3. Rights- emphasizing a person's entitlement to something/treatment
4. Justice- Is it fair?
58
A person's perception of how morally severe situation is, is known as moral ________.
intensity
59
What factors contribute the moral intensity of an issue?
magnitude of consequences, the issue's proximity to the people being affected/decision maker, social consensus, the probability the decision maker's actions will lead to the consequences, and temporal immediacy (length of time that the consequences will occur from moment of decision)
60
The blend of ideas, customs, traditional practices, company values and shared meanings is a company's ________ culture.
corporate
61
Define ethical climate:
The unspoken understanding among employees of what is and isn't acceptable behavior
62
What are the 3 components of ethical climate?
1. Egoism (self-centered approach)
2. Benevolence (concern for others)
3. Principle (integrity approach)
63
Accounting/financial ethics:
tax evasion, companies required to audit by a certified professional accounting firm
64
marketing ethics
customer privacy, honesty and transparency in advertising, consumer health and safety
65
The most complex and fast-changing areas of business ethics are
info-tech ethics - privacy, confidentiality, copyright protections, cyberbullying, A.I.
66
Why should a company build ethical safeguards into its everyday routines?
to improve quality of its ethical performance
67
Benefits of having ethical safeguards in businesses are:
increases employee's willingness to seek ethical advice and sharpens their awareness of issues at work, increases employee's sense of integrity, commitment to company and increases willingness to speak up when unethical issues arise.
68
3M's Code of Conduct is:
to be good, honest, fair, loyal, accurate and respectful
69
A help/hot line is an example of
ethics reporting mechanisms
70
Org. Benefits to ethics training programs are:
-Reduces liability by 50%
-Increases reporting by 50%
-Improves trust in leadership 45%
-Improves company morale 40%
-improves mastery of ethics and compliance issues 39%
71
List the least corrupt nations in order:
- New Zealand
-Denmark
-Finland
-Switzerland
-Singapore
-Sweden
72
List the most corrupt nations:
-Somalia
-South Sudan
-Syria
-Yemen
-Venezuela
73
Govt. relationships with business can be either _____ or adversarial.
cooperative - mutual assistance in working toward common goal
74
T/F: Govt. can provide or limit opportunities for businesses and control business activities.
T
75
A plan of action undertaken by the govt. to achieve some broad purpose affecting a substantial segment of nation's citizens is called ---
Public Policy
76
List the types of economic public policy:
1. Fiscal - patterns of govt. collecting and spending funds that are intended to stimulate the economy
2. Trade - Rules that govern imports/exports to foreign countries
3. Monetary - Policies affecting supply/demand/value of nation's currency
4. Taxation - The raising/lowering of taxes on business/individuals
5. Industrial - Directing economic resource toward development of specific industries
77
List types of social public policy:
1. Healthcare
2. Education
78
List the reasons for regulations on businesses:
1. Market failure
2. Negative externalities/spill-over effect
3. Natural monopolies
4. Ethical arguments
79
What do economic regulations aim to modify?
free market, forces of supply and demand
80
What are antitrust laws?
Laws that prohibit unfair, anticompetitive practices by businesses
81
The practice of selling below cost to drive rivals out of business is called
predatory pricing
82
Social regulations ________ consumer and the environment and provide workers with safe and healthy working conditions.
protect
83
T/F: A cost-benefit analysis helps the public understand what is at stake when new regulation is made.
T
84
What is deregulation?
The removal or scaling down of regulatory activities of govt.
85
The expansion of govt. regulation is called --
reregulation
86
Corp. political strategy is the activities taken by orgs to acquire, develop and use power to obtain an ________
advantage
87
When businesses seek to provide govt. policy makers with info to influence their actions, this is called using the _____ strategy.
info
88
An example of info strategy is:
lobbying
89
Finacial-incentives strategy is when:
businesses provide incentives to influence govt. policy makers to act in a certain way
90
Economic leverage and political contributions are example of
financial-incentives strategies
91
Constituency-building strategy is when businesses seek to gain support from other affected orgs to better influence govt policy makers to act in a way that ____ _____.
helps them
92
What is the revolving door?
The circulation of individuals between business and govt.
93
The business roundtable is an org. founded in 1972 of chief executive CEOs of what?
leading corporations
94
Public Action Committees (PACs) are independently incorporated orgs that can solicit contributions and channel those funds to ________ seeking public office.
candidates
95
Super PACs are organizations that raise/spend money focusing on political issues but _____ _____ _____ ______ w/any political party.
are not directly affiliated
96
Political campaign groups that are not affiliated with any parties or individuals are called:
tax-exempt orgs
97
what are stakeholder coalitions?
the mobilization of employees, stockholders, customers and local community to support their political agenda
98
A business uses _______ ________ when it threatens to leave a city/country unless a desired political action is taken.
economic leverage
99
PR is a political tool used by companies to promote their viewpoint through the ____.
media
100
T/F: Trade associations are coalitions of companies in different industries to coordinate their campaigns/economic-pollical power t0 further their agenda.
F, companies in related/similar fields
101
The world's stocks of natural assets, including its geology, soil, air, water and all living things is known as ______ capital.
natural
102
There ate 2 types of natural capital: ______ and ______ resources.
renewable and nonrenewable
103
The following are all renewable resources except: Trees, oil, water, fish.
oil
104
Give an example of a nonrenewable resource:
coal
105
Development that meets the needs of the present w/o compromising the ability of future gens to meet their own needs is called ________ _________.
Sustainable development
106
The amount of land and water an individual/group need to produce the resources it consumes and to absorb its wastes is called the ecological __________.
footprint
107
Each person on average has an ecological footprint of _____ acres.
7.1
108
T/F: Only 4.2 acres of earth are biological productive areas.
T
109
T/F: Population growth does not directly effects climate change.
F, it does.
110
The stratospheric ozone is caused by what?
Urbanization
111
what are the 4 socio-economic trends that have had the greatest impact on the environment?
1. population growth
2. Urbanization
3. Energy usage
4. GDP growth
112
Densley populated areas are the most --
polluted
113
Fossil fuels account for about ___% of energy sources in U.S.A causing long-term harm to the planet.
80%
114
List the potential impacts of GDP growth:
- increased pollution through manufacturing and consumption
-rise in consumption of nonrenewable resources
- degradation of natural habitats due to infrastructure expansion
115
Define Climate change:
the change in earth's climate caused by increasing concentrations of carbon dioxide + other pollutants produced by humanity
116
List the leading contributors to climate change:
- oil
- natural gas
- coal
- black carbon
-deforestation
117
What is Black carbon emissions?
The smoke created by diesel engines, wildfires, wood, charcoal burning, etc.
118
Livestock is responsible for ___% of greenhouse gases.
15%
119
T/F: Oil and gas wells emit more methane that any other single source.
T
120
What is the most important international treaty on global warming?
Convention on climate change 1992
121
What did the Kyoto Protocol set limits on?
on the concentration of greenhouse gases emitted into the atmosphere
122
the 2015 Paris Agreement aimed to limit the rise in the average global temperature to below ___ above preindustrial levels.
2degrees Celsius
123
Ozone in the stratosphere is critical to life on earth by absorbing dangerous ultraviolet light from the sun. but the challenge is
ozone depletion
124
What is the major reason for decline in biodiversity?
the destruction of rainforests
125
The collecting of info on the lifelong environmental impact of a product is known as
lifecycle analysis LCA
126
What is the circular economy?
A production system that is regenerative by design
127
When an organization produces net zero emissions of greenhouse gases it's known as
carbon neutrality
128
Reasons why managing for sustainability is important:
- accelerating climate change
- pressures on h20 and land resources
- declining biodiversity
129
What are cap-and-trade programs?
provide companies with a financial incentive to cut pollution below the caps.
130
Repercussions of air pollution:
- degradation of infrastructure
- reduction in crop yields
- mars beauty of natural landscape
- harms health of humans/animals
131
Major law governing air pollution, Clean Air Act 1970 did what?
emphasized restrictions on acid-rain causing chemicals
132
Main U.S. law governing water pollution: Water pollution control act/clean water act aims to
restore/maintain the integrity of all surface water in the U.S.A
133
Major law governing the clean-up of hazardous waste sites: Comprehensive Enviornmental Response, compensation and liability act 1980:
established a fund, supported by a tax on petroleum and chemical companies that were presumed to have created a disproportionate share of toxic wastes
134
Alternative policy approaches are:
command & control regulation in which govt. command businesses to comply with certain standards
135
Market based mechanisms are an alternative policy approach in which:
the market controls what companies must do
136
tactic inwhich the govt. encourages companies to pollute less by publishing info about the quality of pollutants individual companies emit each year it's called
informative disclosure
137
Civil and criminal enforcement is when the government _____ bad behavior rather than good
taxes
138
who manages an organization's sustainability activities and performance?
the chief sustainability officer
139
List 2 sustainability business practices:
1. Enviornmental audit reporting
2. environmental partnerships
140
The advantages of business sustainability are:
- cost savings
- brand differentiation
- tech innovation
- reduction in regulatory, liability and climate change risk
- strategic planning
141
T/F: Tech is the primary cause of change in society.
T
142
The most visible and widely used tech innovation is the _____.
internet
143
which country is the leading in internet use?
China
144
List unwanted tech threats:
- spam
- phishing: practice of stealing consumer info through credentials
145
Define the digital divide:
The gap between those who have access to the internet and those who do not
146
Commerce conducted via mobile device/cell phones is called:
M-commerce
147
Ethical challenges involving tech:
- loss of privacy
- free speech issues
148
List the rights of consumers:
- to be informed
-to safety
- to choose
- to be heard
- to privacy
149
4 methods of protecting consumers are:
1. consumerism - consumers protect themselves
2. Law/courts: people sue
3. Govt. regulation: laws on safety/privacy of consumers
4. Industry self-interest: business and industries protect their consumers through product recall, quality programs, etc.
150
what is behavioral advertising?
Advertising that's targeted to specific customers, based on their observed online behavior.
151
What is the difference between product liability and strict liability?
In product liability, the firm is responsible for injuries caused by something it made/sold. In strict liability, responsibility lies on the manufacturer
152
Mediation is a voluntary process in which...
a third party is used to setle disputes
153
The use of an impartial individual to hear/decide a case outside of the judicial system is called
arbitration
154
The first significant reform of product liability laws was known as the ...
class action fairness act 2005
155
Voluntary industry codes of conduct lay out how industries will ___________________________
treat their consumers/customers
156
The consumer affairs officer typically manages a complex network of
contracts w/customers
157
Major rights of employees are:
- to organize & bargain collectively
- to a safe and healthy workplace
- to due process on the job
- to fair and decent wages
- to privacy
- to "blow the whistle" & free speech
158
The proposed right to organize act 2021, strengthened enforcement of current fair labor laws &
makes it easier to unionize
159
Blow the whistle is when
an employee discloses alleged org misconduct to the media or a govt. agency
160
list the 3 whistle-blowing laws:
- U.S. false claims act 1986
- sarbnes-oxley act 2002
-dodd frank 2010
161
define diveristy:
The variation in the important human characteristics that distinguish people from each other.
162
Primary dimensions of diversity are:
-age
-ethnicity
-race
-mental/physical abilities
- sexual orientation
-gender
163
secondary dimensions of diversity are:
-communication style
-ways of thinking Interacting
-family status
-first language
164
The proportion of people who are actively working or seeking work is known as
labor force participation rate
165
Occupation segregation is known as
the inequitable concentration of a group in a certain job category
166
The invisible barrier that exists in reaching upward mobility is called the glass _________.
ceiling
167
what are reason for the glass ceiling?
- lack of commitment to diversity
- staff v. line positions
- old boy's network
too little mgmt. accountability
168
the equal employment opportunity prohibits discrimination based on what?
race, age, color, religion, sex, national origin, physical or mental disabilities
169
Affirmative action reduces job discrimination by ....
encouraging businesses to take positive steps towards discriminating employment practices
170
What is sexual harrassment?
when an employee, man or women, experiences repeated, unwanted sexual attention
171
Racial harassment is when an employee experiences ethnic slurs, _______ ______, or other verbal/physical harassment.
derogatory slurs
172
A diversity council is a group of managers and employees responsible for...
developing and implementing specific action plans to meet an organizations diversity goals.
173
who are suppliers?
organizations that provide goods and services to other organizations.
174
Organizations hired to manufacture products for or provide a service DIRECTLY to a company are ______________________________.
Tier-1-supplier, also known as contractors.
175
Organizations hired to manufacture products for or services to contractors are known as _____________________.
Tier-2-suplliers aka SUBcontractors.
176
The Mutiple steps involved in the movement of a product/service from the most distant supplier to the customer is called the
supply chain
177
List the 3 global supply chain issues:
1. Social issues - wages, working conditions, health & safety in factories
2. Ethical issues - child labor, human trafficking/forced labor, sourcing minerals from conflict zones, Human rights violations
3. Enviornmental issues - climate change contributions, air pollutants, environmental impact of transfer of good/service over seas
178
Supply chain transparency is when a company...
fully discloses what happens in its supply chain to its stakeholders
179
What is private regulation?
When non-governmental institutions govern, enable and constrain economic activities
180
A supply chain audit ..
monitors a supplier's performance to determine if it complies with the relevant code of conduct
181
drawbacks of supply chain auditing:
- expensive
- time consuming
- not always random so companies can fake conditions
- not always reliable
182
List the 2 alternatives to auditing;
1. crow-sourced auditing- gathers info about conditions from employees through their phones
2. supply chain audits- companies working together to audit major suppliers and share results
183
when an audit reveals a gap in supply chain companies can do the following:
- Integrate supplier score cards
- training
- joint problem solving
- invest into equipment and infrastructure
