Chapter 2 Flashcards
(47 cards)
True or false: Building effective relationships is one of the most important areas of business today.
True. Business ethics is a team sport and few decisions are made by only one individual
The relationship between companies and their stakeholders is a (one/two way) street
Two-way street. Not just about what you do to them, but what they do to you.
What does the stakeholder framework do?
-identify internal and external stakeholders -Helps monitor and respond to needs, values, and expectations of stakeholder groups
Define Corporate governance
The formal system of accountability and control of ethical and socially responsible behavior
Give four examples of stakeholders
Customers employees government agencies investors suppliers communities
Define stakeholders
Those who have a stake or claim in some aspect of a company’s products, operations, markets, industry, and outcomes
Define the Descriptive approach to stakeholder theory
Focuses on actual behavior, addressing decisions and strategies in stakeholder relationships
The three approaches to Stakeholder theory (IND) are
Instrumental Descriptive Normative
What is the normative approach to stakeholder theory?
Principles and values help identify ethical guidelines that dictate how to treat stakeholders
Difference between primary and secondary stakeholders?
Primary: those whose continued association is absolutely necessary for a firm’s survival Secondary:do not typically engage in transactions with the firm and are not essential to a firm’s survival
What is the instrumental approach to stakeholder theory?
Examines stakeholder relationships and describes outcomes for particular behaviors
Media, trade associations, and special interest groups are examples of (primary/secondary/neither/both) stakeholders
secondary
What are four levels of social responsibilty?
Economic Legal Ethical Philanthropic
Define the Stakeholder Orientation
The degree to which a firm understands and addresses stakeholder demands.
Give two examples of primary stakeholders
Employees, customers, investors, governments, and communities
Peta is an example of a Trade association. True or false?
False, PETA is a special interest group
The Legal step of social responsibility is “following standards of acceptable behavior as judged by stakeholders”. True or Fale?
False. Legal is “abiding by all laws and government regulations. See the steps of social responsibility in picture attached (slide 9)
Where are primary stakeholders arranged on the Stakeholder interaction model?
Around the Company, with arrows between each other showing dependence upon one another.
An organization’s obligation to maximize its positive impact on stakeholders and minimize its negative impact is known as its
social responsibility
Businesses can (continue to/no longer afford to) ignore the natural environment as a stakeholder
no longer afford to. This is known as Sustainability, a social responsibility issue.
True or false: Caring about stakeholders has no effect on profits
False. Can lead to increase profits. The purpose of a stakeholder orientation is to maximize positive outcomes that meet stakeholder’s needs
The extent to which businesses strategically meet their economic, legal, ethical, and philanthropic responsibilities is known as
Corporate Citizenship
Define Consumer Protection, a social responsibility issue.
The company has the responsibility of taking precautions to prevent consumer harm
True or false: Reputation is one of an organization’s greatest intangible assets with tangible value
True. Although difficult to quantify, important because a single negative incident can influence an organization’s image and reputation instantly and for years afterwards
