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Flashcards in Chapter 2 Deck (32)
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1

What is considered one of the most important areas of business today?

building effective relationships

2

What helps business identify internal and external shareholders and identify, monitor, and respond to the needs, values and expectations of different stakeholder gtroups?

stakeholder framework

3

what is corporate governance?

the system of accountability, oversight, and control (ethical and socially resp. behavior)

4

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

stakeholders

5

How is the relationship between companies and their staekholders defined?

Two-way street

6

What are the three approaches to the stakeholder theory?

Normative
Descriptive
Instrumental

7

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

normative

8

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

descriptive

9

examines stakeholder relationships and describes outcomes for particular behaviors

instrumental

10

Who are those continued association is absolutely necessary for a firm's survival?

Primary Stakehodlers

11

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

Secondary Stakeholders

12

What is th edegree to which a firm understands and addresses stakeholder demands?

Stakeholder orientation

13

What is the main goal of stakeholder orientation?

Inolves activities that facilitate and maintain value with stakeholders

14

What three things does stakeholder orientation entail?

Generation of data about stakeholders

Distribution of that information

Responsiveness of the organization as a hold

15

What is an organization's obligation to maximize its positive impact on stakeholders and minimize its negative impact?

Social Responsibility

16

What are the four levels of social responsibility

Economic
Legal
Ethical
Philanthropic

17

the extent to which businesses strategically meet their economic, legal, ethical, and philanthropic responsibilites

corporate citizenship

18

What are the four interrelated dimensions of corporate citizenship?

1. Strong sustained economic performance
2. Rigoruous compliance
3. Ethical actions beyond what is legally required.
4. Voluntary contributions to advance reputation and stakeholder commitment

19

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

reputation

20

What are the four Social Responsibility issues?

1. Social
2. Consumer Protection
3. Sustainability
4. Corporate Governance

21

Deals with concerns that effect the welfare of entire society, associated with a common good

social

22

The company has the responsibility of taking precations to prevent consumer harm

consumer protection

23

Businesses can no longer afford to ignore the natural environment as a stakeholder

Systainability

24

How closely workplace decisions align with a firm's stragic direction

accountability

25

A system of checks and balances to minimize opportunities for misconduct

oversight

26

The process of auditing and improving organization decisions and actions

control

27

What view of corporate governance states the purpose of business is to max. wealth for investors and owners

shareholder model

28

What is a broader view of the purpose of business which includes satisfying concerns of primary stakeholders including employees, suppliers, regulators, communities, and special interest groups

stakeholder model

29

who holders the final responsibility for its firm's sucess, failure, and ethicality of actions?

Board of directors

30

What kind of duty do BODs have?

Duty of diligence

31

What is the concept of board members being linked to more than one company

interlocking directorate

32

What are the steps to implementing a stakeholder perspective?

1. Assessing the corporate culture
2. Indentifying stakeholder groups
3. Identifying stakeholder issues
4. Assessing organizational commitment to social responsibility
5. Identifying resources and determining urgency
6. Gaining stakeholder feedback