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
