Chapter 3

Question 1

What are the 3 P’s?

Answer 1

profit, people, planet

Question 2

representing people, planet, and profit, the three P’s measures an organization’s social environmental and financial performance

Answer 2

the triple bottom line

Question 3

the financial return an organization generates for shareholders

Answer 3

profit

Question 4

an organization’s commitment to positively impacting society

Answer 4

people

Question 5

organization’s effect on the environment

Answer 5

planet

Question 6

a systematic assessment of a company’s performance in implementing socially responsible programs, often based on predefined goals

Answer 6

social audit

Question 7

what do younger workers want?

Answer 7

• work life balance
• expect more form the organization they work for
• expect more from who they do business with
• concered about a corporation’s ethics, motives, and methods

Question 8

the people whose interests are affected by an organization’s activities

Answer 8

stakeholders

Question 9

employees, owners and the board of directors, if any

Answer 9

internal stakeholders

Question 10

all who claim the organization as their legal property

Answer 10

owners

Question 11

if you’re a member of a family running a car dealership and you’re all owners

Answer 11

private investors

Question 12

if you work for a company that is more than half owned by employees, you are one of the joint owners

Answer 12

employee owners

Question 13

buying a stock in a company whose shares are listed for sale on the new york stock exchange

Answer 13

stockholders

Question 14

group of people elected to oversee the firm’s activities and ensure that management acts in the shareholders’ best interests

Answer 14

board of directors

Question 15

people or groups in the organization’s external environment that are affected by it

Answer 15

external stakeholders

Question 16

kinds of external stakeholders

Answer 16

• task environment
• general environment

Question 17

eleven groups that present you with daily tasks to handle;

Answer 17

task environment

Question 18

those who pay to use an organization’s goods or services

Answer 18

customers

Question 19

people or organizations that compete for customers or resources

Answer 19

competitors

Question 20

person or organizations that provide supplies, raw materials, services, equipment, labor, or energy to other organizations

Answer 20

suppliers

Question 21

people or organizations that help another organization sell its goods and services to customers

Answer 21

distributors

Question 22

he relationship of two or more organizations who join forces to achieve advantages neither can perform as well alone

Answer 22

strategic allies

Question 23

money provided by investors to start up firms and small businesses with high risk but perceived long term growth potential, in return for an ownership stake

Answer 23

venture capital

Question 24

raising money for a project or venture by obtaining many small amounts of money from many people

Answer 24

crowdfunding

Question 25

regulatory agencies that establish ground rules under which organizations may operate

Answer 25

regulatory agencies that establish ground rules under which organizations my operate

Question 26

groups whose members try to influence specific issues

Answer 26

special interest groups

Question 27

macro enviornment 6 forces:

Answer 27

economic, technological, sociocultural, political-legal, and international

Question 28

economic, technological, sociocultural, political-legal, and international

Answer 28

economic forces

Question 29

new developments in methods for transforming resources into goods or services

Answer 29

technological forces

Question 30

influences and trends originating in a country’s, a society’s, or a culture’s human relationships and values that may affect an organization

Answer 30

sociocultural forces

Question 31

Influences on an organization arising from changes in the characteristics of a population, such as age, gender, or ethnic origin

Answer 31

demographic forces

Question 32

Changes in the way politics shape laws and laws shape the opportunities for and threats to an organization

Answer 32

political legal forces

Question 33

Changes in the economic, political, legal, and technological global system that may affect an organization

Answer 33

international forces

Question 34

standards of right and wrong that influence behavior

Answer 34

ethics

Question 35

occurs when the potential for personal benefit makes it difficult for you to make the best decision for the organization you are representing

Answer 35

conflicts of interest

Question 36

abstract ideals that guide one’s thinking and behavior across all situations; the relatively permanent and deeply held underlying beliefs and attitudes that help determine a person’s behavior

Answer 36

values

Question 37

the pattern of values withing an organization

Answer 37

value system

Question 38

greatest good for the greatest number of people

Answer 38

Utilitarian approach

Question 39

individual’s best long term interests, which ultimately are in everyone’s self interest

Answer 39

individual approach

Question 40

guided by respect for the fundamental rights of human beings

Answer 40

moral rights approach

Question 41

ethical behavior is guided by respect for impartial standards of fairness and equity

Answer 41

justice approach

Question 42

the illegal trading of a company’s stock by people using confidential company information

Answer 42

insider trading

Question 43

a formal written set of ethical standards guiding an organization’s actions

Answer 43

code of ethics

Question 44

employee, or even an outside consultant, who reports organizational misconduct such as health and safety violations, waste, or corruption, or overcharge of customers, to the public

Answer 44

whistle blower

Question 45

the notion that corporations are expected to go above and beyond following the law and making a profit, to take actions that will benefit the interests of society as well as of the organization

Answer 45

corporate responsibility

Question 46

be a good global corporate citizen, do what is desired by global stakeholders

Answer 46

philanthropic responsibility

Question 47

be ethical, do what is expected by global stakeholders

Answer 47

ethical responsibility

Question 48

obey the law, do what is required by global stakeholders

Answer 48

legal responsibility

Question 49

be profitable, do what is required by global capitalism

Answer 49

economic responsibilty

Question 50

the social responsibility of business is to make profits

Answer 50

against social responsibility

Question 51

company must be concerned for society’s welfare as well as for corporate profits

Answer 51

for social responsiblity

Question 52

the system of governing a company so that the interests of corporate owners and other stakeholders are protected

Answer 52

corporate governance