Chapter 4 + Chapter 5 Flashcards
(22 cards)
Doing What’s Right - 4 Elements
Business law, ethical decision making, core values, corporate social responsibility
Business Law
Labor laws, uniform commercial code (UCC), environmental protection, industry specific regulations
Ethical Decision Making
“What should happen” vs. “what does happen”
Does: internal/external factors
Should: moral awareness, judgement, intention
Ethical standards
Utilitarianism, individualism, moral rights, justice, impartial opinion, full disclosure
Core values
Underlying norms of behaviors/actions expected of employees; must be reinforced by example and action
Corporate Social Responsibility (CSR)
Business recognizes and proactively responds to needs of stakeholders
Stakeholders include:
Customers, suppliers, distributors, employees, communities
Drivers of economic value for a business
Profitability and growth
Profitability : ability to generate long term positive cash flow
Growth: rate of increase in net cash flow year over year
How to create growth
- Existing products/services to current customers
- Gaining new customers and retaining current one
- New products/services to current and new customers
- Selling existing products/services into new markets
How to successfully innovate
AI, technology platforms, collaborative ecosystems
Collaborative ecosystems
Multiple orgs. working together to enable dvpmt of new technologies, products, services
-Collecting/using data
-Access to IP
-Merging physical and digital marketing
-Advancing new technology
How do large businesses create successful new ventures?
-Top leadership commitment
- Limited target areas aligned to core competencies of the business
-Overcome typical obstacles
-Create separately funded organizations (?)
-Use innovation tools
-Terminate unsuccessful ventures
National Labor Relations Act
Gave workers the right to collectively bargain, and strike
Fair Labor Standards Act
40 hour work week and minimum wage established, child labor made illegal
Social Security Law
Retirement income for 65+ years
Equal Pay Act
Gender wage gap made illegal
Occupational Health and Safety Act
Protected health and safety of workers
Sarbanes-Oxley Act
For publicly traded companies - senior executives must confirm accuracy of financial reports
Securities and Exchange Commission (SEC)
Monitors financial transactions of the banking industry
James Rest ethical decision making model
Moral awareness, moral judgement, moral intention, action/implementation
Uniform Commercial Code (UCC)
Creates equal regulations across all 50 states
Intrapreneurship
Developing new business processes through creative methods
