Chapter 7D (values based management) Flashcards
(32 cards)
What is CSR?
Corporate Social Responsibility
Who are stakeholders?
They are people and groups that supply a company with its productive resources and have claim and stake in the company.
What do companies have to do when laws don’t tell them how to behave?
Managers have to decide what right/ethical way to behave towards people and groups affected by their actions.
What different types of stakeholders are there?
Stockholders, employees, managers, customers, suppliers/distributors, community/society/nation-state
What are the values of the stockholders?
Want to make sure that manager’s are acting ethically and not risking investor’s capital by engaging in actions that could hurt the company’s reputation; they also want to maximize the company’s ROI
What are the values of the managers?
using company’s financial capital and human resources to increase performance; also have a right to expect a good return/reward by investing their human capital to improve a company’s performance; generally juggle multiple interests
What is a problem with corrupt managers?
They focus on maximizing their own personal profit and wealth.
What are the values of the employees?
They expect to receive rewards consistent with their performance; companies act ethically towards employees by creating an occupational structure that fairly rewards employees for their contributions
What are the values of the suppliers?
They expect to be paid fairly and for their inputs
What are the values of the distributors?
They expect to receive quality products at agreed-upon prices
Who is the most critical stakeholder?
Customers
What are the values of the customers?
Company must work to increase efficiency and effectiveness in order to create loyal customers and to attract new ones.
What are the values of the community/society/nation-state?
provides company with physical and social infrastructure that allows it to operate
What is a community?
The physical locations where a company is located.
Name an example of a community.
towns; cities
How do companies affect communities?
The company contributes to the economy of the town/region through salaries, taxes, and wages.
What is corporate social responsibility?
It is the way that the company’s managers and employees view their duty/obligation to make decisions that protect and promote the well-fare and well-being of society as a whole.
What are a firm’s duties to its stakeholders?
operate in an honorable manner; provide good working conditions for employees; encourage workforce diversity; environmental responsibility; actively work to better the quality of life in the communities where it operates/ society at large
What are the four approaches to social responsibility?
Obstructionist approach, defensive approach, accomadative approach, proactive approach
What is an obstructionist approach?
When companies choose NOT to behave in a socially responsible way and act unethically and illegally.
What is a defensive approach?
When companies/managers stay within the law and abide strictly by legal requirements, but make no attempt to exercise social responsibility
What is an accomadative approach?
When companies b
What is an accomadative approach?
When companies behave legally/ethically, but they try and balance the stakeholders against one another so that the claims of stakeholders are seen in relation to other stakeholders.
What is a proactive approach?
When companies actively embrace socially responsible behavior and go out of their way to learn about the needs of different stakeholder groups; also by utilizing organizational resources to promote the interests of all stakeholders
