LM 1-4 Flashcards
benefits of profitability
innovation, employment, taxes for public services, fulfillment of societal needs, efficiency & productivity
costs of profitability
environmental costs, income inequality, monopolistic practices, regulatory capture
shareholder capitalism
milton friedman, only obligation of business is to increase profit
sustainability
meeting needs of present without compromising ability of future generations to meet their own needs
business sustainability
economic profitability while contributing to or operating within the capacity of social, economic and ecological systems
natural capital
stock of natural ecosystems that yield a flow of valuable ecosystem goods/services into the future
carrying capacity
interest collected from earth’s natural capital, available consumable resources
ecological footprint
area of land/air/water ecosystems required to produce the resources that the population consumes and to assimilate the wastes that the population produces
ecological overshoot
amount of resources that go beyond the natural capital
negative externalities
costs that result from an activity/transaction that affects an uninvolved party who didn’t choose to incur that cost
public good/common pool resources
good that cannot be effectively excluded from use and use does not reduce availability to others
tragedy of the commons
cooperating is optimal for collective, self interested individuals tend to deplete resource because individuals do not bear full cost & don’t internalize full benefit
Elinor Ostrom
tragedy of the commons can be prevented through boundaries, monitoring, government buy in
denial of responsiblity
dei programs posited as costly and don’t have returns, but studies show they’re profitable and lead to better decision making
bechdel test
media must have at least two women in it that talk to each other at least once about something other than a man
materiality matrix
importance to stakeholders vs relevance to business model
importance to stakeholders
breadth, history, priority, proxies of importance such as word on the street
relevance to business model
how they earn money, reduce costs and increase willingness to pay
competitive positioning
unique CVP that sets firm apart from its competitors, objective to position firm somewhere few competitors exist
core competences
valuable & difficult to imitate and substitute, path dependency, causally ambiguous, socially complex
culture/identity
accepted beliefs in organization about who they are, motivates employees to excel in competencies and positioning
denial strategy
irrelevant to strategy, in stark contrast to sustainability, unrelated philanthropy to offset impact, corporate citizen, no relevance of sustainability to daily routines
defense strategy
admit that strategy leads to unsustainable outcomes but defends through philanthropy to offset operations, value add, small improvements, risk management without strategic value, greenwashing, nutriwashing, rainbowashing
isolated strategy
strategic relevance emerges, isolated within firm, potential for sizable component for revenue/reduction in costs, product/service lines or part of many, contradictory marketplace positioning
