1
Q
What are the two ways that organizational theory is a practical activity?
A
practical because organizations are…
1) Practical necessities: organizations are really needed like eveerywhere
2) Challenging acheivements: need to get past challenges because things need to get done through organizations.
2
Q
How is an organization like a machine?
A
- Has parts that fit together to create the whole
- ppl argue it can be designed a certain way and optimized
- one part breaks, the whole fails / there is a large issue
3
Q
What was Henri Fayol’s explanation of a mechanic organization and what it needs to survive?
A
Organization needs many different functions, need understand what it needs to survive,
5 tasks to keep machine intact:
- plan and forecast (be prepared for changing circumstances)
- organize tasks etc so everyone know what do
- give commands so same ^
- coordinate organizational activities so they fit together to serve a goal
- have control (make sure plans/commands followed in practice)
** understand organization as whole and how all parts/actions/decisions have a place/impact
4
Q
How did Taylor explain task design for a mechanic organization?
A
Scientific management, ‘design better parts for the machine’, use experiments to identify how to improve efficiency (lightbulbs in factory exp)
- observe ppl at work, see what could be changed
- he inspired Henry Ford to set up production line shit
5
Q
What is the other side of understanding an organization?
A
Organic! Human relations - psychological or sociological effects on relationships and organizations
6
Q
How would one expand organically on the effective tasks laid out in the mechanic view of an organization?
A
Attempt to undesrtanf the people behind the tasks! how motivated, why care, what feelings abt tasks and supervisors
- argue success only from employees that want to work and care abt company success
- work to exert managerial control over not only bodies (actions) but also minds and hearts
7
Q
What did Elton Mayo say about some people and their feelings in the organization?
A
He wanted to clamp down on agitators (those who wanted better work conditions/pay). Said they dont see world as group collaboration, believes workplace is a scene of exploitation where they and their peers suffer.
– wanted to get ppl to accept place in life and do what told
8
Q
What is the difference between an organic and mechanistic organization?
A
Mechanistic = well-oiled machine, perfect to acheieve a certain task, intended to maximize efficiency Organic = company is an organism, able to match with changing times, depend on motivation and commitment, more focused on workplace psychology and sociology
9
Q
How would one argue that social systems are needed in organizations?
A
A community is created, so people contribute to a group goal or purpose and get to feel that nice shared purpose and relationships, this leads to success.
10
Q
What was Weber’s theory of modern bureaucracy?
A
used characteristics of modernity for a new type of bureaucratic organization.
- allowed for concentration and mobilization of power for state and market firms
(contrast old setup where leaders were chosen by family/lineage and jobs were source of prestige not sign of poverty/etc)
Formal rationalization - the ppls way of making sense of the world (rules, etc = more predictable)
11
Q
What did the structure part of modern bureaucracy consist of?
A
Formally defined and interrelated roles and rules
- specific duties
- some offices underneath other offices
- authority based on regulations rather than charisma or private status
12
Q
What is the technocracy part of modern bureaucracy?
A
Roles as full time jobs, allocated by qualification
- expertise required rather than patronage
- rewardsd for those proven goo
- organized and exact
13
Q
Accountability part of modern bureaucracy
A
Central role for organizational record keeping
- trend toward formal rationalization
- document justifiability of decisions
14
Q
What was the great debate regarding bureaucracy?
A
Between 1) bureaucracy as realization of human potential and 2) bureaucracy as destruction of human spirit
1: make easier to organize and coordinate, help with precision and machine-like org.
2: fear that could trap people in system that didn’t care abt their individuality/personal circumstances (reduced to cogs in machine)
15
Q
What is the two-sided debate related to bureaucracy/organization types? What was the result?
A
Debates over mechanistic vs organic orgs
and
Debates over merits and costs of bureaucracy: mechanistic bureaucracy good for human potential bad for dehumanizing
(debates gave rise to Structural Contingency Theory)
16
Q
What is structural contingency theory?
A
- orgs are open systems and depend on their environments (diff charactersitcs req diff setup = rigid vs fluid job descriptions, centralized vs decentralized decision making)
- Best org design reflects enviro pressures (influenced by nature of task, tech change, stakeholder demands)
17
Q
Related to structural contingency theory, how best do organic and mechanistic organizations fit in?
A
Organic = best for turbulent env. bc more fluid and adaptable Mechanic = stable env. w/ defined responsibilities and well understood tasks
18
Q
What are configurational theories?
A
consist of distinct combinations of features (set blueprints?) including variations in fit and performance
- understand when certain characteristics help or harm
- TYPES of coherent organization we might see
19
Q
What does the existence of structural contingency and configuration theories prove?
A
Success comes from combos of characteristics
- formalization not always the answer but pretty important for keeping organized
- switching is difficult and one characteristic may affect many others (also ppl struggle to adapt)
20
Q
What are the three additional theories related to the
organizations environment that sprouted from structural contingency theory?
A
1) Population ecology: use biology concepts to understand org (food chain, competition, symbiotic relationships)
2) Resource dependency: political theory focus on how orgs shaped by power relations
3) institutional theory: sociology/psychology explore broader culture dynamics taken for granted shit, how it all impacts success
21
Q
What are the three main characteristics/aspects of orgs that were being focused on after structural contingency theory showed up?
A
1) Organizational culture: how develop distinct character, how then shape the way ppl in org act, how this evolves
2) Sense-making and decision-making: how info travels, how decisions made, how ppl come to believe things abt org
3) Technology: how new techs get legitimized, how tech is adapted to fit what org do
22
Q
What is a structural lever? Organizational design? How do these two concepts interact?
A
Structural levers are inputs to organizational design
Organizational Design is characterized by different organizational configurations, like configurational theories where theres diff stuff that works for diff situations
–> they each impact one another, and also impact organizational outcomes (profitabliliyy, incentives, capabilities)
23
Q
What are the 7 structural levers in organizational design?
A
- work specialization
- departmentalization
- centralization
- formalization
- chain of command
- span of control
- boundary spanning
24
Q
What is work specialization structural lever and what are strengths and weaknesses?
A
High when jobs are narrowly divided b/t employees, meaning roles are strict and very focused/specialized!
S: efficient and productive
W: no multitasking/changing = boring unfulfilling job
25
What is departmentalization structural lever and what are strengths and weaknesses?
High when lots division, activities are grouped into departments
S: productive, coordination, mechanistic
W: harder to manage, bureaucratic
26
What is chain of command structural lever and what are strengths and weaknesses?
High when there are more levels of management
S: clear accountabilities, easier communication bc always defined leader to talk to vs big blob of equal employees
W: slower decision making, harder to assess goals in lower chains
27
What is span of control structural lever and what are strengths and weaknesses?
High/wider when there is one manager for lots of subordinates aka flatter management
S: cost effective, empowered employees
W: less communication and control, need really good leaders
28
What is centralization structural lever and what are strengths and weaknesses?
High when direction/decisions only made by senior management
S: uniform decisions, economized efforts
W: concentreated power so reduced autonomy in employees
** work w formalization
29
What is formalization structural lever and what are strengths and weaknesses?
High when org has very explicit written rules, policies, job descriptions
S: clear frameworks, streamlined
W: reduced autonomy, less freedom for individual situations and certain employee needs
** work w centralization
Normally new/small company less formalized!
30
What is boundary spanning structural lever and what are strengths and weaknesses?
High if there's someone sent around to understand everything and coordinate bt both internal and external parts
S: enhance org learn and agility, low cost
W: conflicts, emotional labour bc person becomes less part of a specific team
31
What are the 4 most common organizational design configurations?
Informal: flat, few rules, no hierarchy, little formalization, fluid
Functional: formal, hierarchy, goals, specializations based on roles/functions (aka "the accounting department")
Divisional: formal, hierarchy, goals, specializations based on product/customer/geographic lines (aka "the europe division" etc)
Matrix: formal, hierarchy, goals, specialization based on both roles/functions and product/geography so ppl accountable to two diff supervisors (aka "europe division accounting dept") **almost never in small orgs
32
What is the fuckin point of strategy? How define each aspect of this point of strategy?
THE PURSUIT OF A SUSTAINABLE COMPETITIVE ADVANTAGE
--> competitive advantage = something rewarding at which the company excels relative to competitors (quality, service, etc) - reward is often profit but cuold be other stuff like efficiency/provide better services
33
What is positioning?
Finding somewhere you can excel relative to others bc of a set of activities you can do that others cannoy copy without abandoning their own shit
34
What is operational effectiveness and how does it relate to competitive advantage?
OE = do what you do as effectively as possible
- easy to copy then bc everyone selling same product/etc can increase efficiency, so end up work really hard, but everyone else does to so no one actually gets ahead AKA COMPETITVE PARITY
- need OE to reinforce distinct position, but OE cant be the only thing that creates your position
35
What are the 3 types of fit under positioning?
First order = consistency across activities (nothing undermines others, net = gross)
Second order = mutual enhancement of actvities (each part makes the other better than they could have been seperately, adds value to others) ex: design course around prof skillset means prof perfectly suited for position, classes are specialized
Third order = optimization of activities (every activity mutually enhances system)
36
What is the impact of trade-offs and sustainable positions?
position can be replicated technically, but want it to be only replicable if tradeoffs occur.
- - someone cant copy you without messing up their own position, have to trade something out and cant have everything
(ex: airline made cheap and easy = position, but other airline try copy while maintain high end option as well just dont work, each undermines other and quality/other parts end up sacrificed so tradeoffs!)
37
When analyze strategy, what are the two strategic environments? How can one analyze them?
1. External environment (impacts of competitors and market) -- analyze with industry analysis like Porters 5 forces!
2. Internal env (what the company does/needs to do/should change) -- analyze with firm analysis like VRIO framework
Both can impact strategic choices
38
In strategic analysis, what are the two main strategic choices available for deciding what to do?
1) Corporate strategy: decide which industries, how manage activities across that ind.
2) Business strategy: decide how act and succeed in context of a particular (potential) industry
39
What is industry analysis?
figure out...
- which ones attractive
- what need do in industry to succeed and maintain competitive adv
- what aspects of indutry itself make easier/harder for success
"is positioning ourselves in this industry a viable and good option?"
40
What is the point of porters 5 forces framework? What are the forces?
Forces that impact profitability and how find position/industry to insulate self from the forces
- Rivalry b/t competitors: if high, operational effectiveness trap shows up bc everyone try undercut everyone, and there are less prospects for profitable and sustainable advantage
- Risk of new entrants: ppl can be drawn in by others successes, want to be high barriers to entry so can hold onto advantage w/o others diminishing it
- Risk of substitution: can customers satisfy same needs with other products/markets? = cap your adv of position and cap profitability
- Market power of buyers: if few large buyers to many suppliers (us), buyers can balance profits in market by switch bt when see you have too high margins
- Market power suppliers: companies (us) rely on small # suppliers they can hike prices (we at their mercy!), can see your margins go up and then decide to hike prices bc know you can afford and think they deserve some of that benefit
41
What is firm analysis?
what can WE specifically do to acheive copetitive adv, what makes us special/unique
42
What is the VRIO framework and the parts?
```
Analyses resources (anything you can use to create value, both tangible and intang)
V: valuable = add to value proposition? ppl value it? (disadv if spend $ on it but not adding much good)
R: rare = soemthing others cant get (if not, gonna be level playing field, no long lasting adv)
I: inimitable = competitors cant imitate it with different inputs bc if so would defeat purpose of rare resource (if not then only temporary comp. adv. bc competitors will begin to figure out how substitute to get same effect)
O: organization = actually putting resource to use? (if not then disadv bc competitors probably are putting it to use) **most ipmortant cuz w/o it, none of the others work lol
If resource has all of these aspects, then it can provide a solid competitive advantage that is also sustainable
```
43
What is the sequence of steps in positioning?
1) which industries look good
2) how position ourselves
3) which resources etc will help us succeed?
but can also reverse this in a effectual reasoning type fashion
good idea to actually switch between the two directions bc the firm and industry analyses are complimentary
44
What is tactical analysis?
Understand how people might react to our strategic actions, take this into account
45
What is game theory?
way to view org actions as part of broader game (players with own incentives and opportunities)
- use theory analysis to think abt our actions and what others might do
46
What is the prisoners dilemma game?
Nash Equilibrium = stable bc ppl involved know they must be selfish cuz otherwise they will be worse off no matter what
2 ppl accused of crime, each offered no jail time for what they self-criminate if they rat on the other who then gets 8yrs, if neither talks cops dont have enough to convict them for lots so 2yrs, if both talk then each will end up giving extra details on the other, outside of what they said themselves which will be enough to get them both in jail for 5 yrs
-- point is, when one person evaluate own options, no matter what they believe other person will do, its in their best interest to talk (if P1 doesnt talk, P2 goes free if do, if P1 does talk, P2 still less sentence if also talk)
47
How use game theory for tactical analysis?
prisoners dilemma can explain price wars (we cut our price, everyone does as well, but then everyone just stuck at lower margins, so best idea is everyone cooperate and everyone get good margins, but then still best interest for one person to cut prices anyway)
other games with different details (repeated games, ones where can take hidden actions, etc) or more players can help predict others actions
48
Summarize the seminar activity we did about Tesla and the EV market industry-wise
Analyzed porters 5 forces for the market, saw that over time every force increased in severity, so at beginning it would have been good to enter but now its not a good idea
Actually, not many people entered early cuz unknown and needed lots resources, but later can develop own resources and cut costs easily
49
Summarize the seminar activity we did about Tesla and the EV market firm-wise
- The EV tech had all the VRI but not exactly the O at the beginning so EV was not strategic resource
- then in middle had all of em so yes strategic resource,
- then later on/now its not rare and not inimitable so no longer strategic resource
50
What is Schein's model of organizational culture? 3 parts?
Org kinda has a personality and other characteristics
- artefacts (objects, language, activities)
- espoused beliefs and values
- underlying assumptions
51
What makes up the artefacts part of Scheins model?
observable stuff = immediately evident when enter org,
the surface layer of culture (how talk, behave in org)
- objects = architecture, furniture, logos, dress, posters, products, tools (dress: uniform and muted colours/styles vs allowed to express selves and show individuality through clothes)
- activities = rituals, meetings, parties, traditions, gestures, rewards/punishments (rituals/rewards like employee of month: is it awarded at all? and on best sales/performance or on niceness/teamwork)
- language = jargon, nicknames, stories, humour, metaphors, rules, superstitions (metaphors: company refer to selves as 'family'/'cult'/'society'/'team' etc)
52
What makes up the espoused beliefs and values part of Scheins model?
Principles and goals that we feel have intrinsic worth
Help to shape artefacts - reguilative force on them as well
often stuff at back of minds, but still able to articulate
ex: best employees are best teammembers vs best sales person
53
What makes up the underlying assumptions part of Scheins model?
What ppl believe to be the 'truth' / the way things are, often overlooked/forgotten/taken fro granted
Dont really even know theyre there and cant really articulate
Can be reflected in espoused values
ex: assume fundamentally people work best in teams so org is kinda structured and functions around that
54
How do the three parts of Scheins model interact?
- artefacts are influenced by values and assumptions, values also shaped by assumptions
- if theres a conflict bt values and artefacts, maybe brings up an underlying assumption that may need to be questioned
- can also go other way in that when do things (artefacts) can lead to question values and even assumptions
- if values are challenged often, underlying assumptions will end up surfaced
55
How did Mary Joe Hatch alter Scheins model?
Added symbolism into the mix and made it a heckin circle!
symbols can be impacted by and impact both artefacts and assumptions
symbolic shit is like meanings that have attaached to artefacts and become interpreted into assumptions (ex: give someone flowers - may mean sarcastic joke, may be truly sincere)
56
What are the two ways the Schein model may be important/useful?
Culture can help with context: what kinds of choices are currently legitimate (behvaiours etc that fit with culture rn), which kinds of choices could potentially be legitimated and how would one do it (use current rhetoric/values to produce new thing)
Culture can help with focus: can be a strategic resource to help make and sustain capabilites and create effective positioning (understand which positions can effectively occupy and with which activites and fit), can also see hiw its a source of inertia or can be a source of innovation (understand culture = understand how implement new changes)
57
What is organizational inertia?
All the dynamics that keep orgs working the same way, limits change, stuck on the status quo, reverting back after attempted change
58
What are the three sources of inertia?
Pragmatic: resist due to self interest
Normative: resist because of moral reasons or concerns about appropriateness
Cognitive: resistance based on sense and understanding
59
What are the pragmatic sources of inertia?
- Fear of failure =
a) thinking it wont work (my idea may not have resources/may mess with other stuff/etc so failure will reflect on me personally)
b) I cant do it (i dont have personal skills, will look inadequate)
c) they wont like it - stakeholders (backlash from decision, even if it does technically help)
- fear of losing motivation/enjoyment = resist change that might take away their favourite part of the job
- fear of loss of power/prestige = ex: consider outsource advertising services, then head of advertising will no longer have power/control and dont want that so resist change
60
What are the normative sources of inertia?
- Moral disapproval = ppl may resist bc believe change goes against morals
- social norms = resist bc 'its not the way we do things here' (undermines character of org)
- evaluations of motivation and good faith = the change is being pursued for the wrong reasons (someone propose change that help company but also happens to increase the prestige of their department, so person may resist if think thats why theyre doing it even if thats not true)
61
What are the cognitive sources of inertia?
- habituation = used to doing things a certain way and dont want to change and leave comfort zone
- uncertainty/ambiguity =
a) not sure if should do it (will it improve or harm?)
b) not sure how to actually implement change (need more instruction/steps)
c) taken for granted-ness = stuff so habitual that forgotten abt so only rise to attention when challenged, then suddenly realize dont wanna lose that (used to regular viability of industry, so confused when company decides need to switch out and then resist)
- exhaustion = if always tryna do change, ppl may just not wanna be learning new stuff all the time and say hey chill out
62
What are the 4 types of responses to change?
1 Active Resistance = go out of way to make the change fail
2 Passive resistance = hoping the change will fail but not try to intentionally make fail or to make succeed either
3 Compliance = do what supposed to, accept it but not going out of way to make things better
4 Enthusiastic support = trying absolute hardest to make it happen (this is the one we want!)
63
What are the merits of resistance?
Can be rooted in good reasons and therefore help find potential issues you may have overlooked.
Resistance will help identify necessary edits that need to be made and help solidify the plan
Pragmatic = 'change just wont work!' can show reality check
Normative = 'this is immoral' can lead to reflect on org values
Cognitive = interpretation of world/org can be misplaced so might not fit as well as planned
64
What are the 3 steps to disrupting existing structues when trying to implement a change?
1) sensemaking = undermine some of current beliefs and provide examples existing that show weaknesses of current assumption
2) question social norms = find way to show change reflects current values or show how current way of doing things doesnt reflect them
3) subvert existing controls = change some stuff so that early movers for the change arent punished for trying to make it work
65
What are the 3 steps to building momentum when trying to implement a change?
1) sensemaking =
a. define what try to do to overcome cognitive inertia (make understand what change is and why)
b. advocate for change by explain necessity, get ppl on board and passionate about it
c. coordinate how everyone can help and who should do what
2) coalition building = coordinate efforts: ensure have influential ppl on your side, ensure members of coalition truly care and willing to make effort
3) build spaces for support and communication = make sure ppl able to get together and reenergize one anoher bc change is exhausting, also place where ppl can share tactics to encourage change
66
Why do you need entrenching for implementing a change? What are the 3 tactics for entrenching a new normal?
Need way to use inertia to your advantage to keep the change for the long run rather than brief followed by backslide into old habits
1) Enable and police (pragmatic) = ensure ppl have necessary resources to enact change, reward those who do it and pos punish those who dont
2) Valorize and demonize (normative) = celebrate achievements of those who embrace change and do well with it (bc others admire then copy) and pos demonize/make resisters look bad
3) Normalize and routinize (cognitive) = ensure that new change replaces old as the status quo, have steps/policies/best practices to make change easier and create habit
67
How might resistors respond to change efforts and work to resist them?
Use the same momentum and entrenchment tactics used for the change! (fight fire with fire babeyy)
- support those who use old routines
- demonize supporters of new status quo
- undermine beliefs that legitimize the change
- point out values of org and argue they actually don't fit with new change and better with old setup
- attempt gain control and form own group
68
What are the 3 dimensions of power?
1D: visible in org preferences and decisions
2D: visible in agenda setting behaviour (decisions never even made it to the table, written off immediately bc of underlying values/assumptions)
3D: less visible, more systematic and applicable to a lot of society (ex: women so used to/trained in misogyny that even perpetuate it themselves)
69
What are the ways you can have power?
- "Power to" by being part of groups
- With persuasion
- with story-telling
- with coalition building
- buy ofc getting things done through others
70
What are the 6 principles of persuasion?
1) principle of liking: win friends! find similarities bc ppl like ppl similar to them, also be nice and give real compliments
2) reciprocity: give stuff and they will be more likely to give back (gifts, praise)
3) social proof: use peer power, best horizontally, get someone similar to them help to convince, rather than direct persuasion from you
4) consistency: make commitments active (made explicit by say outloud or written down), public (visible so that ppl feel need to be consistent/dependable in front of others), and voluntary (pressured/threatened ppl arent gonna actually follow through bc not viewed as oersonal commitment)
5) authority: use expertise (your own or others) and be subtle about bringing it up, allow to develop casually
6) scarcity: highlight unique benefits and exclusive info bc ppl more interested in something scarce/special
71
How does the organizational environment impact success?
1) Technical environment
- tech changes quick so need be able to handle that
- mechanic org better suited to exploit tech tasks
- organic org better at adjusting to tech
2) Sociocultural env
- shapes which org setup is used and considered acceptable/logical
- decides what works for stakeholders (willingness to invest) /products/etc
72
What is an institution?
A fact of social life! - how ppl act and think in a society
- often taken for granted bc so familiar that dont exactly notice them
- dont often question them
ex: the dollar as a form of exhange is an institution
73
What are the 3 ways institutions influence people?
Example: driving on the wrong side of the road
1) regulative/pragmatic dimension: stuff that keeps you prescribing to this institution bc of self interest (formal sanctions if you dont, plus others will see you badly and you want to be doing what others are doing)
2) normative dimension: ppls response to you - how things 'should' be (ppl will evalute you as an irresponsible person, dangerous, problematic)
3) cognitive dimension: institution so habitual that ppl dont notice them, theyre just 'normal' (expected to drive on right side of road, hard to imagine someone jsut not doing that)
74
What else do we know about institutions?
- can characterize smaller stuff than just all of broad society (ex: a university society - going to classes is institution, doing assignments, etc) -- could be done differently but currently shapes what is normal
- interdependent! existence/functionning of institutions depends on the existence of other institutions (ex: dollar as a means of exhange only valid if the institution of shops accepting dollar in return for product is also valid and supported)
75
What is institutional logic?
Set of roles relationships purposes activities that define a recognizeable area of social life (ex: family life has own institutional logic - regular roles, relationships, etc) -- the logic is kinda like a blueprint: use it to recognize similar things even with variations
-- also draws attention to various societal/overall things that tie into the logic and only exist bc of the logic (ex: legal custody hearings only occur bc of the normal roles of parents and relationships)
76
How do orgs depend on stakeholders?
- need lots ppl invested in success to do well
- they create social legitimacy by positively evaluating the business -- show belief that org is competent moral and rational (3 prag/norm/cogn)
77
Why/how do organizations pursue social legitimacy?
1) self interest = rely on stakehollder resources and only get those if you look legit so they conform to traditional institutional perceptions
2) member commitments = org is group of ppl and they actually believe in the competency and morals of the company sooo positive evaluation results
78
How do institutional logics shape social evaluations?
- provide examples of competency bc if you deviate from the institution then ppl vview you as weird and likely not qualified/dont know what youre doing
- examples of morality bc deviate from institution shows wrongness (can be situation dependent) (ex: industry normally 9-5 workdays and if you dont do that then ppl maybe think youre not committed/cant handle it)
- rationality examples bc if do different, ppl so used to habitual/'normal' ways that different way will not make sense to them (ex: when microfinance was introduced ppl not used to these tiny but LOTs of loans :. weird)
79
What are the 3 kinda definitions/aspects of CSR?
1) doing something good because its good, or at the least avoid doing something bad
2) window dressing: good stuff for public relations and image management, maybe not eben actually doing good things but as long as people think you are its fine and you profit off it
3) a system of beliefs and expectations, heres what good/bad behaviour actually looks like, now being academically studied
80
How is CSR an institutional logic?
Its a system to evaluate org behaviour, decides context, shapes org legitimacy (social evaluation from others, is CSR a good thing or just regularly expected or ..)
What people do to socially evaluate the org based on CSR impacts how successful it (CSR) is for the org
81
What is the big question with CSR
Do organizations have obligation to pursue GOOD behaviour or just PROFITABLE behaviour
- question has always been there since industrial revolution, has been fluctuations in support
- gives context for org decision making and survival regardless of actual significance of CSR itself
82
What is the instrumental justification for CSR?
Interest in CSR = better performance and profit
a) avoid the bad stuff so that reputation is goo
b) consumer wants ethical shit so if they can do that with their purchases they will, and okay to pay premium for it - ethical stuff can be included in positioning and strategy
83
what are the two general approaches to intrumentally motivated CSR?
1) cosmetic: publicize good stuff youve done so people see that youre good guy
2) strategic: integrate it into strategy = include it from beginning to shape decisions, see it as not just a constraint but as something all functions of copmany can improve, CSR is fundamental and a benefit that can be offered to consumer so tailor and make most of trend
84
If CSR is always beneficial to the firm, you should always do it right? Argument is won?
No because sometimes if your target market doesnt give a shit or even worse actively avoids whatever CSR related thing (ex: gender non-conforming clothing) then can have no positive impact so money spent on nothing that matters or can reduce profits!
Also, can get lotta profit from bery non CSR shit (fraud, other unethical actions) as long as you keep a positive frontal image
85
What is the moral justification for CSR?
Do good because its what you should do.
It need not be increasing profits or directly benefitting company, just seek ethical bc right thing to do.
Cant completely separate business from outside world morals and societal impacts...
86
What are the 3 broad steps to implement a new change within an organization?
1. Disrupt existing structures
2. Build momentum for the change
3. Entrench the new normal
SMO 310
flashcards
Decks in class (2)
# Cards
