Business and Society Exam Flashcards

Terms Definitions
Legal/ Economic
"should do"
protect, maintain order, justice
issues in e-commerce
-intellectual property
-privacy and informed consent
-protection of children
-security of information
-collection and use of personal information
-identity theft
Benefits, common values, common identity
Financial performance?
Sales, revenue, competitive strength
Instruments through which business uses financial resources to influence government
Constructive engagement
When transnational corporations operate according to strong moral principles and become a force for positive change in other nations where they operate.
Secondary Stakeholders
Less significantly affected, less power, relatively transitory(come and go), no shared interest
authority based societies have someone who claims the right to allocate resources and lead. Human rights are not very important. (ex; communism)
Growing demand by stakeholders for companies to report publicly the results of their financial, social and environmental performance audits
Six Universal Moral Values?
Trustworthiness, Respect, Responsibility, Fairness, Caring. Citizenship
Issue Identification?
Anticipating emerging concerns, or "horizon" issues
Relatively large amounts of money given for the purpose of influencing officials to make decisions or take actions that they otherwise might nottake. If the officials considered the merits of the situation only, they might take some other action.
Industrial ecology
Designing factories and distribution systems as if they were self-contained ecosystems, such as using waste from one process as raw material for another.
Ethical climate
An unspoken understanding among employees of what is and is not acceptable behavior.
Occurs when businesses or societies are simultaneously economically efficient and environmentally responsible.
World Bank
An international financial institution that provides economic development assistance and loans to member nations.
Private Sector
businesses not associated with government agencies
obtain goods from manufacturers and resell them to industrial users, other wholesalers, and retailers
Normative Ethics
how you should behave. Praised standard above descriptive ethics. How we should try to be, not a lower expected behavior(descriptive).
Ethical organizations are more?
Successful than unethical organizations
Competitive Intellegence
Defined as the systematic and continuous process of gathering, analyzing, and managing external information about the organization's competitors that can affect the organization's plans, decisions and operations
Ethical climate?
Understanding among employees of what is/is not acceptable ethical behavior
political strategy
To secure position of advantage regarding a given regulation or piece of legislation
side effects of technology
-environmental pollution
-depletion of natural resources
-technological unemployment
-creation of unsatisfying jobs
market failure
failure of the free enterprise system
hard money
donations made directly to the candidates
soft money
a contribution made to political parties instead of to political candidates
U.S. Sentancing commission
has established guidelines for sentencing environmental wrongdoers
factors for accelerating globalization
Improved communications- SERVICE INDUSTRIES
Less expensive labor abroad
Much better quality than 10 years ago
China's change to Communapitalism (?)
Improved transportation systems
The rise of major transnational corporations
Social and political reforms
The rise of international financial and trade institutions
global warming
Greenhouse effect occurs when carbon dioxide and other gases in the atmosphere prevent heat from escaping into space.
Since the Industrial Revolution, the amount of greenhouse gases in the atmosphere has increased by as much as 25%.
Caused (? much) by the burning of fossil fuels such as oil and natural gas.
The Intergovernmental Panel on Climate Change reported that the earth has already warmed by approx. .4 degrees C
The movement of goods, services, and capital across national borders.
Population Growth
particularly faster in the developing countries using older technology and having less regulation
the amount of goods producers are willing to make and sell
anything that is authored by an individual, such as writings (books, magazine articles, etc.), music, and artwork
something you didnt have to do, but chose to do to help better society. "might do"
Market Stakeholders
are those that engage in economic transactions with the company as it carries out its primary purpose of providing society with goods and services. (primary stakeholders) - employees, stockholders, creditors, customers
Issue Analysis?
Evaluating the issue; coming to an understanding of how it will evolve and how it will affect the organization
Organizations External Relations?
Government - Regulatory Agencies - Customers - Investors - Suppliers - Community
Organizations clearly demonstrating CSR have shown?
Stronger customer loyalty, stronger performance and profits
Nonmarket stakeholders are?
People or groups who—although they do not engage in direct economic exchange with the firm—are affected by or can affect its actions
whst is the biggest challenge of the practical question?
ethical imperialism
this position holds that the MNC should continue to follow its home country's ethical standards even while operating in another country
positive ethical behaviors
-giving proper credit where due
-being straightforward and honest with other employees
-treating all employees equally
-being a responsible steward of comapnay assets
-resisting pressure to act unethically
-recognizing and rewarding ethical behavior of others
-talking about the importance of ethics and compliance on a regular basis
the totality of the means employed to provide objects necessary for human sustenance and comfort
4 defining features of democracy
Fair elections
An independent media
Separation of powers among the executive, legislative, and judicial branches of government
An open society where citizens have the right to form their own independent organizations to pursue social, religious, and cultural goals
Comprehensive Environmental Response Compensation and Liability Act (1980 & 1986)
Established Superfund and procedures to clean up hazardous waste sites.
Corporate culture
A blend of ideas, customs, traditional practices, company values, and shared meanings that help define normal behavior for everyone who works in a company.
Diversity council
A group of managers and employees responsible for developing and implementing specific action plans to meet an organization's diversity goals. (See also Diversity.)
Whistle Blowing
reporting an illegal action of one's employer
Civic Ethics
Ethics of the community. 1) Citizen to citizen, 2) Citizen to community, 3) Community to citizen
Ethical decision-making incorporates ?
ethical theories, moral reasoning and a systematic approach for answering questions
Stakeholder Engagement and Dialogue?
Strategy used by organizations at higher stages of engagement (Meetings between corporate representatives and representatives of their stakeholder groups to discuss issues of mutual concern)
Steps in dialogue
1. Each group describes their core issues & concerns
2. Together groups reach common definition of problem/s
3. Together groups invent innovative solutions that involve mutual gain
4. Together establish procedures for implementing solutions
business ethics
concerned with good and bad or right and wrong behavior and practices that take place in business
the intuition ethic
the solution to moral problems lies simply in what you feel or understand to be right in a given situation.
golden rule of politics
he who has the gold, rules
four important ethical questions
1. what is? (descriptive ethiscs)
2. what ought to be? (normative ethics)
3. how do we get from what is to what ought to be? (practical question)
4. what is our motivation in all this?
these questions capture the core of what ethics is all about
teleological theories
focus on the cosequences or results of the actions they produce
International Monetary Fund
Purpose is to make currency exchange easier for member countries so that they can participate in global trade.
Lends foreign exchange to member countries.
Central state control (system)
A socioeconomic system in which economic power is concentrated in the hands of government officials and political authorities. The central government owns the property that is used to produce goods and services, and most private markets are illegal.
Command and control regulation
A regulatory approach where the government "commands" companies to meet specific standards (such as amounts of particular pollutants) and "controls" the methods (such as technology) used to achieve these standards. This approach is often contrasted with market-based regulatory approaches where the government establishes general goals and allows companies to use the most cost-effective methods possible to achieve them.
free enterprise systems
Based on the principle of voluntary association and exchange. Members of society satisfy most of their economic needs through voluntary market transactions.
Federal Trade Commission (FTC)
the responsibility of enforcing the principles of a free enterprise system and protecting consumers from unfair or deceptive business practices
Positive public image and reputation?
Minimize or prevent harm, Compliant with legal guidelines, audits, response, disciplinary action
A successful business must meet both its?
Economic and social objectives
How does action relate to my duty as a person of integrity? Justice and fairness
general ways that business influence the government
PACs, lobbying, and coalition building
the might-equals-right ethic
justice is defined as the interest of the stronger. what is ethical is what an individual has the strength and power to accomplish.
Employee Polygraph Protection Act (1988) -
severely limited polygraph testing for employers and prohibited approximately 85 percent of all such test previously administered in the U.S.
Burning of fossil fuels
This releases carbon dioxide into the atmosphere and is the leading contributor of global warming- Discuss Ignores the warming trends of 1100-1300; warming of .5 C in the 40's and subsequent cooling.
Price Competition
focuses on the sale of price of a product
Objective Definition of Stakeholders
Anyone who is affected by the firm( Investors, customers, suppliers)
The multiple stakeholders view of corperate Responsibility
All customers and employees are treated with dignity.
priciples approach to ethics
based on the idea that managers desire to anchor their decisions on a more solid foundation than the conventional apporach to ethics
what is the most serious danger of using the conventional approach?
falling into ethical relativism
employee duties/ employer rights
No drug or alcohol abuse
No actions that would
endanger others
To treat others with respect and
without harassment of any kind
Honesty; appropriate disclosure
Loyalty and commitment
Respect for employer's property and
intellectual capital
Costs of environmental Regulation
$160 billion a year spent by business and individuals in the United States by 2000.
Job loss in some particularly polluting industries.
Competitiveness of some capital-intensive, "dirty" industries impaired.
View permeated that business leaders had a responsibility beyond ?
Just making a profit ⇒ Charity Principle
ethical tests approach to business ethics
based on short, practical questions to guide ethical decision making and behavior
Ethics policies or code
A written set of rules used to guide managers and employees when they encounter an ethical dilemma.
The world's largest 200 organizations account for?
More than 25% of the world's economic activity
The Bipartisan Campaign Reform Act of 2002
was a sweeping change of U.S. campaign finance
The BCRA removed the influence of soft money on candidates running for national office
Mirvis and Googins of the Center for Global Citizenship
proposed a five stage model of global corporate citizenship
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