Business Ethics Review 2 (Concise)

Revenue

Total money generated by a business

Expenses

Costs of doing business

Profit

Revenue minus expenses

Non

profit organization

Entrepreneur

Person who runs a business and takes financial risks

Customers

Consumers who purchase a business's products or services

5 Functional Areas of Business

Management, operations, marketing, accounting, and finance

Management

Hiring and overseeing employees and managers

Operations

Overseeing production, materials, and business processes

Marketing

Advertising, sales, publication, and public outreach

Accounting

Tracking revenues, expenses, and financial activity

Finance

Planning how money will be used and determining funding needs

Accounting vs. Finance

Accounting tracks past and current financial activity; finance plans and makes decisions about future funding and development

PESTEL

Framework used to identify external factors that can positively or negatively affect a business

Political

Government activity, conflicts, and taxes

Economic

GDP, employment, exchange rates, inflation, and income

Social

Demographics, culture, religion, lifestyle, and education

Technological

Infrastructure, research, trends, and technological advancements

Environmental

Environmental policies, recycling, consumption, production, and environmental risks

Legal

Wages, rights, job security, regulations, and marketing restrictions

Team

Collection of people with complementary skills who share a common goal and accountability

Team accountability

Team members share responsibility for achieving shared goals

Team interdependence

Team members rely on one another to accomplish goals

Team stability

Teams require enough consistency to function effectively

Team authority

Teams may have authority and decision

Social context

Teams operate within relationships and interactions with others

Manager

led team

Self

managing team

Cross

functional team

Virtual team

Team whose members work together online from different locations

Team cohesion

Degree to which team members trust, rely on, and work well with one another

Team size

Larger teams are generally more difficult to coordinate and manage

Groupthink

Pressure to conform to a group's opinions instead of expressing independent ideas

Team motivation

Teammates who consistently fail to contribute can reduce motivation and damage the group

Unwillingness to cooperate

Lack of cooperation that can result from poor managerial support or weak management authority

Technical skills

Skills needed to perform specific tasks

Decision

making and problem

Interpersonal skills

Skills involving listening, empathy, and communication

Ethics

Principles used to determine right from wrong

Ethical issues

Difficult social questions involving controversy about what is right

Ethical dilemma

Situation requiring a choice between two or more opposing options

Conflict of interest

Situation where personal interests could compromise or appear to compromise professional judgment or responsibility

Corporate Social Responsibility (CSR)

An organization's approach to balancing its responsibilities with the goal of benefiting the community

Corporate philanthropy

Direct donations or charitable contributions made by a company