GMU Bus-100 Midterm CRAM chapters 1,2,3,5,6,7,8,13 Business and society

Boundary-spanning departments

departments or offices within an organization that reach across the dividing line that separates the company from groups and people in society

Business

An organization that is engaged in making a product or providing a service for profit

External Stakeholders

Individuals or groups that make important transactions with a firm but are not directly employed by the firm, such as customers or suppliers.

Focal Organization

The organization from whose perspective a stakeholder analysis is conducted

General systems Theory

A theory that holds that all organisms are open to, and interact with, their external environments. (Businesses change and adapt with society)

interactive social system

the closely intertwined relationships between business and society ( businesses and society influence and need each other)

Internal Stakeholders

employees, owners, board of directors

Ownership Theory of the firm

A theory that holds that the purpose of the firm is to maximize the long-term return for its shareholders. (Also called the property or finance theory of the firm.)

Society

Refers to Human beings who collectively create social structures. ( nations/towns/cities)

Stakeholder

A person or organization which affects or is affected by a corporation's decisions

Stake Holder Analysis

Analytical process used by managers to assess the relevant stakeholders, their interests, power, and possible coalitions.

Stakeholder coalitions

alliances among a company's stakeholders to pursue a common interest

Stakeholder interests

the nature of each stakeholder group, its concerns, and what it wants from its relationship with the firm

Market Stakeholder

A stakeholder in which engages in direct economic transactions with a company

Non-Market Stakeholder

A stakeholder in which does NOT engage in direct economic transactions, but still can affect or is affected by a company.

Stakeholder Map

a graphical representation of the relationship of stakeholder salience to a particular issue ( Influence/Interest)

Stakeholder Power

the ability to use resources to make an event happen or to secure a desired outcome.

Voting, Economical, Legal, political, Informational

stakeholder salience

A stakeholder's ability to stand out from the background, to be seen as important, or to draw attention to itself or its issue. Stakeholders are more salient when they possess power, legitimacy and urgency.

Stakeholder Theory Of the Firm

A theory that holds that the purpose of the firm is to create value for society.

UBER CASE

Uber drive KO a family, and injure others. Uber Distanced itself, bill passed to make insurance cover when app is opened, taxi driver and insurance like, other comapnies no like.

Competitive intelligence

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

Environmental Analysis

A method managers use to gather information about external issues and trends, so they can develop an organizational strategy that minimizes threats and takes advantage of new opportunities

environmental intelligence

the acquisition of information gained from analyzing the multiple environments affecting organizations

Issue Management

the active management of public issues once they come to the attention of a business organization

Issue-Management Process

A five-step process where managers identify the issue, analyze the issue, generate options, take action, and evaluate results.

Performance-expectation gap

The distance between what firms want to do vs what stakeholders expect

Public Issue

an issue that is of mutual concern to an organization and its stakeholders, sometimes called a social or sociopolitical issue

Stakeholder Dialogue

Conversations between representatives of a company and its stakeholders about issues of common concern.

Stakeholder Engagement

An ongoing process of relationship building between a business and its stakeholders.

stakeholder materiality

Adaptation of an accounting term that focuses on the importance or significance of stakeholders for the firm

stakeholder networks

A connected assembly of concerned individuals or organizations defined by their shared focus on a particular issue, problem, or opportunity.

Cola-cola water neutrality initiative

Cola-cola used alot of water, and ppl say that it has pesticides in them. In the wake of some Indian legislation, they decided to make an initative to reduce, recycle and replenish, where they became more efficient in water usage, discharge water only if suitable for aquatic life, and join initatives to clean water and get more water. they were successful and really showed a change.

B Corporation

a business that explicitly seeks to blend its social objectives with its financial goals

corporate citizenship

this term refers to the actions corporations take to put their commitments to corporate social responsibility into practice worldwide

corporate power

the capability of corporations to influence government, the economy, and society, based on their organizational resources

corporate social reporting

The public reporting of information collected by the organization or another party during a social audit.

Corporate Social Responsibility

the idea that businesses should act in a way that enhances society and their stakeholders and be held accountable for any of its actions that affect people, their communities, and their environment

enlightened self-interest

The view that holds it is in a company's self-interest in the long run to provide true value to its stakeholders.

Integrated Reporting

the combining of legally required financial information with social and environmental information into a single report

Iron Law of Responsibility

The belief that those who do not use their power in ways that society considers responsible will tend to lose their power in the long run.

reputation

The desirable or undesirable qualities associated with an organization or its actors that may influence the organization's relationships with its stakeholders.

social audit

a systematic evaluation of an organization's social, ethical, and environmental performance

transparency

clear public reporting of an organization's performance to various stakeholders

Gravity Minimum wage fiasco

Price rose the minimum wage of his company, gravity to 70k a year, some people said it was a costly public stunt, but he just really wanted to raise the minimum wage, since he felt that it realy wasnt right paying 40k

buisness ethics

the use of ethic in making buisness decisions

conflict of interest

a conflict between self-interest and professional obligation

ethical egoist

A person who puts his or her own selfish interests above all other considerations, while denying the ethical needs and beliefs of others.

Ethical Principles

guide to moral behavior, such as honesty, respct, helping others

Ethical Relativism

the theory that holds that morality is relative to the norms of one's culture

ethics

the principles of right and wrong that guide an individual in making decisions

human rights

the basic rights to which all people are entitled as human beings

justice

an ethical approach that sees if distribution of burden and benefits are fair according to some agreed upon rule

laws

society's formal written rules about what constitutes right and wrong conduct in various spheres of life

Sarbanes-Oxley Act

U.S. law enacted in 2002 that greatly expanded the powers of the SEC to regulate information disclosure in the financial markets and the accountability of an organization's senior leadership regarding the accuracy of this disclosure

Spirituality

A personal belief in a supreme being, religious organization, or the power of nature or some other external, life-guiding force.

Stages of Moral Development

A sequential pattern of how people grow and develop in their moral thinking, beginning with a concern for the self and growing to a concern for others and broad-based principles.

U.S. Corporate Sentencing Guidelines

standards to help judges determine the appropriate penalty for criminal violations of federal laws and provide a strong incentive for businesses to promote ethics at work

utilitarian reasoning

An ethical approach that emphasizes the consequences of an action and seeks the action or decision where the benefits most outweigh the costs.

Virtue Ethics

Focuses on character traits to define a good person, theorizing that values will direct a person toward good behavior.

Chiquita terrorist bananan

Chiquita was threatened to have their employees hit, even after 2001 attack, was illegal for them to send money, they still did, alot of harm was done on columbians, chiquita was freed by judge

Bribery

the practice of offering something (usually money) in order to gain an illicit advantage

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

employee ethics training

programs developed by businesses to further reinforce their ethical expectations for their employees

ethical climate

An unspoken understanding among employees of what is and is not acceptable behavior.

ethics and compliance officer

a manager designated by an organization to investigate breaches of ethical conduct, promulgate ethics statements, and generally promote ethical conduct at work

ethics policies or codes

a written set of rules used to guide managers and employees when they encounter an ethical dilemma

ethics reporting mechanisms

a program that enables employees, customers, or suppliers to report an ethical concern directly to someone in authority in an organization

US Foreign Corrupt Practices Act

Federal law that prohibits executives of U.S.-based companies from paying bribes to foreign government officials, political parties, or political candidates.

ALCOA ETHICS

essentially, alcoa was known for being to tier in its ethics, but one day a mexican facility apareantly had unexposed injuries, so they deiced even tho it dint make that big of a difference, to still change the management, since they had higher ethics to appeal to. they gained value.

Antitrust laws

Laws that seek to prevent activities that reduce or eliminate economic competition.

cost-benefit analysis

a systematic method of calculating cost and benefit of an activity

deregulation

the removal or scaling down of regulatory authority and regulatory activities of government

Dodd-frank act

Legislation passed in the U.S. in 2011 in response to the financial crisis; extensively reformed the regulation of financial institutions such as banks and credit rating agencies, established a new consumer financial protection bureau, and changed corporate governance and executive compensation rules.

economic regulation

the oldest form of rgulation in the U.S aimed to modify operation of free market and supply-demand

fiscal policy

the patterns of government collecting and spending funds to stimulate the economy (TAXES)

market failure

Inability of a marketplace to properly adjust price for a firm's true cost of behavior

Monetary policy

Government policy that attempts to manage the economy by controlling the money supply and thus interest rates.

natural monopolies

where a concentration of the market is acquired by a few firms due to the nature of the industry rather than because of company practices

negative externalities

When the manufacture or distribution of a product gives rise to unplanned or unintended costs (economic, physical, or psychological) borne by consumers, competitors, neighboring communities, or other business stakeholders.

predatory pricing

the practice of charging a very low price for a product with the intent of driving competitors out of business or out of a market

public policy

a plan of action undertaken by government officials to achieve some broad purpose affecting a substantial segment of a nation's citizens

regulaton

the action of government rules by which people. org must follow in thier every day doings

reregulation

The increase or expansion of government regulation on activities where regulatory activities had previously been reduced.

social assistance policies

government programs aimed at improving social welfare in such areas as health care and education

social regulation

regulations aimed at important social goals such as protecting consumers and the environment, promoting equal employment opportunity, protecting pension benefits, and providing health care for citizens

E CIG

essentially with the rise of e cigs, many people and countries complained and outright banned the use of e cigs, but since many companies already had alot of warning labels, the FDA did not strike down as hard, but instead allowed them to advertise the fruity flavors to children.

advocacy advertising

a political tool used by companies to promote their viewpoint through the media

bundling

the collection of political contributions made by an organization's stakeholders to increase the organization's ability to influence a political agent

Citizens united decision

Allowed corporations to contribute money to candidates runing for office directly

Corporate Political Strategy

those activities taken by an organization to acquire, develop, and use power to achieve a political advantage

dark money

Political contributions made to tax-exempt organizations that are not required to report the donor's name and size of contribution to the Federal Election Commission.

economic leverage

a political tool where a business uses its economic power to threaten to relocate its operations unless a desired political action is taken

lobbying

the act of trying to directly shape or influence a government officials understanding and pos on a public policy issue

Political Action Committee (PAC)

An indepedently incorporated organization that can solicit contributions andthen channel those funds to candidates seeking office