Shareholders, Consumers, Employees, and Corporate Relations Practice Flashcards

A comprehensive set of vocabulary terms covering corporate governance, consumer rights, employee relations, supply chain management, and public relations based on lecture modules 9-13.

Shareholder

A person, group, or organization owning one or more shares of stock in a corporation.

Institutional investors

Large organizations, such as banks, pension funds, and mutual funds, making substantial investments on a stock exchange.

Securities and Exchange Commission (SEC)

The U.S. federal government agency responsible for protecting the rights of stockholders and regulating securities markets.

Say on pay

A regulation requiring public companies to hold a shareholder vote on executive compensation.

Proxy

A means for shareholders to participate in a company's annual meeting and vote without attending.

Proxy access

The right for shareholders to nominate candidates for the board of directors in company proxy materials.

Corporate governance

The rules and processes used to direct and control a company.

Executive compensation

The pay and benefits provided to top executives, often including stock options.

Stock options

The right to buy stock at a set price, frequently used as part of executive pay.

Insider trading

The illegal practice of trading on the stock market using material nonpublic information.

Social investment

The practice of investing based on financial considerations combined with ethical or social concerns.

Stock Screening

A method to promote social, environmental, and governance (ESG) objectives through stock ownership.

Social responsibility shareholder resolutions

Proposals addressing ESG or social issues submitted by shareholders for a vote.

Alternative dispute resolution

A method for resolving legal conflicts outside the traditional court system.

Behavioral advertising

Advertising that targets particular customers based on their observed online behavior.

Strict liability

A legal principle where the manufacturer is liable for injuries whether or not it was negligent or breached a warranty.

Right to be informed

A consumer right that protects individuals from misleading labeling.

Right to safety

A consumer right that protects individuals from hazardous products.

Right to be heard

A consumer right ensuring that consumers will receive fair consideration in court.

Consumer movement

Collective efforts by consumers to safeguard their own rights from unfair or unsafe practices.

CCPA

A consumer's right to be protected from the unwanted collection of personal information.

Industry self-regulation

The idea that consumer privacy can be assured through the voluntary actions of internet-related businesses.

Pay gap

The difference in the average level of wages received by two groups, such as men and women.

Ergonomics

The process of adapting the job to the worker, rather than forcing the worker to adapt to the job.

Labor union

An organization that represents workers and bargains collectively with the employer for better wages and security.

Glass walls

An invisible barrier to the lateral mobility of women, minorities, and others in the workplace.

Glass ceiling

An invisible barrier blocking the upward advancement of employees.

Employment at will

The principle that workers are hired and retain their jobs at the discretion of the employer.

Social contract

An implied understanding between an organization and its stakeholders regarding how it should act.

Occupational segregation

The inequitable concentration of a group in particular job categories.

OSHA

The U.S. federal government agency empowered to set and enforce worker safety and health standards.

Human Trafficking

The illegal recruitment and movement of people against their will, also associated with forced labor.

Local Sourcing

The practice where a company seeks to use nearby suppliers when practical.

Sweatshops

Factories where employees are forced to work long hours, at low wages, under unsafe conditions.

Tier $1$ suppliers

Organizations hired to manufacture products for or provide services directly to a company.

Tier $2$ suppliers

Subcontractors that supply Tier $1$ firms.

Civic engagement

The active involvement of businesses and individuals in changing and improving communities.

Community

A company's area of local business influence.

License to operate

The right to do business informally conferred by society on a business firm.

Social capital

The norms and networks that enable collective action and cooperation.

Corporate identity

A consistent and compelling story about who the company is and what it stands for.

Corporate reputation

The desirable or undesirable qualities associated with an organization by the public.

Crisis management

The process organizations use to deal with a major event that threatens to harm its reputation.

Public relations

The department that manages a firm’s public image and communication.

Corporate crisis

A business disruption that stimulates extensive news media or social networking coverage.

Management decision or indecision

A type of corporate crisis involving a cover-up or a lack of urgency.