ETHICS EXAM 2

Stakeholder analysis and stakeholder map

Identifying stakeholders and visually organizing them by factors like power interest and impact

Stakeholder vs. stockholder view

Stockholder view says firms owe responsibility mainly to owners while stakeholder view says firms owe responsibility to groups affected by their actions

CSR

Firms having responsibilities to society beyond legal and financial obligations

Utilitarian view of CSR

The view that CSR is justified when its overall benefits outweigh its costs

Expressions of CSR

Different ways businesses act responsibly such as philanthropy environmental responsibility and employee support

B Corporation

A corporation that blends social objectives with financial goals

Sustainable development

Using resources at a rate that can continue over the long term

Sustainability

Meeting present needs without preventing future generations from meeting theirs

Ecological footprint

The amount of natural resources a person group or organization uses

Carrying capacity

The maximum level of use or population an environment can sustain

Triple Bottom Line

A framework measuring success through people planet and profit

Sustainability models

Frameworks for understanding how economic social and environmental goals connect

Environmental issues

Problems harming the natural environment such as climate change ozone depletion and pollution

Climate change

Long term changes in Earth’s climate caused partly by human-produced pollutants

Ozone depletion

Damage to the ozone layer caused by chemicals such as CFCs

Global warming

The rise in Earth’s average surface temperature over time

Montreal Protocol

A 1987 agreement to reduce CFC production

Kyoto Protocol

A 1997 agreement requiring industrial nations to reduce greenhouse gas emissions

Paris agreements

A 2015 global climate agreement to limit warming and reduce emissions

Globalization

Increasing movement of goods services and capital across national borders

Ways organizations go global

Methods such as exporting establishing global operations and building global supply chains

Advantages of globalization

Benefits such as lower prices higher productivity and technology transfer

Disadvantages of globalization

Costs such as job insecurity weaker standards and cultural loss

Challenges of globalization

Ethical and practical problems created by operating across countries

Role of Institutions

How organizations like the IMF World Bank and WTO shape global business rules

IMF

Institution that supports currency exchange and lends foreign exchange to countries

World Bank

Institution that provides economic development loans for infrastructure projects

WTO

Institution that sets rules for global trade and promotes free trade

Social enterprises

Businesses that aim to create social impact while staying financially sustainable

Bottom of the pyramid

The poorest and largest segment of the global population

Social entrepreneurship

Using business strategies to solve social problems

Challenges for social enterprises

Difficulties such as funding scaling impact and balancing mission with profit