Chapter 2: The Environment: Culture, Ethics, and Social Responsibility

Flashcards covering key concepts from Chapter 2 on the internal and external environment, culture, ethics, and sustainability.

What are the five internal environmental factors within an organization’s control?

Management and culture; Mission; Resources; Systems process; Structure.

What is the mission of an organization?

Its purpose or reason for being.

Give an example of an organizational mission (as provided in the notes).

Walmart’s mission is to help people save money so they can live better.

What is organizational culture?

The values, beliefs, and assumptions about appropriate behavior that members of an organization share.

What do organizational resources include?

Human, financial, physical, and informational resources.

Which resource is primarily responsible for achieving the organization’s mission and objectives through the other resources?

Human resources.

What does 'structure' refer to in an organization?

The way in which an organization groups its resources to accomplish its mission.

What is the systems process?

The technology used to transform inputs into outputs to make and deliver products and services.

What are the four components of the systems process?

Inputs, Transformation, Outputs, Feedback.

What is Total Quality Management (TQM)?

A process that involves everyone in an organization focusing on the customer to continually improve product value.

What are the two primary principles of TQM?

Focusing on delivering customer value; continually improving the system and its processes.

What is the external environment?

Factors outside the organization's boundaries that affect its performance, including task environment factors and general environmental factors.

Name some external environmental factors exampled in the notes.

Customers, competition, suppliers, labor force, shareholders, society, technology, the economy, governments, crisis.

What are ethics?

The standards of right and wrong that influence behavior; right behavior is ethical, and ethics go beyond legal requirements.

Name the main ethical views mentioned.

Utilitarian, Rights, Justice, Universalism, and Relativism.

What are the three levels of moral development?

Preconventional, Conventional, Postconventional.

Describe the Postconventional level of moral development.

Behavior motivated by universal principles of right and wrong; balances self-interest with the interests of others and the common good; leaders are visionary and empowering.

Describe the Conventional level of moral development.

Behavior motivated by the desire to live up to others' expectations; peer pressure enforces group norms; leaders' behavior mirrors group norms.

Describe the Preconventional level of moral development.

Self-interest motivates behavior; following rules to avoid punishment; leaders may be autocratic.

What is the Four-way test?

Is it the truth? Is it fair to all concerned? Will it build goodwill and better friendship? Will it be beneficial to all concerned?

What is the Golden Rule?

Do unto others as you would have them do unto you.

What is the Platinum Rule?

Treat people as they want to be treated.

What is whistle-blowing?

Exposing what employees believe to be unethical behavior by fellow employees.

What is the Foreign Corrupt Practices Act (FCPA)?

Bars U.S.-based or U.S.-listed companies from bribing foreign officials and requires accurate books and records.

What is social responsibility?

The conscious effort to operate in a manner that creates a win-win situation for all stakeholders; stakeholders increasingly demand it.

What are the levels of Corporate Social Responsibility (CSR)?

Legal CSR; Ethical CSR; Benevolent CSR.

What is sustainability?

Meeting the needs of the present world without compromising the ability of future generations to meet their own needs.

What is the triple bottom line?

A framework requiring managers to address environmental, social welfare, and economic prosperity simultaneously.

What is a 'green' company?

A company that acts to minimize damage to the environment.

What are artifacts in organizational culture?

Heroes, stories, slogans, symbols, rituals, ceremonies.

What are the three levels of culture?

Behavior; Values and beliefs; Assumptions.

What characterizes a strong culture?

Employees share the shared assumptions and values; easy communication and cooperation; risk of stagnation if changes are not made.

What characterizes a learning organization?

A culture that values sharing knowledge to adapt to the changing environment and continuously improve.