Business 111 general terms - excluding Maori terms

Pluralistic society

a diverse society, where the people in it believe all kinds of different things and tolerate each other's beliefs even when they don't match their own.

Corporate social responsibility

a business's concern for society's welfare

Rogernomics

Created by roger douglas, 1980/90. Reform economics, restructured to a freer market with a more capitalist structure. E.g. government businesses sold to private owners opened overseas trade, cut taxes and spending.

Shareholder

A person who invests in a corporation by buying stock and is a partial owner

stakeholder

Anyone who has an interest in the activities of a business.

Capitalism

An economic system based on private ownership of capital, where business are free to use their ownership of capital to compete within the free market. May increase innovation but can cause market failures.

mercantilism

An economic policy under which nations sought to increase their wealth and power by selling more goods than they bought

nomadism

constantly moving and not inhabiting one place

socialism

community regulated business, suply and demand is set democratically/socially.

communism

all property is community owned and each person contributes and receives accordingly to their ability and needs. Supply and demand is measured and planned.

public organisations

share holder owned, regulated strictly, wider access to capital, limited privacy, typically larger than private

private organisations

small amount of shareholders or individually owned, fewer regulations, limited capital, more private, smaller than public

Externality

result/output of the commercial activity

libertarianism

each person has a right to freedom as long as their actions aren't harmful.

laissez faire

government interferes less with the economy, more laid back than hands on

corporate governance

the governance, directness, administration or controlling of a firm towards its goal

agency problem

an issue between boards vs manager interests

circular economy

a restorative/regenerative economy

doughnut economy

economy that values planetary health while still fulfilling human needs

Anglo-american corporate governance 'shareholder primacy'

shareholders own and manage the business, so operations are aimed towards maximising economic returns

Dominant view vs critical alternatives

Dominant is money focused, critical alternatives is more ethical.

stakeholder model

profit is one goal amongst many

free market model

firm shares shareholders, and social good should come from pursuit of profit

Gig economy

Labor market characterized by short-term contracts.

Freidman doctrine

the only social responsibility of business is to increase profits, so long as the company stays within the rules of law

Corporate public policy (CCP)

incorporating sustainability as part of strategic management

value chain

a firms normal operations significantly affects society

generic social issue

firms operations do not affect society and the issue is not material to firms long term competitiveness

social dimensions of competitive context

social issues affect the underlying drivers of a firms competitiveness

dominance model

when environmental forces are filtered through business and government before reaching the masses

4 strategic management types

- enterprise level (role of firm in society) main one

- corporate level (what business to be in)

- business level ( how to compete)

- functional level (individual department role)

Responsive CSR vs Strategic CSR

Responsive adresses generic social impacts through good corporate citizenship and value chain social impacts by mitigating harm. Strategic transforms value chain social impacts into activities that benefit society while reinforcing corporate strategy, as well as advancing strategic philanthropy.

Useful acts

Health and safety 2015

employment contracts act 1991

employment relations act 2000

non-regulatory mechanisms

tools and strategies used to influence behaviour without legal binding rules.

regulatory mechanisms

rules and tools that influence behaviour

deregulation

improving state-regulations.

About regulation

Businesses want less, public interest wants more (usually). Regulation is important to prevent monopolies and negative externalities.

Lobbying

the process of influencing public officials

Grassroots lobbying

indirect lobbying efforts that spring from widespread public concern

Astroturf lobbying

Any lobbying method initiated by an interest group that is designed to look like the spontaneous, independent participation of many individuals.

Coalition

a combination, union, or merger for some specific purpose, such as influencing public policy.

public policy

the government decisions to address societal issues

wicked problem

Complex issue with no clear solution.

systems thinking

Approach for wicked problem. Its problem solving that considers interconnect

Problems with lobbying

- not meeting public expectation of transparency

- interest groups don't serve public good

- 'loudest' gets most attention

causal loop

circular chain of cause and effect

ethnocentrism

the belief that ones subculture is superior

Globalisation

a process which consumers, organisations, and governments are increasingly interconnected across national borders.

Event orientated thinking

problem -> action -> result

feedback thinking/loop

problem -> action -> result -> repeat

Balancing vs reinforcing feedback loop

Balancing equals out, reinforcing means both build up

link polarities in feedback loops

'-' cause increases, effect decreases. '+' cause increases, effect increases

neoliberalism

a political approach that favours free-market capitalism, deregulation, and reduction in government spending.

polarisation

distancing between two or more things, e.g the rich and poor wealth gap

Hyperglobalism

all activites link to globalisation and are extremely interconnected

skeptical globalisation

views globalism as a 'trend' and downplays its global significance

transformationalist globalisation

believes globalisation is fundamentally reshaping society, governance and economy

MNC

multi-national corporations

LDC

less developed countries

Globalisation pros and cons

+ economic growth

+ access to goods and services

+ creates jobs

+ cultural relations

- inequalities

- degrades environment

- economic dependance

- loss of sovereignty

About globalisation

Its not inevitable and brings risks, as shown by the 2007 stock market crash.

utilitarianism

good for the greater number of people

deontological ethics

emphasises duties and rules, prioritising adherence to principles over outcomes

Virtue ethics

highlights moral character and virtues as the basis for ethical behaviour

Descriptive ethics

what is occurring. focuses on describing, characterising and studying morality

Normative ethics

What should be occuring. The search for, and justification of, moral standards, or norms.

Amoral managers

dont mix or consider ethics in business, neither immoral nor moral

triple bottom line

people, planet, profit

6 ways to define sustainability

ecological, triple bottom line, resiliance, justice, intergenerational, and hollistic

mickey mouse model of business

focuses on the profit aspect of TBL, people and planet come second

Bulls eye model

economy cant exist without society, society cannot exist without environment, so nothing can exist without environment

linear economy

materials -> production -> use -> dispose

Ways to become more sustainable

renewable energy, public transport, water conservation, circular economy, awareness etc.

Free market

an economic system based on supply and demand with little or no government control