BUSA Chapters 3, 4, 5, 7, and 8 Lecture Notes

Comprehensive vocabulary flashcards covering key management concepts from BUSA Chapters 3, 4, 5, 7, and 8, including Ethics, Global Management, Innovation, Decision-Making, and Planning.

Ethics

The moral code of principles that sets standards of good and bad, or right and wrong, in one’s conduct.

Ethical behaviour

Behaviour that is accepted as "good" and "right" in the context of the governing moral code.

Terminal values

Preferences about desired ends, such as the goals one strives to achieve in life.

Instrumental values

Preferences regarding the means for accomplishing terminal ends.

Utilitarian view

A view of ethics that considers ethical behaviour to be that which delivers the greatest good to the greatest number of people.

Individualism view

An ethical view based on the belief that one’s primary commitment should be to advance long-term self-interests.

Moral rights view

An ethical view where behaviour is ethical when it respects and protects the fundamental rights of people.

Justice view

A view maintaining that behaviour is ethical when people are treated impartially, according to legal rules and standards.

Procedural justice

The degree to which policies and rules are fairly applied to all.

Distributive justice

The degree to which outcomes are allocated fairly across all employees.

Interactional justice

The degree to which people treat one another with dignity and respect.

Commutative justice

The fairness of exchanges or transactions.

Cultural relativism

The belief that there is no one right way to behave and that ethical behaviour is always determined by its cultural context.

Moral absolutism

The belief that if a behaviour or practice is not ethical in one’s home environment, it is not acceptable anywhere else.

Ethical imperialism

An attempt to impose one culture’s ethical standards on others.

Ethical dilemma

A situation requiring a decision regarding courses of action that may be unethical, even if they offer potential personal or organizational benefit.

Preconventional level

The first level of moral development identified by Lawrence Kohlberg, characterized by self-centred behaviour.

Conventional level

The second level of moral development identified by Lawrence Kohlberg, characterized by social-centred behaviour.

Postconventional level

The third level of moral development identified by Lawrence Kohlberg, characterized by principle-centred behaviour.

Ethics intensity

The extent to which situations are perceived to pose important ethics challenges; also known as issue intensity.

Moral muteness

When employees or leaders turn a blind eye to questionable activity occurring in the organization that may violate their own moral code.

Immoral managers

Managers who choose to behave unethically purely for personal gain.

Amoral managers

Managers who disregard the ethics of their choices unintentionally or unknowingly.

Moral managers

Managers who pursue ethical behaviour as a personal goal and consider ethical issues in all decisions.

Ethics training

Structured programs to help members understand ethical decision-making and integrate high standards into everyday behaviour.

Code of ethics

A formal statement of an organization’s values and ethical principles that sets expectations for behaviour.

Whistleblower

A person who exposes misconduct in and by their organizations to preserve ethical standards and prevent illegal acts.

Stakeholders

The persons, groups, and organizations directly affected by the behaviour of an organization and who hold a stake in its performance.

Stakeholder power

The capacity of a stakeholder to positively or negatively affect the operations of the organization.

Demand legitimacy

The extent to which a stakeholder’s demand is perceived as valid.

Issue urgency

The extent to which issues requires immediate attention or action.

Corporate social responsibility (CSR)

The obligation of an organization to act in ways that serve the interests of multiple stakeholders, including society at large.

Triple bottom line

An assessment of organizational performance including the $3\,Ps$: profit, people, and planet.

Classical view of CSR

The view that management’s only responsibility is to maximize profits.

Socio-economic view of CSR

The view that managers should focus on the organization’s effect on broader social welfare, not just corporate profits.

Shared value view of CSR

The proposal that economic progress for the firm and social progress for the community are fundamentally interconnected.

Social responsibility audit

A formal report and measurement of an organization's social performance.

Obstructionist strategy

A CSR strategy that fights social demands and focuses mainly on economic priorities.

Defensive strategy

A CSR strategy that does the minimum legally required to protect the organization.

Accommodative strategy

A CSR strategy that does the minimum ethically required to satisfy society's expectations.

Proactive strategy

A CSR strategy that takes leadership in social initiatives to make things better in the future.

Corporate governance

The active oversight of management decisions and company actions by boards of directors.

Ethics self-governance

The requirement that daily task responsibilities are performed in an ethical, socially responsible way by managers at all levels.

External environment

The external conditions setting the context for managerial decision-making, including economic, legal-political, socio-cultural, technological, and natural conditions.

Offshoring

Outsourcing work and jobs to lower-cost foreign locations.

Reshoring

Moving jobs back home from foreign locations.

Specific environment

Also called the task environment; composed of stakeholders with whom an organization interacts and conducts business.

Competitive advantage

An organization’s ability to use resources in such a way that it performs better than the competition.

Environmental uncertainty

A lack of complete information regarding the environment; its dimensions are degree of complexity and rate of change.

Innovation

The process of coming up with new ideas and putting them into practice.

Product innovations

Innovations resulting in new or improved goods and services.

Process innovations

Innovations resulting in better ways of doing things.

Business model innovations

Innovations resulting in new ways of making money for the firm.

Social business innovation

Using business models to address important social problems.

Hamel’s wheel of innovation

A five-step process consisting of: $1.$ Imagining, $2.$ Designing, $3.$ Experimenting, $4.$ Assessing, and $5.$ Scaling.

Design thinking

A hands-on method for solving problems that challenges assumptions and frames questions to address actual user needs.

Reverse innovation

Innovation that comes from lower organizational levels and is found in diverse settings or locations.

Disruptive innovation

The creation of an innovative product or service that starts small scale and then moves “up market” to displace competitors.

Sustainability

A commitment to protect the rights of both present and future generations as co-stakeholders of the world’s resources.

Sustainable development

Using environmental resources to support society’s needs today while preserving them for future generations.

Environmental capital

Also called natural capital; the world’s supply of natural resources like atmosphere, land, water, and minerals.

Sustainable businesses

Businesses that meet customer needs while protecting or advancing the well-being of the natural environment.

Sustainable innovation

Also called green innovation; creating products or practices that reduce negative impact or achieve positive impact on the environment.

Human sustainability

The effect of management practices on employee physical and psychological well-being.

Global economy

An economy in which resources, supplies, product markets, and competition have a worldwide scope.

Globalization

The growing interdependence among the components of the global economy.

Global management

Management in businesses and organizations with interests in more than one country.

International businesses

For-profit organizations conducting transactions of goods and services across national boundaries.

Global sourcing

Purchasing materials, manufacturing components, or locating business services around the world.

Exporting

Selling locally made products in foreign markets.

Importing

Buying foreign-made products and selling them in domestic markets.

Licensing agreement

An agreement where foreign firms pay a fee for rights to make or sell another company’s products in a region.

Franchising

A form of licensing in which a foreign firm buys the rights to use another’s name and operating methods in its home country.

Joint venture

A co-ownership arrangement where partners pool resources, share risks, and jointly operate a business; also called global strategic alliance.

Foreign subsidiary

A local operation completely owned and controlled by a foreign firm.

Greenfield venture

A foreign subsidiary that is built from the ground up.

Political risk

The potential loss in value or control of a foreign asset due to instability or political changes in the host country.

World Trade Organization (WTO)

A global organization established to promote free trade and open markets around the world.

Tariffs

Taxes governments impose on imports.

Global corporations

Business firms with extensive international operations in many foreign countries; also known as MNCs or MNEs.

Transnational corporations

Corporations that do business around the world without being identified with one national home.

Corruption of Foreign Public Officials Act (CFPOA)

A Canadian law making it illegal for Canadian firms to engage in corrupt practices overseas, such as bribery.

Conflict minerals

Minerals sourced in armed conflict areas whose sale finances violence.

Culture

The shared set of beliefs, values, and patterns of behaviour common to a group of people.

Culture shock

The confusion and discomfort a person experiences when in an unfamiliar culture.

Cultural intelligence (CQ)

The ability to adapt, adjust, and work well across cultures.

Low-context cultures

Cultures where most communication takes place via the written or spoken word.

High-context cultures

Cultures where messages are interpreted from the situation, body language, and physical setting.

Monochronic cultures

Cultures where people often do one thing at a time.

Polychronic cultures

Cultures where members are flexible and often work on many different things at once.

Tight culture

A culture where social norms are strong and clear, and deviation is discouraged.

Loose culture

A culture where social norms are relaxed and deviations are generally tolerated.

Power distance

The degree to which society accepts or rejects the unequal distribution of power among people.

Individualism-Collectivism

The degree to which a society emphasizes individual accomplishments versus group interests.

Uncertainty avoidance

The degree to which a society is uncomfortable with risk, change, and situational uncertainty.

Ecological fallacy

The mistaken assumption that a generalized cultural value applies equally to all members of that culture.

Comparative management

The study of how management perspectives and practices differ among countries and cultures.

Analytical competency

The ability to evaluate and analyze information to make decisions and solve problems.

Analytics

The systematic gathering and processing of data to make informed decisions.

Anchoring and adjustment bias

Decision making based on incremental adjustments from a prior decision point.