The Relationship Between Business and Society

These flashcards cover key vocabulary and concepts from Chapter 1 of the lecture notes regarding the relationships between business and society.

Society

A community with broad groupings of people with common traditions, values, and history.

Business

Private, commercial-value oriented legal enterprises which may be for-profit, for-benefit, or cooperative.

Social License

The privilege of operating in a society with minimal restrictions based on maintaining public trust.

Social Contract

The mutual expectation of behavior between business and society.

Legitimacy

Alignment of business-society expectations, essential for business to operate successfully.

Integrity

A concept related to ethics, accountability, reliability, and having a good foundation.

Capitalism

An economic system allowing private ownership of production and decision-making by individuals expecting profit.

Free Enterprise System

An economic system characterized by private property, profit motive, and minimal government involvement.

Laissez-faire Capitalism

A market system operating with little government interference.

Macro-Level Influencers

Factors at a broader societal level that influence social dynamics such as the business cycle and technological innovation.

Meso-Level Influencers

Specific dynamics within organizations and communities that affect the business-society relationship.

Micro-Level Influencers

Factors that consider individual interactions and motivations within society.

Good Citizenship

The responsibility of businesses to go beyond organizational boundaries and contribute positively to society.

Forms of Business Organizations

Different structures under which businesses operate, such as sole proprietorships, partnerships, corporations, and cooperatives.

Adam Smith

An economist known for his works 'The Theory of Moral Sentiments' and 'The Wealth of Nations,' advocating for economic self-interest.

Homo Economicus

The concept of an economic human who acts primarily in their own self-interest.

Invisible Hand

A metaphor used by Adam Smith to describe the self-regulating nature of the marketplace.

Ethics

Moral principles that govern a person's or group's behavior, crucial in business decision-making.

Corporate Sustainability

The practice of conducting business in a way that considers the social and environmental impacts.

Business Decision-Makers

Individuals, such as owners and managers, responsible for making strategic decisions within a business.

Pluralistic Society

A society comprised of multiple distinct cultural groups with varying values and perspectives.