exam 2 vocab flashcards

amenties

resources made available to employees in addition to wages, salary, and other standard benefits

descriptive approach

a theory that views the company as composed of various stakeholders, each with its own interest

diffused stakeholder

a stakeholder with an interest in a company’s decisions and whose impacts on a firm can be large even if the relationship is generally weaker than other types

enabling stakeholder

a stakeholder who permits an organization to function within the economic and legal system

ethical maximum

the strongest action a company can choose to behave ethically in a given situation

ethical minimum

the least a company might do to claim it holds an ethically positive position

exigency

the level of urgency of a stakeholder claim

functional stakeholder

a stakeholder whose relationships influence or govern an organization’s inputs and outputs

greenwashing

carrying out superficial CSR efforts that merely cover up systemic ethics problems for the sake of public relations

instrumental approach

a theory proposing that good management of stakeholders is important because it can help the bottom line

normative approach

a theory that considers stakeholders as ends unto themselves rather than means to achieve a better bottom line

normative stakeholder

a stakeholder in the organization’s industry who influences its norms or informal rules

social responsibility of business

the view that stakeholders are not the means to their end (profit) but are ends in and of themselves as human beings

stakeholder claim

a particular stakeholder’s interest in a business decision

stakeholder management

the process of deciding which stakeholders to focus on and in what sequence

triple bottom line (TBL)

a measure that accounts for an organization’s results in the terms of its effects on people, planets, and profits

business judgement rule

the principle that officers, directors, and managers of a corporation are not liable for losses incurred. when the evidence demonstrates that decisions were reasonable and made in good faith

cap and trade

a system that limits greenhouse gas emissions by companies while allowing them to buy and sell pollution allowances

carbon footprint

the amount of carbon dioxide and other carbon compounds released by the consumption of fossil fuels

carbon tax

a pay-to-pollute system in which those who discharge carbon into the air pay a fee or tax

citizens united

a 2010 supreme court ruling in favour of unlimited spending by individuals and corporations on political campaigns

commerce clause

an enumerated power listed in the constitution giving the federal government the right to regulate commerce between states

corporate personhood

the legal doctrine holding that a corporation, separate and apart from the people who are its owners and managers, has some of the same legal rights and responsibilities enjoyed by natural persons

fiduciary duty

a very high level of legal responsibility owed by those who manage someone else’s money, which includes the duties of care and loyalty

limited liability

a business owner’s protection against loss of personal assets, granted with corporate status

moral minimum

the minimal actions or practices a business must undertake to satisfy the base threshold for acting equally

quid pro quo

the tradeoff someone makes in return for getting something of value; from the Latin meaning this for that

sarbanes-oxley

legislation passed in 2002 that mandates reporting transparency by businesses in areas ranging from finance to accounting to supply chain activities

shareholder primacy

a company’s duty to maximize profits for stockholders

states’ rights

a view that states should have more governing authority than the federal government, based on the 10th amendment, which reserves to the states any right not specifically delegated to the federal government

sustainability

a long-term approach to the interaction between business activities and societal impact on the environment and other stakeholders

tragedy of the commons

an economy theory highlighting the human tendency to use as much of a free natural resource as wanted without any regard for others’ needs or for long-term environmental effects or issues