Management Chapters 3-5

triple bottom line

representing people, planet, and profit (the 3 P’s) - measure an organization’s social, environmental, and financial performance

social audit

a systematic assessment of a company’s performance in implementing socially responsible programs, often based on predefined goals 

stakeholders

the people whose interests are affected by an organization’s activities

internal stakeholders

consist of employees, owners, and the board of directors, if any

owners

consist of all those who can claim it as their legal property 

sole proprietorship

if you're running a one-person business

board of directors

the group of people elected to oversee the firm’s activities and ensure that management acts in shareholders best interests

external stakeholders

people or groups in the organization’s external environment that are affected by it

task environment

consists of 10 groups that interact with the organization on a regular basis

customers

those who pay to use an organization’s goods and services

competitors

people or organizations that compete for customers or resources, such as talented employees or raw materials

supplier

(or vendor) a person or organization that provides supplies- that is, raw materials, services, equipment, labor, or energy- to other organizations

distributor

sometimes called a middleman, a person or organization that helps another organization sell its goods and services to customers

strategic allies

describes the relationship of two organizations who joins forces to achieve advantages neither can perform as well alone

clawbacks

rescinding the tax breaks when firms don’t deliver promised jobs

venture capital

money provided by investors to start-up firms and small businesses with high risk but perceived long-term growth potential, in return for an ownership stake

crowdfunding

raising money for a project or venture by obtaining many small amount of money from many people, using websites

government regulators

regulatory agencies that establish ground rules under which organizations may operate 

special-interest groups

groups whose members try to influence specific issues, some of which may affect your organization

general environment

the set of broad, uncontrollable forces in the external environment that impact the organization

economic forces

consist of the general economic conditions and trends, such as unemployment, interest rates, and trade balance, that may affect an organization’s performance

technological forces

new developments in methods for transforming resources into goods or services

sociocultural forces

influences and trends originating in a country’s, a society’s pr a culture’s human relationships and values that may affect an organization or industry 

demographic forces

influences on an organizations arising from changes in the characteristics of a population, such as age, gender, or ethnic origin

political legal forces

changes in the way politics shape laws and laws shape the opportunities for and threats to an organization

international forces

changes in the economic, political, legals, and technological global system that may affect an organization

ethical dilemma

a situation in which you have to decide whether to pursue a course of action that may benefit you or your organization but that is unethical or even illegal 

ethical behavior

behavior that is accepted a “right” as opposed to “wrong” according to prevailing standards

abusive supervision

occurs when supervisors repeatedly display verbal and nonverbal hostility toward their subordinates

value system

the pattern of values within an organization

values

the relatively permanent and deeply held underlying beliefs that “fairness meaning hiring according to ability, not family background”

utilitarian approach

guided by what will result in the greatest good for the greatest number of people

individual appraoch

guided by what will result in the individual’s best long-term interest, which ultimately are in everyone’s self-interest

moral-rights approach

guided by respect for the fundamental rights of human beings, such as those expressed in the US Constitution Bill of Rights

justice approach

guided by respect for impartial standards of fairness and equality 

insider trading

the illegal trading of a company’s stock by people using confidential company information

Sarbanes-Oxley Act of 2002

established requirements for proper financial record keeping for public companies and penalties of as much as 25 years in prison for noncompliance

workplace cheating

unethical behaviors that result in employees receiving benefits or advantages to which they are otherwise not entitled

ethical climate

represents employees’ perceptions about the extent to which work environments support ethical behavior

code of ethics

consists of a formal written set of ethical standards guiding an organization’s action

whistle blower

an employee or outside consultant who reports organizational misconduct such as health and safety violations, waste, corruption, or overcharging customers to the public

social responsibility

a manager’s duty to take actions that will benefit the interests of society as well as of the organization

corporate social responsibility

the notion that corporations are expected to go above and beyond following the law and making a profit

climate change

major changes in temperature, precipitation, wind patterns, and similar matters occurring over several decades

global warming

 one aspect of climate change, refers to the rise in global average temperature near the Earth’s surface, caused mostly by increasing atmospheric concentrations of greenhouse gasses, such as carbon emissions from fossil fuels

natural capital

the value of natural resources, such as topsoil, air, water, and genetic diversity, which humans depend on

philanthropy

making charitable donations to benefit humankind

corporate governance

 the system of governing a company so that the interest of corporate owners and other stakeholders are protected

CSR contracting

the linking of executive compensation to CSR criteria such as environmental and social performance

globalization

the trend of the world economy toward becoming a more interdependent system

global village

refers to the “shrinking” of time and space as air travel and the electronic media have made it easier for the people around the glove to communicate with one another

e-commerce

the buying and selling of products and services through computer networks

global economy

refers to the increasing tendency of the economies of the world to interact with one another as one market instead of many national markets 

cultural awareness

defined as the ability to operate in different cultural settings

multinational corporation

a business firm with operations in several countries

multinational organization

 a nonprofit organization with operations in several countries

ethnocentric managers

believe that their native country, culture, language, and behavior are superior to all others

parochialism

a narrow view in which people see things solely through their own perspective

polycentric managers

take the view that native managers in the foreign offices best understand native personnel and practices, and so the home office should leave them alone

geocentric managers

accept that there are difference and similarities between home and foreign personnel and practices and that they should use whatever techniques are most effective

maquiladoras

foreign-owned manufacturing plants allowed to operate in Mexico with special privileges in return for employing

outsourcing

using supplies outside the company to provide goods and services

global outsourcing

using supplies outside the United States to provide labor, goods, or services

importing

a company buys goods outside the country and resells them domestically

exporting

a company produces goods domestically and sells them outside the country

countertrading

bartering goods for goods

licensing

a company allows a foreign company to pay it a fee to make or distribute the first company’s product or service

franchising

a form of licensing in which a company allows a foreign company to to pay it a fee and a share of the profit in return for using the first company’s brand name and a package of materials and services

joint venture

also known as a strategic alliance, with a foreign company to share the risks and rewards of starting a new enterprise together in a foreign country

wholly owned subsidiary

a foreign subsidiary that is totally owned and controlled by an organization

greenfield venture

a foreign subsidiary that the owning organization has built from scratch

trade protectionism

 the use of government regulation to limit the import of goods and services

tariff

a trade barrier in the form of a customs duty, or tax, levied mainly on imports

import quota

a trade barrier in the form of a limit on the numbers of a product that can be imported

dumping

the practice of a foreign company’s exporting products abroad at a lower price than the price in the home market in order to drive down the price of the domestic product

sanction

the trade prohibition on certain types of products, services, or technology to another country for specific reasons, including nuclear nonproliferation, terrorism, and humanitarian purposes

embargo

a complete ban or prohibition of trade of one country within another so that no goods or services can be imported or exported from or to the embargoed nation 

trading bloc

 a group of nations within a geographical region that have agreed to remove trade barriers with one another

most favored nation

trading status describes a condition in which a country grants other countries favorable trading treatment

exchange rate

the rate at which the currency of one area or country can be exchanged for the currency of another

culture

the shared set of beliefs, values, knowledge, and patterns of behavior common to a group of people

low-context culture

 in which shared meaning are primarily derived from written and spoken words

high-context culture

 in which people rely heavily on situational cues for meaning when communicating with others, relying on nonverbal cues

Hofstede model of four cultural dimensions

identified four dimensions along which national cultures can be placed 

* individualism/collectivism
* power distance
* uncertainty avoidance
* masculinity/femininity

GLOBE project

 a massive and ongoing cross-cultural investigation of nine cultural dimensions involved in leadership and organizational processes

monochronic time

a preference for doing one thing at a time

polychronic time

a preference for doing more than one thing at a time

expropriation

defined as a government’s seizure of a domestic or foreign company’s assets

foreign corrupt practices

makes it illegal for employees of US companies to make questionable to dubois contributions to political decision makers in foreign nations  

expatriates

people living or working in a foreign country

context

refers to the situational or environment characteristics that influence our behavior

plan

a document that outlines how goals are going to be met

business plan

a document that outlines a firm’s goals, the strategy for achieving them, and the standards for measuring success

business model

outlines the need the firm will fill, operations of the business, its components and functions, as well as the expected revenues and expenses

strategy

(or strategic plan) sets the long-term goals and direction for an organization

strategic management

a process that involved managers from all parts of the organization in the foundation and the implementation of strategies and strategic goals 

mission

purpose or reason for being

mission statement

expresses the purpose of the organization

vision

a long term goal describing what an organization wants to become