BUS100 GMU Final Exam

boundary-spanning department

departments within an organization that reach across the dividing line that separates the company from groups and people in society.

business

the most dominant institution in the world.

external stakeholder

a stakeholder that is not directly involved with the company. Ex. Government.

focal organization

the main/relevant business whose perspective the analysis is from.

general systems theory

argues all organisms are open to and interact with their external environments.

interactive social system

systems theorys help us understand how business and society from an interactive social system.

internal stakeholder

a stakeholder that is directly involved with the company. Ex. Employee.

ownership theory of the firm

the business is seen as property of the owners. The purpose is to maximize long-term market value.

society

refers to human beings and the social structures they colletively create.

stakeholder

"a person or group that affect, or are affected by a companies decisions, policies, and operations. "

stakeholder analysis

to identify relevant stakeholders and understand their intesrets and power

stakeholder coalitions

temporary alliance that pursues a common interest.

stakeholder (market)

stakeholders that engage in economic transaction with the company.

stakeholder (nonmarket)

stakeholders that do not engage in economic transaction with the company.

stakeholder map

map that represents the relationship of stakeholders. x = position y= saliance.

stakeholder power

stakeholders ability to use resources to secure a desired outcome.

salience

"measure of power, legitmacy, and urgency. "

stakeholder theory of the firm

corporations serve a broad public purpose: to create value for society.

competitive intelligence

understanding competition

environmental analysis

method managers use to gather information about external issues and trends to develop a strategy that minimizes threat.

intelligence

is the acquistion of information gained from analysis.

performance-expectations gap

a gap between what the firms wants to do vs what stakeholders expect.

stakeholder dialouge

when a business and its stakeholder come together face to face about issues of common concern.

stakeholder materiality

focuses on the importance of something.

B corporation

businesses that explicitly seek to balance the interset of multiple stakeholders. They focus on social responsibilty and citizenship by blending their social objectives with financial goals.

corporate citizenship

the actions they take to put their commitments to corporate social responibility.

corporate power

the power exerted by the largest business organizations.

corporate social reporting

corportate social responsibility

enlightened self-interest

integrated reporting

iron law of responsibility

in the long run those who don't use power in ways that society sees has responsible will lose it.

social audit

evaluation of an organizations social ethical and environmental performance.

transparency

companies seek value in being transparent when it comes to audits.

anti-americanism

dislike of americanism is present in the dominant us based transnational corporation in every corner of the world.

bottom of the pyramid

individuals who earn below $3000 a year in local purchasing power.

central state control

economic power is concentrated in the hands of the government officials and political authorities.

civil society

"comprises nonprofit, educational, religious, community, family, and interest-group organizaations. They do not have a commerical purpose. "

debt relief

when a group or person gives money to help pay for a debt.

democracy

broad presense of political freedom

FDI

"foreign direct investment: when a company, individual, or fund invests money in another country. "

free enterprise system

based on the principle of voluntary assocations and exchange

global action network

"development of collaborative, multisector partnerships focused on particular social issues or problems"

globalization

"increasing movements of goods, services, and capital across national boarders. "

IFTI

international financial and trade institutions: there are many organizations such as the world bank that make up these institutions.

IMF

international monetary fund: purpose is to stabilize the system of currency exchange rates and international payments to enable member countries to participate in global trade.

microfinance

when a organization provides loans to low-income clients or solidary lending groups

military dictatorships

repressive regimes ruled by dictators who exercise total power through control of armed forces

nongovernmental organization

"are concerned with issues such as environmental risk, labor practices, workers rights, etc."

race to the bottom

when organizations search for the cheapest labor.

transnational corporation

organizations that operate in multiple nations.

WB

world bank: provides economic development loans to member nations. The largest source of economic development assistance.

WTO

world trade organiztion: establishes the ground rules for trade among nations

business ethics

the application of general ethic ideas to business behavior.

conflict of interest

occurs when a individuals self interest conflicts with acting in the best interest of another when the individual has an obligation to do so.

ethical egoist

when a individual has his or her own self-interest above all other considerations.

ethical principles

guides to moral behavior.

ethical relativeism

when holds that ethical principles should be definded by various periods of time in history.

ethics

conception of right and wrong conduct

human rights

another basis for making ethical judgement

sarbanes-oxley act

law seeks to ensure that firms maintain high ethical standards in how they conduct and monitor business operations.

US corporate sentencing guidelines

provides a strong incentive for businesses to promote ethics at work.

utilitarian reasoning

an approach to ethics emphasies utility or the overal amount of good that can be produced by an action or decision.

virtue ethics

"focuses on character traits that a good person should possess, theorizing that moral values will direct the person toward good behavior. "

bribery

a questionable or an unjust payment often to a government officials to ensure or facility a business transaction.

corporate culture

"is a blend of ideas, customs, traditional practice, company values, and shared meaning that help define normal behavior for everyone who works in a company."

employee ethics traning

train employees to conduct ethically.....

ethical climate

represents an unspoken understanding among employees of what is and is not acceptable behavior based on the expected standards used for ethical decision making.

US foreign corrupt practices act

prohibited executives of US based companies from paying bribes to foreign government officials.

antitrust laws

prohibits unfair and anti-competitive practices by business.

deregulation

Dodd-Frank act

financial reform legislation passed by the Obama administration in 2010 as a response to the financial crisis of 2008.

economic regulation

"regulating the economy, SEC, FTC, etc. "

fiscal policy

how the government control economy by taxes and controlling spending

monetary policy

federal reserve control economy by interest rates

natural monopoly

a legal regulated monopoly by the government. It would be inefficent to have competition. Ex. Eletrical companies.

negative externalities

"BP case, all the other effects other than the oil spilling. Ex. Wildlife, etc. "

predatory pricing

undercutting prices to make competiton to go out of business

advocacy advertising

celebrities advertising for a company.

citizens united decision

allowed businesses to donate to poliitcal campaigns because they are deemed people

corporate political strategy

how companies plan to lobby basically

dark money

under the table money not registered to the government

economic leverage lobbying

when a companies uses the economic leverage to lobby

PACs

Political action committeee

public affairs departments

a boundary spanning department that deals with public affairs

revolving door

soft money

money that is not tacxed

the business roundtable

group of chief executive officers of major U.S. corporations formed to promote pro-business public policy

acid rain

acidic rain due to pollution

cap-and-trade

buy and sell rights to pollute

clean economy

sectors of the economy that produce goods and services with an environmental benefit

command and control regulation

government commands business firms to comply with certain standards

ecologically sustainable organization

a business that operates in a way that is consistent with the principle of sustainable development

EPA

environmental protection agency

market-based mechanisms

based on the idea that the market is a better control than extensive standards that specify precisely what companies do

triple bottom line

when companies report to stakeholders not just their financial results

hedge fund

fund with a pool of a lot of money. Usually high risk investments

insider trading

trading on non public information

institutional investors

"pensions, mutual funds, insurance companies, etc. "

private equity fund

pools of money invested by very wealthy individuals and institutions.