GMGT 1010 FInal

What tech breakthroughs occurred in the early 1900's

Electric power

Automobiles

Gasoline Engine

What is individualism

The idea that people act off of self interest not the communities

What is capital flight

When assets flow out of a country due to an event of economic consequence

What does the equality of opportunity state

The best candidate for a job is hired (Systemic discrimination is present)

What does equality of outcome state

Cares about the equality of representation of gender, race etc.

What is consumer sovereignty

The assumption that the consumer is king over companies

What benefit did the automobile bring to society in the 1900's

1. Urbanization (movement from farms into the city)

2. Interdependence ( product specialization)

3.Sociological affect

In the 1900's as a result of the rise in big business what occured

1. Mass production

2.Threat of monopoly's

3. Anti trust legislator in placed to prevent price fixing

What occurred and what were the reasons for Winnipeg general strike of 1919

Reasons:

1. Large population returning from fighting in WW1

2. Large influx of European immigrants

3. low wages/high unemployment

Reaction:

30,000 workers went on strike (lasted for just over a month)

What occurred in the roaring 20's

1.Increasing population

2.Growth of cities

3.Low unemployment

4.Increasing wages

5. stock market boom

6. stock market crash

What were the reasons for the stock market crash

1. Speculation: People speculating and investing in currency's, not actual goods

2. Inelastic demand: Supply increased as well as prices however demand did not

3. Technology replaced man: Loss of jobs

4. Income inequality

What is the glass stegal act (1933)

Commercial banks couldn't work with investment banks (Prevents a bank from taking the money you deposit and then gambling with it in the stock market)

What is the Wagner act (1933)

Workers could form unions and bargain collectively

What occurred after the stock market crash (great depression 1929)

1. Glass stegal banking act

2. Wagner act

3. Rise of national banks

4. Monetary police in placed

5. Federal housing authority (prevent bubbles)

What does the monetary police do?

Balance highs and lows of capitalism

What lead to the end of the great depression

World war 2 lead to the end of this

What economic results were seen due to WW2

Great increase in government role of the economy

Employment act of 1946

Fiscal policy

What did the employment act of 1946 ensure

Ensured soldiers returning from war with access to job's/housing upon return

What is the fiscal policy and who was the father of it

John maynard: believed that taxation and spending boosted the economy so they promoted consumer spending

What occurred in the Golden Age (1940's-1970's)

Technological advances

Capital labour accord

Active role for government (military and social spending)

What is the capital labour accord

promoted the Acceptance of unions and Wages increased when productivity increased (standard of living raised)

What caused then end of the Golden age

Inflation

Oil Shock

Stagnation and unemployment

What were the tech advance in the golden age

Tourism

television

home appliances

What is the GI bill

Helps veterans get eduaction's

what did Nixon's decision to take the us dollar off the gold standard in the 70's cause

Because money was no longer backed by gold huge inflation occurred which led to unemployment and the US dollar was no longer the most powerful currency

What occurred in the 1973 oil embargo

Price of oil skyrocketed putting a huge strain on the us economy

Opec oil controlled the price of oil

In the 1980's what trends came into fruition

A large movement towards globalization, neoliberalism, and pure capitalism was seen. as a result we see the rise of BRICS due to outsourcing

What occured in the 1980's

neoliberalism

globalization

emergence of international organizations (IMF,WTO, World bank)

What was the meeting of the WTO in Seattle about (1999)

The neoliberal agenda. continued globalization of neoliberal agenda

What happened in the Great recession (long term)

1.Productivity rises but wages do not making people rely on credit, pushing everyone into debt

2.More consumers with low wages and high credit

3.Fictionalization drives capitalism

4.Stegal act repealed

What happened in the great recession (short term)

1.housing bubble collapses

- in part due to subprime loans (people get mortgages under normal level)

2.Mortgage backed security's

-Large investment banks were largely invested in the risky loans

3.People bet against the housing market

4.Huge financial business collapse

5.Credit market freeze

How did Canada largely avoid the great recession

1. Incentive were put into place to discourage high risk loans

2. Canada integrated regulation of banks, insurance companies, and large investment dealers

3. Financial institutions were less highly leveraged

4. Regulatory cap on leverage of 20:1 of asset to total capital ratio

Canadian capital requirements are above international requirements

What are the recent developments in capitalism

1. criticism of globalization and neoliberalism

2. Donald trump (anti globalization)

3. Republicans and democrats both are critical of globalization

4. NAFTA regulations (challenge existing forms of globalization)

What is neoliberalism

a modern politico-economic theory favouring free trade, privatization, minimal government intervention in business, reduced public expenditure on social services, etc.

What are the four principles or management

1. Organizing (Classic Era)

2. leading (Human Era)

3. Planning (Calculating Era)

4. Controlling (Values and beliefs Era)

When was and What occurred in the Classic era

Organizing Era (1910-1930)

-Very focused on the organization aspect of management.

-Believed there was one best way to approach all management

-Bureaucracy

What were Webers ideal feature of a Bureaucracy

1. Division of labour

2. Rules and regulations

3. Hierarchy of authority

4. Technical qualifications

5. Impersonality

When was and What occurred in the Human era (1930-1950)

-Interpersonal aspects of management

-leader as facilitator (Follet)

-job stress(L. Gilbreth)

-Hawthorne effect

-Theory X/Y (McGregor)

What was the result of the the Hawthorn study

Originally they found that productivity increased when one was being watched, However it was largely accredited to the fact that they integrated interviews with employee's to get feedback.

Meaning they are made to feel that they are worth something (respect)

Management in the "Calculating Era" (1950-1970)

-See an emergence of management science

-Business was trying to solve large scale problems

-Introduced mathematics to solve management problems

-As production increased problems arrived that needed to be solved, hence effective planning

-Earlier there was an idea that only one strategy was successful, however the idea of different approaches to planning occurred here

What is the mechanistic structure approach

Much like traditional bureaucracy

Chain of command

Very formal rules and regulations

What is the organic structure approach

Bottom up flow of information

Flatter structure of command (less managers who had to go up the chain of command)

Less rules and regulations

In a stable industry what approach should you use

mechanistic structure approach

In a volatile industry what approach should you use

organic structure approach

What happened to management in the 1960's (Flower power)

Management research became psychedelic. in other words business realized that control wasn't done though observation but instead to establish that what they are doing is right (values and beliefs era). Also a notion of institutionalization was introduced

What happened to management in the values and beliefs era (1970 - 1990)

-Social construction of reality (Berger & Luckman)

-Institutionalization (Selznick, Zucker)

-organizational culture (Schein)

What are the 3 types of globalization

Economic globalization

Political globalization

Social or cultural globalization

What are the main social issues

1. Human rights and working conditions

2. Inequality

3. Consumerism

What is the difference between Value loops and Chains

Value Loops have the added aspect of Environmental Resources and Processes to every step in the value chain (Goes under and attaches to all 3 steps)

What is the sequence of Value chains

1) acquires the resources it needs (key inputs like people, money and other resources)

2) engages in day-to-day operations to use and add value to these resources (converts the inputs into products and services)

3) utilizes its value-added outputs to further its interests (sells its products and services to customers)

What is the current Era we are in

The Reconsideration Era

-Ecological Sustainability

-Social Justice

-Physical Well-Being

-Aesthetic costs

-Spiritual interest

What is political globalization

refers to the amount of co-operation between countries government (united nations)

What is social globalization

refers to the sharing of ideas and culture between different country's (social media)

What is economic globalization

refers to the interconnections of economies through trade and the exchange of resources

What is a NGO

A not for profit, non-governmental organization that is organized on a local, national or international level (Red Cross)

What is a global corporation

A business that operates in two or more countries

What is a Supranational institution

An organization in which, two or more countries participate/ form an alliance in order to achieve a goal that would be unattainable independently (united nations, IMO, Fifa)

What is consumer capitalism

the critique that producers make buyers irrational through advertisements marketing etc. (Axe body spray saying women will be all over you if you buy there product)

What is Built in obsolescence

producers create products that are made to be obsolete later (apple coming out with the newest tech)

What are the 6 current ways to protect the environment

1. Regulations

2. Laws

3. Market-driven approaches

4. Environmental NGOs

5. Multi-stakeholder initiatives and standards

6. Corporate programs and policies

What are Market driven approaches

Built in approaches into the market that offers incentives for companies to reduce environmental impact allowing companies to find solutions themselves

What is Co-optation

Means that one feels forced to say something nice about an industry because they were given an incentive to ignore the negatives

What are Multi stakeholder initiatives

Numerous organizations and actors from different areas come together to develop standards, rules, policies, and principles to address issues (voluntary)

What are corporate driven approaches

individual company creates its own policy to protect the natural environment (more likely to be efficient because companies know the industry the best)

What are the dimensions of CSR

1. Environmental: the natural environment

2. Social: the relationship between business and society

3. Economic: socio-economic and financial aspects

4. Stakeholder: stakeholders and stakeholder groups

5. Voluntariness: actions not prescribed by law

Why did CSR blow up in the 70's

This was largely due to neoliberalism and globalization; as little government involvement was seen and therefor little regulation of companies. Meaning that CSR fell largely on corporation's backs

What are the level of carolls pyramid

1st. Economic ( Need to profit)

2nd. Legal (obey the law)

3rd. Ethical ( obligation to do what is right)

4th Philanthropic (be a good corporate citizen)

What are the 4 types of Corporate Philanthropy

1. Donations

2. Charitable foundations

3. Cause-related marketing

4. Strategic giving

What are charitable foundations

When a business starts a separate charitable corporation focused on fixing a social problem

What is cause related marketing

says X amount of proceeds from our products goes to support Y

What is strategic giving

View's charity as a strategic business decision. Establish goodwill, done for publicity etc. to win over consumers

What are the company benefits of corporate philanthropy

1. Tax benefits

2. Tie-ins with products/marketing

3. Reputational benefits

What is Corporate voluntarism

When a company recognizes and supports an individuals actions to volunteer in the community

what is Social venture philanthropy

The investment of human and financial resources by corporations in non-profit community development agencies to generate a social return instead of only a financial one

what is Corporate sponsorship

a partnership, which has been established for mutual benefit between a business sponsor and an event or a non-profit

What is Social enterprise

1. Full non-profits where all funds go to social causes

2. For-profits where funds are split between social cause and shareholders

What are the strengths/weaknesses of regulations

Strengths:

1. Regulations allow for oversite and punishment of non-compliance

2. Government is supposed to look out for the publics wellbeing in a what corporations cannot

Weaknesses:

1.Government regulations are very susceptible to lobbying and corporate influence on who gets chosen to regulate

2. Inefficient

3. Can't regulate actions outside there jurisdiction. Therefore if capital flight occurs they cant do anything

What are the Strengths and weaknesses of law-driven approaches

Strengths:

1. Have the power to enforce compliance and can sanction non-compliance

2. Potentially less susceptible to influence than regulations

Weaknesses:

1. Fines are the only way to enforce law and they are not severe enough to prevent negative environmental impact

2. corporations sometimes factor in the fines from breaking the law into there decisions.

3. Many cases where corporations who are found guilty use loopholes to get around the penalties

Strengths and weaknesses of market-driven approaches

Strengths:

1. Incentives for companies

2. Potentially "efficient"

Weaknesses:

1. Allows corporations to continue to be environmentally destructive without addressing internal issues

2. Potentially a form of "greenwashing"

3. Cheaper for companies to just accept fines than change

Strengths and weaknesses of environmental NGO's

Strength:

1. Have been pretty successful in pressuring industry to change its destructive behaviour

2. They are stakeholder controlled

Weakness:

1. Do not possess the same amount of power that regulation and laws do (companies can decide to ignore them)

2. Co-potation

Strengths and weaknesses of multi-stakeholder approaches

Strengths:

1. Everyone gives impute so your get a long lasting solution

2. Can address global problems

Weaknesses:

1. Voluntary

2. Because there are so many people involved it takes a long time to find a solution

Strengths and weaknesses of corporate-driven approaches

Strengths:

1. Comes from the company itself so it is the most efficient

Weaknesses:

1. No enforcement

2. Company has complete discretion

What are the four lenses of indigenization and business

1. Integrating indigenous peoples into business

2. Indigenous economic development and self-determination

3. Intractable conflict between indigenous values and capitalist values

4. Incorporating indigenous values into business

What are indigenous values

1. Responsibility

2. Respect

3. Reciprocity

4. Reverence

What is Reciprocity

returning a favour. Relates to notions of sharing and giving (resources and knowledge etc.). Give and take relationship

What is Reverence

not necessarily respect for a person but it is more like a sense or gratitude or appreciation

What is Holism

Everything is connected. Interconnections. When decisions are made they are based off the fact that land people and the environment etc. are all connected

What is the Seventh Generation principle

Means decisions made in indigenous culture are focused on how the decision will affect seven generations form now. Short term/Long term debate

What are the Key issues in indigenous economic development

1. Access to Capital

2. Self-governance

3. Government Support

What are 4 responses to CSR and what the response outlay

1. Social enterprise- Social return (all profits goto social cause)

2. Social enterprise- Mixed return (some profits goto social cuase)

3. Greenwashing (Low commitment to CSR but feel pressured to take part by NGO's Media etc.)

4. Amoral- Corporations and organizations ignore CSR

What is stakeholder engagement

the systematic and proactive feedback by those who are engaged in the corporation

What is codetermination

When both stakeholders (workers) and shareholders elect the supervisory board of a company, who then elect the Board of directors

assumptions of capitalism

private property, individualism, economic freedom, equality of opportunity, competition, profit, work ethic, consumer sovereignty, role of government

private property

the legal right to own and use economic goods such as land and buildings

individualism

the individual, and not society or a collective is the paramount decision maker in society. the individual is inherently decent and rational

economic freedom

freedom to voluntarily enter business, enter contracts, locate anywhere. few restrictions on business activity

equality of opportunity

assumption that all individuals to groups have an even chance at responding to some condition in society

competition

many rival sellers seek to provide goods and services to many buyers

profit

the excess of revenues over expenses

work ethic

code of values, or a body of moral principles, claiming that work is desirable, it is natural activity