The ability or capacity to produce an effectâto get something done that otherwise may not be done.

BSG - Business and Social Responsibility Flashcards

Q: corporate social responsibility

Considers the impact of the company\'s actions on society. Requires the individual to consider his [or her] acts in terms of a whole social system and holds him [or her] responsible for the effects of his [or her] acts anywhere in that system. Entails the fulfillment of economic, legal, ethical, and philanthropic responsibilities.

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Business for Social Responsibility (BSR)

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A national business association of companies seeking to implement policies and practices that contribute to the companies' sustained and responsible success.

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community obligations

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Responsibilities that business has to the community in which it is located.

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corporate citizenship

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The responsibilities that companies must perform in order to be perceived as good corporate citizens.

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corporate social performance (CSP)

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Focuses on the outcomes or results of socially responsible activities.

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corporate social performance model

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A performance model that includes social responsibility categories, philosophy (or mode) of social responsiveness, and social (or stakeholder) issues.

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corporate social responsibility

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Considers the impact of the company's actions on society. Requires the individual to consider his [or her] acts in terms of a whole social system and holds him [or her] responsible for the effects of his [or her] acts anywhere in that system. Entails the fulfillment of economic, legal, ethical, and philanthropic responsibilities.

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corporate social responsiveness

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The action-oriented variant of CSR. Refers to the activity of the firm rather than the accountability of the firm.

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corporate sustainability

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The goal of sustainability is to create long-term shareholder value by taking advantage of opportunities and managing risks related to economic, environmental and social developments. To be sustainable means that the firm is able to endure on a long term basis while meeting its economic, environmental, and social responsibilities.

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economic responsibilities

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Embraces those activities and practices that are engaged in to produce profits and economic rewards for companies.

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ethical responsibilities

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Concern those activities and practices that are expected or prohibited by societal members even though they are not codified into law. Ethical responsibilities embody the full scope of norms, standards, and expectations that reflect what consumers, employees, shareholders, and the community regard as fair, just, and in keeping with the respect for or protection of stakeholders' moral rights.

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legal responsibilities

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Business's obligation to obey all laws and regulations whether they be federal, state or local.

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Paternalism

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A practice whereby the company acts in the role of a parent, attending to the needs of its employees.

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philanthropic responsibilities

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Business's responsibility to respond to society's expectations that it be a good corporate citizen by contributing resources to the community and to others.

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philanthropy

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Contributing to charity and other worthy causes; acts of corporate giving.

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Pyramid of Corporate Social Responsibility (CSR)

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A helpful way of graphically depicting the four-part definition of CSR that envisions a pyramid composed of four layers. Economic responsibilities are at the base of the pyramid. Next come legal, ethical, and philanthropic responsibilities.

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socially responsible or ethical investing

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A process of investing resources in those firms that are socially responsible or demonstrate ethical practices and policies.

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Triple Bottom Line

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A variant of the "multiple bottom line" perspective that seeks to encapsulate for business the three key spheres of sustainability—economic, social, and environmental.

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T/F: A stake can be either a legal right or a moral right to expect certain behavior from a business.

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True

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T/F: The stakeholder synthesis approach to stakeholder management acknowledges that companies have moral and fiduciary obligations to stakeholders.

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False . The stakeholder synthesis approach recognizes the moral obligations that firms have to their stakeholders, but does not acknowledge a fiduciary responsibility.

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T/F: Under stakeholder management, managers of the firm and the firm's stakeholders share responsibility for establishing the firm's goals.

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False

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T/F: Many small, individual stakeholders can exert significant power over a company if they organize into a group.

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True

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T/F: Stakeholder management capability occurs on three levels, including the rational, normative, and transactional levels.

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False

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T/F: The stakeholder view of the firm includes only all individuals and groups who are affected by, or can affect the company.

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True

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7 Government regulators, civic institutions, and environmental interest groups are generally considered to be in which of the following categories of stakeholders?

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These groups are usually secondary stakeholders because of their indirect relationship with the firm, representing more public or special interests.

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8 The multifiduciary view of stakeholders holds that managers have the same types of duties to stakeholders and owners.

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The multifiduciary view of stakeholder's focuses on the duties the firm owes to stakeholders, not on identifying who stakeholders are.

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9 Which of the following is not useful in identifying the stakes in a firm that the company's stakeholders have?

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Identifying the duties the firm has to its stakeholders. This is part of the process in identifying stakes.

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10 Which of the following is not one of the five major questions that capture the essential information needed for stakeholder management?

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What responsibilities do the stakeholders have to the firm?

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Individuals or groups that can affect, or be affected by the firm.

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Stakeholders

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12 _______ stakeholders are essential for the survival of the organization.

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Core

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13 The main difference between the production and managerial views of the firm is the addition of owners and workers in the ________ view..

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managerial

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rational level

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The most basic level of stakeholder management capability, which entails identifying stakeholders groups and their respective stakes, is known as the ...

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15 Which of the following is not one of the four gates of engagement with stakeholders?.

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acknowledgement

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core stakeholders

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A specific subset of strategic stakeholders that are essential for the survival of the organization.

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environmental stakeholders

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All others in the organization's environment that are not core or strategic stakeholders.

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legitimacy

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The perceived validity or appropriateness of a stakeholder's claim to a stake.

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managerial view of the firm

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The managerial view of the firm expands the production view of the firm to include a consideration of owners and employees as stakeholders.

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power

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The ability or capacity to produce an effect—to get something done that otherwise may not be done.

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primary social stakeholders

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Individuals or entities that have a direct stake in the organization and its success and, therefore, are influential. Examples include shareholders, employees, customers, and the local community.

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principles of stakeholder management

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A set of guidelines or principles intended to provide managers with guiding precepts regarding how stakeholders should be treated.

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process level

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Refers to a level of stakeholder management capability in which the organization has developed processes for taking stakeholders into account. Such processes may include environmental scanning, strategic review, or crisis management.

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production view of the firm

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A traditional view in which business owners thought of stakeholders as only those individuals or groups that supplied resources or bought products or services. This is a limited stakeholder view.

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rational level

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Refers to the lowest level of stakeholder management capability (SMC) in which management simply identifies stakeholders and their stakes.

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secondary social stakeholders

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Individuals or entities that may be extremely influential in affecting reputation and public standing; however, their stake in the organization is more representational of public or special interests than direct. Examples include government and regulators, social pressure groups, media, and trade bodies.

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Stake

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An interest or a share in an undertaking. It could be an ownership stake, a legal claim, or a moral claim.

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stakeholder

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An individual or a group that has one or more of the various kinds of stakes in a business.

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stakeholder corporation

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As defined by Wheeler and Sillanpaa, this refers to a corporation that is obsessed with managing its stakeholders as an approach to successful management. Stakeholder inclusiveness is its primary element.

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stakeholder inclusiveness

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The primary element in developing a stakeholder-oriented corporation. The basic idea is that all stakeholders have to be included in all important management decisions.

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stakeholder management capability (SMC)

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Refers to the extent to which managers integrate a concern for stakeholders into their organizational policies and practices. SMC may reside at three levels: rational, process, and transactional.

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stakeholder symbiosis

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An idea that recognizes that all stakeholders depend on each other for their success and financial well-being.

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stakeholder thinking

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A process of thinking about stakeholders in all organizational deliberations, actions, policies, and practices.

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stakeholder view of the firm

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A view of the firm that takes all stakeholders into consideration. This is the broadest and most inclusive view of the firm.

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strategic stakeholders

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Those stakeholder groups that are vital to the organization and the particular set of threats and opportunities it faces at a particular point in time.

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transactional level

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The highest and most developed of the three levels of stakeholder management capability (SMC). This is the bottom line for stakeholder management—the extent to which managers actually engage in transactions (relationships) with stakeholders.

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urgency

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The degree to which the stakeholder claim on the business calls for the business's immediate attention or response.

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T/F: Enterprise-level strategy asks the basic question "What is the role of the firm in society?"

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True

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T/F: The components of a social audit are identification, measurement, monitoring and evaluation.

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True

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T/F: The broadest level of strategic management is the functional level.

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False The broadest level of strategic management is the enterprise level. See page 100 of the text for further information.

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T/F: The public affairs function is a logical, but increasingly infrequent result of the strategic management process.

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False

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T/F: Miles's study of external affairs strategy found that the companies that ranked highest in corporate social performance used an adversarial external affairs strategy.

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False

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6 Strategic management is the overall management process that relates a firm to its environment.

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Although employee motivation may constitute a part of the strategic management process, much more is involved.

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7 The legitimacy of business organizations is addressed at which strategy level?

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enterprise

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8 Which of the following is not a step included in the strategic management process?

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external affairs management

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9 Buffering and bridging activities in corporate public affairs offices tend to ________ as uncertainty in the operating environment increases.

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increase

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10 Freeman and Gilbert argued in their book, Corporate Strategy and the Search for Ethics, that strategic management and ethics are related in what manner?

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For business ethics to have any real meaning, it must be linked to strategic management. The authors suggested that there should be a relationship between ethics and strategic management.

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11 Social audits are:

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a kind of social performance report.

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12 Which of the following is not a level of strategy?

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a. system

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13 As firms develop enterprise level strategy and corporate public policy, they:

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will likely increase the use of social audits. As firms become more involved with enterprise level strategy and public policy, their role as an integral part of the larger society will become more apparent; thus their use of social audits will be likely to increase.

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14 The public affairs function that we know today:

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b. is rooted in the social activism of the 1960s and 1970s. The development of the public affairs function has been a result of business's attempt to deal with increasingly complex political environment.

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15 Blake's research indicates that which of the following functions should be included in every manager's job?

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public affairs

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benchmarking

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Fleisher defines this as "an ongoing, systematic approach by which a public affairs unit measures and compares itself with higher performing and world-class units in order to generate knowledge and action about public affairs roles, practices, processes, products, services, and strategic issues that will lead to improvement in performance."

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business-level strategy

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The strategy level concerned with the question, "How should we compete in a given business or industry?"

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collaborative/problem-solving strategy

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Strategy in which firms emphasize long-term relationships with a variety of external constituencies and broad problem-solving perspectives on the resolution of social issues affecting their businesses and industries.

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core values

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Program that was implemented at the Aluminum Company of America (Alcoa) by Paul H. O'Neill; an excellent illustration of an enterprise-level strategy.

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corporate public affairs; public affairs management

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Umbrella terms used by companies to describe the management processes that focus on the formalization and institutionalization of corporate public policy. These terms are concerned with the external, social environment of the organization and how the organization relates to this external environment.

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corporate public policy

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A firm's posture, stance, strategy, or position regarding the public, social, global, and ethical aspects of stakeholders and corporate functioning.

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corporate-level strategy

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The strategy level that addresses what is often posed as the most defining business question for a firm, "What business(es) are we in or should we be in?"

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enterprise-level strategy

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The overarching strategy level that poses the basic questions, "What is the role of the organization in society?" and "What do we stand for?"

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environmental auditing

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A special case of social auditing that focuses only on a firm's environmental performance, that is, how it has performed with respect to its impact on the natural environment.

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functional-level strategy

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The strategy level that addresses the question, "How should a firm integrate its various subfunctional activities and how should these activities be related to changes taking place in the various functional areas?"

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Global Reporting Initiative (GRI)

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An extension of the U.S.-based Coalition for Environmentally Responsible Economies (CERES), which developed many of the now-accepted environmental reporting guidelines. It is a multi-stakeholder initiative to create a common framework for voluntary reporting of the economic, environmental, and social impact of organization-level activity.

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individual/adversarial external affairs strategy

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Strategy in which executives denied the legitimacy of social claims on their businesses and minimized the significance of challenges they received from external critics. Therefore, they tended to be adversarial and legalistic.

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issues and crisis management

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Issues management is a process by which organizations identify issues in the stakeholder environment, analyze and prioritize these issues in terms of their relevance to the organization, plan responses to the issues, and then evaluate and monitor the results. Crisis management is a process of managing immediate crises that may occur in the firm's internal or external environments. Such crises require some action on management's part before the organization is adversely affected.

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public affairs departments

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These are departments or organizational units that "house" the company's public affairs initiatives. These are typically headed by a public affairs officer or director.

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public affairs strategy

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A general approach whereby the organization develops methods by which it will deal with public affairs/public policy issues that need addressing by management. A strategy is a particular approach for dealing with public affairs issues.

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public relations (PR)

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Deals with government as one of many publics and has many communication responsibilities.

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social audit; social performance report

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A report and analysis of a firm's social and ethical performance.

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strategic management

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The overall management process that strives to position a firm relative to its market environment.

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strategic management processes

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Processes or steps that must be taken for successful strategic management.

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T/F: The strategic management approach to issues management focuses on issues that are in the domain of public policy or public affairs management.

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False

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T/F: The rise in the number of issues managers employed by companies is a result of the changing mix of issues that line and staff managers have had to deal with.

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True

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T/F: King has proposed a series of questions that focus on stakeholder groups as a way to analyze issues in the management process.

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True

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T/F:The prodromal stage of a crisis is the stage in which the crisis is resolved.

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False

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T/F:Communication with stakeholder groups during a crisis is an integral part of crisis management.

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True

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6 Which of the following approaches to issues management can be employed by itself, with no connections to other management systems?

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a. conventional approach

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The planning aspects of the issues management process includes which of the following series of steps, in order?

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. Issues identification, analysis, prioritization, response formulation.

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8 A significant contribution made by the book Megatrends was:

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b. in the area of trend-spotting services.

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9 John Naisbitt, author of Megatrends, believes that

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a. truly important issues always start somewhere in the countryside.

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T/F: The terms social forecasting, environmental scanning, and futures research have all been used to mean the same thing as issue identification.

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True

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A probability-impact matrix compares the likelihood of occurrence of a specific event with an analysis of the impact on:

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the firm.

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12 The issue development life cycle occurs in which of the following patterns?

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Felt need, media coverage, leading political jurisdictions, regulation/litigation.

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13 Fink's term for the crisis stage in which the crisis actually occurs is:

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b. acute.

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14 Fink's survey of Fortune 500 companies discovered that:

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most of the executives interviewed believed that a crisis was virtually assured.

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15 Which of the following is not one of the types of crises identified by Mitroff and Alpaslau?

answer

b. technological

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acute crisis stage

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Stage at which the crisis actually occurs.

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chronic crisis stage

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The lingering period of a crisis. It may be the period of investigations, audits, or in-depth news stories.

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conventional approach to issues management

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This is an approach to issues management in which the issues fall within the domain of public policy or public affairs management; typically have a public policy/public affairs orientation or flavor; and originate in social/political/regulatory/judicial environments.

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crisis

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A turning point for better or worse, an emotionally significant event, or a decisive moment.

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crisis communications

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The process by which management or organizational leaders communicate with all relevant stakeholders about the company's stance, policies, or planned actions with respect to a crisis that has just occurred.

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crisis resolution stage

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The final stage of a crisis—the goal of all crisis management efforts.

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crisis teams

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Teams that have played key roles in many well-managed disasters.

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emerging issue

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A matter where the terms of the debate are not clearly defined; deals with matters of conflicting values and interest; does not lend itself to automatic resolution by expert knowledge; is often stated in value-laden terms; and one where trade-offs are inherent.

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issue

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Any matter that is in dispute between two or more parties.

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issue buying

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Involves top managers adopting a more open mind-set for the issues that matter to their subordinates.

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issues development process

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A vital attribute of issues management is that issues tend to develop according to an evolutionary pattern over time. The issues development process describes this pattern of development of an issue over time. The issue may develop through several stages such as: felt need, media coverage, leading jurisdictions responding to the issue, and regulation/litigation.

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issues management; crisis management

answer

Ways by which business has responded to these situations. Issues management is a process by which organizations identify issues in the stakeholder environment, analyze and prioritize these issues in terms of their relevance to the organization, plan responses to the issues, and then evaluate and monitor the results.

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issues selling

answer

Relates to middle managers exerting upward influence in organizations as they try to attract the attention of top managers to issues that are salient to them and the organization.

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portfolio approach

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A concept wherein issues are thought to represent a portfolio or set of different issues that must be dealt with by management. If issues are viewed to be part of a set, or a portfolio, it is easier for management to deal with what otherwise may appear to be widely disparate and unrelated issues.

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probability-impact matrix

answer

Probability of occurrence impact on the company. This is a two-by-two matrix that plots the probability of an event occurring on one axis against the estimated impact of the event being plotted on the other axis. The result gives management an estimate of the likelihood of the event and the impact of the event (such as a crisis).

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prodromal crisis stage

answer

The warning stage of a crisis. Prodromal is a medical term that refers to a previous notice or warning.

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strategic management approach to issues management

answer

In this approach to Issues management, issues identification is more important than it is in the conventional approach; and it is seen as an approach to the anticipation and management of external and internal challenges to the company's strategies, plans, and assumptions.

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ten steps of crisis communication

answer

Form the crisis communications team; identify key spokespersons who will be authorized to speak for the organization; train the spokespersons; establish communications protocols; identify and know the audience; anticipate crises; assess the crisis situation; identify key messages to communicate to key groups; decide on communications methods; and be prepared to ride out the storm.

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T/F: Descriptive ethics is concerned with supplying and justifying a coherent moral system of thinking and judging.

answer

False

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T/F:We can think of the law as a set of minimum standards for conduct or behavior.

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True

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T/F:The answer to the question "What is?" indicates ethical goals that a company strives for.

answer

FalseThe answer to "What is?" shows the current state of affairs. "What ought to be?" is the question that guides companies toward ethical goals.

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T/F: Business people, who are often very practical, like to dwell on questions of motivation for being ethical, because this insight into human nature can also give them clues for making profits.

answer

False Dwelling on the motivation for our actions can reveal unattractive reasons, such as manipulation for our self-centered goals. See page 183 of the text for further information.

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T/F: Some amoral managers believe that the ethical rules of society do not pertain to business activities.

answer

True

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6 According to Max Ways, it is ________ to determine if business ethics has deteriorated.

answer

a. impossible

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7 Which of the following does not accurately define business ethics?

answer

Making decisions with the single criterion of profit.

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8 Which of the following is not a primary component in making ethical decisions?.

answer

Comparing past and present ethical standards of society. This is one of the components of making ethical decisions.

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9 If managers of Allied Acme Corp. intentionally do something to harm Beneficial Barons Company, Inc., the Allied Acme Corp. managers have exhibited which type of management?

answer

d. immoral Intentionally harming a competitor is an example immoral management.

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The central question that moral managers should ask themselves is: "Is this action or decision fair to us and all of our stakeholders who will be affected?"

answer

Moral managers are concerned with more than profits when making decisions.

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A manager who refuses to discriminate because she believes in the principle of human equality, regardless of race, sex, religion, or other perceived differences, shows which level of Kohlberg's moral development model?

answer

postconventional The preconventional level of moral development focuses primarily on the self.

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Which of the following is not one of the principles embodied in Kohlberg's sixth stage of moral development, the universal-ethical-principle orientation?

answer

b. socially accepted standards of conduct

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13 Which of the following is not an internal (to the organization) source of a manager's values?

answer

c. religion

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14 Which of the following is not one of the capacities for making moral judgments?

answer

b. moral introversion. Moral imagination is the ability to perceive ethical relationships contained in economic relationships.

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15 Which of the following would most likely be exhibited by a moral manager?

answer

b. Ranks moral and financial factors equally in decision making. A moral manager is likely to be sensitive to others' rights. See pages 186-187 of the text for further information.

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business ethics

answer

Concerned with good and bad or right and wrong behavior and practices that take place within a business context. Business ethics is also a discipline of study.

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compliance strategy

answer

Strategy focused on obedience to the law as its driving force. Compliance strategy does not strive to operate as "integrity strategy" but just to comply with law or regulations.

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conventional approach to business ethics

answer

An approach whereby a decision or practice is compared with prevailing norms of acceptability. The problem with this approach is that it is not clear whose norms are applicable and what norms are prevailing at a given point in time.

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descriptive ethics

answer

Concerned with describing, characterizing, and studying the morality of a people, a culture, or a society. It also compares and contrasts different moral codes, systems, practices, beliefs, and values. Involved with describing what ethical or moral standards are being manifested in practice.

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ethical relativism

answer

Picking and choosing which source of norms to use based on what will justify current actions or maximize freedom. Driven primarily by the culture.

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ethics

answer

The discipline that deals with what is good and bad and with moral duty and obligation; can also be regarded as a set of moral principles or values.

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immoral management

answer

A posture that not only is devoid of ethical principles or precepts but also implies a positive and active opposition to what is ethical.

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integrity strategy

answer

Strategy that is characterized by a conception of ethics as the driving force of an organization. Similar to moral management.

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intentional amoral management

answer

Characterized by managers who do not factor ethical considerations into their decisions, actions, and behaviors because they believe business activity resides outside the sphere to which moral judgments apply.

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moral development

answer

The process by which individuals grow or develop in their moral reasoning or actions. According to Kohlberg, a general sequence of three levels (each with two stages) through which individuals evolve in learning to think or develop morally.

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moral management

answer

Management that conforms to the highest standards of ethical behavior or professional standards of conduct.

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normative ethics

answer

Concerned with supplying and justifying a coherent moral system of thinking and judging. Normative ethics seeks to uncover, develop, and justify basic moral principles that are intended to guide behavior, actions, and decisions. Identifies what "ought to be" rather than "what is."

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unintentionally amoral management

answer

Characterized by managers who do not think about business activity in ethical terms. Managers are simply casual about, careless about, or inattentive to the fact that their decisions and actions may have negative or deleterious effects on others. May imply a lack of ethical sensitivity to the ethical dimension in a business decision.

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T/F: When a person must make a decision whether to overlook a co-worker's unethical act that represents an organizational-level ethical issue.

answer

True

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T/F: The utilitarian principle views morality from the standpoint of the group or society, while the rights principal expresses morality from the individual level.

answer

True

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T/F: The primary reason that managers engage in unethical business behaviors is financial need.

answer

False

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T/F: An important characteristic of most ethical decisions is that they have mixed outcomes.

answer

True

question

T/F: Research has shown that the longer that firms have had a code of ethics, the higher their corporate social performance (CSP) is, on average.

answer

False

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6 Which ethical principal says that ethical decisions should be made on the basis of the results of the decision?

answer

c. utilitarianism

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7 Virtue ethics emphasizes:

answer

c. being, not doing.

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8 The most significant factor influencing unethical behavior in business firms is:

answer

c. behavior of superiors.

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9 Which level of managers agrees most strongly with the statement "managers today feel under pressure to compromise personal standards to achieve company goals?"

answer

a. lower

question

10 The moral climate of an organization is generally established by:

answer

b. senior managers.

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11 The key ethical principles of candor, fidelity, and confidentiality contribute to:

answer

d. effective communication.

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12 Which of the following is not a way in which a company might improve its ethical climate?

answer

d. Hiring legal counsel.

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13 The acid test for the success of codes of ethics seems to be:

answer

b. whether or not the code becomes a "living document" within the firm.

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14 Servant leaders:

answer

c. put service to others first, and leadership second.

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15 The highest ethical goal for managers should be to:

answer

c. create a moral organization.

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categorical imperative

answer

A duty-based principle of ethics; a deontological principle.

question

codes of ethics; codes of conduct

answer

Standards of behavior for all managers and employees in the organization. Typically formally written, printed, and distributed throughout the organization to give ethical guidance to everyone in that organization.

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compensatory justice

answer

Involves compensating someone for a past injustice.

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corporate opacity

answer

An opaque condition in which activities and practices remain obscure or hidden from outside scrutiny and review. The opposite of transparent.

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corporate transparency

answer

Refers to a quality, characteristic, or state in which activities, processes, practices, and decisions that take place in companies become open or visible to the outside world. A transparent corporation would let the world see what it is doing and would not hide or keep private its activities.

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deontological theories

answer

Ethical theories that focus on duties one has to stakeholders in various situations

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distributive justice

answer

Refers to the distribution of benefits and burdens in a decision making situation.

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ethical due process

answer

A process of ethical inquiry that is of immediate use and understanding to a group of employees and managers. It means that a person has been treated fairly in the process in which decisions may be made about that person.

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ethical tests

answer

Tests, or questions, that one might ask to help clarify the ethical appropriateness of a proposed course of action. These "tests" are practical in orientation and do not require the depth of moral thinking that the principles do.

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ethics audits

answer

Mechanisms or approaches by which a company may assess or evaluate its ethical climate or programs.

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ethics officer

answer

Person in charge of implementing the program of ethics initiatives of the organization.

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ethics programs

answer

Organizational units that have been assigned the responsibility for ethics initiatives in the organization. Quite often headed up by an Ethics Officer.

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legal rights

answer

A claim that is backed up by a law.

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moral rights

answer

Important, justifiable claims or entitlements that do not depend on a legal system to be valid. These depend on a moral claim that they are valid. For example, a person might claim a right to privacy though one does not exist based upon the law.

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principle of caring

answer

An ethics principle based upon the idea of showing care or concern to other persons. Also referred to as "feminist theory." Focuses on a person's relationship with another person.

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principle of justice

answer

An ethical principle that involves the fair treatment of each person.

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principle of rights

answer

An ethical principle based upon an individual or group's claims that they have certain rights that must be protected in order that they be dealt with fairly.

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principle of utilitarianism

answer

A consequential or teleological principle. Focuses on the usefulness of the principle in terms such as what produces the greatest good for the greatest number.

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procedural justice

answer

Refers to fair decision-making procedures, practices, or agreements.

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rights

answer

A theory or principle of ethics based on the idea that individuals or groups have certain moral claims or entitlements that they expect to be respected.

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servant leadership

answer

An approach to ethical leadership and decision making based on the moral principle of serving others first.

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teleological theories

answer

Ethical theories that focus on the consequences or results of the actions that might be produced by following them. Utilitarianism is the major principle in this category.

question

The Golden Rule

answer

"Do unto others as you would have them do unto you." An ethical principle that has been embraced by most of the major religions of the world.

question

virtue ethics

answer

Rooted in the thinking of Plato and Aristotle; focuses on the individual becoming imbued with virtues (e.g., honesty, fairness, truthfulness, benevolence, nonmalfeasance).

question

T/F: Technology has developed so rapidly that it has far outstripped our ability to fully grasp its consequences or ethics.

answer

True

question

T/F: Naisbitt's remedy for our intoxication with technology is to place a moratorium on all scientific research for a period of five years.

answer

False

question

T/F:Electronic commerce affects primarily employees and suppliers of a firm.

answer

False

question

T/F: Employees generally hold a positive view of the impact technology has had in the workplace.

answer

True

question

T/F: Proceduralism in bioethics is the belief that if approvals from the proper authorities are obtained before a controversial research project is started, there is not ethical issue to be debated.

answer

False

question

6 Technology, as defined in the textbook, is:

answer

c. the totality of the means employed to provide objects necessary for human sustenance and comfort.

question

7 The textbook defines the technological environment as:

answer

a. the total set of technology-based advancements or progress taking place in society.

question

8 Which of the following is not one of the benefits of technology?

answer

d. It has reduced the price of goods and services.

question

9 All of the following can be viewed as challenges created by technology except:

answer

c. economic recessions.

question

10 Invasion of consumers' privacy is a potentially harmful result of:

answer

b. electronic commerce.

question

11 Methods that businesses can use to protect their customers' privacy include all of the following except:

answer

a. appointing a Chief Ethics Officer.

question

12 One of the primary ethical issues created by computer technology in the workplace is:

answer

c. surveillance of employees.

question

13 Bioethics is defined in the textbook as:

answer

c. the study of the ethical issues that are embedded in the use of biotechnology.

question

14 The single greatest obstacle to the use of biotechnology is:

answer

a. the potential for a public backlash.

question

15 There is ample evidence that society is:

answer

b. becoming concerned with the ethics of technology.

question

bioethics

answer

Field that deals with the ethical issues that are embedded in the use of biotechnology.

question

biotechnology

answer

Involves using biology to discover, develop, manufacture, market, and sell products and services. This process often raises ethical questions.

question

chief privacy officer (CPO)

answer

The chief privacy officer (CPO) is the executive in charge of an organization's privacy practices and policies. CPOs must balance the customer's right to privacy with the company's need to know certain information for business purposes.

question

cloning

answer

The process of making a genetic copy of a person or living organism, such as an animal or a plant.

question

electronic commerce

answer

Often referred to as e-commerce, e-business, or Web-based marketing; one of the most significant technological phenomena of our day. It primarily affects consumer stakeholders and competitors of the e-commerce firm.

question

embryonic stem cells

answer

The basic building blocks that are the progenitors of all other cells; isolated in 1998 by scientists at the University of Wisconsin. Stem cells are the raw materials upon which a human body is built.

question

ethical lag

answer

Occurs when the speed of technological change far exceeds that of ethical development.

question

genetic engineering

answer

Genetic science. This is the field involved with doing research on genes to create or change products or processes.

question

genetic profiling

answer

A perfect means for identifying a person though gene locators; raises questions of privacy and possible discrimination based on genetic factors.

question

genetic testing

answer

Testing that flows from genetic profiling. Involves the investigation of the genetic makeup of a person. When done by companies, it raises ethical questions of appropriateness.

question

genetically modified foods (GMFs)

answer

Genetically engineered foods (GEFs). Foods that have been genetically altered or modified.

question

information technology

answer

Computer-based information technology; touches practically all businesses and stakeholders involved in those businesses.

question

surveillance

answer

Involves companies electronically watching, monitoring, or checking up on their employees.

question

technological determinism

answer

The imperative that what can be developed will be developed.

question

technological environment

answer

The total set of technology-based advancements or progress taking place in society.

question

Technology

answer

The totality of the means employed to provide objects necessary for human sustenance and comfort.

question

therapeutic cloning

answer

Uses the same laboratory procedures as reproductive cloning, but its aim is the creation of a source of stem cells whose properties make them a possible source of replacement tissue for a wide range of degenerative diseases.

question

T/F: An argument that is often used in support of bribes is that they are forms of commissions, taxes, or compensation for conducting business in different cultures.

answer

True

question

T/F: The Foreign Corrupt Practices Act (FCPA) makes it illegal for a representative of a U.S. corporation to make "grease payments" to officials of foreign governments in order to entice them to do their jobs.

answer

False

question

T/F:The most prominent issue in the global business ethics debate during the 1990s and 2000s have been ecological pollution in less developed countries (LDCs).

answer

False

question

T/F: The concept of moral free space, introduced by Donaldson and Dunfee, includes strongly held cultural beliefs in particular countries that may be in mild tension with hypernorms

answer

True

question

T/F: Most of the ethical problems that occur in international business environments are quite different than those that arise in the company's home country.

answer

False

question

6 For an MNC seeking to gain legitimacy in its host country, which of the following is least likely to be a problem?

answer

b. The exchange rate of the two countries' currencies.

question

7 Ethical imperialism means that an MNC:

answer

d. continues to follow its home country's ethical standards in its host country.

question

8 Which of the following is not one the strategies for improving international business ethics?

answer

c. Adopt the ethical standards of the host country.

question

9 Which of the following is not one of DeGeorge's moral guidelines for MNCs?

answer

b. Pay a premium on all local taxes.

question

10 Antiglobalists believe that globalization is responsible for all of the following problems except:

answer

c. overpopulation.

question

11 Which of the following is not one of the international bodies that set the rules for the global economy?

answer

b. North Atlantic Treaty Organization (NATO)

question

12 The exact meaning of globalization is:

answer

b. global economic integration of many formerly national economies into one global economy.

question

13 Which of the following is not one of Donaldson's ten fundamental rights?

answer

d. The right to a college education.

question

14 The two underlying challenges of operating in a multinational environment are:

answer

c. corporate legitimacy and differing philosophies.

question

15 Which of the following is not one of the four major challenges in the relationships between MNCs and their host countries?

answer

a. Reconciling differences in the legal systems of the home and host countries.

question

Alien Tort Claims Act (ATCA)

answer

The ATCA allows foreign individuals to sue U.S. firms in U. S. courts for their actions abroad. If these suits are allowed to proceed, the ATCA could become a powerful tool to increase corporate accountability around the globe.

question

anticorruption movement

answer

A movement underway throughout the world to fight corruption. Many countries today are developing norms and laws which impede corruption.

question

Bhopal tragedy

answer

Refers to the 1984 gas leak and explosion at a Union Carbide plan in Bhopal, India. This tragic event came to symbolize the dangers of operating manufacturing plants abroad, especially in less developed countries.

question

bribe payers index (BPI)

answer

An index that ranks leading exporting countries in terms of the degree to which international companies with their headquarters in those countries are likely to pay bribes to senior public officials in key emerging market economies. Conducted by Transparency International.

question

bribes

answer

A form of corruption. Bribes are usually large sums of money given for the purpose of inducing a decision maker to show favoritism towards the bribe giver. Bribes are illegal under the Foreign Corrupt Practices Act.

question

consistent norms

answer

Values that are more culturally specific than those in the center, but are consistent with hypernorms and other legitimate norms.

question

corruption

answer

Bribery of government officials and the giving of questionable political contributions.

question

corruption perception index (CPI)

answer

An index used by Transparency International to rank the world's countries in terms of their honesty or corruption. The index represents the perception of various stakeholder groups. By promoting the visibility of this index, TI hopes that it will bring about ethical improvements in the ranked countries.

question

Council on Economic Priorities (CEP)

answer

A New York public-interest group.

question

cultural relativism

answer

This position is characterized by foreign direct investors such as MNCs following the host country's ethical standards. This is the posture reflected in the well-known saying, "When in Rome, do as the Romans do." Sometimes referred to as ethical relativism.

question

ethical impact statements

answer

Attempts to assess the underlying moral justifications for corporate actions and the consequent results of those actions.

question

ethical imperialism

answer

This position argues that the MNC should continue to follow its home country's ethical standards even while operating in another country.

question

Fair Labor Association (FLA)

answer

Organization of clothing firms, unions, and human-rights groups focused on the worldwide elimination of sweatshops.

question

globalism; globalization

answer

The economic integration of the globe; refers to global economic integration of many formerly national economies into one global economy.

question

grease payments

answer

Payments to officials for the primary purpose of getting them to do whatever they are supposed to do anyway. Grease payments are intended to "smooth the way" for getting tasks accomplished and they are not illegal under the Foreign Corrupt Practices Act.

question

hypernorms

answer

Transcultural values. These would represent norms that most people in the world would agree upon are basic.

question

illegitimate norms

answer

Norms that are incompatible with hypernorms.

question

infant formula controversy

answer

Refers to the controversy surrounding the selling of infant formula in less developed countries. The practice was controversial because consumers in less developed countries did not have access to pure water, were often poor and thus diluted the formula, and this resulted in malnutrition of babies started on the formula.

question

internationalization

answer

A process by which firms increase their awareness of the influence of international activities on their future and establish and conduct transactions with firms from other countries.

question

less-developed countries (LDCs)

answer

Emerging nations, developing countries.

question

moral free space

answer

Having norms that are inconsistent with at least some other legitimate norms existing in other economic cultures.

question

multinational corporations (MNCs)

answer

A multinational corporation (MNC) is a business firm that does business around the globe. It usually has plants or sales offices located in many different countries.

question

North American Free Trade Agreement (NAFTA)

answer

Passed in 1994; brought under one canopy three significantly different economies—the wealthy United States, the middle-class Canada, and striving Mexico.

question

outsourcing

answer

(also called offshoring) Sending jobs abroad.

question

public integrity index

answer

A quantitative scorecard of governance practices in each country; assesses the institutions and practices that citizens can use to hold their governments accountable to the public interest.

question

Social Accountability International

answer

An organization that administers the current standards for SA8000 standards. The SA8000 standards pertain to labor standards intended to improve the conditions in sweatshops and other manufacturing facilities, usually located in less developed countries.

question

sweatshops

answer

Businesses characterized by child labor, low pay, poor working conditions, worker exploitation, and health and safety violations. Sweatshops are usually located in underdeveloped or developing countries where there is little legal infrastructure to protect workers.

question

transnational economy

answer

The expanded marketplace that includes all business transactions taking place throughout the world.

question

Transparency International (TI)

answer

A special-interest group modeled after the human-rights group Amnesty International. TI has established itself as the world's foremost anticorruption lobby. TI ranks countries in terms of their perceived honesty or corruption.

question

T/F: Political involvement is defined as participation in the enforcement of public policy at various levels of government.

answer

False

question

T/F: Trade associations are the broadest level at which business lobbying takes place.

answer

False

question

T/F: One of the strongest arguments against PACs is that they are "buying" legislators' votes.

answer

True

question

T/F: Most of the money that PACs contribute to political candidates goes to challengers, not incumbents

answer

False

question

T/F: The political environment in the United States today dictates that a firm operate in the defensive mode, so that its stance is not contaminated by other firms with different viewpoints.

answer

False

question

6 Lobbying is the process of:

answer

c. influencing public officials to promote or secure the passage or defeat of legislation.

question

7 Which of the following is not one of the primary methods of influencing government?

answer

c. Business people running for Congress.

question

8 Which of the following is not true about lobbying?

answer

a. A lobbyist must have a law degree.

question

9 Which of the following is an argument for PACs?

answer

b. The influence of business PACs is offset by labor and other special interest PACs.

question

10 Which of the following is not an argument against PACs?

answer

b. PACs are good examples of pluralism at work.

question

11 A coalition:

answer

a. is a group that has common interests and seeks joint action.

question

12 Which of the following is a condition in which PAC contributions are not effective?

answer

d. When the issue is highly visible.

question

13 Which of the following is not true of a firm operating in the defensive mode of corporate response to its environment?

answer

a. Its goal is to change the status quo.

question

14 Which of the following is not one of Mahon's political strategies?

answer

c. Defending its current position.

question

15 Which of the following is not one of the stages in the regulatory life cycle

answer

d. enforcement

question

527s

answer

Nonprofit organizations, known for the section of the tax code that governs their activities, that are allowed to raise and spend soft money on campaigns.

question

accommodative mode

answer

The firm thinks its political objectives are contingent on its ability to co-opt other groups to its viewpoint.

question

astroturf lobbying

answer

Phony grassroots lobbying where identical postcards or hundreds of phone calls come on the same day and so are clearly the results of an organized effort rather than genuine individual reactions.

question

Bipartisan Campaign Reform Act (BCRA)

answer

Legislation used to remove the influence of soft money on candidates running for national office.

question

bundling

answer

The collection of individual donations that are then delivered to the candidate in a lump sum.

question

coalition

answer

Formed when distinct groups or parties realize they have something in common that might warrant their joining forces, at least temporarily, for joint action.

question

company lobbying

answer

A firm's efforts to influence public officials on its own behalf.

question

contingency approach

answer

Corporate political strategy based on the number of salient issues in a legislative district and the amount of information a legislator possesses concerning voter preferences on these issues.

question

cyberadvocacy

answer

Grassroots campaigning that is done by using computers and the Internet.

question

defensive mode

answer

Characterized by a situation in which a company sees its objectives as completely legitimate, thinks that anyone opposing these objectives is an adversary, and generally operates by itself in the political arena.

question

Golden Rule of Politics

answer

"He who has the gold, rules."

question

grassroots lobbying

answer

Refers to the process of mobilizing individual citizens who might be most directly affected by legislative activity to political action.

question

hard money

answer

Donations made directly to the candidates.

question

lobbying

answer

The process of influencing public officials to promote or secure the passage or defeat of legislation.

question

political action committees (PACs)

answer

The principal instruments through which business uses financial resources to influence government.

question

political involvement

answer

Participation in the formulation and execution of public policy at various levels of government.

question

positive activism

answer

A mode in which the focus moves from responding to external pressures to the initiation and development of a national agenda and a more progressive role in the public policy process.

question

regulatory life cycle

answer

Stages of a life cycle—formation, formulation, implementation, administration, and modification—that require or demand that the firm adjust its political strategy contingent on the stage that an issue has reached.

question

Soft money

answer

A contribution made to political parties instead of to political candidates.

question

trade associations

answer

Associations that are composed of many firms in a given industry or line of business.

question

umbrella organizations

answer

Organizations that represent the collective business interests of the United States.

question

T/F: Ethical questions are likely to arise when an advertiser presents its message is such a way that creates false beliefs.

answer

True

question

T/F: The primary criticism of using psychological appeals in advertising is that they tend to make consumers want to spend more money than they can afford.

answer

False

question

T/F: As a group, consumers have very similar interests and therefore have similar goals and expectations.

answer

False

question

T/F: Consumerism is a social movement seeking to augment the rights and powers of buyers in relation to sellers.

answer

True

question

T/F: One way that the National Advertising Review Board (NARB) enforces self-regulation is by using a panel of impartial people to review and report on the advertisements that are referred to it.

answer

True

question

The paradox of the consumer revolution is that:

answer

although most businesses claim that they are consumer oriented, consumers as a group are dissatisfied with business practices.

question

7 Which of the following is not a major problem that consumers have with business?to resist.

answer

d. Packaging that is too attractive

question

8 One reason that critics think advertising is wasteful is that:

answer

c. large amounts of money are spent on advertising that produce no consumer benefit.

question

9 Which of the following is not an advertising abuse that raises ethical questions?

answer

a. Offensive advertisements.

question

10 Comparative advertising is:

answer

d. a reason for stiff competition between competitors.

question

11 A limited warranty:

answer

a. lasts for two years or less.

question

12 Which form of self-regulation in advertising is instituted by the individual firm?

answer

a. self-discipline

question

13 Which type of self-regulation involves the industry voluntarily negotiating norms of advertising with some outside body?

answer

d. negotiated

question

14 Which of the following is not one of the consumer rights delineated by President Kennedy?

answer

c. right to low prices

question

15 Because of the complexity of the marketplace for goods and services today, the consumer needs information that is all of the following except:

answer

c. concise.

question

accurate information

answer

Information that communicates truths, not half-truths, and avoids gross exaggeration and innuendo.

question

ad creep

answer

The way that advertising can increasingly be found everywhere one looks.

question

adequate information

answer

Information that provides potential purchasers with enough facts to make the best choice among the options available.

question

ambiguous advertising

answer

Something about the product or service is not made clear because it is stated in a way that may mean several different things.

question

clear information

answer

Information that is direct and straightforward and on which neither deception nor manipulation relies.

question

co-opted self-regulation

answer

The industry, of its own volition, involves nonindustry people (for example, consumer or public representatives) in the development, application, and enforcement of norms.

question

comparative advertising

answer

The practice of directly comparing a firm's product with the product of a competitor.

question

concealed facts

answer

The practice of not telling the whole truth or deliberately not communicating information the consumer ought to have access to in making an informed choice.

question

consumer's Magna Carta

answer

The four basic consumer rights spelled out by President John F. Kennedy in his "Special Message on Protecting the Consumer Interest." Those rights include the right to safety, the right to be informed, the right to choose, and the right to be heard.

question

consumerism

answer

A social movement seeking to augment the rights and powers of buyers in relation to sellers.

question

customer relationship management

answer

The ability of an organization to effectively identify, acquire, foster, and retain loyal profitable customers.

question

exaggerated claims

answer

Claims that simply cannot be substantiated by any kind of evidence.

question

express warranty

answer

Explicitly offered at the time of the sale. The nature of express warranties can range from advertising claims to formal certificates and be oral or written.

question

full warranty

answer

No parts of the product or types of defects are excluded from coverage

question

implied warranty

answer

An unspoken promise that there is nothing significantly wrong with the product and that the product can be used for the purpose intended.

question

limited warranty

answer

Certain parts of the product or certain types of defects were excluded from coverage.

question

mandated self-regulation

answer

The industry is ordered or designated by the government to develop, use, and enforce norms, whether alone or in concert with other bodies.

question

negotiated self-regulation

answer

The industry voluntarily negotiates the development, use, and enforcement of norms with some outside body (for example, a government department or a consumer association).

question

plot placement

answer

Sponsors have paid to make their products part of the plotline of a television show.

question

product placement

answer

The practice of embedding products in movies and television shows.

question

psychological appeals

answer

Those designed to persuade on the basis of human emotions and emotional needs rather than reason.

question

puffery

answer

A euphemism for hyperbole or exaggeration that usually refers to the use of general superlatives.

question

pure self-regulation

answer

The industry (one's peers) controls advertising.

question

self-discipline

answer

The firm itself controls its own advertising.

question

self-regulation

answer

The control of business conduct and performance by business itself rather than by government

question

spokesperson placement

answer

Celebrities are paid to tout the benefits of specific drugs without disclosing that they are paid to do so.

question

Warranties

answer

Initially used by manufacturers to limit the length of time they were expressly responsible for products. Over time, they came to be viewed by consumers as devices to protect the buyer against faulty or defective products.

question

weasel words

answer

Words that are inherently vague and for which the company could always claim it was not misleading the consumer.

question

A potential disadvantage of pluralism is that it can encourage an extreme pursuit of individual self-interest. T/F

answer

True

question

Because society's expectations tend to rise more rapidly than business's social performance, social problems tend to decrease over time. T.F

answer

False

question

3 Social institutions such as business can lose their power if they abuse that power.

answer

True

question

4 Stakeholders in a business are the owners of the company.

answer

False

question

5 A special-interest society is an extreme form of pluralism.

answer

True

question

Social Problem is a ...

answer

... gap between society's expectations of social conditions and current social realities.

question

Which of the following is not one of the segments of the macroenvironment?

answer

the religious environment

question

entitlement is ...

answer

the belief that a person is owed something simply because he or she is a member of society.

question

The revolution of rising expectations is the belief that

answer

each succeeding generation should have more than the preceding generation.

question

Business power

answer

is the ability to influence or produce an effect in a given situation.

question

social contract

answer

A social contract is a two-way understanding that characterizes the relationship between social institutions

question

Decentralization, a system of checks and balances, and diversity are characteristics of...

answer

pluralism.

question

If several oil companies lobbied Congress to reduce funding for research in other sources of energy, these firms would be employing the _______ level of power.

answer

intermediate

question

The purchasing manager at Noxious Nellie's has the authority to buy computer equipment that costs less than $5,000 without any other approval. Which sphere of power does this represent?

answer

individual

question

Business ethics

answer

issues of fairness, justice, right and wrong that occur in commercial activities.

question

1 Society requires that businesses act in ethically responsible ways.

answer

True

question

2 The reason that classical economists argue against corporate social responsibility is because they see management's responsibility as maximizing profits for the owners of the company.

answer

True

question

3 It is not difficult for managers with a short-range outlook to fully appreciate that their rights and roles in the economic system are determined by society.

answer

False

question

4 The social responsiveness dimension of the corporate social performance model can be viewed as the activity phase of management's response in the social sphere.

answer

True Corporate social responsiveness implies a proactive stance by business to recognize social needs and do something to respond to that need, without being forced to by some outside authority.

question

5 The corporate social performance model indicates that social responsibility is not connected to corporate financial performance.

answer

False

question

6 The socially conscious investing movement uses social or ethical criteria, as well as financial criteria, to make investment decisions.

answer

True

question

7 Which of the following is not one of the types of responsibility included in Carroll's four-part definition of corporate social responsibility?

answer

personal

question

8 Which one of the acts described below would be considered a proactive behavior?

answer

A company anticipates the need for a day-care center for its employees' children, and opens one adjacent to its office building.

question

9 One of the arguments in favor of corporate social responsibility is that it would help ward off future government regulations.

answer

True

question

10 Which of the following is not one of Carroll's three-dimensional models of corporate social performance?

answer

A company's reputation in the marketplace.

question

11 In Walker Information's survey that measured what the public thought were the characteristics of socially responsible companies, all but one of the following were included in the top three categories. Which one was not included in the results of the survey?

answer

Provides excellent customer service.

question

12 The most practical reason for businesses to be socially responsible is to ward off government intervention.

answer

True

question

13 The relationship between corporate social performance (CSP) and corporate financial performance (CFP) is best described as

answer

the two are related, but the exact nature is unclear.

question

14 The multiple bottom-line perspective holds that

answer

the impacts of corporate social performance cannot be fully measured by financial performance.

question

15 Corporate citizenship refers to recent terminology that basically encompasses the same ideas as corporate social responsibility, responsiveness and performance

answer

True

question

A potential disadvantage of pluralism is that it can encourage an extreme pursuit of individual self-interest. T/F

answer

True

question

Because society's expectations tend to rise more rapidly than business's social performance, social problems tend to decrease over time. T.F

answer

False

question

Social institutions such as business can lose their power if they abuse that power.

answer

True

question

Stakeholders in a business are the owners of the company.

answer

False

question

A special-interest society is an extreme form of pluralism.

answer

True

question

Social Problem is a ...

answer

... gap between society's expectations of social conditions and current social realities.

question

Which of the following is not one of the segments of the macroenvironment?

answer

the religious environment

question

entitlement is ...

answer

the belief that a person is owed something simply because he or she is a member of society.

question

The revolution of rising expectations is the belief that

answer

each succeeding generation should have more than the preceding generation.

question

Business power

answer

is the ability to influence or produce an effect in a given situation.

question

social contract

answer

A social contract is a two-way understanding that characterizes the relationship between social institutions

question

Decentralization, a system of checks and balances, and diversity are characteristics of...

answer

pluralism.

question

If several oil companies lobbied Congress to reduce funding for research in other sources of energy, these firms would be employing the _______ level of power.

answer

intermediate

question

If several oil companies lobbied Congress to reduce funding for research in other sources of energy, these firms would be employing the ________ level of power.

answer

intermediate

question

The purchasing manager at Noxious Nellie's has the authority to buy computer equipment that costs less than $5,000 without any other approval. Which sphere of power does this represent?

answer

individual

question

Business ethics

answer

issues of fairness, justice, right and wrong that occur in commercial activities.

question

affluence

answer

The level of wealth, disposable income, and standard of living of the society.

question

business

answer

The collection of private, commercially oriented (profit-oriented) organizations, ranging in size from one-person proprietorships to corporate giants.

question

business ethics

answer

Concerned with good and bad or right and wrong behavior and practices that take place within a business context. Business ethics is also a discipline of study.

question

business power

answer

The ability or capacity to produce an effect or to bring influence to bear on a situation or people.

question

economic environment

answer

Focuses on the nature and direction of the economy in which business operates.

question

education

answer

Refers to formal education to include high school, college or university, and post-graduate education.

question

entitlement mentality

answer

This is the general belief that someone is "owed something" by society just because he or she is a member of society.

question

ethics

answer

Refers to issues of right, wrong, fairness, justice, and business ethics focuses on issues that arise in the commercial realm.

question

Iron Law of Responsibility

answer

A concept that addresses this: "In the long run, those who do not use power in a manner that society considers responsible will tend to lose it." Stated another way, whenever power and responsibility become substantially out of balance, forces will be generated to bring them into closer balance.

question

macroenvironment

answer

The societal environment, including the total environment outside the firm.

question

pluralism

answer

A condition in which there is diffusion of power among society's many groups and organizations.

question

political environment

answer

Focuses on the processes by which laws get passed and officials get elected and all other aspects of the interaction between the firm, political processes, and government.

question

revolution of rising expectations

answer

An attitude or a belief that each succeeding generation ought to have a standard of living higher than that of its predecessor and that its expectations of major institutions, such as business, should be greater also.

question

rights movement

answer

A social trend that emphasizes what rights to which groups and individuals are entitled. A right is something owed someone such as a legal or moral right. A right is sometimes seen as an entitlement.

question

social contract

answer

The set of two-way understandings that characterizes the relationship between major institutions—in our case, business and society.

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social environment

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Focuses on demographics, lifestyles, and social values of the society.

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social problem

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A gap between society's expectations of social conditions and the current social realities.

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society

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A community, a nation, or a broad grouping of people having common traditions, values, institutions, and collective activities and interests.

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special-interest society

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The extreme idea of pluralism in which we have literally tens of thousands of special-interest groups, each pursuing its own limited agenda.

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stakeholder management

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The process of identifying, assessing, and responding to stakeholder claims. The goal of stakeholder management is for the organization to achieve its objectives while also meeting the objectives of its stakeholders.

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stakeholders

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Individuals or groups with which business interacts who have a "stake," or vested interest, in the firm.

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technological environment

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Represents the total set of technology-based advancements or progress taking place in society.

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victimization philosophy

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This philosophy or mentality holds that people are not responsible for what has happened to them but that they are a "victim" of society's institutions

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You can add value in two ways: You can know the answers. You can offer the questions. Relentlessly asking the right questions is a long term career, mostly because no one ever knows the right answer on a regular basis.

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Seth Godin's Blog

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Corporate public policy

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a firm's posture, stance, strategy or position regarding the public, social, global, and ethical aspects of stakeholders and corporate functioning. i.e. Affirmative action, employee privacy, AIDs in workplace, product safey, sexual harassment, enviro sustainablity

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The idea behind corporate public policy is that a firm must give specific attention to issues in which basic questions of justice, fairness, ethics, or public policy reside.

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Corporate public policy is that part of the overall strategic management of the organization that focuses specifically on the public, ethical, and stakeholder issues that are embedded in the decision processes of the firm.

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Emphasis on Enterprise-Level Strategy

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Key questions:What is the role of our organization in society? How is our organization perceived by our stakeholders? What principles or values does our organization represent? What obligations do we have to society at large, including the world? What are the broad implications for our current mix of businesses and allocation of resources? The other 3 levels are Corporate Level (what biz should we be in), Business (level how do we compete)? And Functional level (integrating functional areas)

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Components of Strategy Formulation

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The company-organizational strenghts and weaknesses; what can be done. The market-what might be done. Management-what we want to do. Society-What ought be done?

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The Strategic Management Process

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Goal formulation. Strategic formulation. Strategy evaluation. Strategy implementation. Strategic control. Environmental analysis.Social auditing and performance reporting. Management control has 3 steps. 1. setting standards. 2. comparing actual performance to target. 3. taking corrective action to close the gap.

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Measuring Success

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Social Audit. A systematic attempt to identify, measure, monitor, and evaluate an organization's performance with respect to its social efforts, goals, and programs. Drivers for Social Performance Reports. Expectations from societal and public interests groups Globalization Global Reporting Initiative. Established in 1997 with the mission of developing globally applicable guidelines for reporting on the economic, environmental, and socialperformance of corporations, governments, and non-governmental organizations.

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Public Affairs

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The management function responsible for interpreting the corporation's non-commercial environment and managing the corporation's response to that environment. Identifies/prioritizes public policy issues Comments on strategic and business plans for sensitivity to emerging political/social trends. Provides forecast of political/social trends. Implements the strategic and business planning process. Is represented on corporate planning committee

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Public affairs

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The management process that focuses on the formalization and institutionalization of corporate public policy. Embraces... Corporate public policy Issue management Crisis management Governmental relations Corporate communications

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Public Affair Concepts

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Looking Out and Looking In. The public affairs function serves as a window. The firm can observe the changing environment. The stakeholders can observe and interact with the firm. Buffering and Bridging. Activities that buffer the firm from the social and political environment and bridge the firm with that environment. Global Public Affairs. Growing because of expansion into new markets, changes in existing markets, changes in CEO priorities, changes in regulatory burden and the acquisition of new business units. Incorporate Public Affairs Thinking in all Manager's Jobs. Make PA relevant. Show them the impact they have. Help managers develop a sense of ownership. Make them part of planning and goal setting. Make it easy. Give them tools. Show how it makes it a difference.

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The New Public Affairs Organization

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Manages public affairs as an ongoing process, both internally and externally Cultivates and harvests the capability to build, develop, and maintain stakeholder relationships Recognizes the importance of managing the grassroots Communicates in an integrated manner Aligns the organization's values and strategies with the public's interests on a continuous basis Focuses both systematically and proactively on helping the organization to compete

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Managing a PR Crisis from Marketing Profs

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Prioritize an immediate remedy. Before anything else, you must create a solution and communicate its precise details. Now is the time to really put your customers. Own the error. Get ahead of the story by taking immediate responsibility. It's the right thing to do, and it gives you greater control of the media narrative. Apologize, apologize, apologize. "Get out there and give an honest apology—across as many media outlets as possible," And after you apologize, patiently accept the angry feedback you will likely receive. Make sure it doesn't happen again. A temporary fix may appease customers in the short term, but you need to make it permanent if you plan to keep their business. Move on. If you've managed the crisis with openness and honesty, it's unlikely to fester. " The Po!nt: A public relations crisis doesn't have to destroy your company—with the right approach, you might emerge with customers who are even more loyal to your brand.

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Issues Management

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A process by which organizations identify issues in the stakeholder environment, analyze and prioritize those issues in terms of their relevance to the organization, plan responses to the issues, and then evaluate and monitor the results. Two Approaches: Narrow/Conventional. Where public or social issues are the primary focus. An issue is any trend, event, controversy, or public policy development that might affect the corporation. Broad/Strategic.. Where strategic issues and strategic management process are the focus. Issues management is the responsibility of senior line management. Issues identification is more important. Anticipation and management of external and internal challenges to the companies strategies, plans and assumptions. The changing issue mix. Complexity has increased as stakeholders have become more vocal and organized. International markets. Growth of technology.

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Identifying Change

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Issue. A matter that is in dispute between parties. The dispute evokes debate, controversy, or differences of opinion. Issues Development Process. The growth process or life cycle of an issue. Leading Forces as Predictors of Change. Leading events Leading authorities / advocates Leading literature Leading organizations Leading political jurisdictions

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Issues Management

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Emerging issues. Terms of the debate are not clearly defined. Deals with matters of conflicting value and interest. The issue does not lend itself to automatic resolution by expert knowledge. The issues is often stated in value laden terms. Trade-offs are inherent. Some assumptions about issues management: Issues can be defined earlier, more completely, and more reliably than in the past. Early anticipation can widen your range of options. Early anticipation permits the organization to develop a positive orientation to the issue. The organization will be able to supply info to influence publics earlier and more positively, thus allowing them to better understand the issue.

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Analysis of Issues

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Which stakeholders are affected by the issue? Who has an interest in the issue? Who is in a position to exert influence? Who has expressed opinions on the issue? Who ought to care about the issue? Who started the ball rolling? (Historical view) Who is now involved? (Present view) Who will get involved? (Future view)

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