The Business and Society Relationship Flashcards
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A potential disadvantage of pluralism is that it can encourage an extreme pursuit of individual self-interest. T/F
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True
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Because society's expectations tend to rise more rapidly than business's social performance, social problems tend to decrease over time. T/F
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False
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Social institutions such as business can lose their power if they abuse that power. T/F
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True
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Stakeholders in a business are the owners of the company. T/F
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False
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A special-interest society is an extreme form of pluralism. T/F
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True
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A gap between society's expectations of social conditions and current social realities.
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Social Problem
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The belief that a person is owed something simply because he or she is a member of society.
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Entitlement Mentality
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Each succeeding generation should have more than the preceding generation
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Revolution of Rising Expectations
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The ability to influence or produce an effect in a given situation
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Business Power
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A two-way understanding that characterizes the relationship between social institutions
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Social Contract
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Decentralization, a system of checks and balances, and diversity are characteristics of
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Pluralism
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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.
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Intermediate
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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?
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Individual
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Issues of fairness, justice, right and wrong that occur in commercial activities
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Business Ethics
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The level of wealth, disposable income, and standard of living of the society
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Affluence
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The collection of private, commercially oriented (profit-oriented) organizations, ranging in size from one-person proprietorships to corporate giants
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Business
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Concerned with good and bad or right and wrong behavior and practices that take place within a business context.
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Business Ethics
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The ability or capacity to produce an effect or to bring influence to bear on a situation or people
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Business Power
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Focuses on the nature and direction of the economy in which business operates.
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Economic Environment
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Refers to formal education to include high school, college or university, and post-graduate education.
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Education
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This is the general belief that someone is "owed something" by society just because he or she is a member of society.
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Entitlement Mentality
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Refers to issues of right, wrong, fairness, justice, and business ethics focuses on issues that arise in the commercial realm
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Ethics
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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.
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Iron Law of Responsibility
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The societal environment, including the total environment outside the firm. Divided in four sections: social, economic, political, and technological.
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Macroenvironment
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A condition in which there is diffusion of power among society's many groups and organizations.
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Pluralism
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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.
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Political Environment
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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.
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Revolution of Rising Expectations
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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.
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Rights Movement
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The set of two-way understandings that characterizes the relationship between major institutions—in our case, business and society. Consists of laws and regulations and shared understandings.
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Social Contract
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Focuses on demographics, lifestyles, and social values of the society.
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Social Environment
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A gap between society's expectations of social conditions and the current social realities.
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Social Problem
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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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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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Special-Interest Group
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The process of identifying, assessing, and responding to stakeholder claims. The goal is for the organization to achieve its objectives while also meeting the objectives of its stakeholders.
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Stakeholder Management
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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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Stakeholders
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Represents the total set of technology-based advancements or progress taking place in society.
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Technological Environment
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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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Victimization Philosophy
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The different levels at which business power exists and is manifested. Includes the macro level, intermediate level, micro level, and individual level.
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Levels of Power
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Refers to the power of the corporate system, or totality of business organizations. Power here emanates from the sheer size, resources, and dominance of the corporate system.
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Macro Level
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Refers to the power of groups of corporations acting in concert in an effort to produce a desired effect - like raising prices, controlling markets, dominating purchasers, promoting an issue, or pass and defeat legislation. Example are OPEC, airlines, cable TV, banks, pharmaceutical companies or defense contractors pursuing interests they have in common. Combined effect of companies acting together is considerable.
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Intermediate Level
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The level of individual firms. This might refer to the exertion of power or influence by any major corporation.
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Micro Level
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Refers to an individual corporate leader exerting power.
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Individual Level
