The Business and Society Relationship Flashcards

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True
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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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False
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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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True
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Social institutions such as business can lose their power if they abuse that power. T/F
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False
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Stakeholders in a business are the owners of the company. T/F
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True
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A special-interest society is an extreme form of pluralism. T/F
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Social Problem
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A gap between society’s expectations of social conditions and current social realities.
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Entitlement Mentality
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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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Revolution of Rising Expectations
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Each succeeding generation should have more than the preceding generation
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Business Power
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The ability to influence or produce an effect in a given situation
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Social Contract
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A two-way understanding that characterizes the relationship between social institutions
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Pluralism
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Decentralization, a system of checks and balances, and diversity are characteristics of
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Intermediate
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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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Individual
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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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Business Ethics
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Issues of fairness, justice, right and wrong that occur in commercial activities
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Affluence
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The level of wealth, disposable income, and standard of living of the society
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Business
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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 Ethics
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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 Power
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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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Economic Environment
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Focuses on the nature and direction of the economy in which business operates.
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Education
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Refers to formal education to include high school, college or university, and post-graduate education.
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Entitlement Mentality
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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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Ethics
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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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Iron Law of Responsibility
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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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Macroenvironment
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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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Pluralism
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A condition in which there is diffusion of power among society’s many groups and organizations.
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Political Environment
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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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Revolution of Rising Expectations
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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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Rights Movement
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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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Social Contract
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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 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 Group
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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 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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Levels of Power
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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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Macro Level
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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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Intermediate 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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Micro 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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Individual Level
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Refers to an individual corporate leader exerting power.

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