Chapter 1- The Study of Business, Government, and Society – Flashcards

An enduring belief about which fundamental life choices are correct. Cultural habits and norms are based on "this."

A bundle of values that creates a particular view of the world.

A formal pattern of relations that links people to accomplish a goal. They are essential to coordinate the work of individuals having no direct relationship with each other.

Tangible artifacts of a society that shape and are shaped by ideas and institutions.

An underlying agreement between business and society on basic duties and responsibilities business must carry out to retain public support. It may be reflected in laws and regulations.

The economy that emerges when people move beyond subsistence production to production for trade, and markets take on a more central role.

An economic ideology with a bundle of values including private ownership of means of production, the profit motive, free competition, and limited government restraint in markets.

A model that depicts business as operating within a market environment, responding primarily to powerful economic forces. There, it is substantially sheltered from direct impact by social and political forces. The market acts as a buffer between business and nonmarket forces.

A market economy in which the dominant businesses are large firms fun by salaried managers, not smaller firms run by owner-entrepreneurs

An economic philosophy that rejects government intervention in markets.

Conclusions about "this": 1) Government regulation should be limited 2) Markets will discipline private economic activity to promote social welfare 3) The proper measure of corporate performance is profit 4) The ethical duty of management is to promote the interests of owners and investors.

A model that is the second way of seeing the BGS relationship. It represents primarily the perspective of business critics. In it, business and government dominate the great mass of people. Corporations and a powerful elite control system that enriches a few at the expense of the many. Such a system is undemocratic.

A political pattern, recurrent in world history, in which common people who feel oppressed or disadvantaged seek to take power from ruling elite seen as thwarting fulfillment of the collective welfare.

An ideology holding that workers should revolt against property-owning capitalists who exploit them, replacing economic and political domination with more equal and democratic socialist institutions.

A model that depicts the BGS relationship as flow of interactions among major elements of society. It suggests exchanges of power among them, attributing constant dominance to none. The power of each element can rise or fall depending on factors as the subject at issue, the strength of competing intersects, the intensity of feeling, and the influence of leaders. Think of the US and other Western industrialized nations.

Conclusions with this model: 1) Business is deeply integrated into an open society and must respond to many forces. It is not isolated from any part of society, nor is it always dominant. 2) Business is a major force acting on government, the public, and environmental factors. 3) To maintain broad public support, business must adjust to social, political, and economic forces it can influence but not control. 4) BGS relationships evolve as changes take place in the ideas, institutions, and processes of society.

An entity that is benefitted or burdened by the actions of a corporation or whose actions may benefit or burden the corporation. The corporation has an ethical duty toward these entities.

A model that shows the corporation at the center of array of relationships with persons, groups, and entities called stakeholders.

Entities in a relationship with the corporation in which they, the corporation, or both are affected immediately, continuously, and powerfully. Ex: Stockholders (owners), customers, employees, communities, and governments.

Entities in a relationship with the corporation in which the effects on them, the corporation, or both are less significant and pressing. Ex: activists, trade associations, politicians, and schools.

Entities in a relationship with the corporation in which the effects on them, the corporation, or both are less significant and pressing. Ex: activists, trade associations, politicians, and schools.

Entities in a relationship with the corporation in which the effects on them, the corporation, or both are less significant and pressing. Ex: activists, trade associations, politicians, and schools.