question

Business

answer

Any organization that is engaged in making a product or providing a service for a profit

question

Society

answer

Human beings and the social structures they collectively create

question

Business and Society are?

answer

High interdependent

question

The external environment of business is?

answer

Dynamic and ever changing

question

A successful business must meet both its?

answer

Economic and social objectives

question

The purpose of the firm is not to make a profit, but to?

answer

Create value for all its stakeholders

question

General Systems Theory?

answer

Business and society together form an interactive social system

question

A stakeholder refers to?

answer

Persons or groups that affect, or are affected by, an organization's decisions, policies, and operations

question

A stake is?

answer

An interest in - or claim to - a business enterprise

question

A stockholder is?

answer

A type of stakeholder, but not all stakeholders are stockholders!

question

All "stakeholder" groups must be?

answer

Taken into account

question

Stakeholder groups can be divided in to two categories?

answer

Marker and Nonmarket

question

Market stakeholders?

answer

Those that engage in economic transactions with the company as it carries out its primary purpose of providing society with goods and services

question

Nonmarket stakeholders are?

answer

People or groups who—although they do not engage in direct economic exchange with the firm—are affected by or can affect its actions

question

Market stakeholders a.k.a.?

answer

Primary stakeholders

question

Nonmarket stakeholders a.k.a.?

answer

Secondary stakeholders

question

Stakeholder Analysis

answer

Process conducted by managers to identify relevant stakeholders and analyze their interest and power

question

Stakeholder Analysis' 4 Questions?

answer

1. Who are the relevant stakeholders? 2. What are the interests/needs of each stakeholder? (The power of WIIFM!) 3. What is the power of each stakeholder? 4. How/what coalitions and alliances are likely to form?

question

Stakeholder power is?

answer

The ability of a group to use resources to make an event happen or to secure a desired outcome

question

The focus an organization places on a particular stakeholder is?

answer

Largely determined by each group's type of power, as well as legitimacy and urgency

question

4 types of stakeholder power?

answer

1. Voting power 2. Economic power 3. Political power 4. Legal power

question

Stages in stakeholder engagement?

answer

Inactive, Reactive, Proactive, Interactive

question

Inactive

answer

Companies ignore stakeholder concerns

question

Reactive

answer

Companies act only when forced to do so

question

Proactive

answer

Companies try to anticipate stakeholder concerns

question

Interactive

answer

Companies actively engage with stakeholders in an ongoing relationship of mutual respect, openness, and trust

question

Stakeholder Engagement and Dialogue?

answer

Strategy used by organizations at higher stages of engagement (Meetings between corporate representatives and representatives of their stakeholder groups to discuss issues of mutual concern)

question

Steps in dialogue

answer

1. Each group describes their core issues & concerns 2. Together groups reach common definition of problem/s 3. Together groups invent innovative solutions that involve mutual gain 4. Together establish procedures for implementing solutions

question

Benefits of Stakeholder Engagement and Dialogue?

answer

Helps organizations learn about/understand societal expectations, Generates creative solutions to problems, Helps win support for implementing solutions, neutralizes critics, Improves reputation for taking constructive action, good faith effort

question

Public Affairs?

answer

Active management of an organization's external relations

question

Organizations External Relations?

answer

Government - Regulatory Agencies - Customers - Investors - Suppliers - Community

question

Stakeholder Expectations?

answer

Opinions, attitudes, and beliefs about what constitutes reasonable business behavior and Alignment of what stakeholders expect and what an organization is doing is critical for accuracy of business operations, trust

question

Failure to understand stakeholder concerns and respond appropriately will?

answer

Cause the performance-expectations gap to grow and Larger the gap, the greater the risk of stakeholder backlash or loss of faith in organizational value and business practices

question

Current Public Affairs Management?

answer

This must be a global strategy functioning at the highest levels of organizational management

question

Boundary Spanning Departments?

answer

Those departments within an organization that reach across the organization's boundary line to interact with groups and people in society

question

Management of Public Issues?

answer

A structured and systematic process to aid organizations in identifying, monitoring, and selecting public issues that warrant organizational action

question

Competitive Intelligence?

answer

The process of gathering, analyzing, and managing external information about the organization's competitors that can affect the organization's plans, decisions and operations

question

Environmental analysis?

answer

Provides managers with the information about external issues and trends that enables an organization to develop a strategy that minimizes threats and takes advantage of new opportunities

question

Environmental intelligence?

answer

The acquisition of information gained from analyzing the multiple environments affecting organizations ? strategic radar screens

question

Issues Management?

answer

Issue Identification, Issue Analysis, Option Generation, Evaluation and Selection, Program Implementation and Assessment of Results and Continuous Improvement

question

Issue Identification?

answer

Anticipating emerging concerns, or "horizon" issues

question

Issue Analysis?

answer

Evaluating the issue; coming to an understanding of how it will evolve and how it will affect the organization

question

Option Generation, Evaluation and Selection?

answer

Evaluating action options, involves complex judgments taking into account qualitative factors like organization reputation

question

Program Implementation?

answer

Once option is chosen, must design and implement it

question

Assessment of Results and Continuous Improvement?

answer

Must assess results of the program and made adjustments as needed

question

Corporate Social Responsibility (CSR)?

answer

Emerged as a critical concept for organizations to understand, support, and integrate in their strategic and tactical business operations. Relates to an organization's impact on society and goes beyond doing what is ethical

question

Focus is on proactive decisions & behaviors towards?

answer

Workplace, Customers, Local Community, Environmental Preservation, Global Outreach

question

An organization should be held accountable for ?

answer

Any of its actions that affect people, their communities, and their environment

question

The world's largest 200 organizations account for?

answer

More than 25% of the world's economic activity

question

Iron Law of Responsibility?

answer

In the long run, those who do not use power in ways society considers responsible will lose it

question

Early 20th century businesses came under attack for ?

answer

Being too powerful

question

Industrialists (Andrew Carnegie, Henry Ford) started?

answer

Philanthropic efforts for educational and cultural institutions and programs to support employee social and health needs

question

View permeated that business leaders had a responsibility beyond ?

answer

Just making a profit ? Charity Principle

question

Around 1920s the charitable needs of communities began to shift from?

answer

A small group of wealthy philanthropists to businesses themselves

question

The Stewardship Principle?

answer

Broader concept of organizations as trustees who work in the public interest

question

Three Key Responsibilities of Corporate Social Responsibility?

answer

Economic responsibilities, Social responsibilities, Legal responsibilities

question

A successful organization is one which finds ways to?

answer

Meet each of its critical responsibilities and develops strategies that cross over and benefit more than one area

question

Economic and social goals come together in organizations that practice ?

answer

Enlightened self-interest

question

Enlightened self-interest Means?

answer

Organizational leadership can see it is in the company's self-interest in the long term to provide true value to its customers, behave responsibly, and set a good example

question

Organizations clearly demonstrating CSR have shown?

answer

Stronger customer loyalty, stronger performance and profits

question

Ethics is?

answer

A set of principles an individual uses to determine whether an action is good or bad

question

Ethical Relativism?

answer

Ethics varies across individuals

question

Ethics and legal compliance are?

answer

Not the same

question

Ethical decision making follows the?

answer

A-B-C sequence

question

A-B-C sequence?

answer

Antecedent - Behavior - Consequence

question

Ethical behavior in organizations affects every facet of operations such as?

answer

Investor/Shareholder interaction, Client/customer services, Workforce/employee treatment, Supplier and contractor dealings, Public relations/image

question

Laws are ?

answer

Society's attempt to formalize ethical standards, Written to capture public's wishes about what constitutes right and wrong behavior

question

Ethical concepts are more?

answer

Complex than laws because they often apply to areas not covered by laws

question

Ethical organizations are more?

answer

Successful than unethical organizations

question

Financial performance?

answer

Sales, revenue, competitive strength

question

Retention of workforce talent?

answer

Emerging generations of employees value social responsibility

question

Positive public image and reputation?

answer

Minimize or prevent harm, Compliant with legal guidelines, audits, response, disciplinary action

question

Ethical organizations have?

answer

Financial performance, Retention of workforce talent, Positive public image and reputation, Consumer loyalty and Investor interest and confidence

question

The goal for the organization is to ?

answer

Strive towards a balance of meeting business goals while eliminating any negative impact of business decisions and actions

question

Common Organizational Problems?

answer

Abuse, harassment or intimidation-Dishonesty, theft-Safety violations-Misrepresentation of the organization or individuals-Lack of attention to errors, defects, damage control

question

Common causes of Ethical Challenges in Organizations?

answer

Personal gain & selfish interest - Conflict of interest - Following orders/directive from superiors -Pressure to comply with demands, need to conform with majority perspective -Lack of information needed to make more ethical decision - Insufficient time to weigh all alternatives before acting

question

Ethical Theories?

answer

Egoism, Social Group Relativism, Cultural Relativism and Utilitarianism Deontology

question

Egoism?

answer

How does action relate to me Potentially problematic if predominant theory in use

question

Social Group Relativism?

answer

How does action relate to the norms of my social group?

question

Cultural Relativism?

answer

How does action relate to culture and laws? Legality and ethics should be aligned?

question

Utilitarianism?

answer

How does action relate to everyone affected by it? Costs vs. benefits- Democratic decisions

question

Deontology?

answer

How does action relate to my duty as a person of integrity? Justice and fairness

question

Ethical decision-making incorporates ?

answer

ethical theories, moral reasoning and a systematic approach for answering questions

question

Ethical Decision making questions regard?

answer

Honesty, Fairness, Goodwill, Legality

question

Other organizational decision-making processes?

answer

Identification of problem - Generate ideas, solutions, alternatives - Weigh all options - Implement and evaluate

question

Code of Ethics?

answer

Broad ethical vision & objectives

question

Code of Conduct?

answer

Explanation of acceptable behaviors for specific situations

question

Acceptable behaviors for specific situations?

answer

Minimize ethical ambiguities, clarify organizational position on various areas - Serve as a set of guidelines for communication and decision making within the organization - Establish legal obligations for the ethical behavior within certain professions (e.g., finance)

question

Six Universal Moral Values?

answer

Trustworthiness, Respect, Responsibility, Fairness, Caring. Citizenship

question

Code of Conduct Content?

answer

Designed to expand upon the moral principles identified in the Code of Ethics

question

Behavioral expectations pertaining to legal and ethical situations?

answer

Conflicts of Interest - Corporate Opportunities -Confidentiality Fair Dealing - Protection and Proper Use of Assets - Compliance with Laws, Rules, and Regulations - Encouraging the Reporting of Illegal or Unethical Behavior

question

Integration of various program/policy components is critical to ?

answer

Effective ethics design

question

Six-element comprehensive ethics program integrates?

answer

Written codes, policies, and disciplinary protocol-Training programs and information resources-Ethics Officers/Advisors and contact information-Anonymous hotline/reporting procedure-Evaluation systems - audits, program improvements

question

Those working in organizations with a comprehensive program are?

answer

More likely to report ethical misconduct and More likely to be satisfied with any investigation and response to ethical misconduct

question

Bribery ?

answer

A questionable or unjust payment often to a government official to ensure or facilitate a business transaction

question

Ethical climate?

answer

Understanding among employees of what is/is not acceptable ethical behavior

question

Senior management support for ?

answer

Implementation, communication, and ongoing evaluation

question

Targeted training for all relevant constituents?

answer

Employees, Clients, Suppliers, Investors

Chapters 1,2,3,5,6 Quiz – Flashcards

Unlock all answers in this set

Haven't found what you were looking for?

Search for samples, answers to your questions and flashcards