BUS 351 Final Exam Review

Tesla

Known for the development of the electric vehicle. Building an ecosystem of sustainable brands - group of interconnected elements, formed by interactions with others in its community and environment.

1978 Civil Service Reform Act

Legislation that, in part, offers protection for federal employees who expose illegal, corrupt, or wasteful government practices

Carbon neutral

Maintaining a balance between producing and using carbon dioxide.

Grassroots Lobbying

Mobilizing the "grassroots," which are individual citizens who might be most directly affected by legislative activity, to political action

Retaliation

One who complains of discrimination against another and is retaliated against, may bring a complaint

Political Involvement

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

Apple

Partners with multiple initiatives to avoid conflict of minerals and unfair labor conditions. The electronics brand with the highest use of renewable energy

Federal Protection

People are protected from discrimination based on race, color, religion, national origin, sex, age, or disability

Disparate Treatment

Primary discrimination Different treatment Intentional discrimination Biased actions Different standards for different groups

Public policy exceptions

Protects employees from being fired for refusal to commit crimes or for exercising legal rights

The Employee Rights Movement

Public sector employees have constitutional protections. We focus on employees in the private sector, not subject to constitutional control because of the concept of private property. Individuals and private organizations are free to use their property as they desire. Although labor unions have been successful in improving pay, benefits, and working conditions, they have not been as active in pursuing civil liberties

Advertising to children

"Kid-vid" advertising: the average child to sees 25,000-40,000 ads per year, including one promoting "shopaholic best friends." Lacking cognitive development, children under the age of 8 are easy targets.

Whistle-Blowing Key Elements in the Process

1. The whistle-blower 2. The act oar complaint 3. The party to whom the complaint is made 4. The organization against which the complaint is made

Fair Debt Collection Practices Act

Regulates the practices of third-party debt collection agencies

Consequences of Whistle-Blowing

4800 employees reported retaliation - 64% - exclusion from decisions & work activities 62% - cold shoulder from coworkers 62% - verbal abuse from management 56% - almost lost job 55% - not given promotion or raise 51% - verbal abuse from coworkers 46% - cut in hours or pay 44% - relocated or reassigned

Bio-based Product

A product composed of biological products or renewable agricultural or forestry materials.

Advertising alcoholic beverages

A voluntary ban on advertising hard liquor on TV has ended; youth exposure to liquor ads has increased 30-fold; some products target children

Packaging and Labeling

Abuses in packaging and labeling were fairly frequent before the passage of the: Federal Packaging and Labeling Act of 1967 • Prohibits deceptive labeling on consumer products • Requires disclosure of certain important information on consumer products • The FTC and the Food and Drug Administration (FDA) have responsibilities under the Act

Outdoor Air pollution

Acid Rain Global Warming Smog Depletion of the ozone layer Serious respiratory illnesses

Other Forms of Employment Discrimination

Age Discrimination Religious Discrimination Color Bias Sexual Orientation and Transgender Orientation

Advertising Abuses

Ambiguity, Exaggeration, Concealment of Facts, and Employment of Psychological Appeals

Americans with Disabilities Act of 1990

Amended in 2008, prohibits discrimination based on physical or mental disabilities in private places of employment and public accommodation. Transportation and communication systems required to facilitate access to the disabled

Environmental Protection Agency (EPA, 1970)

An independent agency to research pollution problems, aid state and local government efforts, and administer many federal environmental laws

These "Protected" groups

Are protected by law, though it is often not enough. Discrimination is difficult to identify and prove

Community Partnerships

Broad response to growing need to reconcile financial and social goals.

Other umbrella organizations

Business Roundtable National Federation of Independent Businesses (NFIB)

Community Involvement

Business involvement in the community represents enlightened self-interest, because businesses help themselves in the process of helping others.

Limited Warranty

Certain parts or types of defects are not covered under the warranty

Radicals

Confrontational Behaviors

Full Warranty

Covers the entire product

Moral Management

Customers are viewed as equal partners in transactions

Extended Warranty

Service plans that lengthen the warranty period and are offered at an additional cost

Family and Medical Leave Act (FMLA)

Designed to make life easier for employees with family or health problems

Immoral management

Employees are viewed as factors of production to be used, exploited, and manipulated.

Good faith principle

Employers may lose lawsuits to former employees if they cannot show that employees had opportunities to improve their performance before termination

Environment

External living, working, and playing spaces and natural resources and more.

Astroturf Lobbying/Grasstops Lobbying

Fake groups that appear to be genuinely grassroots but are largely created and funded by a professional organization or trade association.

Social Regulations

Focus: People in roles as employees, consumers and citizens Affected Industries: Virtually all industries Examples: EEOC, OSHA, CPSC, EPA Current Trend: Reregulation (e.g., Consumer Financial Protection Bureau)

Professional Lobbying: What do Business Lobbyists Do?

Get access to key legislators Monitor legislation Establish communication channels with regulatory bodies Protect firms against surprise legislation Draft legislation, slick ad campaigns, direct-mail campaigns Provide issue papers on anticipated effects of legislative activity Communicate sentiments of association or company on key issues • Influence outcome of legislation Assist companies in coalition building around issues Help members of Congress get reelected Organize grassroots efforts

Pro-Privatization

Government has no comparative advantage in many functions. Government is less efficient and less flexible.

Government-Business relationship

Government influences business through regulation, taxation, and more. Business influences government by lobbying, and more

Marketing to the poor

High interest rates yield significant profits, but can bury the poor in debt.

Land-Related Legis. - Solid Waste Disposal Act

State and local governments mainly responsible

CVS Health

Stopped the sale of tobacco products in their stores. Offer smoking cessation programs

Irreversibility

The inability of humans and nature to restore environmental conditions to a previous state

Mandatory arbitration

The parties must agree to arbitration prior to any dispute occurring, and be bound.

Cyberadvocacy

Using the Internet to amass grassroots support and enable grassroots supporters to contact their legislators.

Arguments against drug testing

Violates due process rights Invades privacy rights False positives from common foods and medicines Cause reputational damage, lost income, and considerable expense to rebut allegations

Carrying capacity

Volume and intensity of use by organisms that can be sustained

Community Impact Analysis

What groups will be affected? How will they be affected? What is the duration of the impact? What is the timing of initial and later effects? What is the magnitude of the effect? To what extent will the impact be diffused in the community?

Privatization

Whether current public functions (e.g., public education, public transit, social security, fire service) should be turned over to the private (business) sector The process of changing a public organization to private control or ownership. The intent is to capture the discipline of the free market and a spirit of entrepreneurial risk-taking. Two functions a government might perform: • Producing a service • Providing a service

Freedom of Speech in the Workplace

While the U.S. Constitution protects an individual's speech from government interference, this does not apply to an employer, and some forbid conflicting political views

Who is Affected?

Workers are most at risk who: • exchange money with the public. • deliver passengers, goods, or services. • work alone or in small groups. • work late at night or early morning. • work in community settings with extensive public contact. • work in high-crime areas.

Endangered Species

World's species are disappearing at an alarming rate Nearly 20,000 species now considered threatened or extinct

Global Reporting Initiative (GRI)

a collaborating center of the UNEP. GRI developed a sustainability reporting framework, now the most widely used standard in the world; outlines principles and indicators that organizations can use to measure and report their economic, environmental and social performance

Philanthropy

a desire to help mankind as indicated by acts of charity; love of mankind.

Guarantee

a promise regarding product quality, less likely to be written

The Six Sigma level of operation is ____ defects per million

a. 2.1 b. 3.4 c. 6 d. 60 Answer is B

Which of the following is true of Political Action Committees (PACs)?

a. Business PACs came into being with the Federal Election Campaign Act. b. PACs are completely different from lobbying. c. PACs can donate money to candidates running for public office. d. Special interest groups cannot form a PAC. Answer is C

_____ represent(s) the collective business interests of the United States.

a. Company-level lobbying b. Professional associations c. Trade associations d. Umbrella trade organizations Answer is D

_____ is the extent to which a product or service meets established standards.

a. Conformance b. Durability c. Performance d. Reliability Answer is A

Which legislation is the only federal level of privacy protection for employees in the workplace?

a. The Civil Rights Act b. The Electronic Communication and Privacy Act c. The Patriot Act d. The Sarbanes-Oxley Act Answer is B

Citibank recently announced a program agreeing to contribute $1 for each $500 spent from its credit cards towards the Gordon and Betty Moore Foundation that works toward advancing environmental conservation and scientific research around the world. This act of Citibank can be categorized as:

a. cause-related marketing. b. community relationship. c. corporate re-branding d. the AIDA model Answer is A

Previously, liability of manufacturers for products was almost non-existent, due to the doctrine of:

a. caveat deditor b. caveat emptor c. caveat venditor d. caveat vendor Answer is B

Using 'weasel words' implies the use of which of the following types of advertising abuses?

a. concealing facts b. employing psychological appeals c. exaggerating facts d. using ambiguous advertising Answer is D

Firms have a responsibility to comply with the terms of the sale, inform the customer about the nature of the product, avoid misrepresentation of any kind, and not coerce the customer in any way. The scope of which ethical theory is described here?

a. contractual theory b. due care theory c. economic theory d. social costs view Answer is A

Because of the (lack of) economics of scale, these entities may be most affected by regulation.

a. corporations b. financial firms c. production facilities d. small businesses Answer is D

Which of the following products does NOT fall under the purview of the Food and Drug Administration (FDA)?

a. cosmetics b. drugs c. farm equipment d. vaccines Answer is C

An employee's right to receive impartial review and fair treatment of his or her case is called:

a. due process b. employment-at-will c. implied contract exception d. public policy exception Answer is A

The ____, recognized by 43 states, protects employees from being fired because they refuse to commit crimes, or because they utilize legal rights.

a. due process clause b. good faith principle c. implied contract exception d. public policy exception Answer is D

Only 20 states recognize the _______, which would give employees every opportunity to improve their performance before termination.

a. due process clause b. good faith principle c. implied-contract exception d. public-policy exception Answer is B

A(n) ____ exists in a market where the economies of scale are so great that the largest firm has the lowest cost and is thus able to drive out competition

a. duopoly b. monopolistic competition c. natural monopoly d. oligopoly Answer is C

Which of the following is a characteristic of the new social contract between employers and employees?

a. employee sense of entitlement b. long-lasting employment relationships c. loyalty to self and profession d. paternalism Answer is C

The employment-at-will doctrine states that:

a. employees have the right to receive an impartial review. b. employees should be discharged only for good reason. c. even employees protected by union contracts can be terminated without reason. d. the employment relationship can be terminated at any time. Answer is D

The phrase "Not in My Back Yard" (NIMBY) refers to:

a. the consumer movement that advocates the use of all natural foods. b. the refusal of suburban communities to use environmentally friendly pesticides. c. the refusal by those who have created them to solve environmental problems. d. the reluctance of rural areas to host large production units of companies. Answer is C

Arguments for drug testing - drug use causes

accidents and injuries theft a propensity to make poor decisions deaths, injuries, ruined lives

Green consumers

actual and potential customers of retail who express preferences for environmentally-friendly products and services

Drug Testing

an umbrella term including drug and alcohol testing, and substance abuse. Employers have an ethical responsibility to employees and public to provide a safe workplace, secure asset protection, and a safe place to transact business.

Agency Issues

arise when actions of managers are not in the shareholders' best interests. Corporate political spending, like all corporate spending, should have the best interests of the firm, its shareholders and its stakeholders in mind. Political spending should not provide an opportunity for managers to pursue their own agendas, or for trade associations to pursue theirs.

Diversity management

assembling and then retaining workers from different backgrounds and experiences that together create a more innovative and productive workforce

The Moral Management Model

best represents the highest ethical standards of consumer treatment, and is therefore the recommended model for business to follow

Montreal Protocol, 1987

by which most CFC-producing nations agreed to a quick phase-out of these ozone-destroying substances. This was the first UN treaty to achieve universal ratification

Demand Conditions

concerned with the nature of the company's customer and the local market

Strategic Philanthropy

corporate giving and other philanthropic endeavors are designed in a way that best fits overall mission, goals, or objectives

Immoral Management

customers are viewed as opportunities to be exploited

Global Philanthropy

depends on the size of the firm's workforce in international markets

Consumer-Stakeholder Satisfaction Model

depicts how product and service quality and safety lead to consumer satisfaction, and the consequences for the firm's profitability, reputation, and continued purchasing by consumers.

Pregnancy Discrimination Act of 1978

employers must treat pregnancy and pregnancy-related medical conditions the same way as any other medical disability with respect to all terms and conditions of employment.

Green investors

individuals and organizations who prefer to invest with firms that are associated with environmentally-oriented companies. A growing number of bond offerings, money market fund and other financial instruments now include environmental components

Connected PAC

is associated with a specific group or organization, and can only raise money from that group.

The Ombudsman

is neutral and promises confidentiality. can handle employee concerns in a way that keeps the problem from getting out of hand. The procedure has been used in Sweden since 1809 to curb abuses by government against individuals.

Dark Money

is the term which refers to the political contributions from undisclosed donors - more than $300 million in the 2012 presidential election. In 2016, $4.88 million in dark money expenditures had been made in the year before the election. Advocacy is best understood when one knows the motives of the person making the arguments. Voters have a right to know who is making the arguments.

Global Compact

joins firms across the world to support environmental and social principles.

Cigarette Advertising

many oppose advertising a dangerous product, one that kills half its users; ads target the young and less-educated markets

National Environmental Policy Act (NEPA, 1970)

permit required for discharge of hazardous waste into navigable waters requires federal agencies to prepare Environmental Impact Statements (EISs)

Superfund (CERCLA)

places responsibility for remediation of hazardous waste dumps

Green employees

play a major role in promoting environmentalism at work

Waste Management

reduce, reuse, recycle

Toxic Substances Control Act

requires businesses to identify chemicals posing substantial risks.

Mainstreamers

seek pragmatic reform through cooperation and confrontation

The Magnuson-Moss Warranty Act of 1975

set standards for what must be contained in a warranty, and its ease of being understood

Resource Conservation & Recover Act

set up a regulatory system for tracking hazardous waste

Volunteer Programs

such programs reflect the resourcefulness and responsiveness to communities, and are essential for attracting and retaining the best talent in the workforce. Employees want to work for the "good guys."

Factor (Supply) Conditions

the available inputs for production

Self Regulation

the control of business conduct by the business itself or business associations

Comparative Advertising

the practice of directly comparing a firm's product with the product of a competitor: Coke vs. Pepsi, and Mac vs. PC.

Greenhouse effect

the prevention of solar heat absorbed by our atmosphere from returning to space, can persist in the atmosphere for centuries

Workplace diversity

the variety of difference between people in an organization.

Use of Sex Appeal in Advertising

this has been an ongoing ethical issue for decades. While ads using sex appeal work, they can have a serious impact on the physical and mental health of girls.

Social Media Advertising

used in all of the above. Controversial because of rapid growth and questionable use.

Health and Environmental Claims

we are environmentally aware and health-conscious, and ads make health and environmental claims they may not meet

Consumer Financial Protection Bureau

• Enforces consumer financial protection laws • Restricts unfair, deceptive, or abusive acts • Takes consumer complaints • Promotes financial education • Researches consumer behavior • Monitors financial markets • Enforces laws that outlaw discrimination

The FDA regulates

• Foods • Human prescription and non-prescription drugs • Vaccines, blood products, and other biologics • Medical devices • Electronic products • Cosmetics • Veterinary products • Tobacco products

Climate change

global warming creates the: • Melting glaciers, decline in crop yields, and the effects of sea-level rise are all signs of warming. • Environmental Protection Agency's Clean Power Plan introduced in 2015 under the Clean Air Act address climate change issues • In 2016, the Paris Agreement on Climate Change brought 190 countries together with an aim to limit global warming to below 2 degrees Celsius. • Some businesses us internal carbon tax or carbon pricing to offset emissions with investments in sustainability projects.

Transparency

has become a major issue because much of today's corporate political activity is outside public view

Government Regulation

has become the most controversial in the business-government relationship, affecting every aspect of how business functions. Most people agree that some regulation is necessary to ensure that consumers and employees are treated fairly, and not exposed to hazards, and to protect the environment. However, businesses also think that regulation has often been too extensive in scope, too costly, and burdensome in terms of red tape.

United Nations Environmental Programme (UNEP)

has led the way in identifying global environmental and sustainability problems and resolutions

Dimensions of Quality

performance features reliability conformance durability serviceability aesthetics perceived quality

Emergency Planning and Community Right-to-Know Act

requires manufacturers to report annually all of their releases into the environment of any of more than 500 toxic chemicals

Consumer Problems with Business

• High prices of products • Poor quality of products • Failure to live up to advertising claims • Hidden fees • Poor quality of after-sales service • Product breakage • Misleading packaging or labeling • Slack filling • Feeling that consumer complaints are a waste of time • Inadequate guarantees and warranties • Failure of company complaint handling • Dangerous products • Absence of reliable product/service information • Not knowing what to do if something is wrong with product

Product Tampering and Product Extortion

• The Tylenol tampering cases of the 1980s are best known. As a result, firms began to use tamperevident packaging. • Other cases include: Jell-O pudding, bottle water, oranges, candy, baby food, and Girl Scout cookies

Government influences business by:

• The use of Subsidies • Transfer payments • Loans and loan guarantees • Taxation • Monetary policy • Moral suasion

Government Beliefs

- Collectivistic ethic - Subordination of individual goals and self-interest to group goals and group interests - Maximizing the obligations assumed by the individual and discouraging self-interest - Emphasizes equality of individuals

Sectoral Trade Associations

- Midrange representation; within a given industry or line of business - Trade associations have the disadvantage of battling with each other in their attempts to lobby Congress - National Automobile Dealers Association - National Association of Realtors - National Association of Home Builders - National Association of Medical Equipment Suppliers - American Petroleum Institute - American Trucking Association - American Bankers Association - Tobacco Institute - Health Benefits Coalition - United States Telecom Association

The Consumer's Magna Carta

- Right to Safety - Right to be Informed - Right to Choose - Right to be Heard

Sources of employee rights

-statutory rights -collective bargaining rights -enterprise rights

Factors for a Successful Peer Review Panel

1. Be sure that people involved in the process are respected members of the organization. 2. Committee members should be elected rather than appointed. 3. They must receive training in dispute resolution, discrimination, fairness, legalities, and ethics for everyone involved. 4. Representatives of both employees and management should be involved in decision making

Top Ten List of Safety Principles

1. Build safety into product design. 2. Do product safety testing for all foreseeable hazards. 3. Keep informed about and implement latest developments in product safety. 4. Educate consumers about product safety. 5. Track and address products' safety performance. 6. Fully investigate product safety incidents. 7. Report product safety defects promptly. 8. If a defect occurs, promptly offer a comprehensive recall plan. 9. Work with the Consumer Product Safety Commission to make sure your recall is effective. 10. Learn from mistakes—yours and others'.

Popular Family-friendly benefits

1. Dependent care flexible spending accounts 2. Bring a child to work in an emergency 3. On-site mother's room 4. Child-care referral service 5. Domestic partner benefits

Paradigm shifts

1. Discrimination-and-fairness 2. Access-and-legitimacy 3. integration-and-learning

What NOT to do When Terminating an Employee

1. Don't fire on a Friday. 2. Don't say that downsizing is finished. 3. Don't terminate an employee via email. 4. Stick to the topic and avoid platitudes. 5. Don't rush through the meeting

Moral and Managerial Objections to Employment-at-Will

1. Employees deserve respectful treatment. 2. Employees do not have the option of being arbitrary or capricious with employers. Employers should bear the same responsibility. 3. Employees are expected to be trustworthy, loyal and respectful with employers. Employers should show employees the same consideration

Types of Social Regulations

1. Equal Employment Opportunity Commission 2. Occupational Safety and Health Administration

TQM emphasizes eight key elements

1. Ethics 2. Integrity 3. Trust 4. Training 5. Teamwork 6. Leadership 7. Recognition 8. Communication Ethics, Integrity, & Trust = The foundation upon which all else is built

Dismissing an Employee With Care

1. Fire employees in a private space. 2. Be mindful of employees' logistics. 3. Preserve the employee's dignity. 4. Choreograph the notification in advance. 5. Use transparent criteria for layoffs

Types of Economic Regulations

1. Interstate Commerce Commission 2. Civil Aeronautics Board 3. Federal Communications Commission

A Checklist to Follow Before Blowing the Whistle

1. Is there any alternative to blowing the whistle? 2. Does the proposed disclosure advance public interest rather than personal or political gain? 3. Have you thought about the outcomes of blowing the whistle for yourself and your family? 4. Have you identified the sources of support, both inside and outside the organization, on which you can rely during the process? 5. Do you have enough evidence to support your claim? 6. Have you identified and copied all supporting records before drawing suspicion to your concerns?

The Requirements of

1. It must be a procedure; it must follow rules; it must not be arbitrary. 2. It must be visible and well-known so that potential violators and victims are aware of it. 3. It must be predictably effective. 4. It must be institutionalized - a relatively permanent fixture in the organization. 5. It must be perceived as equitable. 6. It must be easy to use. 7. It must apply to all employees.

Seven Principles of Customer Service

1. Keeping your word is where it begins. 2. Always be honest and tell it like it is. 3. Always think proactively, looking around the corner. 4. Deal with problems as best you can yourself, never passing the buck. 5. Do not argue with a customer because it is a lose/lose situation. 6. Accept your mistakes, learn from them, and do not repeat them. 7. Consistency is the name of the game for lasting success

Developing a Community Action Plan

1. Knowing the community. 2. Assess the company's resources. 3. Design a community action program making the community needs and resources available. 4. Monitor performance of the community actions program and make adjustments.

Standards of Excellence in Corporate Community Involvement

1. Leadership 2. Strategy 3. Integration 4. Infrastructure 5. Performance Measurement 6. Communication 7. Community Relationships

Policy Guidelines on the Issues of Privacy

1. Obtain informed consent before acquiring information. 2. Disclose the nature of any surveillance. 3. Set controls to avoid unauthorized spread of information. 4. Collect and use only job-relevant medical and health data. 5. Require reasonable suspicion before doing drug tests. 6. Respect and preserve the boundary between work and home

Major Activities of the FTC

1. To prevent unfair methods of competition and anticompetitive pricing 2. To protect consumers from unfair or deceptive acts or practices 3. Administers consumer protection laws

Creating a Customer-Oriented Company

1. Top-down culture and commitment are essential 2. Identify internal champions and uphold them 3. Commit resources to the task 4. Hire the right people 5. Empower employees 6. Make customer service training a priority

Organizational Levels of Lobbying

1. Umbrella Trade Associations 2. Sectoral Trade Associations 3. Company Lobbying 4. Ad hoc coalition

OSHA's Hazard Communication Standards

1. Update inventories of hazardous chemicals in the workplace. 2. Assemble material safety data sheets. 3. Ensure that hazardous chemicals are properly labeled. 4. Train workers on the use of hazardous chemicals. 5. Prepare and maintain a written description of the hazard communication program. 6. Consider any problems with trade secrets from the disclosure requirements. 7. Review state requirements for hazard disclosure.

Guidelines for Drug Testing

1. Written policies, applied impartially. 2. Clear reasons for drug testing should be documented. 3. Notify employees and applicants of drug testing, the right to refuse, and the consequences of refusal. 4. If random testing, tell employees of the safety and security needs that justify testing. 5. All testing should be done uniformly and impartially. 6. Collection, transportation and analysis of specimens should meet legal, technical, and ethical requirements. 7. Qualified review of positive results prior to employer notification. 8. Employee or applicant should be informed and given the chance to explain before the employer is notified. 9. The report to employer should contain only the information needed for work placement purposes or as required for government regulations.

FMLA employee rights

12 weeks of unpaid leave in 12-month period Reinstatement in old or equivalent jobs Health benefits during leave periods Protection from retaliation

The Civil Rights Movement

1955 - Rosa Parks, a black woman, refused to give up her bus seat to a white man, and was arrested. Protests and boycotts over unequal treatment grew and continued, and were met with violence against the protestors. 1964 - The Civil Rights Act became law. The 1970s - The Women's Movement The 1980s - Gains for women and blacks The 1990s - Some progress, but problems remained The 21st century - New challenges and old problems

Government Protections for Whistle-Blowers

1978 Civil Service Reform Act 1989 Whistleblower Protection Act Sarbanes-Oxley whistle-blower protections Michigan Whistle-Blowers Protection Act of 1981 Defend Trade Secrets Act FBI Whistleblower Protection Enhancement Act False Claims Act

Environmental Interest Groups

A collection of nonprofit membership and think tank organizations has moved the world in the direction of environmental responsibility. Known as "the environmental movement," they are responsible for the "greening" of nations. Environmental interest groups have evolved, and have been instrumental in significantly influencing business environmental policy. Examples: Environmental Defense is working with Federal Express on building a new generation of vehicles; with DuPont on developing nanotech standards; with PHH Arval on becoming the first carbon neutral fleet

Six Sigma

A development within TQM that has become a way of life for many corporations. Sigma is a statistical measure of variation from the mean; higher values of sigma mean fewer defects. Six Sigma level of operation is 3.4 defects per million. Most companies have 6,000 defects per million

The Sustainability Imperative

A leading advocate of business sustainability is Unilever. The CEO sought out long-term investors as shareholders, rather than shortterm hedge-fund managers, banned quarterly earnings reports, and embarked on a 10-year plan. Carbon emissions have been slashed by 32% Greenhouse gases- Halved by 2020 Water - halve water associated with consumer use of products by 2020 Sustainable sourcing - 100% of agricultural raw materials sustainably by 2020

Government is

A major employer A standard setter One of the largest purchasers

Energy

A major environmental issue is energy inefficiency, wasting nonrenewable sources of energy. Fossil fuels such as coal, oil, and natural gas were formed millions of years ago under unique conditions; once they are depleted, they will be gone forever. Because such fuels are not equally distributed around the world, disastrous armed conflicts result. Businesses should use as little non-renewal energy as possible, and shift to renewable sources such as solar, wind, hydroelectric, biomass Energy represents a challenge and an opportunity; firms that succeed in this area will reap big profits

Absolute liability

A manufacturer could be held strictly liable for failure to warn of a product hazard, even if the hazard was scientifically unknowable at the time of manufacture and sale.

Entropy

A measure of disorder of energy indicating its unavailability for recycling for the same use

Detrimental Impacts on Communities

A negative consequence of a firm's actions; has a detrimental impact on the community

Arbitration

A neutral party resolves a dispute between two or more parties and the resolution is binding.

Consumerism/Consumer Movement

A social movement seeking to augment the rights and powers of buyers in relation to sellers. In addition to the rights enumerated in The Consumer's Magna Carta, consumers today want: • Fair value for money spent • A product that meets reasonable expectations • One with full disclosure of its specs • Truthfully advertised - and safe

Work-Life balance

A state of equilibrium where the demands of a person's personal and professional life are equal. A desirable state for most workers, but difficult in recessionary economic times

Business & Environmental Partnerships-Activists, NGOs, & Interest Groups

Accommodation replacing antagonism with understanding of mutual dependence. Business needs environmental partners to inform and validate environmental efforts. Activists, NGOs and interest groups need business to change the way it operates in order to protect the planet. GreenBiz survey shows corporations view NGOs in 4 ways: trusted partners, useful resources, brand challenged, and the uninvited.

Affirmative Action in the Workplace

Affirmative action is taking positive steps to hire and promote people from groups that have been affected by a legacy of discrimination. Presidential Executive Order 11246 required federal contractors to employ affirmative action. Controversy has led to claims of "reverse discrimination." Affirmative Action rephrased as preferential treatment to minorities

Business and Plant Closings

After the Decision to Close is Made - • Community-Impact Analysis • Advance notice to employees or community • Transfer, Relocation, and Outplacement Benefits • Gradual Phase-Outs • Helping to Attract Replacement Industry

Ecosystem

All living and nonliving substances present in a particular place, interacting

False Claims Act

An act that allows employees to sue employers on behalf of the federal government for fraud against the government. The employee retains a share of the recovery as a reward for his or her efforts.

Disparate (adverse) impact

An employer's practice results in fewer minorities being included in the outcome of testing, hiring, or promotion practices than would be expected by numerical proportion.

Consumer Product Safety Commission

An independent regulatory agency created by the Consumer Product Safety Act of 1972, which works to reduce the risk of injuries and deaths from products by: 1. Developing voluntary standards with industry 2. Issuing and enforcing mandatory standards 3. Banning consumer products if no feasible standard would adequately protect the public 4. Obtaining the recall of products or arranging for their repair 5. Conducting research on potential product hazards 6. Informing and educating consumers through media, state and local governments, private organizations, and by responding to consumer inquiries

Whistle-Blower

An organization member who discloses illegal, immoral, or illegitimate practices under the control of their employers, to persons or organizations that may be able to effect action

Consumer Stakeholders: Information Issues

As business seeks to come out of the worldwide recession, the pace of consumer spending has been stable to modestly higher over the last five years. Consumers have become more cautious and selective. Businesses need to pay careful attention to customer stakeholders, and their fair treatment. Customer Relationship Management (CRM), the ability of an organization to effectively identify, acquire, foster, and retain loyal profitable customers. "Satisfied customers tell three friends, but angry customers tell 3,000."

Business's Response to Consumer Stakeholders

At first, casual and ineffective Formal interactions with consumer stakeholders have become more institutionalized Now, toll-free hot lines, user-friendly websites, and customer service programs

Accomodators

Avoid confrontation and are more trusting of corporations

Collection & Use of Employee Information by Employers

Background checks of applicants and current employees have become a source of concern for privacy advocates. Only the state of California limits their use significantly. The Fair Credit Reporting Act (FCRA) applies to employer use of employee consumer reports, including credit reports, criminal background checks, and other information. The EEOC monitors employer use of background checks when discrimination occurs.

Communicating With Employees Who are Being Laid Off

Be complete Be consistent Inform affected employees first Inform retained employees Survivors: The Forgotten Stakeholders, need- • Emotional support • Directional support • Tactical support • Informational support

Water

Both quality and quantity of water endangered. Quality - Degradation of oceans & waterways • Municipal sewage, industrial wastes • Urban runoff, agricultural runoff • Atmospheric fallout, overharvesting • Dam sedimentation, deforestation • Overgrazing, over-irrigation • More than a billion people lack clean water. Quantity - • Earth is a closed system with a fixed water supply; growing populations use more water. • The world is facing water bankruptcy.

Business and Plant Closings

Business and plant closings have dramatic impact in the community. What rights and responsibilities does business have in relation to employee and community stakeholders? Consider: Before the Decision to Close is Made - • Is this the only option? • Diversification • New ownership or employee ownership

Corporate Philanthropy

Business giving, the motive for which can be difficult to assess.

Business-Public relationship

Business influences the public through advertising, public relations, and other forms of communication The public influences business through the marketplace, or by forming special interest groups.

Arguments against Political Spending

Business is not likely to focus on the common good. The Golden Rule of Politics - He who has the gold, rules

Sustainability

Business that meets the needs of the present without compromising the ability of future generations to meet their own needs. Akin to walking lightly on the earth, taking only what's needed, and leaving behind enough for future generations to have access to the same resources. Creative business people need to develop new ways to benefit the triple bottom line - people, planet, profits. Swift growth due to realization that sustainability is the right thing to do, and can also drive revenue, savings, and give a competitive edge

The Future of Diversity Management

Buying power of minority groups is increasing rapidly. Growing business interest in diversity programs and affirmative action. Bottom-line considerations Diversity practices remain potentially controversial.

Two major U.S. umbrella organizations

Chamber of Commerce of the United States National Association of Manufacturers (NAM)

Four major workplace privacy issues

Collection and use of employee information in personnel files Integrity testing Drug testing Monitoring of employee work, behavior, conversations, and location by electronic means

Indoor Air Pollution

Comes from oil, gas, kerosene, coal, wood and tobacco products, building materials and furnishings, damp carpets, household cleaning products and lead-based paints. Long term effects—respiratory diseases, heart disease and cancer—can be fatal.

A Call for Transparency

Companies need not disclose direct donations to charities, but proposed legislation would require disclosure. Proponents say the money belongs to the shareholders, and they should make the decision, not managers giving to their favorite charities, which would not benefit the business Some fear that disclosure would result in fewer donations, and would reveal company strategy. Non-disclosure has led to a rise in "dark money" political funding to nonprofits from undisclosed sources.

Product/Service Information Issues

Companies understandably want to portray their products in the most flattering light. But efforts to paint a positive portrait of a product can easily cross the line into misinformation or deception—or absurdity: • An ad implores readers to switch to Verizon high-speed internet at a price that will "never go up." But the fine print reveals, "rates increase after two years." • What part of "never go up" do they fail to understand? Product and service information is relayed by advertising

Industrial policy

Concerned with the role of government in a national economy Every form of state intervention that affects industry as a distinct part of the economy. A current trend toward stronger industrial policy is likely to continue while the world economy works to recover from the global financial crisis.

Ethical Underpinnings of Quality

Contractual Theory, Due Care Theory, Social Costs View

Sexual Orientation and Gender Identity Discrimination

Corporations have been faster than governments in instituting protections for lesbian, gay, bisexual and transgender (LGBT) employees

Corporate Political Spending

Corporations must vet requests for political contributions to avoid "dangerous terrain."

Extensions of the strict liability rule

Courts in several states and some countries have established a standard more demanding than strict liability

The FTC in the 21st Century

Created the National Do-Not-Call Registry, which forbids telemarketers from calling consumers who sign up with the registry. Required telemarketers to show their contact information on consumers' caller ID systems. Sued firms that made misleading claims for weight loss products, and recovered millions in settlements. FTC preference was that business self-regulate when possible, and FTC action a last resort. Current issues include robocalls, children's online privacy, and data brokers

The Changing World of Deregulation

Deregulation which began in the 1980s had mixed results. Some prices fell, but more competitors were unable to compete with the dominant firms. The savings and loan industry crisis cost the government a $124 billion bailout. Repeal of the Glass-Steagall Act caused the global recession that began in 2008. The dilemma is how to enhance competition without sacrificing applicable social regulations such as health and safety requirements.

To Whom Do Companies Give?

During any budget year, firms receive numerous requests for contributions from a variety of applicants, and decide which to honor. Estimates of most business giving - 1. Health and human services 2. Education 3. Civic and community activities 4. Culture and the arts

Workplace Monitoring

Employee monitoring occurs at the majority of mid- to large-sized firms. Technology changed the pervasiveness and nature of monitoring - • Videotaping • Recording phone calls and voice mail • Reading computer files • Monitoring emails and web access • GPS

Fair Credit Reporting Act

Ensures that consumer-reporting agencies provide information in a manner that is fair and equitable

Equal Pay and Promotion

Equal pay and the gender pay gap is a hot-button issues for gender discrimination. Women are presented with fewer opportunities, excluded from networking, and are passed over in favor of male colleagues to answer questions

Trade Associations

Established by individual industries to help businesses in the same industry to interact with each other and benefit from those interactions. Association-level lobbying is common. Sometimes find themselves battling each other in attempts to lobby Congress.

New Social Contract

Few tenure arrangements Few life careers; changes common Temporary project assignments Loyalty to self Relationships far less familial Personal responsibility for one's job future Pay for value added Employees in charge of own education Focus on team building and projects

Genetic Information Nondiscrimination Act

First preemptive civil rights law in U.S. History. Designed to prevent genetics-based discrimination before it occurs

Economic Regulations

Focus: Market conditions; economic variables Affected Industries: Selected (railroads, aeronautics, communications) Examples: CAB FCC Current Trend: Reregulation (e.g., Financial Stability Oversight Board)

Managing Community Involvement

Focuses on the contribution of managerial and employee time and talent.

The Roles of Government and Business

For effective management, government's role as a stakeholder must be understood. What should be the respective roles of business and government in our socioeconomic system? If the role of business were simply production and distribution of goods and services, business would need little regulation. But other goals exist—safe working environment, equal employment opportunities, fair pay, clean air, safe products—which business does not automatically factor into the business decision making process. As a result, it falls to government to ensure those goals are achieved.

The Natural Environment

For years, businesses conducted their operations with little concern for environmental consequences. They consumed significant amounts of materials and energy, causing waste accumulation and resource degradation. They caused major air, water, and land pollution problems. They looked the other way, labeling the negative consequences of their actions as externalities—side-effects or by-products not intended, and often disregarded. Any environmental effort usually came from compliance or efficiency. Businesses would stop damaging the environment only when it became illegal or unprofitable to do so. Now, environmentalism is becoming profitable

Coalitions

Form when distinct groups or parties realize they have something in common that might warrant their joining forces for joint action. Standard practice for firms interested in accomplishing political goals or influence public policy. Can provide cover for a company wanting to push their own agenda without its name attached.

Business Influence on Government and Public Policy

Government is a central stakeholder of business, and its interest is broad and multifaceted. Government's power is derived from its legal and moral right to represent the public in its dealings with business. Society would be best served if the system maintained a balance of power, but a controversial U.S. Supreme Court ruling (Citizens United v. Federal Election Commission) has left business with the power to drive the political agenda unchecked.

The Role of Governments in Environmental and Sustainability Issues

Governments have played major roles in environment issues: • developed habitable lands, • protected, taxed and zoned natural environment-based areas • exercised regulatory control over how those environments could be used.

Smoking in the workplace

Growing anti-smoking sentiment in the U.S. and globally Passive smoke kills thousands in the U.S. each year The Environmental Protection Agency (EPA) classifies secondhand smoke as a known carcinogen

Religious discrimination

Growing quickly, complaints more than doubled in the past 15 years

A federal regulatory agency

Has decision-making authority Establishes standards Operates principally on domestic business Has members appointed by the president subject to Senate confirmation Has its legal procedures governed by the Administrative Procedures Act

Total Quality Management (TQM)

Has many characteristics, but essentially means - • All business functions are blended into an integrated philosophy built around quality, teamwork, productivity, and customer understanding and satisfaction. • TQM focuses on product quality and safety, focuses on the customer, and uses continuous improvement. • The customer is the final judge of quality

Top 10 PAC Contributors to Federal Candidates

Honeywell International AT&T, Inc. Lockheed Martin National Beer Wholesalers National Association of Realtors Northrup Grumman Credit Union Nation Association Blue Cross/Blue Shield International Brotherhood of Electrical Workers American Bankers Association

Deforestation

Humans depend on forests for building materials, fuel, medicines, chemicals, food, employment and recreation. Adds to soil erosion problems. Plays a key role in global warming; Felled trees can no longer absorb carbon dioxide. Dead trees release it into the atmosphere. Accounts for 20% of global carbon emissions - more than the world's trains, boats and planes combined.

Environmental Ethics

Humans must consume at least some plants and water to survive. What level is ethical? Which school of environmental thought should we apply? Kohlberg - levels of moral development Utilitarianism - greatest good for greatest number Integrating sustainability into a firm's philosophy is a natural extension of stakeholder theory, including as a stakeholder the ecological system from which the firm obtains resources and to which it bears responsibility for its impacts, both positive and negative.

Four-fifths rule

If a member of a minority group does not have a success rate at least 80 percent that of the majority group, the practice may be considered to have an adverse impact

Women in Professional/Managerial Positions

In 2015, only 4% of Fortune 500 firms were headed by women. 359 open CEO slots in 2015, women filled 10. Lean In suggests women sabotage themselves

Two major nonregulatory issues

Industrial policy & Privatization

Issues in Employment Discrimination

Inequality persists despite diversity efforts. May not be caused by discrimination Discrimination is different depending on race and ethnicity. Our increasingly diverse society makes some people hard to categorize. For example, there are many groups that make up Hispanics, though they have different ancestry. Color bias is not the same as racial bias, though they overlap

Arguments for Advertising

Informs consumers Increases consumer satisfaction Promotes efficiency in the supply chain Effective at reaching consumers An economical means of reaching consumers

Warranties

Initially used by manufacturers to limit the length of time they were responsible for products. Came to be viewed by consumers as tools to protect the buyer against defective products

Issues Related to Regulation

Innovation may be affected - When corporate budgets must focus on "defensive research" certain types of innovation are less likely to take place. New investments in plant and equipment may be affected - To the extent that corporate funds must be used for regulatory compliance, they are diverted from more productive uses. Small business may be adversely affected - Federal regulations can have a disproportionately adverse effect on small firms because of the (lack of) economies of scale.

Purpose of Deregulation

Intended to increase competition with hopes for greater efficiency, lower prices, and enhanced innovation

Disparate (unequal) treatment

Intentionally using race, color, religion, sex, or national origin as a basis for treating people differently

Water Quality Legis. - The Clean Water Act

Involves both state and federal governments Goal: to achieve water quality safe for humans, and protection of fish, shellfish and wildlife Banned discharge of pollutants into navigable waters through pollution permit system Set timetables for installation of state-of-the-art pollution control equipment. Marine Protection , Research & Sanctuaries Act set a similar system for coastal waters The Safe Drinking Water Act of 1974 establishes maximum contaminant levels for drinking water

Equal Employment Opportunity Commission (EEOC)

Is the major federal body created to administer and enforce U.S. job bias laws. Investigates employment discrimination complaints. Makes equal employment opportunity policy Enforces anti-discrimination laws through conciliation or federal lawsuits against employers

Arguments Against Advertising

It is wasteful and inefficient—and decreases our standard of living Raises the price of products and is an unnecessary business cost Inefficient means of distributing information Ineffective High cost

Business, Government, and Regulation

Last decade swung the pendulum of government involvement in business from minimal to major player. The relationship of government to business is one of the most hotly debated issues today. Business and government need each other - government is a major stakeholder with which business must establish an effective working relationship to prosper.

Two major approaches to corporate political activity:

Lobbying & Political spending

Amoral Management

Management does not think through the ethical consequences of decisions

Market share liability

Manufacturers who made the product share in the liability for injury according to their market shares. This doctrine was applied in delayed manifestation cases, but limited to those

Consumerism Today

Many groups make up the loose confederation known as the consumer movement. The power held by consumers is not the result of organized groups lobbying; their efforts are at the grassroots level. Involves grassroots organizations, social media activism, and the rise of nonprofit organizations Major issues fall into two groups: • Product/service information • Product/service itself

Right-to-know law

Many states have passed laws imposing a duty on employers to provide employees with information on the hazards of workplace chemicals and to make sure that workers understand what the information means in practical terms

CSPC Strategic Plan, 2011-2016

Mission Protecting the public against unreasonable risks of injury from consumer products. Vision The CPSC is the recognized global leader in consumer Product safety Goal 1 Leadership in Safety Goal 2 Commitment to Prevention Goal 3 Rigorous Hazard Identification Goal 4 Decisive Response Goal 5 Raising Awareness

Reasons for Regulation

Most regulation arises out of a market failure Controlling natural monopolies Controlling negative externalities Achieving social goals Controlling excessive competition

The Issue of Safety

Nearly all consumer products or services entail some small degree of risk. Today it is important that even financial services do not cause damage or financial harm.

Prevention

OSHA's "general duty clause" mandates that employers provide safe workplaces- is not specific to violent acts

workplace violence

One of the four leading causes of death in the workplace. The leading cause of death for women. Despite this, nearly 70% of firms do not have a program to address workplace violence. Contributing factors: • Greater tolerance for violence • Easily available weapons • Economic stress • Difficult job market • Insufficient support systems

Alternative Dispute Resolution (ADR)

Open-Door Policy Hearing Procedure The Ombudsman The Peer Review Panel

Ozone depletion

Ozone is harmful near the surface of the earth, but vital in the atmosphere. It blocks dangerous ultraviolet radiation from the sun. Decrease in stratospheric ozone comes from human use of chlorofluorocarbons (CFCs) and other chemicals. In 2013, the hole in the ozone was at its second smallest point in 20 years.

Several States & the District of Columbia

People are protected from discrimination based on sexual orientation and gender identity

The Issue of Quality

Product quality means different things to different people. Service quality usually means that the service was performed as expected and on time. Interest in quality is driven by an increase in family income and demand for good value.

Americans with Disabilities Act (ADA)

Prohibits discrimination based on physical or mental disabilities in private places of employment and in public accommodations; requires employers to make reasonable accommodations for such employees. An individual is disabled under the Act if the person- • Has a physical or mental impairment that limits one or more major life activities. • Has a record of such an impairment. • Or, is regarded as having such an impairment. Reasonable accommodations may include- • Making facilities accessible • Job restructuring, work schedule modification, • Acquiring or modifying equipment or devices; providing training materials, readers, or interpreters

Title VII of the Civil Rights Act of 1964

Prohibits discrimination in hiring and other aspects of employment on the basis of race, color, religion, sex, pregnancy, retaliation, or national origin.

Endangered Species Act (1973)

Prohibits harm to endangered and threatened species May require moving the species to another location or restricting threatening business activities, resulting in intense political conflicts between business and environmental groups

Rehabilitation Act of 1973, § 503

Prohibits job discrimination on the basis of a disability. Applies to employers who contract with the federal government. Also requires these employers to engage in affirmative action to employ the disabled. A related act, the Vietnam Era Veterans Readjustment Assistance Act of 1974, also prohibits discrimination on the basis of disability, and requires affirmative action. The Rehabilitation Act of 1973 was the model for the Americans With Disabilities Act of 1990.

Rehabilitation Act of 1973, Section 503

Prohibits job discrimination on the basis of disability.

Equal Pay Act of 1963

Prohibits sex discrimination in payment of wages to women and men who perform substantially equal work in the same establishment. Ledbetter v. Goodyear Tire & Rubber Co., 2007, heard by the Supreme Court. • Lily Ledbetter was paid less than males for equal work, but did not discover it for several years; the Supreme Court ruled she should have filed suit within 180 days, the first payment date. • In 2009, the Lily Ledbetter Fair Pay Act changed the law, so that suit may be brought each time there is discrimination.

Express Warranty

Promise or affirmation of fact that the seller makes at the time of the sale.

Implied contract exception

Protects employees who they believe have contracts or implied contracts.

Age Discrimination in Employment Act of 1967

Protects workers 40 years old and older from arbitrary age discrimination

Civil Rights Act of 1991

Provided increased financial damages and jury trials in cases of intentional discrimination

The Civil Rights Act of 1991

Provided increased financial damages and jury trials in cases of intentional discrimination based on race, religion, sex, disability and national origin. Under the original Act, monetary awards were limited to back pay, lost benefits and attorneys fees and costs. The 1991 Act permitted both compensatory and punitive damages. In addition, the Act shifted the burden of proof back to the employer

Environmental Groups Based on Cooperation with Business

Radicals, Mainstreamers, Accomodators

Ralph Nader's Consumerism

Ralph Nader is considered the father of the modern consumer movement. The impact of his book, Unsafe At Any Speed criticizing the auto industry and General Motors 40 years ago, was momentous. Nader's book gave rise to auto safety regulations and devices. Nader built a new era—that of the consumer.

Credit Card Accountability, Responsibility, and Disclosure Act of 2009 (CARD)

Rates and fees more fair and transparent

Product Liability

Reasons for the concern - • The sheer number of cases where products resulted in illness, harm, or death. • The amount of the financial award. Doctrine of strict liability - • Anyone in the value chain of a product is liable for harm caused to the user if the product is unreasonably dangerous because of a defective condition. The U.S. is a litigious society

Patagonia

Recycled decades before others Made its outdoor gear out of old plastic soda bottles Discovered the dangers of cotton due to dependencies on pesticides, insecticides, and defoliants.

Deregulation

Represents a counterforce - aimed at keeping the economy in balance. A continual striving for the balance of freedom and control for business will be best for society.

Truth-in-Lending Act

Requires all suppliers of consumer credit to fully disclose all credit terms

Worker Adjustment and Retraining Notification Act (WARN)

Requires firms with 100 or more workers to provide 60 days advance notice before shutting down or conducting layoffs. Regular federal, state, and local government entities that provide public services are not covered by WARN. Legislators have tried to strengthen the law by closing loopholes.

Customer Service Programs

Retailers of all types have been pushing the idea of self-service. We check out our own groceries, pump our own gas, print our boarding passes, and fix our cable tv, following a computer voice. Customers are frustrated with after-sale problems not quickly and easily remedied. Experts know that the key to customer retention is customer service. Building life-long devotion among customers takes serious commitment and hard work.

Consumer Stakeholders: Product and Service Issues

Sam Walton, founder of Walmart - • "There is only one boss. The customer. And he can fire everybody in the company...simply by spending his money somewhere else." Takata, Japanese auto supplier, becoming more well known. Many of today's autos have Takata air bags. • In early 2016, bursting air bags linked to 10 deaths (9 in the U.S.) and dozens of injuries worldwide. • 29 million air bags recalled. Later another 40 million rupture-prone air bags were recalled. Recall being called the biggest in U.S. History.

Disparate Impact

Secondary discrimination Different results Unintentional discrimination Neutral actions, biased impact Different consequences for different groups

Air Quality Legislation - The Clean Air Act

Sets standards and timetables for implementation Created Emissions trading (cap and trade) Intended to reduce a particular pollutant over an entire industrial region by treating all emission sources as if they were beneath one bubble. A business can increase its emissions in one part of a plant or region if it reduces its pollution by as much or more in another part of the plant or region. Businesses that reduce their emissions can trade them to other businesses, earning income.

Anti-Privatization

Some activities cannot be effectively handled by the private sector (such as airlines or the postal system). works best when the pursuit of profits does not work against broader social goals or public policy.

Financial Performance Outcomes

Studies to determine whether corporate political spending influences political decisions have mixed results. A meta-analysis found that corporate political activity had a consistent positive relationship with a firm's financial performance, but generic results are of limited value because the outcomes occur in a variety of contexts. Context matters, and strategies that work in one situation will not necessarily work in another. A 2013 study found a negative association between political investments and market performance.

The Impact of Super PACS

Super PACS have facilitated outside spending in politics, and the effect has been huge. By the end of January 2015, the top three presidential candidates had raised over $388 million, their Super PACs had raised over $100 million. Super PACs are still new so their full effect is not yet known, but sums of money that large will certainly have a profound impact.

Employee Engagement

Supported through mentoring programs, career development training, and annual employee surveys. Companies see less turnover, less shrinkage, less absenteeism, fewer safety incidents, and fewer quality defects. Despite success, a recent Gallup poll found that 50.8% of U.S. workers said they were not engaged with their jobs. Employee engagement has not seen year-after-year improvements. • What is the problem?

Fetal Protection Policies

Supreme Court ruled these constituted sex discrimination. Firms barred women of childbearing age from working in sites in which they, or fetuses, might be exposed to harm.

Age Discrimination in Employment Act

The ADEA protects workers 40 years old and older from discrimination in: • Hiring • Discharge • Pay • Promotions • Fringe benefits • Other aspects of employment Does not apply where age is a bona fide occupational qualification (BFOQ) When a younger age is necessary and related to the position.

What Can Be Monitored?

The Electronic Communication Privacy Act of 1986 is the only privacy protection available for electronic monitoring. Effects of Being Monitored - • Invasion of privacy • Unfair treatment • Creates stress and tension • Excessive pressure to be productive • Produces low morale • Creates a sense of job insecurity

Integrity Tests

The Employee Polygraph Protection Act (EPPA) of 1988 Banned most private-sector use of the lie detector. Lie detectors may still be used by employers that provide security services, protection of nuclear facilities, shipment of toxic waste, and the like. Many companies use question and answer integrity tests (honesty tests). Personality tests measure maturity, extroversion, emotional stability, and the like.

Arguments for Political Spending

The Supreme Court decision in Citizens United ruled that government may not restrict corporate political spending, equating such spending with free speech. Unlimited spending creates an imbalance of power

The Impact of Business on the Natural Environment

The Top Ten fundamental environmental issues: 1. Climate Change 2. Energy 3. Water 4. Biodiversity and Land Use 5. Chemicals, Toxins, and Heavy Metals 6. Air Pollution 7. Waste Management 8. Ozone Layer Depletion 9. Oceans and Fisheries 10.Deforestation

Regulation

The act of governing, directing according to rule, or bringing under the control of law or constituted authority

Business and Community Stakeholders

The actions of a business affect a range of communities. Managers must be aware of these impacts, and manage in a way that respects community stakeholders. We focus on the immediate locale, but instant communication means that the relevant community includes the region, nation, or the world. For business and community stakeholders, there are two major kinds of relationships: • The positive contributions business can make to the community. • The harm business can cause to community stakeholders. We discuss here community involvement and corporate philanthropy

The Pendulum of Government's Role in Business

The areas in which government regulates change, and its varying roles increase the complexity of its relationship with business. Government can: • Determine the rules of the game • Be a major purchaser with buying power that can affect a business's or industry's chances of survival • Strengthen some businesses and weaken others • Create new businesses and industries through subsidization and privatization

Good cause norm

The belief that employees should only be discharged for good reasons. This belief prevails in the United States today, though it conflicts with reality

Michigan Whistle-Blowers Protection Act of 1981

The first state law to protect any employee in private industry against unjust reprisals for reporting alleged violations of federal, state, or local laws to public authorities

Employee Stakeholders: Privacy, Safety, and Health

The global recession has shifted the balance of power from employees to employers. Employees are more willing to accept things they don't like for fear of losing their jobs. An employee's right to privacy varies from state to state. An employee's concerns about safety and health on the job now includes workplace violence

The Federal Trade Commission

The government's major instrument for ensuring that business lives up to its responsibilities

The National Advertising Division's Program

The most prominent organization for advertising self-regulation by business. NAD was created to help sustain high standards of truth and accuracy in national advertising. • Initiates investigations • Determines issues • Collects and evaluates data • Determines whether an advertisers claims are substantiated

Workplace Safety

The primary U.S. law governing worker safety is the Occupational Safety and Health Act. Sets safety and health standards to protect employees and their families. Applies to all private employers that engage in interstate commerce.

Concerns with the Open-Door Policy

The process is closed. One person is reviewing what happened. There is a tendency for one manager to support another manager's decision. A hearing procedure helps open up the process because employees can elect representation

Lobbying

The process of influencing public officials to promote or secure passage or defeat of legislation. Lobbyists are intensely self-interested. Their goals are to promote legislation that is in the interest of their organization, and to defeat legislation that runs counter to that goal. Because of the large amounts of money involved, people will cross the legal and ethical line. Lawrence Lessig: "There's all the difference in the world between a lawyer making an argument to the jury, and a lawyer handing out $100 bills to the jurors.

Strategies for Corporate Political Activity

The purpose of political strategy is "to secure a position of advantage regarding a given regulation or piece of legislation, to gain control of an idea or a movement and deflect it from the firm, or to deal with a local community group on an issue of importance." Three types of strategies that companies use to interact in the political arena - Information Strategy (provide information) Financial Incentives Strategy (make contributions) Constituency Building Strategy (mobilizing others to work together)

Employment-at-will doctrine

The reality is that the relationship between employer and employee is voluntary and can be terminated at any time by either party. The central issue is changing views of the employment at will doctrine

Due Process

The right to receive an impartial review of one's complaints and to be dealt with fairly. The right of employees to have decisions that adversely affect them be reviewed by objective and impartial third parties

The Future of Business: Greening and/or Growing?

The salient environmental question: How much is enough? How much economic growth? How much materials and energy? Limits on growth are not popular. But the problem with unrestrained economic growth is that, unless technology or people change significantly within a generation, environment problems will change in degree from significant to severe

Employee Stakeholders and Workplace Issues

The social contract between organizations and workers continues to evolve, and is different from contracts of the past. Three employee rights issues - • Right not to be fired without good cause • Right to due process and fair treatment • Right to freedom of speech in the workplace

The New Social Contract

The typical "baby boomer" worker has held 11.7 jobs on average. All realize their jobs are vulnerable. See themselves as free agents. They are more mobile, less loyal, and more diverse. They seek: • Competitive pay • Benefits • Opportunities for professional growth

The Future of ADR

The use of ADR is growing because of time and cost savings over litigation. But some employers require new hires to sign contracts waiving their right to sue their employer in favor of mandatory arbitration

Biodiversity

The variation of life forms inside an ecosystem, serves as a key indicator of its health. It is being lost at an unprecedented rate. Ecosystem and habitat destruction, pollution, other excesses in individual and organizational activities are responsible. Species die off at a natural rate of 1 to 5 a year, now dozens go extinct each day. Land degradation threatens the livelihood of more than one billion people, especially in Africa, the continent most affected by drought.

Product Liability Reform

These issues have raised calls tor product liability reform, also known as tort reform. Tort law requires that the one causing injury pay the injured party. Businesses seek tort reform; consumer groups oppose it

A Brief Introduction to the Natural Environment

This chapter focuses on the natural environment—what it is, why it is important, how it has become a major concern, and what businesses and other organizations have done to it or for it. The environment has become one of the most significant societal issues of our time. To help you make environmental business decisions in the future, we'll describe the variety of responses humans and businesses have developed to address these issues, and present data. The emphasis is on two themes: • Humans are part of their natural environment • The environment is complex, defying simple analyses

Health in the Workplace

To control health care costs, firms have taken drastic steps, including banning smoking

Chemicals, Toxics and Heavy Metals

Toxic substances - Chemicals or compounds that may cause damage to the nervous system, reproductive and developmental problems, cancer and genetic disorders and the environment. Can be intentionally or unintentionally created. Two main problems - 1. We are not always aware of the effects of exposure to chemicals. 2. Toxic substances can be associated with industrial accidents, causing unforeseen widespread biological damage.

Managing Corporate Philanthropy

Two aspects to the pressure on businesses to be more businesslike in their philanthropy: • Base giving on business skills, resources, and capabilities to enhance philanthropic outcomes. • Focus on philanthropy that will enhance corporate profitability and also make a difference in the community (a strategic approach).

Sexual Harassment

Unwelcome sexual advances, requests for sexual favors, other verbal or physical conduct of a sexual nature. Worldwide problem with negative consequences that are pervasive and ongoing

Implied Warranty

Unwritten promise that there is nothing wrong with the product and its intended use

Management Responsiveness to Whistle-Blowing

Whistle-blowing occurs after normal, less dramatic channels of communication have failed. To encourage open communications - 1. Managers must be clear that they invite and accept suggestions. 2. Managers must refute assumptions and organizational myths that discourage communication. 3. Managers should tailor rewards so that employees share more directly in cost savings or sales increases from ideas they offer

The Issue of Safety

Who is liable for a defective product? Historical Perspective - • Caveat emptor - "Let the buyer beware." • This doctrine assumed that the buyer had as much knowledge of the product as the seller, but this was not correct. Modern Day - • Caveat venditor - "Let the seller beware." • But how safe should a product be?

Responsibility for Environmental Issues

Wicked problems - (smog, toxic waste and acid rain) are problems with complexity, uncertainty, interconnectedness, ambiguity, conflict, and societal constraints. When no one takes responsibility Tragedy of the commons - is likely to occur • A "commons" (our environment) is a plot of land available to all. • Constraints must be placed on the use of the commons because self-interest is likely to lead individuals and organizations to behave in ways that will not sustain our shared resources

The Sustainability Imperative

Years ago, discussing sustainability would bring arguments about why businesses would benefit. Today, the need for sustainability is a "given." CERES' Roadmap to Sustainability identifies several key drivers: Competition for resources - demand is growing more quickly than they can be replaced. Climate change - business must be prepared to respond to new policies regarding emissions, and to take advantage of new technology. Economic globalization - wide disparities in social and environment standards bring risks and opportunities. Connectivity and communications - stakeholders can monitor and react to sustainability efforts more quickly. Reputations are quickly built and destroyed.

Cause-Related Marketing

a direct linking of a firm's product or service to a specified charity; each time a consumer buys the product, a donation is given to the charity by the business (is this really philanthropy?)

Regarding laws to protect people from discrimination based on sexual orientation, which of the following statements is true?

a. All states have such laws. b. Many states and the District of Columbia have such laws. c. All states plus the federal government have such laws. d. None of these statements is correct. Answer B

_____ refers to the management action after taking a closure decision which buys time for employee and the community to adjust to the new situation and to solve some of their problems thereby significantly ameliorating the effects of a business shutdown.

a. Attracting replacement business b. Gradual phase-out c. Outplacement benefits d. The Worker Adjustment and Retraining Notification Act (WARN) Answer is B

Which of the following observations is true?

a. Businesses follow a collectivistic ethic. b. Ethical systems are different for governments and businesses. c. Governments follow an individualistic ethic. d. The relationship between business and government is not adversarial in nature. Answer is B

Why have some businesses pushed for greater governmental regulations?

a. Certain regulations are extensive in scope. b. Certain regulations just require paperwork and not much else. c. Certain regulations control excessive competition. d. Regulations increase governmental control of business. Answer is C

________ is broadly defined as participation in the formulation and execution of public policy at various levels of government.

a. Deregulation b. Governmental influence c. Political involvement d. Societal change Answer is C

Which of the following statements is true of deregulation?

a. Deregulation has helped in reducing competition in most industries. b. Deregulation is the opposite of economic reform. c. Deregulation is used to remove certain industries from old-line regulations. d. The trend toward deregulation began in the 1950s. Answer is C

Which of the following is true about employers with regard to the FMLA?

a. Employers cannot ask employees to get a second medical opinion regarding leaves. b. Employers have to pay employees during leave periods and also provide health benefits. c. The employer can demote an employee when he or she comes back after a leave. d. The employer is exempt from the FMLA if the firm has fewer than 50 employees Answer is D

Which of the following is true of the 1978 amendment to Title VII of the Civil Rights Act of 1964?

a. Employers were allowed to sue employees who filed discrimination claims against them. b. It was amended to include the Pregnancy Discrimination Act which requires employers to treat pregnancy as any other medical disability. c. It was extended to cover federal, state, and local employers and educational institutions by the Equal Employment Opportunity Act. d. The EEOC was given permission to file lawsuits on behalf of employers in discrimination cases. Answer is B

Which federal agency responsible for overseeing the safety and health of America's workers?

a. FCC b. FDIC c. IRS d. OSHA Answer is D

Which of the following is an outcome of social regulation?

a. Federal Communications Commission b. Federal Deposit Insurance Corporation c. Interstate Commerce Commission d. Occupational Safety & Health Administration Answer is D

Which of the following is an argument used against industrial policy?

a. Government interference via industrial policy making reduces market efficiency. b. The declining competitiveness of the United States in all major global markets is proof of poor industrial policy. c. The successful use of industrial policy by foreign governments cannot be emulated in the U.S. d. There has to be a constant change in industrial policy with every successive government Answer is A

Which of the following is true about peer-review methods of due process for employees?

a. Involving respected members of the organization is the key to a successful peer review. b. Managers should select the team of peer reviewers on behalf of all employees. c. The success of peer-review systems depends on the expertise of the ombudsman. d. The use of peer review as a due process mechanism has heavily declined in recent years. Answer is A

Which of the following is true of strategic philanthropy?

a. It considers the goal of profit to be irrelevant to the mission of giving. b. It is an approach by which corporate giving and other philanthropic activities of the firm are designed in a way that best fits with the firm's overall mission. c. It is the search for a sustainable competitive advantage by giving to the 'needy' charities. d. It is the search for purely altruistic company giving. Answer is B

Which of the following statements is true of lobbying?

a. It is not related to passing of legislation by public officials. b. It occurs only at the federal level. c. It is not used to influence the election of candidates to public offices. d. It is motivated purely by self-interest on the part of lobbyists Answer is D

Which of the following is true of the Patriot Act?

a. It set rigid controls on the right of the government to use information on citizens. b. It caused widespread concern that too much latitude was given to the government. c. It enables the government to disregard the privacy of any individual in an unrestricted manner. d. It was signed into law following World War II. Answer is B

Which act prohibits discrimination in the extension of consumer credit?

a. The Equal Credit Opportunity Act b. The Fair Credit Reporting Act c. The Fair Debt Collection Practices Act d. The Truth-in-Lending Act Answer is A

Which of the following is often cited as a criticism of integrity tests?

a. They are used as the sole measure to judge the fitness of the applicant. b. They are useless since none of the questions used are intrusive in nature. c. They provide an objective means of selecting candidates. d. None of the questions asked in these tests serve a valid purpose. Answer is A

Which of the following is an example of quid pro quo harassment?

a. a boss asking for sexual favors in return for a promotion or raise b. harassment that has not been brought to the attention of authorities c. punitive damages paid by an employer to an employee for a sexual harassment charge d. uninvited sexually oriented materials or behaviors in the workplace Answer is A

A type 1 error occurs when:

a. a guilty person is found to be innocent. b. an innocent person is found to be guilty. c. a test is administered by people without experience. d. no "false positives" emerge from a test. Answer is B

The term "community partnership" refers to:

a. a partnership among two or more for-profit business enterprises to donate for the same cause. b. an agreement between two non-profit organizations in order to share the contribution availed from various sources. c. the close alignment of business with budgetary resources. d. the event when a for-profit business enters into a cooperative arrangement with a nonprofit organization Answer is D

Business supports which of the following elements of tort reform?

a. a uniform federal code b. binding arbitration c. higher punitive damages for corporate malfeasance d. market share liability Answer is A

Which of the following concepts was derived from the California case in which a group of women with birth defects claimed that the defects had been caused by the drug DES, which their mothers had taken when they were pregnant years earlier?

a. absolute liability b. market share liability c. partial liability d. retrograde liability Answer is B

Which of the following is a major cause of the greenhouse effect?

a. acid rain b. biodiversity c. deforestation d. rainwater harvesting Answer is C

Which of the following is businesses' primary means of influencing government?

a. advertising b. deregulation c. lobbying d. taxation Answer is C

One reason critics think advertising is wasteful is that:

a. advertising is silent about things like product quality. b. businesses use deceptive methods of advertising which is harmful for consumers. c. large sums of money are spent on advertising that produces no consumer benefit. d. most ads are distasteful and send the wrong messages to consumers. Answer is C

"Reduce, Reuse, Recycle" is the goal of which of the following issues?

a. afforestation b. industrial symbiosis c. rehabilitation d. waste management Answer is D

Advertising that is located in nontraditional places is known as:

a. ambiguous advertising b. ambient advertising c. comparative advertising d. co-opted advertising Answer is B

Ralph Nader changed the face of consumerism with his exposé on the _____.

a. ammunition industry b. automotive industry c. electronics industry d. telecommunications industry Answer is B

What are environmental impact statements?

a. announcements made to the press by businesses enumerating the measures taken by them to reduce ecological damage b. attempts made by individual environmental bodies unrelated to government, to curb environmental degradation c. legislation that declares certain industrial practices illegal because of the harm caused to the environment d. reports of studies explaining the impact of practices on the environment and suggested alternatives Answer is D

Which political approach results when distinct groups or parties realize they have something in common that might warrant their joining forces, at least temporarily, for joint action?

a. astroturf lobbying b. coalitions c. grassroots lobbying d. oligopolies Answer is B

Which of the following appear to be the result of genuine public groundswell but are actually orchestrated and funded by professional organizations?

a. astroturf lobbying b. grassroots lobbying c. green lobbying d. layering Answer is A

Which of the following refers to the process of genuinely mobilizing individual citizens who might be most directly affected by legislative activity to political action?

a. astroturf lobbying b. grassroots lobbying c. greenmailing d. layering Answer is B

To be a carbon-neutral company, you must:

a. balance the amount of carbon used and produced. b. be indifferent to the amount of carbon used and emitted. c. have carbon neutralizing equipment in production units. d. not use any carbon products or by-products in the company. Answer is A

This means that all of the functions of the business are blended into a holistic, integrated philosophy built around the concepts of quality, teamwork, productivity, customer understanding, and satisfaction

a. benchmarking b. reverse engineering c. safety team management d. Total Quality Management Answer is D

Which of the following is the approach intended to reduce a particular pollutant over an entire region by treating all sources as if they were beneath one bubble?

a. biodiversity b. cap and trade c. global compact d. watershed Answer is B

Actual or potential customers of retail firms in industrialized countries who show a preference for environment-friendly products are called _____

a. biotic consumers. b. ecoterrorists. c. green consumers. d. green investors. Answer is C

The Civil Rights Movement of 1950s and 1960s took place to protest the discrimination against:

a. blacks b. the disabled c. the elderly d. women Answer is A

The dual objectives of business mean that:

a. business people are not efficient problem solvers, and therefore need the help of the community in making profits. b. business people need the satisfaction of performing completely altruistic acts together with serving the society. c. keeping up with the competitors in the race for public image and social concern does not go hand in hand. d. making profits and addressing social concerns are not mutually exclusive endeavors. Answer is D

What is moral suasion?

a. changing the monetary policy b. persuading business to act in the public interest c. setting standards for the ethical conduct of businesses d. using governmental subsidies to help firms Answer is B

Which of the following is a common form of corporate retaliation to whistle-blowing?

a. choice of work assignments given b. little or no supervision of work c. lighter workloads d. not given promotion or raise Answer is D

Which of the following categories is likely the recipient of the largest share of corporate giving?

a. civic and community services b. culture and the arts c. education d. health and human services Answer is D

Which of the following sources of employee rights stems from employer grants or promises?

a. civil rights b. enterprise rights c. statutory rights d. union membership rights Answer is B

SLP Ltd, a healthcare equipment manufacturer, engages and collaborates with external stakeholders to advance its community involvement strategy on a regular basis. Which standard of excellence in corporate community involvement does SLP adhere to when it does this?

a. communication b. community relationship c. leadership d. strategy Answer is B

The Global Compact brings together many _____ to support universal environmental and social principles.

a. companies b. environmentalists c. governments d. individuals Answer is A

Which of the following is the underlying rationale for affirmative action?

a. compensatory justice b. restorative justice c. retributive justice d. the golden rule Answer is A

After a decision to close the business or plant is made, the business should first:

a. conduct a community-impact analysis. b. phase out the business gradually. c. provide advance notice to the employees and community. d. provide transfer, relocation, and outplacement benefits. Answer is A

Which ethical theory focuses on the relative vulnerability of the customer, who has less information and expertise than the firm, and the ethical responsibility that places on the firm?

a. contractual theory b. due care theory c. due diligence theory d. economic theory Answer is B

Which of the following has been a challenge associated with the Family and Medical Leave Act?

a. defining a serious medical condition b. employees taking scheduled leaves c. employees taking 12 weeks of unpaid leave d. reinstating employees in their old jobs upon return to work Answer is A

In order to reduce costs, a plastic manufacturer disposes of toxic waste by dumping it into a river adjacent to its factory without proper treatment. This gives rise to a situation known as a(n):

a. derived demand b. lemon problem c. moral suasion d. negative externality Answer is D

If the world continues on a path of unrestrained growth, environmental problems will:

a. eventually catch up. b. gradually reduce in severity. c. change in degree from significant to severe. d. globally increase uniformly. Answer is C

An unspoken promise that there is nothing significantly wrong with the product and that it can be used for the purposes intended is called a(n):

a. express warranty. b. full warranty. c. implied warranty. d. limited warranty. Answer is C

In Six Sigma, a higher value of sigma means:

a. fewer defects. b. higher profits. c. increased market share. d. lower competition. Answer is A

The relocation of business processes to a different country is termed as _____.

a. focus relocation. b. insourcing. c. offshoring. d. outsourcing. Answer is C

Which of the following do employees of the present-day workforce value more in a job?

a. guarantee of long-term employment b. competitive pay and benefits c. focus on one task for a long period of time d. reduced requirement to develop new skills Answer is B

Affirmative action has been controversial, and has led to charges of:

a. harassment. b. mandatory testing. c. reverse discrimination. d. unequal responses. Answer is C

Which of the following is defined as a state of equilibrium where the demands of a person's personal and professional life are equal?

a. human capital management b. quality of work c. total work management d. work-life balance Answer is D

The National Advertising Division (NAD) sustains truth and accuracy in national advertising by:

a. initiating investigations into potential misconduct in campaigns. b. making decisions as to whether an advertiser's claims are substantiated. c. providing a low-cost alternative to litigation. d. All of these. Answer is D

Disparate treatment:

a. is a form of institutionalized non-discrimination. b. is the same as disparate impact. c. means that different groups are treated unequally. d. means that the outcomes differ for different groups. Answer is C

A "connected" PAC is one that:

a. is associated with a specific group or organization. b. consists of related members. c. consists of members in the same industry. d. is sponsored by the government. Answer is A

Comparative advertising:

a. is the method of advertising advocated by most consumer groups. b. is the primary reason for improved product quality. c. reduces competition in the market. d. threatens to affect advertising negatively. Answer is D

The ADA requires an employer to make reasonable accommodations for a qualified but disabled employee unless:

a. it is too expensive. b. the employer does not find it necessary. c. it is unreasonable. d. it is an undue hardship Answer is D

Identify the third step involved in developing a community action program.

a. knowing the community b. knowing the company's resources c. monitoring projects d. selecting projects to support Answer is D

Which of the following principles could be applied in environmental ethics to the greatest good for the greatest number of species and ecosystems?

a. liberalism b. totalitarianism c. utilitarianism d. virtual ethics Answer is C

Political accountability means:

a. making sure the candidate the corporation contributes to actually wins. b. accounting for all campaign expenditures. c. assuming responsibility for political actions and being answerable for them. d. making a choice in every election. Answer is C

Regarding corporate political spending, the controversial U.S. Supreme Court decision Citizens United v. Federal Election Commission has:

a. put businesses on a more even footing with government. b. improved government power over businesses. c. tipped the balance heavily in favor of business. d. maintained the status quo. Answer is C

The Occupational Safety and Health Act (OSHA) can apply the 'general duty clause' to hold a company liable for a workplace violence issue if:

a. the complete elimination or removal of the hazard was not feasible. b. the employer did not neglect to keep the workplace free from a hazard. c. the hazard is generally unrecognizable by the employer or industry. d. the hazard was likely to cause serious harm. Answer is D

Belief in which of the following stands in direct opposition to the employment-at-will doctrine?

a. the good cause norm b. the good faith principle c. the implied contract exception d. the new social contract Answer is A

Which of the four rights under the "Consumer's Magna Carta" is intimately related to marketing and advertising?

a. the right to be heard b. the right to be informed c. the right to choose d. the right to safety Answer is B

Which of the following is a major function of the Federal Trade Commission (FTC)?

a. to compare advertising practices with international advertising bodies b. to ensure healthy competition among advertising firms c. to protect consumers from unfair trading practices d. to support advertising firms in legal issues against consumers Answer is C

What was the primary objective of the Civil Rights Act of 1991?

a. to have employers perform affirmative action in order to employ disabled workers b. to prohibit discrimination based on mental and physical disabilities in private places of employment c. to prohibit sex discrimination against women in organizations, and to ensure equal pay for both sexes d. to provide increased financial damages to victims in cases of intentional discrimination Answer is D

Because the use of polygraph tests has been widely criticized, many firms have started:

a. to monitor their employees' activities more closely. b. to perform research on how to make polygraph tests more reliable. c. to rely solely on employment interviews. d. to use question-and-answer "integrity tests." Answer is D

The Age Discrimination in Employment Act protects workers who are:

a. under the age of 20. b. 30 years old or older. c. 40 years old or older. d. 50 years old or older. Answer is C

Ad creep

advertising has crept everywhere, into places that were once not considered acceptable for advertisements, including school buses, textbooks, doctors' offices, movies and historical monuments

Watershed

an area that drains to a common waterway. We all live in a watershed. Trillions of gallons of sewage & industrial waste are dumped into marine waters each year. These & other pollutants do significant damage coastal ecosystems, resulting in shellfish bed closures, seafood-related illnesses, and reduced shoreline protection from floods and storms. Once inconceivable, now 85% of the world's fisheries are at capacity, over capacity or have collapsed. The oceans are running out of fish to meet human needs. Conservation efforts have helped some species recover, and such efforts continue.

Political accountability

an assumption of responsibility for political actions, and a willingness to answer for them. Today, corporations have unprecedented freedom to pursue their political agendas; restrictions on the money they can spend are gone. Multiple opportunities exist to hide the nature of their activities from public view. This freedom brings a duty for corporations to be responsible; a movement to promote corporate political accountability has formed.

Political Action Committees (PACs)

are committees organized to raise and spend money for political candidates, ballot initiatives, and proposed legislation.

Gender issues

are different from those involving race, color and national origin. Major issues for women include: • Getting out of traditional "women's" jobs, and into professional and managerial positions • Achieving pay commensurate with that of men • Eliminating sexual harassment • Being able to take maternity leave without losing their jobs

Context for Strategy and Rivalry

businesses are helping to build a better competitive environment—one that rewards fair competition.

Diversity fatigue

companies fail to rethink management style and are simply "box-ticking"

Nonconnected PAC

can accept funds from any individual or organization, including a connected PAC, as long as those contributions are legal.

Related and Supporting Industries

can also be strengthened through strategic giving

Public-Government relationship

• Public influences government through voting and forming special interest groups. • Government influences the public with politicking, public policy formation, and other political influences.

Umbrella Trade Associations

- Broadest representation - Chamber of Commerce - National Association of Manufacturers - Business Roundtable - National Federation of Independent Businesses - State Chambers of Commerce - City Chambers of commerce

Business Beliefs

- individualistic ethic - maximum concession to self interest - minimizing the load of obligations society imposes on the individual (personal freedom) - emphasizes inequalities of individuals

7 common causes of workplace accidents

1. Shortcuts 2. Overconfidence 3. Poor or Lack of Housekeeping 4. Starting a Task Before Getting Necessary Information 5. Neglecting Safety Procedures 6. Mental Distractions 7. Lack of Preparation

Two events are forerunners of workplace safety initiative

1. The death by cyanide poisoning of an employee of Film Recovery Systems. 2. The poisonous gas leak at the Union Carbide Plant in Bhopal, India.

Employers are held liable for an unsafe act when

1. The employer neglected to keep the workplace free from a hazard. 2. The hazard was one that is generally recognized by the employer or the industry. 3. The hazard was already causing or likely to cause serious harm. 4. Elimination or removal of the hazard was feasible

Giving to the Third Sector: Nonprofits

Business and government - are supported by profits and taxes The third sector - (churches, museums, hospitals, libraries, colleges, and more) depends on philanthropy. Why do companies give? • Charitable - (no expected benefit for the business) • Community - (gifts support business goals) • Commercial - (giving that benefits the business)

A Brief History of Corporate Philanthropy

Community chest efforts dominated early giving Since 1960, giving has grown to address a variety of initiatives Now, the watchword is "strategic philanthropy" which benefits both society and the business

The Needs of Survivors

Emotional Support Directional Support Tactical Support Informational Support

Amoral management

Employees are treated as the law requires.

Moral management

Employees are viewed as a human resource that must be treated with dignity and respect.

Food and Drug Administration

Grew out of experiments with food safety by Harvey W. Wiley in the late 1800s. The FDA resides within the Health and Human Services Department

Old Social Contract

Job Security Life careers with one employer Stable positions/job assignments Loyalty to employer Paternalism Employee sense of entitlement Stable, rising income Job-related skill training Focus on individual accomplishments

1989 Whistleblower Protection Act

Makes it for federal employees to report wrongdoing on part of their boss or agency without retribution

Equal Credit Opportunity Act

Prohibits discrimination in extending consumer credit.

Equal Pay Act of 1963

Prohibits sex discrimination in payment of wages to women and men who perform substantially equal work

Carbon Footprint

The amount of greenhouse gases one emits

Offshoring

The relocation of business processes to a different country. Popular when tech jobs became cheaper to do overseas - thanks to high-speed data and the Internet. Began with blue-collar, factory jobs, more recently effected white-collar jobs

Reshoring

returning of business processes to their original location; the costs often outweighed the benefits