mgmt 320 (1&2&3)

sovereign wealth funds (They are most commonly operated by nations that export large amounts of oil and manufactured goods)

An emerging trend in foreign direct investment is the rise of ________. These are funds operated by governments to invest their foreign currency reserves.

business

As a set of organizations created by humans, _____ is clearly a part of society. At the same time, it is also a distinct entity, separated from the rest of society by clear boundaries. *Organizations engaged in making a product or providing a service for profit

unique transaction; two-way exchange

Each relationship between a business and one of its market stakeholders is based on a _______, or _______.

global supply chains (Boeing) -Source

Establish supply chains in target countries to gain market access

global market channels (Nestlé ) －Sell

First build a successful business in home country, then export products or services to other countries.

1. help social development 2. provide employment in underserved communities 3. recap profits

Focusing on the bottom of the pyramid can: (3)

international financial and trade institution (IFTI)

Following are important ________ Three institutions that set the rules by which international commerce is transacted: World Bank (WB) International Monetary Fund (IMF) World Trade Organization (WTO)

global operations (Ford, BMW) -Make

Locate manufacturing plants or service operations in other countries as a way to cut costs, increase market access

stakeholder map (enables managers to visualize the relative power stakeholders hold with respect to an issue) 横坐标：position on the issue--against/for 纵坐标：stakeholder salience--low/high

Managers can use the salience concept to develop a _________, a graphical representation of the relationship of stakeholder salience to a particular issue

nothing

Non-market stakeholders are not necessarily less important than others, simply because they do not engage in direct economic exchange with a business. On the contrary, interactions with such groups can be critical to a firm's success or failure.

1. voting power (company voting, not political voting) 2. political power (protest, vote for candidates that support their views) 3. economic power (boycott not buying products) 4. legal power (lawsuits) 5. informational power (access to data/facts/details, like Yelp-use social network to express view)

Stakeholders have 5 different kinds of power:

descriptive, instrumental, and normative.

Supporters of the stakeholder theory of the firm make three core arguments for their position:

interactive social system

Systems theory helps us understand how business and society form an _____

Index of Economic Freedom (Among the freest nations: Hong Kong, Singapore, and New Zealand. Among the most repressed were Cuba, Venezuela, and—the least free in the world—North Korea. )

The Heritage Foundation has scored the nations of the world according to an _______: the fundamental rights of every human being to control his or her own labor and property.

rounds

The WTO conducts multiyear negotiations, called _____, on various trade-related topics, rotating its meetings among different cities

instrumental

The ____ argument says that stakeholder management is more effective as a corporate strategy. (companies that behave responsibly toward multiple stakeholder groups perform better financially)

normative (Corporations have great power and control vast resources; these privileges carry with them a duty toward all those affected by a corporation's actions. Moreover, all stakeholders, not just owners, contribute something of value to the corporation. )

The _____ argument says that stakeholder management is simply the right thing to do.

fiduciary

The legal term ____ means a person who exercises power on behalf of another, that is, who acts as the other's agent

power, legitimacy, urgency.

The more of these three attributes a stakeholder possesses, the greater the stakeholder's salience and the more likely that managers will notice and respond.

focal organization,

The organization from whose perspective the analysis is conducted is called the ______

ownership theory of the firm (finance or property theory)

The purpose of the firm is to maximize its long-term market value, that is, to make the most money it can for shareholders who own stock in the company. (owners' interests are paramount and take precedence over the interests of others.)

descriptive

The______ argument says that the stakeholder view is simply a more realistic description of how companies really work. (managers have to be concerned with products & services & employees&government regulations, not only achieve good financial performance)

stakeholder theory of the firm (contrast to ownership theory of the firm)

-argues that corporations serve a broad public purpose: to create value for society. -corporations have multiple obligations -all stakeholders' interests must be taken into account.

central state control

-economic power is concentrated in the hands of government officials and political authorities. -The central government owns the property that is used to produce goods and services

general systems theory (business firms are embedded in social structure) (The key to business survival: ability to adapt to changes in the environment)

-organizations can only be understood in the greater context of surroundings (do not exist in isolation) -argues that all organisms are open to, and interact with, their external environments. -Although most organisms have clear boundaries, they cannot be understood in isolation, but only in relationship to their surroundings.

stakeholder coalitions (Coalitions increasingly international & Internet has enabled coalitions to form quickly, across political boundaries.)

-temporary alliances to pursue a common interest -________ are not static (dynamic) （不是静止的，今天参与可能明天就不参与了）

International Monetary Fund (IMF) (governments cut spending devalue their currencies increase exports liberalize financial markets & reduce wages.)

1. "Sister" organization to World Bank, created at same time 2. Stabilizes monetary systems (currency exchange rate) to enable member countries to participate in global trade 3. Lends foreign exchange to member countries 4. Imposes conditions on governments that receive its loans

World Trade Organization (WTO) (successor of GATT) (does not lend money or foreign exchange; it simply sets the rules for international trade.)

1. International body that establishes the ground rules for trade among nations 2. Objective is to promote free trade, eliminate barriers to trade (e.g. quotas, duties and tariffs). 3. "Most favored nation" rule means members countries cannot discriminate against foreign products for any reason.

World Bank (WB),

1. Provides economic development loans to its member nations 2. Funds used mainly for infrastructure projects, also for education, health and social services. 3. Funding provided by member countries and international capital markets

1. who are the relevant stakeholders (not all stakeholders will be relevant) 2. what are the interest of each shareholders? 3. what is the power of each shareholders? 4. how are coalition likely to form?

4 key questions of stakeholder analysis

1. globalization 2. explosion of new technology 3. changing societal expectations 4. growing emphasis on ethical values 5. evolving government regulation of business 5. dynamic natural environment

6 dynamic forces that powerfully shape the business and society relationship

society,

=human beings and to the social structures they collectively create （背） =used to refer to segments of humankind, such as members of a particular community, nation, or interest group.

vulture fund

A _______ is a private equity fund (also called a hedge fund) that buys the debt of weak companies or heavily indebted countries with the intention of making a profit.

nothing

A stakeholder map is a useful tool, because it enables managers to see quickly how stakeholders feel about an issue and whether salient stakeholders tend to be in favor or opposed. It also helps managers see how stakeholder coalitions are likely to form, and what outcomes are likely. I

inversion

A strategy of acquiring or merging with a foreign firm in order to reduce corporate tax obligations at home & shifting headquarters here

foreign direct investment (FDI)

When a company, individual, or fund invests money in another country, buying shares of stock in or loaning money to a foreign firm

race to the bottom

When workers in Indonesia began organizing for higher wages, Nike Corporation moved much of its production to Vietnam and China. Many Indonesian workers lost their jobs. Some call this feature of global capitalism the _______

Wealth

____ refers to assets that a person accumulates and he or she owns at a point in time

Inequality

_____ may be measured in two ways: by wealth and income

Income

_____ refers to how much a person earns in a day or a year.

Legitimacy; Urgency

_____ refers to the extent to which a stakeholder's actions are seen as proper or appropriate by the broader society, because they are clearly affected by the company's actions. ______ refers to the time-sensitivity of a stakeholder's claim, that is, the extent to which it demands immediate action.

free enterprise system

______ are based on the principle of voluntary association and exchange. -In such a system, Members of society satisfy economic needs through voluntary market transactions

market stakeholder (supplier/stockholders/creditor/employee/customers) (involve transactions/two-way exchange)

______ engage in economic transactions with the company as it carries out its purpose of providing society with goods and services.

nongovernmental organizations (NGOs),

_______ are also called civil society organizations or civil sector organizations.

non-market stakeholder (community/government/nongovernmental organizations/business support groups/competitors/the general public)

_______ are people and groups who—although they do not engage in direct economic exchange with the firm—are nonetheless affected by or can affect its actions.

business (the most dominant institution in the world）

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

external stakeholder (supplier/society/creditors/shareholders/customers/government)

are those who—although they may have important transactions with the firm—are not directly employed by it.

1. increase economic productivity 2. reduce price for consumers 3. give developing countries access to foreign investing funds to support economic development 4. transfer technology 5. spreads democracy and freedoms, reduce military conflicts

benefits of globalization (5)

interdependent & co-dependent & interative (Business activities impact other activities in society, and actions by various social actors and governments continuously affect business. )

business and society are highly _______.

1. cause job insecurity 2. weaken environmental and labor standards 3. prevent individual nations from adopting polices promoting environmental or social objectives, if these discriminate against product from another country 4. erodes national and regional culture, undermine cultural, linguistic, and religious diversity 5. is compatible with despotism (专制政府：国际公司经常在专制政府国家交易因为管理劳动力高效容易改变环境政策）

cost of globalization

transnational corporation (TNC) （most global commerce is carried out by a small number of powerful firms）

defined by the United Nations as firms that control assets abroad

boundary-spanning departments (customer relations-customer services; HR-employees; investor relations-shareholder...)

departments, or offices, within an organization that reach across the dividing line that separates the company from groups and people in society.

global action network (GAN)

development of collaborative, multisector partnerships focused on particular social issues or problems in the global economy.

microfinance 1. Caters to "the productive poor" 2. Typically loans for $4000 or less 3. Profitable service

financial organizations provide loans to low-income clients or solidarity lending groups (a community of borrowers) who traditionally lack access to banking or related services.

bottom of the pyramid

individuals who earn below $3000 a year in local purchasing power

stakeholder analysis,

process to identify relevant stakeholders and to understand both their interests and the power they may have to assert these interests.

democracy

refers broadly to the presence of political freedom.

sector

refers to broad divisions of a whole

stakeholder (A single person or entity can wear multiple stakeholder hats)

refers to persons and groups that affect, or are affected by, an organization's decisions, policies, and operations.

anti-Americanism

reflects resentment at the penetration of the values of dominant U.S.-based transnational corporations into every corner of the world.

military dictatorships （Rights of citizens to organize for cultural or religious freedoms is restricted in others）

repressive regimes ruled by dictators who exercise total power through control of the armed forces

civil society (comprises nonprofit, educational, religious, community, family, and interest-group organizations)

social organizations that do not have a commercial or governmental purpose.

role sets

some individuals or groups may play multiple stakeholder roles. Some theorists use the term ______ to refer to this phenomenon.

1. identify issues 2. ask 4 key questions

stakeholder analysis process:

stakeholder power,

the ability to use resources to make an event happen or to secure a desired outcome.

globalization （Globalization is a process, an ongoing series of interrelated events.）

the increasing movement of goods, services, and capital across national borders

stakeholder interests,

the nature of each group's stake

business, government, and civil society

three major sectors that participate in global action networks

stakeholder salience (greater salience, more manager's attention)

when it stands out from a background, is seen as important, or draws attention.

internal stakeholder (manager&employees)

who are employed by the firm. They are "inside" the firm, in the sense that they contribute their effort and skill, usually at a company worksite.