Business and Society MidTerm

civil society

nonprofit, educational, religious, community, family, and interest-group orgs; social organizations that do not have a commercial or governmental purpose

microfinance

occurs when financial organizations provide loans to low-income clients or a community of borrowers who traditionally lack access to banking or related services

conflict of interest

occurs when individual's self interest conflicts with acting in the best of another, wen the individual has an obligation to do so

anti-american

opposition to the U.S.A., or to its people, principles or policies

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business ethics

the application of general ethical ideas to business behavior

Sarbanes-Oxley Act

U.S. law enacted in 2002 that greatly expanded the powers of the SEC to regulate information disclosure in the financial markets and the accountability of an organization's senior leadership regarding the accuracy of this disclosure

issue management process

a 5 step process where mangers identify the issue, analyze the issue, generate options, take action, and evaluate results

ethical relativism

a belief that ethical right and wrong are defined by various periods of time in history, a society's tradition, the specific circumstances of the moment, or personal opinion

social enterprise

a business that adopts social benefits as its core mission and uses its resources to improve human and environmental well-being

b corporation

a business that is certified by an external organization to verify the blending of its social objectives with its financial goals

trade association

a coalition of companies in the same or related industries seeking to coordinate their economic or political power to further their agenda

global action network (GAN)

a collaborative, multi secular partnership focused on particular social issues or problems in the global economy

ethics

a conception of right and wrong conduct, serving as a guide to moral behavior

stakeholder networks

a connected assembly of concerned individuals or organizations defined by their shared focus on a particular issue, problem, or opportunity

department of corporate citizenship

a department created in a business to centralize under common leadership wide ranging corporate citizenship functions

democracy

a form of government in which power is vested in the people and exercised by them directly or by their elected representatives

stakeholder map

a graphical representation of the relationship of stockholder salience to a particular issue

environmental analysis

a method managers use to gather information about external issues and trends

stakeholder

a person or group that affects or is affected by a corporations decisions, policies, and operations

ethical egoist

a person who puts his/her own selfish interest above all other considerations, while denying the ethical needs and beliefs of others

spirituality

a personal belief in a supreme being, religious organization, or the power of nature or some other external, life-guiding force

public policy

a plan of action undertaken by government officials to achieve some broad purpose affecting a substantial segment of the public

economic leverage

a politcal tool where a business uses its economic power to threaten to relocate its operations unless a desired political action is taken

advocacy advertising

a political tool used by companies to promote their viewpoint though the media

military dictatorship

a repressive regime ruled by a dictator who exercises total power through control of the armed forces

stages of moral development

a sequential pattern of how people grow and develop in their moral thinking, beginning with a concern for the self and growing to a concern for others and broad based principles

free enterprise system

a socioeconomic system based on private ownership, profit-seeking business forms and the principle of free markets

central state control (system)

a socioeconomic system in which economic power is concentrated in the hards of government officials and political authorities. the central government owns the property is used to produce goods and services, and most private markets are illegal

non-market stakeholder

a stakeholder that doesn't engage in direct economic exchange with a company, but is affected by or can affect its actions

market stakeholder

a stakeholder that engages in economic transactions with a company

stakeholder salience

a stakeholders ability to stand out from the background, to be seen as important, or to draw attention to itself or its issue. stockholders are more salient when they posses power, legitimacy, and urgency

social audit

a systematic evaluation of an organizations social, ethical, and environment performance

general system theory

a theory that holds that all organizations are open to, and interact with, their external environment

stakeholder theory of the firm

a theory that holds that the purpose of the firm is to create value for society

ownership theory of the firm

a theory that holds that the purpose of the firm is to maximize the long-term return for its shareholders (aka property of finance)

environmental intelligence

acquisition of information gained from analyzing the multiple environments affecting organizations

stakeholder coalitions

alliances among a company's stakeholders to pursue a common interest

stakeholder analysis

an analytic process used by managers that identifies the relevant stockholders in a particular situation and seeks to understand their interests, power and likely coalitions

human rights

an ethical approach emphasizing a person or group's entitlement to something or to be treated in a certain way, such as the right to life, safety, or to be informed

utilitarian reasoning

an ethical approach that emphasizes the consequences of an action and seeks the action or decision where the benefits most outweigh the costs

justice

an ethical approach that emphasizes whether the distribution of benefits and burdens away people fair, according to some agreed upon rule

political action committee (PAC)

an independently incorporated organization that can solicit contributions and ten channels those funds to candidates seeking political office

social entrepreneur

an individual driven to create and sustain social value rather than solely economic value in business

international monetary fund (IMF)

an international financial institution that lends foreign exchange to member nations so they can participate in global trade

world bank (WB)

an international financial institution that proceeds economic development loans to member nations

public issue

an issue is of mutual concern to an organization and its stakeholders, sometimes called a social or sociopolitical issue

stakeholder engagement

an ongoing process of relationship building between a business and its stakeholders

world trade organization (WTO)

an organization of member nations that establishes the ground rules for trade among nations

business

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

super PAC

an organization that raises and spends money focusing on political issues but is not directly affiliated with any political campaign; also called an independent expenditure-only committee

return on social investment

benefits of a business's social actions that accrue to both business and society

citizenship profile

choosing a configuration of citizenship activities that fits the setting in which the company is working

transparency

clear public reporting of an organizations performance to various stakeholders

stakeholder dialogue

conversations between representative of a company and it stakeholders about issues of common concern

transnational corporation (TNC)

corporations that operate and control assets across national boundaries

boundary-spanning departments

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

social equity

determined by assessing the company social benefits and costs, as revealed by a social performance audit

virtue ethics

focuses on character traits to define a good person, theorizing that values will direct a person toward good behavior

the business roundtable

founded in 1972, an organization of chief executive officers from leading corporations involved in various public issues and legislation

monetary policy

government actions that affect the supply, demand, and value of money in the economy

social assistance policies

government programs aimed at improving social welfare in such areas as health care and education

527 organizations

groups organized under section 527 of the Internal Revenue Service tax code for the purpose of donating money to candidates for public office and influencing electrons

ethical principles

guides to moral behavior, such as honesty, keeping promises, helping others, and respecting others rights

cost-benefit analysis

helps the public understand what is at stake when new regulation is sought

market failure

inability of the market place to properly adjust prices of the true costs of a firm's behavior

external stakeholder

individuals or groups that make important transactions with a firm but are not directly employed by the firm, such as customers or suppliers

internal stakholder

individuals who are employed by the firm, such as employees and managers

international financial and trade institutions (IFTI)

institutions, such as the world bank, international monetary fund, and world trade organization, that establish the rules by which international commerce is conducted

antitrust laws

laws that promote competition or that oppose trusts, monopolies, or other business combinations that restrain trade

Dodd-Frank Act

legislation passed in the US in 2011 in response to the financial crisis; extensively reformed the regulation of financial institutions such as banks and credit rating agencies, established on new consumer financial protection bureau, and changed corporate governance and executive compensation rules

public affairs department

manages the firm's interactions with governments at all levels and to promote the firm's interest in the political process

leadership PAC

organization that collects political contributions on behalf of a politician and uses them to support others' campaigns, showing the politician's leadership within the political party

nongovernmental organization (NGO)

organization that doesn't have a governmental or commercial purpose, such as religious, community family, and interests group organization. Also called civil society/civil sector organization

society

refers to human beings and to the social structures they collectively create; specifically refers to segments of humankind, such as members of a particular community, nation, or interest group

global corporate citizenship

refers to putting an organizations commitment to social and environmental responsibility into practice worldwide

social regulation

regulations intended to accomplish certain social improvements such as equal employment opportunity, on-the-job safety and health, and the protection of the natural environment

negative failure

results when the manufacture or distribution of a product gives rise to unplanned or unintended costs

integrity capital

return when ethical performance is linked with financial performance

U.S. corporate sentencing guidelines

standards to help judges determine the appropriate penalty for criminal violations of federal laws and provide a strong incentive for businesses to promote ethics at work

auditing process

systems used by a business to ensure compliance with an industry or global set of standards

stakeholder power

the ability of one or more stakeholders to achieve a desired outcome in their interactions with a company. The 5 types are voting, economic, political, legal, and informational power

lobbying

the act of trying to directly shape or influence a government officials understanding and position on a public policy issue

regulation

the action of government to establish rules by which industry or other groups must behave in conducting their normal activities

issue management

the active management of public issues once they come to the attention of a business organization

iron law of responsibility

the belief that those who dont use their power in ways that society considers responsible will tend to lose their power in the long run

ad hoc coalitions

the bringing together of diverse groups to organize for or against legislation or regulation

revolving door

the circulation of individuals between business and government positions

interactive social system

the closely intertwined relationships between business and society

bundling

the collection of political contributions made by an organization's stakeholders to increase the organization's ability to influence a political agent

reputation

the desirable or undesirable qualities associated with an organization or its actors that may influence the organization's relationships with its stakeholders

corporate social responsibility

the idea that businesses should act in a way that enhances society and their stakeholders and be held accountable for any of its actions that affect people, their communities and their environment

debt relief

the idea that the worlds richest nations should forgive poor nations obligation to pay back loans

social entrepreneurship

the identification of a social need and using entreprenual skills to address this need

triple bottom line

the measurement of an organization on the basis of its economic results, environmental impact, and contribution to social well-being

globalization

the movement of goods, services and capital across national borders

stakeholder interest

the nature of each stakeholder group, its concerns, and what it wants from its relationship with the firm

economic regulation

the oldest form of regulation in the U.S., aimed at notifying the normal operations of the free market and the forces of supply and demand

focal organization

the organization central to the stakeholder analysis being conducted

fiscal policy

the patterns if taxing and spending adopted by a government to stimulate or support and demand

performance-expectations gap

the perceived distance between what a form want to do or is doing and what the stakeholder expects

predatory pricing

the practice of selling below cost to drive rivals out of business

deregulation

the removal or scaling down of regulation, authority and regulatory activities of government

corporate power

the strength or capability of corporations to influence government, the economy, and society, based on their organizational resources

competitive intelligence

the systematic and continuous process of gathering, analyzing, and managing external information on the organizations competitors

enlightened self-interest

the view that hold it is in a company self-interest in the long run to provide true value to its stakeholders

bottom of the pyramid

the world's poor; also refer to creative business actions to develop products and services that meet the needs of the world's poor

corporate citizenship

this term broadly refers to putting corporate social responsibility into practice through stakeholder partnerships, serving society, and integrating financial and social performance

corporate political strategy

those activities taken by an organization to acquire, develop, and use power to achieve a political advantage

soft money

unlimited political contributions made to a political party by individuals or organizations, but not by businesses or labor unions, to support party-building activities

foreign direct investment (FDI)

when a company, individual, or fund invests money in another country

constructive engagement

when transitional corporations guided by strong moral principles become a force for positive change in other nations where they operate

natural monopolies

where a concentration of the market is acquired by a few firms due to the nature of the industry rather than because of company practices