business management chapter 3

argument for csr

ethical obligation : a company must be concerned for society's welfare as well as for corporate profits

international forces

in general environment, changes in the economic, political, legal, and technological global system that may affect an organization

political-legal forces

in general environment, changes in the way politics shape laws and laws shape the opportunities for and threats to an organization

economic forces

in general environment, consist of the general economic conditions and trends (unemployment, inflation, interest rates, economic growth) that may affect an organization's performance.

sociocultural forces

in general environment, influences and trends originating in a country's, a society's, or a culture's human relationships and values that may affect an organization

demographic forces

in general environment, influences on an organization arising from changes in the characteristics of a population, such as age, gender, or ethnic origin

technological forces

in general environment, new developments in methods for transforming resources into goods or services

local communities

in task environment

distributors

in task environment, a person or an organization that helps another organization sell its goods and services to customers

suppliers

in task environment, a person or an organization that provides supplies (raw materials, services, equipment, labor, energy) to other organizations

strategic allies

in task environment, describes the relationship of two organizations who join forces to achieve advantages neither can perform as well alone.

special interest groups

in task environment, groups whose members try to influence specific issues, some of which may affect your organization

competitors

in task environment, people or organizations that compete for customer resources

financial institutions

in task environment, places that make loans to start-ups, like banks, saving and loans, credit unions, and crowdsourcing/crowdfunding. Also, established companies need loans when revenues are down or to finance expansions, which they get from commercial banks, investment banks, and insurance companies

mass media

in task environment, print, radio, tv, internet, rapidly and widely disseminate news both bad and good

argument against csr

Friedman: unless a company focuses on maximizing profits, it will become distracted and fail to provide goods and services, benefit the stockholders, create jobs, and expand economic growth

argument for csr

being socially responsible gives businesses a favorable public image that can help head off government regulation

argument for csr

businesses have the resources to solve problems in ways that the non-profit sector does not

government regulators

in task environment, regulatory agencies that establish ground rules under which organizations may operate, such as the FDA. These are considered stakeholders because they affect activities of your organization and they as well are affected by your activities.

customers

in task environment, those who pay to use an organization's goods or services

employee organizations

in task environment, unions and associations representing labor force

Task environment

one of the two groups in external stakeholders; consists of 11 groups that present you with daily tasks to handle: customers, competitors, suppliers, distributors, strategic allies, employee organizations, local communities, financial institutions, government regulators, special-interest groups, and mass media

general environment

one of the two groups of external stakeholders, forces you can't control but profoundly affect your organization's task environment. consists of 6 forces: economic, technological, sociocultural, demographic, political-legal, and international

argument for csr

rational view : since businesses create problems, they should help solve them

corporate social responsibility

the notion that corporations are expected to go above and beyond following the law and making a profit