Chapter 5 Study Guide

integrated report

Another term for sustainability reports, also known as social responsibility reports, or social audits.

corporate public affairs

Businesses encounter several situations daily that involve highly visible public and ethical issues, including those that are subject to intensive public debate for specific periods before being institutionalized.

business-level strategy

Concerned with the question, "How should we compete in a given business or industry?"

public affairs departments

Issues management and crisis management programs are housed in public affairs departments or intimately involve PA professionals. Corporate PA also embraces the broad areas of governmental relations and corporate communications.

bottom of the pyramid (BOP)

It is a term used to characterize the largest and poorest socioeconomic group of people, the billions of people who live on less than $2 a day.

enterprise-level strategy

The overarching strategy level that poses such basic questions as, "What is the role of the organization in society?" and "For what do we stand?"

crisis management

The process by which the company deals with major threats that may harm the company.

issue management

The process by which the company deals with major threats that may harm the company.

As the field of corporate public affairs grows, PA executives may have the opportunity to:

all of these

The Porter and Kramer Framework links corporate social responsibility with:

competitive advantage

_____ addresses what is often posed as the most defining business question for a firm, "In what business(es) should we be?"

corporate-level strategy

__________ strategy, which helps companies avoid disasters like the BP Deepwater Horizon spill, may be considered the first and most important level at which ethics and strategy are linked.

enterprise-level

The _____ is the overarching strategy level that helps an organization decide its role in society.

enterprise-level strategy

The final step in the strategic management process is:

environmental analysis

In ________ strategy, companies analyze whether their finance, marketing, HR, IT, and operations departments are working in ways that are consistent with their values.

functional level

The first step in the strategic management process is:

goal formulation

To be effective, public affairs functions must:

have influence at the top management level

The Benefit Corporation:

is created with the goal of benefiting society

To be effective, sustainable corporate performance must be:

measured

strategic management process

(1) goal formulation, (2) strategy formulation, (3) strategy evaluation, (4) strategy implementation, (5) strategic control, and (6) environmental analysis.

shared value

A concept that holds that economic and social goals are not mutually exclusive—business can pursue profit while also promoting the common good.

public affairs strategy

A firm's posture on the public, social, or stakeholder environment or specific issues within this environment.

corporate public policy

A firm's posture, stance, strategy, or position regarding the environmental, social, global, and ethical aspects of stakeholders and corporate functioning.

Global Reporting Initiative (GRI)

A standardization initiative launched by 300 leading corporations in conjunction with the UN Environment Programme (UNEP) with the mission of developing globally applicable guidelines for reporting on the economic, environmental, and social performance of corporations, governments, and nongovernmental organizations (NGOs).

functional-level strategy

Addresses the question, "How should a firm integrate its various subfunctional activities and how should these activities be related to changes taking place in the diverse functional areas (finance, marketing, human resources, and operations)?"

corporate-level strategy

Addresses what are often posed as the most defining business question for a firm, "In what business(es) should we be?"

In an ethics-related interview with the CEO of a leading oil-exploration company, we may learn that:

An effective review of ethical standards requires commitment from top-level managers

sustainability report

An effort to measure a firm's overall value creation and to spur integrated thinking that recognizes the interconnections of the range of business functions, as well as the multiple business bottom lines.

B corporation

Organizations certified by the nonprofit group B Lab as being benefit corporations based on their accountability, transparency, and social responsibility. Notable B Corporations include Ben & Jerry's, Etsy, and Patagonia, which altered its bylaws and went through a rigorous assessment to reincorporate as a Benefit Corporation in 2011.

benefit corporation

Permits corporations to pursue stakeholder and societal welfare maximization as well as shareholder wealth maximization because benefit corporations have a broader mission that includes having a positive impact on society.

strategic management

Refers to the overall management process that strives to identify corporate purpose and position a firm to succeed in its market environment by achieving competitive advantage.

value shift

Requires firms to get back to basics and adopt a different kind of management than that often practiced by companies.

social aduit

Social audits, social responsibility reports, and environmental impact reports focus on specific areas whereas Integrated Reports focus on broad sustainability reporting.

social responsibility report

Social audits, social responsibility reports, and environmental impact reports focus on specific areas whereas Integrated Reports focus on broad sustainability reporting.

social entrepreneurship

Social entrepreneurs differ from traditional entrepreneurs in that the social entrepreneurship enterprise has a mission of societal value creation as its reason for being.

core values

The deeply ingrained principles that guide all of a company's actions and decisions, and they serve as cultural cornerstones.

The terms enterprise-level strategy and _____ may be used interchangeably.

societal-level strategy

_____ refers to the overall management process that strives to identify corporate purpose and position a firm to succeed in its market environment.

strategic management