Entrepreneurship small business Exam 1 (ch.3)

What are the three steps to Hosmer ethical decision approach?

1) Define the moral problem 2) Generate alternatives that could meet the ethical, legal, and economic goals every business must balance. 3) Implement---- pick the best alternative you and your business can live with and implement it.

Everything outside the business is its __?

environment

What are some low-cost and fast ways to monitor the environment ?

-Look for trends and future-looking in industry or members of your task environment. -Ask customers, suppliers, banker, attorney and accountants what they see on horizon for business -Keeping notes on something that bothers you -Subscribing to magazines/newspapers etc.

What are the four philosophies you should try when making an ethical decision ?

1) Am I treating others he way I would want to be treated? 2) Is my solution the best thing for the most people over the long term? 3) What if everyone did what I want to do? What kind of world would it be? 4) What if my decision were advertised on a billboard?

What are the three classes of ethical standards found in research on existing codes of ethics?

1) Employees should be dependable organizational citizens 2) Do not do anything that will harm the organization 3) Be good to customers

What are the four philosophies you can use to check solutions?

1) Golden Rule 2) Utilitarianism 3) Universalism 4)Billboard principle

caveat emptor

A Latin expression which means "let the buyer beware" which has been made into a philosophy sometimes used by businesses to put the burden for consumer protection onto the customer.

General environment

A part of the external environment made up of sectors of major forces that shape the people and institution of the task and internal environments, such as the economic sector or demographic sector.

Task environment

A part of the external environment made up of those components that' the firms deals with directly such as customers, suppliers, consultants, media, interest groups, and the like.

Organizational culture

A set of shared beliefs, basic assumptions, or common, accepted ways of dealing with problems and challenges within a company that demonstrates how things get done.

Ethical dilemma

A situation that occurs when a person's values are in conflict. making it unclear whether a particular decision is the right thing to do.

Ethics

A system of values that people consider in determining whether actions are right or wrong.

BATNA

An acronym for "Best Alternative To a Negotiated Settlement" in which the second-best outcome is identified by the parties in a negotiation to help clarify the value of achieving a successful negotiation.

Sustainable entrepreneurship

An approach to operating a firm or a line of business which identifies, creates and exploits opportunities to make a profit in a way that can minimize the depletion of natural resources, maximize the use of a recycled material, or improve the environment

Billboard principle

An ethical model that asks whether someone would be comfortable having his or her decision and name advertised on a billboard for the public to see.

Universalism

An ethical model that suggests that there is a code of right and wrong that everyone can see and follow.

Utilitarianism

An ethical model that supports seeking the greatest good for the greatest number of people.

Golden Rule

An ethical model which suggests you treat others in the manner you wish to be treated.

What is part of the task environment?

Customers, media, interest groups, government, lenders, professional support, unions, subcontractors, Allies: corporate partners, distributors, suppliers, and competitors.

What sectors are in the general environment ?

Economic sector, International sector, political-legal sector, demographic sector, ecosystem/infrastructure sector, sociocultural sector, technological sector

Who is part of the internal environment?

Employees, owners and board of directors

Networking

Interacting with others in order to build relationships useful to a business.

Who came up with a model widely used today that focues more on a big business than small ones that involves making an ethical decision ?

LaRue Hosmer

___ is the belief that your firm is worthy of their business.

Legitimacy

organizational identity

Part of the BRIE model; composed of the name, description, and distinctive elements of a firm, such as trademarks, uniforms. logos, characters, and stories.

ISO

Stands for the International Standards Organization, and refers to certification for having met a standard of quality that is consistently evaluated around the world.

Baldrige Award

The Malcom Baldrige National quality award is given by the U.S government to businesses and nonprofit organizations that have been judged outstanding in seven measures of quality leadership; strategic planning; customer and market focus; measurement, analysis, and knowledge management; human resource focus; process management; and results.

Mutuality

The action of each person helping another.

social network

The entrepreneur's set of relationships and contacts with individuals and institutions.

External environment

The forces, institutions and people outside the boundary of the firm.

external relations

The general description for the processes and skills used in the management of a firm's interactions with people, organizations, and institutions outside of its boundary.

environment

The sum total of forces outside of the entrepreneur and the firm.

Using ___ and ___ can help the firm be greener.

audits; certifications

____ can lead to potentially risky ethical situations.

innovations

Legitimacy is a way to build what?

social capital

Bootstrapping

using low-cost or free techniques to minimize your cost of doing business.

Green entrepreneurship

Another term for sustainable entrepreneurship taken firm the popular belief that green is the color of a healthy environment, as in forests or fields.

Social capital

Characteristic of a business, like trusts, consistency, and networks, that represent potential social obligations which are an asset of the firm or entrepreneur.

What two environments are external environments?

1) The general environment 2) The task environment

What are the 6 steps to follow when handling a crisis?

1) admit you're in trouble 2) Get to the scene as soon as possible 3) Communcate facts you know to employees, customers, and suppliers 4) Have one person serve as the firm's spokesperson 5) Separate crisis management from the everyday management of the firm 6) Deal with the crisis quickly

What are the five skills for managing relations with the environment?

1) building legitimacy 2) developing a social network 3) Handling a crisis 4) Achieving sustainability 5) making ethical decisions

Legitimacy

The belief that a firm is worthy of consideration or doing business with because of the impressions or opinions of customers, suppliers, investors, or competitors.

Trade magazines

The magazines that target specific industries and professions.

Internal environment

The people and groups within the boundary of a firm, including the owners, managers, employees, and broad members if the firm.

What is the website that the federal government has created to help small businesses with crisis planning? And what are the three recommended steps?

www.ready.gov ; 1) plan to stay in business 2)Talk to your people 3) Protect your investments