MANA exam 1 study guide

Why do cross-cultural contradictions happen?

Different cultures have different opinions about ethics which sometimes causes discrepancies

What is a reason to support corporate social responsibility?

Balances corporate power with responsibility. Discourages government regulation. Promotes long-term profits for business. Improves stakeholder relationships. Enhances business reputation.

What is a problem with utilitarian reasoning?

It is often referred to as cost-benefit analysis because it compares the costs and benefits of a decision, a policy, or an action, The main drawback to utilitarian reasoning is the difficulty of accurately measuring both costs and benefits.

What is the purpose of the WTO?

Its major objective is to promote free trade; that is, to eliminate barriers to trade among nations, such as tariffs.

Understand the legal intelligence environment

Legal environment includes patents, copyrights, trademarks, considerations of intellectual property, and labor regulations, as well as antitrust considerations and trade protectionism and organizational liability issues.

Define Global Market Channel

Many companies first build a successful business in their home country and then export their products or services to buyers in other countries. In other words, they develop global market channels for their products.

4. What is a market stakeholder?

Market stakeholders are those that engage in economic transactions with the company as it carries out its purpose of providing society with goods and services.

Why do firms need a systematic way of identifying public issues?

Organizations need a systematic way of identifying, monitoring, and selecting public issues that warrant organizational action because of the risks or opportunities they present. Organizations rarely have full control of a public issue because of the many factors involved. But it is possible for the organization to create a management system that identifies and monitors issues as they emerge.

Understand the political environment intelligence

Political environment includes the structure, processes, and actions of all levels of government—local, state, national, and international. Awareness of the stability or instability of governments and their inclination or disinclination to pass laws and regulations is essential environmental intelligence for the organization.

Where do ethical beliefs come from?

Religion, family upbringing, society, media, culture

What is a compliance-based approach for employee behavior?

A compliance-based program seeks to avoid legal sanctions. This approach emphasizes the threat of detection and punishment in order to channel employee behavior in a lawful direction.

What is the issue management process

A process of proactively managing issues that arise. Identify Issue, Analyze Issue, Generate Options, Take Action, Evaluate Results

Why is an issue's public profile important to a manager?

An issue's public profile indicates to managers how significant an issue is for the organization, but it does not tell them what to do. The next step in the issue management process involves generating, evaluating, and selecting among possible options. This requires complex judgments that incorporate ethical considerations, the organization's reputation and good name, and other nonquantifiable factors.

What is a B Corporation?

B Corporations are businesses that focus on social responsibility and corporate citizenship by blending their social and environmental objectives with financial goals to use the power of business to solve social and sustainability challenges. To qualify for B Corporation status, an organization must meet rigorous, independent social and environmental performance standards, assessed by the nonprofit organization, B Lab.

What is a boundary spanning department?

Boundary-spanning departments are departments, or offices, within an organization that reach across the dividing line that separates the company from groups and people in society. Building positive and mutually beneficial relationships across organizational boundaries is a growing part of management's role.

Why do business managers need ethical guidelines?

Business managers and employees need a set of decision guidelines that will shape their thinking when on-the-job ethics issues occur.

What is the benefit of being a B corporation?

Certified B Corporations are more likely to receive various government recognitions, such as the U.S. Drug Administration's organic seal, to qualify for a LEED certification for their buildings (designating environmental excellence), or to be certified as engaging in fair trade.

Understand customer environmental intelligence.

Customer environmental intelligence is the acquisition of information that includes the demographic factors, such as gender, age, marital status, and other factors, of the organization's customers as well as their social values or preferences, buying preferences, and technology usage.

. What are examples of ethical challenges for information technology employees?

Ethical challenges in this field involve invasions of privacy; the collection and storage of, and access to, personal and business information, especially through e-commerce transactions; confidentiality of electronic mail communication; copyright protection regarding software, music, and intellectual property; cyberbullying; the emergence of artificial intelligence, and numerous others.

Who is most likely to report an ethical issue?

Executives tend to use the helpline more often than those farther down the organizational chart.

What is informational power?

Finally, stakeholders have informational power when they have access to valuable data, facts, or details and can bring their own information and perspectives to the attention of the public or key decision makers. With the explosive growth of technologies that facilitate the sharing of information, this kind of stakeholder power has become increasingly important.

What would be a conflict of interest for a purchasing agent?

For example, if a purchasing agent directed her company's orders to a firm from which she had received a valuable gift, regardless if this firm offered the best quality or value, she would have acted unethically because of a conflict of interest.

Why do some countries require public companies to include employee board members?

For example, several European countries—including Germany, France, Austria, Denmark, Finland, and Sweden—require public companies to include employee members on their boards of directors, so that their interests will be explicitly represented

What motivates corporate social reporting?

In a world where the use of company resources must be justified, the greater the social equity documented, the stronger the argument a business can make that it is meeting its social obligations. Businesses also used their social audit results to minimize risks or capitalize on opportunities.

Understand inactive, reactive, proactive, and interactive firms.

Inactive companies simply ignore stakeholder concerns. Companies that adopt a reactive posture generally act only when forced to do so, and then in a defensive manner. Proactive companies try to anticipate stakeholder concerns. These firms use environmental scanning practices to identify emerging public issues. interactive stance means that companies actively engage with stakeholders in an ongoing relationship of mutual respect, openness, and trust.

What is an integrity-based ethics program?

Integrity-based ethics programs combine a concern for the law with an emphasis on employee responsibility for ethical conduct. Employees are told to act with integrity and conduct their business dealings in an environment of honesty and fairness.

What else could you call a public issue?

Social Issue! A public issue is any issue that is of mutual concern to an organization and one or more of its stakeholders. (Public issues are sometimes also called social issues or sociopolitical issues

What is stakeholder materiality?

Stakeholder materiality is an adaptation of an accounting term that focuses on the importance or significance of something. (The relative importance of a factor determined the degree to which it was reported in financial statements.) In this case, materiality describes a method used to prioritize the relevance of the stakeholders and their issues to the company.

What is legal power?

Stakeholders have legal power when they sue a company for damages, based on harm caused by the firm; for instance, lawsuits brought by customers for damages caused by defective products, brought by employees for damages caused by workplace injury, or brought by environmentalists for damages caused by pollution or harm to species or habitat. After the mortgage lender Countrywide collapsed, many institutional shareholders, such as state pension funds, sued Bank of America (which had acquired Countrywide) to recoup some of their losses.

What is temporal immediacy?

Temporal immediacy refers to the length of time that the predicted consequences will occur from the present moment of the decision.

What is the descriptive argument

The descriptive argument says that the stakeholder view is simply a more realistic description of how companies really work.

What is an ethical climate?

The ethical climate represents an unspoken understanding among employees of what is and is not acceptable behavior based on the expected standards or norms used for ethical decision making. It is the part of broader corporate culture that sets the ethical tone in a company.

What is the iron law of responsibility?

The iron law of responsibility says that in the long run those who do not use power in ways that society considers responsible will tend to lose it.

what is microfinance

This occurs when 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.

How can customers exercise stakeholder power?

Voting on board members, refusing to purchase goods from a company, voting on gov. to pass laws promoting/restricting a company, file lawsuits against a company, using personal info to make decisions about their involvement with a company

What is the benefit of a positive reputation?

a firm's reputation is a valuable intangible asset, as it prompts repeat purchases by loyal consumers and helps to attract and retain better employees to spur productivity and enhance profitability. Employees who have the most to offer may be attracted to work for a firm that contributes to the social good of the community, is more sensitive to the needs and safety of its consumers, or takes better care of its employees.

Define Corporate Social Stewardship

acts of charity

What is a free enterprise system?

an economic system characterized by private or corporate ownership of capital goods

How is a helpline used?

call a "helpline" or send an e-mail expressing their concerns, anonymously if they wish.

What is Global Corporate Citizenship?

corporate citizenship to refer the actions they take to put their commitments to corporate social responsibility into practice. Companies demonstrate their global corporate citizenship by proactively building stakeholder partnerships, discovering business opportunities in serving society, and transforming a concern for financial performance into a vision of integrated financial and social performance.

What is a central state control system?

economic power is concentrated in the hands of government officials and political authorities

What would be an example of the moral reasoning of a child

fixed on avoiding punishment and obediently following the directions of those in authority

What is a high magnitude of consequences?

issues that involve a life-or-death component, where serious physical harm could result from a decision that is made would normally be thought of as having higher moral intensity than an issue involving minor economic harm (such as stealing paper clips from the company supply closet).

What is a benevolence approach between a manager and an employee?

it would emphasize friendly relations with its employees, stress the importance of team play and cooperation for the company's benefit, and recommend socially responsible courses of action

What is the theory of comparative advantage?

productivity rises more quickly when countries produce goods and services for which they have a natural talent. He called this the theory of comparative advantage

What are the requirements of Sarbanes-Oxley?

requires executives to vouch for the accuracy of a firm's financial reports and requires them to pay back bonuses based on earnings that are later proved fraudulent, called clawback. The act also established strict rules for auditing firms that emphasize transparency of reporting.11

What three words define globalization?

sell make source

What is the shareholder theory of the firm?

sometimes also called the ownership theory), the firm is seen as the property of its owners. 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

What is the U.S. Foreign Corrupts Practices Act?

the U.S. Foreign Corrupt Practices Act (FCPA) has prohibited executives of U.S.-based companies from paying bribes to foreign government officials, political parties, or political candidates. To achieve this goal, the FCPA requires U.S. companies with foreign operations to adopt accounting practices that ensure full disclosure of the company's transactions.

Understand the two things a firm does for a tax inversion

they merge or acquire a foreign company and base their headquarters there, increase their debt in the home country

What is institutionalizing ethics?

to build ethical safeguards into its everyday routines. This is sometimes called institutionalizing ethics.

What is the purpose of the IMF?

to stabilize the system of currency exchange rates and international payments to enable member countries to participate in global trade. It does this by lending foreign exchange to member countries.

What are the five types of stakeholder power?

voting power, economic power, political power, legal power, and informational power.

What is the risk of undertaking social initiatives?

when a business uses some of its resources for social purposes, it risks lowering its efficiency in the short-term or even going out of business.