( 3 ) Task Environment, General Environment, & Ethics
The Four approaches to deciding Ethical Dilemmas
1 - Utilitarian approach 2 - Individual approach 3 - Moral-Rights approach 4 - Justice approach
Internal Stakeholders
Employees, owners, and board of directors
Employee Organizations: Unions & Associations
Labor Unions - represent hourly workers Professional associations - represent salaried workers
Environmental Forces (PEST)
Political, Economic, Social, Technological
Triple Bottom Line
Representing people, planet, and profit Measures an organizations social, environmental, and financial performance In this view of corporate performance, an organization has a responsibility to its employees and to the wider community (people), is committed to sustainable environmental practices (planet), and includes the costs of pollution, worker displacement, and other factors in its financial calculations (profit)
The General Environment (macro-environment)
Uncontrollable includes six forces: - economic - technological - sociocultural - demographic - political-legal - international
Suppliers
a person or an organization that provides supplies such as raw materials, services, equipment, labor, or energy to other organizations
Distributors
a person or organization that helps another organization sell its goods and services to customers
Ethical dilemma
a situation in which you have to decide whether to pursue a course of action that may benefit you or your organization but that is unethical or even illegal
Social Audit
a systematic assessment of a company's performance in implementing socially responsible programs, often based on predefined goals
Financial Institutions
banks, savings and loans, and credit unions
International Forces
changes in the economic, political, legal, and technological global system that may affect an organization
Political-Legal Forces
changes in the way politics shape laws and laws shape the opportunities for and threats to an organization
Economic Forces
consist of the general economic conditions and trends that may affect an organizations performance - unemployment - inflation - interest rates - economic growth
Task Environment
consists of 11 groups that present you with daily tasks to handle 1 - customers 2 - competitors 3 - suppliers 4 - distributors 5 - strategic allies 6 - employee organizations 7 - local communities 8 - financial institutions 9 - government regulators 10 - special-interest groups 11 - mass media
Special-interest Groups
groups whose members try to influence specific issues Examples) PETA, Mothers Against Drunk Driving
The Justice Approach
guided by respect for impartial standards of fairness and equity
The Moral-Rights Approach
guided by respect for the fundamental rights of human beings
The Utilitarian Approach
guided by what will result in the greatest good for the greatest number of people
The Individual Approach
guided by what will result in the individual's best long-term interests, which ultimately are in everyone's self-interest
Sociocultural Forces
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
influences arising from changes in the characteristics of a population, such as age, gender, or ethnic origin
Technological Forces
new developments in methods for transforming resources into goods or services
External Stakeholders
people or groups in the organization's external environment that are affected by it; consists of the task and general environment
Competitors
people or oganizations that compete for customers or resources
Mass Media
print, radio, TV, and the Internet
Crowdfunding (crowdsourcing)
raising money for a project or venture by obtaining many small amounts of money from many people
Government Regulators
regulatory agencies that establish ground rules under which organizations may operate
Values
relatively permanent and deeply held underlying beliefs and attitudes that help determine a persons behavior They are the underpinnings of ethics and ethical behavior Ex) "fairness means hiring according to ability, not family background"
Clawbacks
rescinding the tax breaks when firms don't deliver promised jobs
Ethics
standards of right and wrong that influence behavior
Stakeholders
the people whose interests are affected by an organization's activities
Strategic Allies
the relationship of two organizations who join forces to achieve advantages neither can perform as well alone
Customers
those who pay to use an organizations goods or services