Business/Society Exam 1

What is the result of the inseparable relationship between business and society?

All business decisions have a social impact and the vitality of business depends on society's actions/attitudes.

Corporations that run their operations according to the stakeholder theory of the firm create value by

Developing employee's professional skills/ innovating new products/ Increasing their stock price

A business and its stakeholders coming together for a face-to face conversation about issues of common concern is called stakeholder:

Dialogue

Cross cultural contradictions arise due to

Differences between home and host countries' ethical standards.

Stakeholder groups can include

Environmental activists, shareholders, business support groups

Companies demonstrate global corporate citizenship by:

Finding business opportunities that will serve the society/Integrating concern for both financial and physical performance

Under Sabranas Oxley act, corporations are required to

Have executives vouch for the accuracy of a firms financial reports

Iron law of responsibility

In the long run, those who do not use power responsibility will lose it.

In the uber case, which type of power did they have?

Legal and Economic

When a group sues a company for health effects caused disposal of toxic chemicals, this is an exercise of a stakeholders

Legal power

The primary purpose of the international monetary fund is

Lend foreign currency to member countries

A firm that has global operations has

Some or all of their manufacturing or service operations abroad.

issue management process

Systematic process companies use when responding to public issues that are of great importance to the business

A firm that would like to develop a global supply chain would:

purchase raw materials, components or supplies from sellers into other countries .

What is the public issue in the case Business respond to the movement for school safety?

second amendment rights/ safety of students in schools

The company that is being the most responsible

A company trying its best to to operate in a way which will help local students get education and jobs.

The emergence of a public issue indicates that

A gap may be developing between what stakeholders expect and what the organization is actually doing.

Customers can exercise economic stakeholder power by:

Boycotting products if the price is too expensive

Some companies have created a department of corporate citizenship to

Centralize under common leadership wide ranging corporate citizenship functions

As business becomes increasingly global

Cross-cultural contradictions will increase.

Customer environmental intelligence includes

Demographic factors

In the uber case, which stakeholders supported ending the App-on Gap?

Uber customers, Uber drivers, and consumer lawyers

5 types of stakeholder power

Voting power Economic power Political power Legal power Informational power

Under the world trade organizations most favored nation rule

all important restrictions are illegal unless proven scientifically