Chapter 3: Managing External Relations

Ethical Decision-Making Model for Small Business (Three things)

1. Define 2. Generate 3. Implement

How to build legitimacy

1. Employees should be dependable Organizational Citizens 2. Do not harm organization 3. Be good to customers

Developing a Network

1. Personal Network-people you know on a daily basis 2. Social Network-people you know online

Skills for making a right decision

6 things (describe them)

Big 3 of Social Networking

Facebook Linked-in Twitter (X)

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

ethical dilemma

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

ethics

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

billboard principle

ask whether someone would be comfortable having his decision and name advertised on a billboard for the public to see

organizational identity

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

code of ethics

expectations, values, and standards a business abides by

sustainable entrepreneurship

identifies or creates and then exploits opportunities to make a profit in a manner that minimizes the depletion of natural resources, maximizes the use of recycled material, improves the environment, or any combination of these outcomes

networking

interacting with others in order to build relationships useful to a business

golden rule

suggests you treat others in the manner you wish to be treated

utilitarianism

supports seeking the greatest good for the greatest number of people

trade magazines

targets specific industries and professions

mutuality

the action of each person helping another

legitmacy

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

external environment

the forces institutions and people outside the boundary of the firm

internal environment

the people and groups within the boundary of a firm, including the owners, managers, employees, and board members of the firm

universalism

there is a code of right and wrong that everyone can see and follow