Five skills of managing External Relationships

organizational legitimacy is based on

- product-based - people-based - organization-based

The five skills of Managing External Relationships

1. Building Legitimacy 2. Developing a Social Network 3. Handling a Crisis 4. Achieving Sustainability 5. Making ethical Decisions

Steps in Making Ethical Decisions

1. Define the Moral Problem 2. Generate alternatives 3. Implement the best solutions 4. Monitor the Situation

Four Philosophies of Generating Alternatives

1. Golden rule 2. Utilitarianism 3. Universalism 4. Billboard principle

Questions when Defining Moral Problem

1. Who will be hurt? 2. Who will benefit? 3. What do you owe others? 4. What do others owe you?

internet informational website

An internet site designed to introduce and explain a business to others

people-based legitimacy indicators

Good will, public recognition, product/service name recognition, business network membership, organizational size, attire

ethical dilemma

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

ethics

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

billboard principle

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

legitimacy

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

product-based legitimacy indicators

customer assurance, experiential supports, customer service, quality standards, environmental friendliness, certifications, testimonials, etc.

organization-based legitimacy indicators

media organization visibility, history, time commitment, days/hours of operation, phone line, phone answering, legal form, partnering, graphic design, code of ethics, etc.

universalism

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

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

e-commerce

use of the internet to conduct business transactions