( 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