BUS 101 Exam 2- New

Limited Liability Companies

to secure the corporate advantage of liability by avoiding the double taxation characteristic of corporations

Partnership

two or more owners

Women and Race

two protected classes

Nongovernmental Organization's labor codes (2)

Establishes criteria for companies to meet the standards in order to receive a "good working condition" certification, companies can voluntarily subscribe

Sarbanes-Oxley Act & Whistle Bowling

Makes it illegal for employers to retaliate in any way against whistle blowers who report information that could have an impact on company's shares

Consensual Relationship Agreement

Managers sign a document stipulating that an office relationship is welcome and voluntary-to protect against possible harassment lawsuits if the people involved later break up

Corporate Social Responsibility

form of corporation self regulation. corporation takes special interest and takes responsibilities for their role in environmental and social wellbeing

Employee Stakeholder

Employees are primarily affected as stakeholders in terms of their economic well-being. Employees share a common concern regarding how much and how often they are paid by the company

Example- Facebook

Employers have a right to go on your social media because it is public (OSHA protects you in the work place). A company can look into your private life because they are protecting their business. (Can express opinions about a company but not explicitly because company info is private

Balancing Life and Work

Learn how to balance families and family life Child care and elderly care are often offered (women are critiqued for leaving their children so businesses need to help support this)

Sole Proprietorship

form of business in which the company is owned and operated by one person

Three Different Occasions Drug Testing is Used

- Preemployment screening - Random Testing of employees - Testing for cause

Employee: Right to organize and bargain

Labor unions can be formed to represent workers on the job (can't be fired for joining, you can be fired for not showing up to work) you don't have the right to stop doing your job

Pros to diversity

-Boost innovation: different people with different backgrounds that are culturally sensitive -Global market place demands a workforce with language skills, cultural sensitivity and awareness of national and other differences across markets -Avoid costly lawsuits and damage to corporations reputation

Employee Drug Use and Testing

-One way a company protects itself from risks of drug use is by drug testing. -2/3 companies test employees or job applicants for illegal substances. -Use of drug tests is becoming less popular

OSHA

-Was passed to prevent workers from being killed or seriously harmed at work. The law requires employers to provide their employees with working conditions that are free of known dangers -handles claims/cases under the occupational health act that gave workers the right to work free of safety issues. -employers can be fined and even jailed

Employee/Employer Relationship

-economic based (employees provide labor and in return they want $) - asymmetrical relationship- those interests need to be protected by the law

Ty Elliot Networking

-networking is important for jobs and seeing if you are into specific areas -know how to do it *plan a meeting for coffee *come up with questions *keep track of who you network with *follow up when they connect you to someone else

Family-Friendly Corporation

-used to describe firms that would fully support men and women in their efforts to balance work and family responsibilities. -stock holders treated the same way regardless of sex-no job advantages - people would be hired, paid, evaluated, promoted, and extended benefits badged on the basis of their qualifications and ability to do the tasks assigned

Demand Conditions

1 of the 4 ways companies enhance their competitiveness (those that affect demand for a product or service)

Context for strategy and rivalry

1 of the 4 ways companies enhance their competitiveness (company donations can sometimes be designed to support policies that create a more productive environment for competition)

Factor Conditions

1 of the 4 ways contributions enhance companies competitiveness (supply of trained workers, physical infrastructure and natural resources)

Related and Supporting Industries

1 of the 4 ways contributions enhance companies competitiveness (charitable contributions that strengthen related sectors of the economy)

Employee rights/ Employer Duties:

1) Right to organize and bargain 2) Right to a safe and healthy workplace 3) Right to privacy 4) Duty to discipline fairly and justly 5) Right to blow the whistle 4) Right to equal employment opportunity 5) Right to be treated with respect for fundamental human rights 6) Job Security but do not have the right to a secure job 7) Positive Environment 8) Benefits/vacations

Justification of Whistle Bowling

1.) Organization is doing something that seriously harms others 2.) Employee has tried and failed to resolve the problem internally 3.) Reporting the problem publicly will probably stop or prevent harm 4.) The harm is serious enough to justify the probable costs of disclosure to the whistle-blower and others

Incorporation Process

1.) Where 2.) Corporate Charter (new name, incorporated or limited, individuals who create the corporation

Affirmative Action

A way to promote equal opportunity and remedy past discrimination is through written plans specifying goals, actions, and timetables for promoting greater job equality. Used to reduce job discrimination by encouraging companies to take positive steps past employment practices and traditions that have been discriminatory

US False Claims Act (Lincoln Law)

Allows individuals who sue federal contractors for fraud to receive 30 percent of any amount recovered by the government number of whistle-blower lawsuits insured significantly because of this incentive exposing fraud in the country's defense, health care, municipal bond, and pharmaceutical industries

Living Wage

Companies paying workers enough to achieve a decent family standard of living

Child Care

Demand is huge. A major source of workplace stress is concern about childcare, leading reason why employees don't show up for work

What can you do about it?

Develop a zero tolerance policy on harassment and communicate it clearly to employees, or establish a complaint procedure including ways to report incidents without retaliation and act quickly

Equal Employment Opportunity

Executive orders and laws intended to promote equal treatment of employees • Discrimination based on race, color, religion, sex, national origin, physical or mental disability, or age is prohibited in all employment practices. This includes hiring, promotion, job classification and assignment, compensation, and other conditions of work (Sexual orientation is not considered under this) • Government contractors must have written affirmative action plans detailing how they are working positively to overcome past and present effects of discrimination in their workforce. Affirmative action plans must be temporary and flexible, designed to correct past discrimination, and cannot result in reverse discrimination against whites of men. • Women and men must receive equal pay for performing equal work, and employers may not discriminate on the basis of pregnancy

Sweatshops

Factories where employees sometimes children work long hours at low wage jobs often under unsafe working conditions

Industry Wide Labor Codes (3)

Groups of companies, sometimes with participation of government officials, NGOs, and worker and consumer representatives define industrywide standards that they can all agree to . Improve supplier compliance and lower the cost of training and monitoring

Sum of right to privacy

In all these areas—monitoring employees electronically, policing office romance, testing for drugs, and conducting psychological tests—businesses must balance their needs to operate safely, ethically, and efficiently with their employees' right to privacy.

Corporate Codes of Conduct (1)

Include labor standards that companies expect their own plants and those of their contractors to follow

Cons of drug testing

Invades employee privacy, violates employee right to due process, may be unrelated to job performance, method of discrimination, lowers employee morale

Honesty Tests

Is controversial. Can generate false positives, indicating employees who would or did steal from the company even though this is not true Critics also argue that the tests intrude on a person's privacy and discriminate against minorities

Employee: Job Security

Job Security is not a protected right ex. Brian Williams anchor losing his job

Dodd Frank Act

More recently.. this act requires government to pay a reward to whistle blowers who voluntarily provide information that leads to successful prosecutions for violations of federal securities laws. also prohibits retaliation

Changes in workplace diversity

More women are working, immigration has reshaped the workplace, ethnic and racial diversity is increasing, work force is getting older (less people are retiring) , millennials are entering the workforce (young people born after 1980)

Social Contract

Mutual understandings/ implied understanding between employees and employers (if you go to the army, your job is secure) shared set of expectations varies across time and culture

Women in the workplace (reason they entered)

Need income to support themselves/family, psychological independence and security with having a job, high costs of living, uncertainties of retirement plan/healthcare (need to save, invest, and plan for the future) more women jobs-more women working

Sexual Harassment

Occurs when any employee experiences repeated unwanted sexual attention or when the job conditions are hostile or threatening in a sexual way (verbal or physical) 40 to 70% of working women have been harassed on the job and in 2/3 of the cases they did not report it

Reverse Discrimination

Occurs when one group is unintentionally discriminated against in an effort to help another group. Critics argued that affirmative action caused this

Employee Assistance Programs

Offer counseling and follow up for alcoholic employees

Minorities

Proportion of African American Workers has remained the same (high) Barriers of discrimination and segregation of people with color has provided a wider range of job opportunities

Fair Labor Standards

Refers to the conditions under which a company's employees- or the employees of its suppliers, subcontractors, or others in its commercial chain- work (universal standards)

Employee Theft and Honesty Testing

Social, ethical and economical issue in the workplace

Pros of drug testing

US policy to reduce illegal drug use, improves productivity, promotes safety in the workplace, decreases theft and absentees and reduces health and insurance costs

Racial Harassment

Under the civil rights act. ethnic slurs, derogatory comments and other verbal or physical harassment based on race are against the law, if they create an intimidating, hostile or offensive working environment or interfere with an individual's work performance Fewer than sexual

Flow of Goods

Upstream to Downstream

Diversity

Variation in the important human characteristics that distinguish people from one another

Employee: Right to blow the whistle

When an employee believes his or her employer has done something that is wrong or harmful to the public, and he or she reports alleged organizational misconduct to the media, government or high-level company officials

Community

a company's area of business influence, can rise to a market stakeholder even though they are secondarily affected by business

Pay gap

a persistent feature of the working world is that women and persons of color on average receive lower pay than white men do- past three decades

Mommy track or Daddy track

a slower track that workers fear, and it makes them reluctant to take advantage of various flexible work options

Ergonomics

adapting the job for the worker, rather than forcing the worker to adapt to the job

Restrictions on terminating an employee: Title 7

adds limitations to employment at will but does not trump it. 1.) employer may not fire for race, gender, religion, national origin, age or disability 2.) an employer can not fire a worker if this would constitute a violation of public policy 3.)can not fire a worker if it would violate the worker adjustment refraining notification act (provide 60 days notice when they lay off 1/3 or 500 or more employees-whichever is less) 4.) can not fire a worker simply because the individual is part of a union 5.) can not fire a worker if this would violate an implied contract ex: you're not supposed to fire someone because of their race but because of employment at will you technically can and just say it was for another reason

Primary characteristics

age, ethnicity, gender, mental/physical capabilities, race and sexual orientation

Widget

anything the employee makes

Glass Ceiling

ascent seems to be blocked by invisible barrier (women and minorities experience this), can't move up the ladder lack of experience or inadequate education (reason) may be hurting companies not putting women in head positions or corporate boards study found that companies with three or more female directors had a lot higher reruns on equity than those with no female directors

Positives of Corporate Social Responsibility

balances corporate power with responsibility, discourages gov regulation, promotes long-term profits for business, improves stakeholder relationships, enhances business reputation

Racial Pay Gap

black men earn less then white males and asian americans make more then white males education: asian-americans hold a bachelor's degree or above (most schooling)

Mutual Interdependence

business is not automatically welcome, it is a two way street (business and community)- need to work well with the community Theory of the firm->theory of the stakeholder (shift)

Housing

business leaders and companies invoked in housing options often work with NGO's to build or repair housing for employees

Economic Development

business leaders and their companies are involved in local or regional economic development that is intended to bring new businesses into an area or to develop workforce skills

corporate giving or philanthropy

businesses around the world give generously to their communities through various kinds of philanthropic contributions to nonprofit organizations

Alcohol Abuse at work

causes twice the problems of illegal drugs combined low productivity, late to work, bad focus

Secondary characteristics

communication style, family status, and first language

Work Flexibility

companies have accommodated the changing roles of women and men by offering them flextime, part-time employment, job sharing and working from home

Corporate Giving in Strategic Context

companies must establish priorities to determine which worthy projects will be funded or supported with the companies in kind or volunteer contributions and which ones will not

Pre-employment screening

companies test all job applicants or selected applicants before hiring

Strategic Philanthropy

corporate giving that is linked directly or indirectly to goals and objections (both company and society benefit from the gift)

Alien Corporation

corporation in one nation that operates in another

Domestic Corporation

corporation in the state where it is incorporated

Foreign Corporation

corporation that does business in states other than the one where it has filed incorporation papers

Employee Owned Corporations

corporations in which workers buy shares of stock in the company that employes them

Goal of Supply Chain

decrease costs and increase profits (process if often only noticed when it fails)

Downstream

distributors, finished products, retailers

Workforce diversity

diversity among employees-represnt both a challenge and opportunity for businesses

Employee: Right to equal employment opportunity

doesn't actually exist but you should have the right to any job

Elder care

employee's responsibilities for aging parents and other older relatives will become increasingly important to businesses in the coming decade. concern for employers because caregivers go to work late or leave early, or are distracted or stressed at work by their responsibilities

Employee: Right to safe and healthy workplace

employees have the right to work in a safe and healthy environment

Benefits of Employee Owned Corporations

employees want a share in whatever wealth their company earns, employees will care about doing the best for the company and having positive outcomes

Employee: Right to be treated with respect for fundamental human rights

employers can not treat you like you are not human

Glass Walls

fewer opportunities to move sideways in jobs that lead to the top has continued to hold women and minorities back found in staff positions such as PR or HR rather than in line positions where they can acquire the broad management skills necessary for promotion could be cracking...

Supply Chain

flow and transformation of goods from raw materials to the end consumer

Site Community

geographical location of a company's operations, offices or assets

Charitable Donations

gifts of money

Volunteer Employee Service

gifts of time, provide services and assistance for free

In-kind contributions

gifts or products of service if they donate new goods they can deduct their fair market value within the relevant limits if it is less than 10 percent

Equal Employment Opportunity Commission

government agency charged with enforcing equal employment opportunity laws and executive orders in the United States

Government involvement in Supply Chain

government does not come in to protect the supplier stakeholder zero government regulations on suppliers

Communities of interest

groups that share a common interest with the company

Challenges of Family Friendly Corporation

hard to interact and sensitivity

Preferred Stock

have limited voting rights, entitled to receive dividends before common-stock holders, first claim to assets is the firm is dissolved

Fence-line Community

immediate neighbors

Negatives of Corporate Social Responsibility

imposes hidden costs passed onto the stakeholder (who pays for it), companies less productive and efficient, businesses make products instead of solving social issues, requires skills that business may lack, places responsibility on business instead of individuals

Codetermination

including employee representatives on boards of companies

New Social Contract

increasingly popular bonds between employers and employes have weakened. companies aim to attract and retain employes not by offering long term jobs but by emphasizing interesting and challenging work, performance based compensation, and ongoing professional training. employees are expected to contribute by making commitment to the job task and work team and to assume a share of responsibility to a company's success

Occupational Segregation

inequitable (unfair) concentration of a group, such as monitories or women in particular job categories ex. hispanic and yard workers

Community Relation Manager

interact with local citizens, develop community programs, manage donations of goods, work with local government and encourage employee volunteerism

Diversity Council

is a group of managers and employees responsible for developing and implementing specific action plans to meet an organization's diversity goals

Employment at Will

legal doctrine that means that employees are hired and retain their jobs "at the will of" or the sole discretion of the employer. you can be fired for any reason no due process (not a constitutional guarantee in the employment realm)

Board of Directors

made up of agents of the owners (inside and outside)

Electronic Monitoring

monitoring what employees are doing on their email, internet browsing, voice mail and cell phones. Companies do this for efficiency/monitor productivity/ make sure nothing inappropriate is going on-lawsuits if act in inappropriate ways (Porn) In seeking to balance their employees concern about privacy with their own concern about productivity, liability, and security, businesses face a difficult challenge. one approach= monitor employee communication only when there is a specific reason management experts recommend that employers clearly define their monitoring policies.

Corporate Foundations

non-profit, handle charitable programs

Social Enterprise

organization that uses business strategy for the purpose of improving humans environmental well being

Virtual Communities

people who buy from or follow the company online

Employee Community

people who work near the company

Massey Energy Mine Explosion

primary stakeholders: owners and employees employees had the legal right to work in a safe environment company ignored multiple citations broke fiduciary duty of obedience by ignoring citations

Collaborative Partnerships

proven effective in addressing problems in education and other civic concerns. partnerships offer an effective models of shared responsibility in which business and the public and one public sectors can draw on their unique skills to address complex social problems

Disaster, terrorism and war relief

provide assistance to local citizens and communities, can be international as well

Open Firm

publicly held firm, sells stock to the general public, established diversified ownership

Upstream

raw materials, processors, manufac. suppliers

Employee: Right to Privacy

refer primarily to protecting an individual's personal life from unwarranted intrusion by the employer EXCEPTIONS: only when the employer interests are clearly affected ex) Boss reading employees emails to a competitor about a newly developed product

Sarbanes-Oxley Act of 2002

required CEO's and CFO's of major corporations to certify in writing the accuracy of the firm's financial statements

Drug Free Workplace Act of 1988

required federal contractors to establish and maintain a workplace free of drugs. at any time, companies and public agencies initiated drug testing to comply with government rules

Closed Firm

stockholders also control and manage alls actitivies

Important Relationships in Supply Chain

supplier relations are crucial

Civil Engagement

the active involvement of businesses and individuals in changing or improving communities

Return on Social Investment

the benefits that accrue to business and society (very difficult to measure)

Priorities in Corporate Giving

the distribution of contributions reflects how businesses view overall community needs large portion goes to health and human services

Social Capital

the norms and networks that enable collective action. when companies work with their communities to resolve issues they develop stronger relations

Community Relations

the organized involvement of business with the community

License to Operate

the right to do business from society (informal) Citizens have the right to exercise their voice in determining if a company will or will not be welcome

Aid to Minority, Women and Disabled Veteran-Owned Enterprises

these businesses often operate at an economic disadvantage face competition from more established suppliers

Supreme Court Position

they compensate for lawsuits, zero tolerance policy by employers and act quickly on complaints

Employee Polygraph Protection Act

this law limited polygraph testing (lie detectors) by employers and prohibited a lot of these tests

Testing for cause

this test occurs when an employee is believed to be impaired buy drugs and unfit for work

Random Testing of Employees

this type of screening occurs at various times throughout the year

Corporation

unlimited number of shareholders, typically have to pay federal, state and local income taxes plus personal taxes

S Corporation

up to 75 shareholder but can elect to pay income taxes as partnerships -avoid double taxation (once to corporations and again to the shareholder)

Romance in the Workplace

used to be a strict policy but now it has evolved so that companies manage office relationships rather than ban them because of how common it has become Southwest Airlines for example do not allow works to report directly to someone they are dating.

Common Stock

voting rights but only residual claims on the firm's assets, last to receive any income distributions

Parental Leave

when a mother or father is granted time off when children are born or adopted and during the important early months of a child's development

Family Leave

when the care of elderly relatives is involved

Gender Gap

women are paid less then men some believe it is sex discrimination by employers, others believe women choose to pursue lower paying jobs or slower advancement for time off for fam responsibilities

Diversity Policies and Practices

• Articulate clear diversity goals, set quantitative objectives, and hold managers accountable • Spread a wide net in recruitment, to find the most diverse possible pool of qualified candidates • Identify promising women and persons of color, and provide them with mentors and other kinds of support • Set up diversity councils to monitor the company's goals and progress toward them.

Strategies

• Draw on unique assets and competencies of the business-enable a specific contribution that another company cannot • Align priorities with employee interests-give employees a say in deciding who will receive contributions • Align priorities with core values of the firm-ex. McDonald's and Ronald McDonald House

Business Participation Desired by Community

• Pay Taxes • Provides jobs and training • Follows laws • Supports schools • Supports the arts and cultural activities • Supports local health care programs • Supports parks and recs • Assists less advantaged people • Contributes to public safety • Participates in economic development

Community Services Desired by Business

• Schools- a quality educational program • Recreational opportunities • Libraries, museums, theaters and other cultural services and organizations • Adequate infrastructure e.g sewer, water, and electric services • Adequate transportation system e.g roads, rail, airport and harbor • Effective public safety services e.g police and fire protection • Fair and equitable taxation • Streamlined permitting services • Quality health care services • Cooperative problem-solving approach

Rules about Corporate Giving and Taxes

• Tax rules have encouraged corporate giving for educational, charitable, scientific and religious purposes • Corporations can deduct from their taxable income all such gifts that do not exceed10 percent of the company's before-tax income o Ex. 1 million dollars (10% is 100,000). The new taxable total is 900,000