3.4 Flashcards
Factors that influence decisions
Short term and long term goals
Corporate culture
Stakeholders
Ethics
Actions by short termist companies
Maximise short term profits
Invest less money in R and D
Invest less in training
Return cash to shareholders
Engage in asset stripping
Arrange more short term contracts
External growth rather than organic growth
Corporation culture definition
The values , attidues , beliefs , meanings and norms that are shared by people and groups within an organisation
Pros of a strong corp culture
Sense of identitfy for employees
Improve team work
Increase commitment
Helps employees understand what is happening around them
Types of corporate cultures
Power - a central source of power responsible for decision
Task - power lies with those with expertise rather than a particular role
Role - Power lies with the roles that individuals play rather than the individuals themselves
Person - number of workers with expertise but don’t necessarily work together and the organisation is there to support them
Factors that influnence an organisational culture
The environment the business was born into
Type of product
The leader
Values / norms / policies
Stakeholder definition
Someone with an interest in the business
Internal stake holder definition
a person that is involved in the day to day running of the business
External stakeholder definition
people with an interest in the business but are not involved in the running of the business
Examples of stakeholders
Shareholders
Employees
Customers
Managers
Suppliers
Local community
Pressure groups
Government
Ethics definition
What the business sees as moral rights and wrongs
National minimum wage definition
The minimum amount of money workers have to be payed
Living wage definition
a wage that is high enough to maintain a normal standard of living
Examples of ethical issues
Environment
Animal rights
Workers in developing countries
Corruption
New technologies
Product availability
Trading issues
Codes of practice definition
Ways how employees should respond to situations where ethical issues arise
