Brainscape's Knowledge GenomeTM


Top Flashcards (Certified)
All Flashcards

GMGT 1010 > Big Qs and Debates about Role of Biz in Society > Flashcards

Big Qs and Debates about Role of Biz in Society Flashcards

1
Q

What is CSR

A

voluntary actions that a corporation takes in society that address social and environmental problems/issues

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

who argued that businesses have the responsibility of CSR?

A

Howard Bowen

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

CSR in the 1960s

A

the environmental movement broadens CSR

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

CSR in the 1970s

A

CSR research explodes

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

CSR in 1980s and 1990s

A

CSR branches out

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Why was CSR exploded over the past 30 years

A

company reputation, triple bottom line, social media, neoliberalism/globalization, how info is shared

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Caroll’s Pyramid of CSR

A

initially it was about “what is ethical?” now it’s about “how are we perceived?”
-CSR now mostly driven by philanthropic responsibilities

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

different forms of CSR

A

corporate giving, voluntarism, corporate sponsorship, social venture philanthropy, social enterprise, community investment

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

corporate giving

A

donations, charitable foundations, cause-related marketing, strategic giving, the one-for-one model

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

corporate voluntarism

A

-The time and talent employees commit to community organizations with support/consent from employers who recognize the value of such efforts to society

-Allowing employees to take time out of their workday to volunteer (still getting paid)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

corporate sponsorship

A

A partnership, which has been established for mutual benefit between a business sponsor and an event or non-profit (naming rights)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

social venture philanthropy

A

The investment of human and financial resources by corporations in non-profit community development agencies to generate a social return instead of only a financial one
-working with startups who are focused on environmental gaps, building partnerships

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

social enterprise

A

A model of business operation where some or all profits are deliberately used to further social aims

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

2 kinds of social enterprises

A

full non profits, for profits

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

full non profit social enterprises

A

all funds go to social causes

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

for-profits social enterprises

A

funds are split between social causes and shareholders

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

the CSR debate

A

debate focuses on what (if any) the voluntary responsibilities of businesses should be?

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

CSR debate over time

A

Early: should businesses engage in CSR at all?

Today: is CSR enough to address the pressing social and environmental issues facing society

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

early case against CSR

A

-Friedman’s view
-Managers are agents, not principles. CSR is spending the shareholder’s money against their will
-Corporations not equipped to decide what is best for society
-CSR reduces efficiency and personal freedom
-Bizs should focus on maximizing profit as long as it stays within the rules of the game

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

the case for CSR

A

legitimacy, business case

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

legitimacy case for CSR

A

The existence of the business system depends on it’s acceptance by society

If business is to prevent criticisms or mutinous behaviour, it must be receptive to what is happening in society and respond in some way

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

the business case for CSR

A

CSR reduces costs

Increases reputation

Reduces risk

A source of competitive advantage

Win/win for everybody

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

current debates around CSR

A

-It takes the societal needs out of public hands (ie govt) and places it into private hands
-Voluntary CSR is not enough. Mandatory measures are necessary
-What does “responsibility” even mean? What about accountability

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

what are stakeholders

A

Persons or groups that affect, or are affected by an organization’s decisions, policies or operations

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
2 types of stakeholders
-market (primary) -nonmarket (secondary)
26
market stakeholders
-The stakeholders that engage in economic transactions within a company -Customers, employees, shareholders, suppliers
27
nonmarket stakeholders
-The stakeholders that do not engage in economic transactions within a company but can still affect and be affected by a company’s actions -Communities, govt, media, NGOs
28
the shareholder view
Shareholders advance capital to a company’s managaers, who are supposed to spend corporate funds only in ways that have been authorized by the shareholders
29
the stakeholder view
Managers have a duty to both the corporation’s shareholders and “individuals that contribute either voluntarily or involuntarily, to a company’s profitability and who are therefore it’s potential beneficiaries/risk bearers
30
arguments for the stakeholder view
Managing stakeholders is good for shareholders Stakeholder engagement (integration of feedback from those impacted by your organization’s operations), building trust even between those with different views This view assumes no conflict btwn stakeholders and shareholders
31
why is shareholder view dominating in US and Canada
it’s what we are taught, incentives for shareholder maximization, it’s the law, market discipline
32
how can bizs become more stakeholder focused?
Smith -changing the language -changing attitudes and behaviours -clear communication in the organization Sean -changes in corporate board structure (increase diversity) -changes in organizations themselves -broader structural changes in laws and regulations
33
short term tactics
-ST tactics help a firm deal quickly with crisis or rapid change -bc these actions are quick and low cost, their effects are incremental -benefits and costs appear quickly and are easy to measure
34
long term tactics
-firms seek to achieve more significant/transformational changes for durable success -take longer to payoff and can be hard to quantify but can be game changers
35
ST/LT debate
-how far into the future should businesses be planning for?
36
does st or lt dominate in modern economy?
ST
37
short-termism
an overemphasis on short term economic performance
38
why is there usually more ST focus?
investor pressure, organizational incentives, desire for sure returns, human nature
39
investor pressure and short-termism
-companies financed by stock mkt often pressured by investors who want quarterly returns maximized -companies often report quarterly earnings with sales targets focused on maximizing profits during these periods
40
organizational incentives and short-termism
executive compensation is often tied to share price -organizations are more likely to internally focus on the ST
41
desire for sure returns and short-termism
-LT benefits are more abstract and difficult to foresee -managers are more likely to want to measure what is directly in front of their faces (ST wins)
42
human nature and short-termism
humans naturally focus on the shorter term since we value satisfaction of quickly addressing a problem
43
CEOs blame short-termism on
Short term earnings/pressure from investors Competitive pressure Customer demands Short-term economic uncertainty Limited access to capital Lack of standard reporting for non-financial value Regulatory requirements Director duties
44
short-termism puts organizations at risk by
-lack of focus on research on development -damaging long-term stakeholder relations -long term reputational risks -short term cost cutting may lead to long term costs
45
46
overcoming human nature and short-termism
-make long term objectives part of the company culture -clear communication, training and education -employees working for long-term strategies
46
changing investor pressures and short-termsim
-educate stock analysts about long-term horizon and it’s relation to shareholder value -encourage "cumulative reporting" by regulations whereby each quarter would build on the next
46
overcoming desire for sure returns and short-termism
-structure decision making -balanced scoreboard (looking at shareholder/stakeholder interests, short/long term impacts and ranking to make strategic decisions))
46
larger structural issues and short-termism
investor composition, firm structure, system of firm financing
46
changing organizational incentives and short-termism
-performance evaluations linked to long-term performance, refined stock options, flatter organizational structure -executive compensation linked to social and environmental goals
46
what type of firm generally has a more LT focus?
family owned firms and privately owned companies may be more likely to pursue long term strategies than publicly owned firms
46
47
which country tends to have a more long term focus?
-countries where companies are financed by banks (ie Germany) tend to have a more longterm orientation than countries where firms are financed by the stock market (ie US)
47
which types of investors are focused on ST? LT?
-individual investors (pension funds) have longer term outlook than other investors (mutual funds)
48
ST goal/investment required/flexibility/expected return/expected outcome
-responding to changes/crisis with quick wins -small investment -high flexibility -small/quick/easy to estimate return -incremental change
49
LT goal/investment required/flexibility/expected return/expected outcome
-building long term success and stability -larger investment -low flexibility -large/slow/hard to estimate return -transformational change
50
corporate personhood
the ethical and legal concept where corporations may be treated as entities independent of the human beings associated with them
51
business political involvement
participation in the formulation and execution of public policy at various levels of govt
52
examples of business political involvement
-corporate political spending (financing of political parties) -publicly expressed support for a candidate of a party -publicly expressed views on political issues -executives running for office -management's position on employee participation
53
political action committee
an organization that pools campaign contributions from members and donates these funds to campaign for or against candidates/ballot initiatives/legislation
54
who can PACs take funds from?
corporations, unions, individuals
55
are PACs allowed in Canada? who can donate to political parties in Canada and how much can they donate?
no, not allowed only personal donations can be made to a political party, limit of $1500
56
what is a super PAC?
PACs that are unlimited in the amount of donations they can collect
57
business lobbying
the process of influencing public officials to promote or secure the passing/defeating of regulations/laws
58
types of lobby groups
umbrella associations, trade associations, ad hoc organizations/front groups, think tanks
59
umbrella organizations
have meetings with politicians about business interests in that jurisdiction ie Winnipeg Chamber of Commerce
60
trade assoications
have specific interests for an industry that they lobby the government for ie National Grocers Association
61
ad hoc organizations/front groups
a business lobbying group where the members are hidden from the public -often transnational -Alliance to Feed the Future
62
think tanks
research institute that performs research and advocacy concerning topics such as social policy, political strategy -no standards to ensure this is peer reviewed ie Fraser Institute
63
public affairs offices
organizations responsible for monitoring the governmental environment of the corporation and managing the responses necessary to protect the interests of the corporation
64
who do public affairs offices focus on relations with?
government, media, communities
65
public affairs activities include
advertising, education, stakeholder engagement
66

GMGT 1010 (3 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2025 Bold Learning Solutions. Terms and Conditions