Biz Flash Cards
A Social Audit
is a systematic evaluation of an organization’s progress toward implementing socially responsible & responsive programs
“Greenwashing”
The use of deceptive marketing + advertising that portray the business as environmentally responsible
4 Degrees of Free Market Competition (PMOM)
- Perfect Competition 2. Monopolistic Competition 3. Oligopoly 4. Monopoly
Benefitts of Socialism Are:
social equality, free education, free health care, free child care, longer vacations, fewer work hours, more employee benefits
Compliance Based Ethics Code
Emphasizes preventing unlawful behavior by incrasing control & penalizing wrongdoers
Compliance Based Ethics Code
Emphasizes preventing unlawful behavior by incrasing control & penalizing wrongdoers
Corporate Social Responsibility (CSR)
is the concern the businesses have for the welfare of society - not just their owners. Integrity/Fairness/Respect/Commitment
Corporate Social Initiatives
Includes forms of corporate philanthropy that are directly related to a company’s competencies
Equilibrium Point (aka: Market Price)
Where supply & demand lines cross which then becomes the “market price”
Demand
The quantity of products that people are willing to buy at different prices at a specirfic time. Lower price = more demand
Ethics
Guide people’s decisions how to treat one another in an honest/responsible way
Free Market
* decisions about what & how much to produce by buyers & sellers * negotiates prices for goods/services, not determined by sellers
Initiatives
the power or opportunity to do something before others do it - an “introductory step”
Laws
Narrower & protect us from fraud, theft & violence
Market Price
is the price determined by supply & demand (aka: The Equilibrium Point)
Monopolistic Competition
* very large amounts of sellers * very similar products which buyers perceive as different (ex: t-shirt slogans)
Negatives of Socialism Are:
takes away business owner’s incentives, no job creation, no wealth creation, fewer inventions & less inovation, countries fall behind, loss of highly educated people (doctors/lawyerd/etc) which results in “brain drain”
Monopoly
* ONE seller only * Controls total supply of products/services * Sets the Price
Oligopoly
* A FEW sellers dominate the market * usually have a large investment * product difference are usually the reason for success (ex: Honda=reliable)
Perfect Competition
*many sellers in a market & NONE are large enough to dictate the price * product appear to be identical * many sellers & identical products
Philanthropy
goodwill to the human race and an act/gift done or made for humanitarian purposes
Regulation Fair Disclosure (FD)
* requires that companies that release ANY information to share it with everyone, not just a few select people. * adopted by the SEC in the 2000’s * prevents Insider Trading
Socialism
The belief that the most basic businesses (steel/coal/utilities) should be government-owned so profits can be evenly distributed to the people
Supply
The quantity of products that manufacturers (or owners) are willing to sell at different prices at a specific time (hint: suppliers selling)
What are Free Market Capitalism Rights?
- The right to own property (private ownership, buy/sell/use land, buildings, machinery, inventions, pass on to kids) 2. The right to own business & keep the profits (profits are incentives) 3. Freedom of Competition (free to compete w/other businesses & individuals) 4. Freedom of Choice (choose where to work & what career you want to follow, where to live, what to buy/sell)
What does an Ethics Officer do?
They are vital in enforcing the ETHICS CODE of a company/organization
What is Brain Drain?
The loss of the best & brightest people to other countries
What is Capitalism?
* an economic system where all or most of the factors or production & distribution are privately owned & operated for profit (land, stores, factories, railroads) * Capitalism is THE foundation of the US economic system * it is FOR PROFIT * Owners decide: what to produce, how much, what to charge, how much to pay workers, natl or intl production
What is Chained Consumer Price Index (C-CPI)?
consumers shift purchases as prices to up or down (ex: when beef gets expensive, people switch to chicken)
What is Core Inflation?
It’s the Consumer Price Index minus Food & Energy Costs
What is Macroeconomics?
operation of a nation’s economy as a whole (United States)
What is Social Justice?
some think businesses have an influential & important role in promoting “social justice” which includes: * charity is not enough * businesses need to give more & clean up environment * provide computer lessons * care for elderly * support low-income families
What is The Green Movement?
has had a positive impact on the US Labor Force by creating jobs in new industries: solar/wind/biodiesel/ethanol/etc
