BUSA Test #4 Flashcards
Principles and standards that determine acceptable conduct in business
Business Ethics
An identifiable problem, situation, or opportunity that requires a person to choose from among several actions that may be evaluated as right or wrong, ethical or unethical
Ethical Issue
Bribery, Misuse of company time, Abusive and Intimidating behavior, Misuse of company resources, Conflict of interest, Communications, Business relationships
Examples of Ethical issues
Individual standards and values, Managers’ and co-workers’ influence and opportunities within codes and compliance requirements
Ethical/Unethical Choices in business
Formalized rules and standards that describe what a company expects of its employees
Codes of ethics
A business’s obligation to maximize its positive impact and minimize its negative impact on society
Social responsibility
Economic, legal, ethical, voluntary, philanthropic
Categories of social responsibility
Relations with stockholders and Owners, Employee relations, consumer relations, sustainability issues
Social Responsibility issues
The activities that independent individuals, groups, and organizations undertake to protect their rights as consumers
Consumerism
Conducting activities in a way that allows for the long-term well-being of the natural environment, including all biological entities
Sustainability
A monopoly that exists when a country is the only source of an item, the only producer of an item, or the most efficient producer of an item
Absolute advantage
The basis of most international trade, when a country specializes in products that it can supple more efficiently or at a lower cost then it can produce other items
Comparative advantage
The transferring of manufacturing or other tasks - such as data processing - to countries where labor and supplies are less expensive
Outsourcing
The difference in value between a nation’s exports and its imports
Balance of trade
A nation’s negative balance of trade, which exists when that country imports more products than it exports
Trade deficit
A nation’s positive balance of trade, which exists when that country exports more products than it imports
Trade surplus
Economic development, Exchange rates, Laws and regulations, Tariffs and trade restrictions, Exchange controls, Quotas, Embargos, Political Barriers, Social roles, Culture, Technology
International trade barriers
A trade agreement, originally signed by 23 nations in 1947, that provided a forum for tariff negotiations and a place where international trade problems could be resolved and discussed
General Agreement on Tariffs and Trade (GATT)
An organization established by the industrialized nations in 1946 to loan money to underdeveloped and developing countries
World Bank
An organization established in 1947 to promote trade among member nations by eliminating trade barriers and fostering financial cooperation
International Money Fund (IMF)
Agreement that eliminates most tariffs and trade restrictions to encourage trade among the United States, Mexico, and Canada
North American Free Trade Agreement (NAFTA) OR United States-Mexico-Canada Agreement (USMCA)
A union of European nations established in 1958 to promote trade among its members; one of the largest single markets today
European Union (EU)
International organization dealing with the rules of trade between nations
World Trade Organization (WTO)
The sale of goods and services to foreign markets
Exporting
The purchase of goods and services from foreign services
Importing
A trade agreement in which one company - the licensor - allows another company - the licensee - to use its company name, products, patents, brands, trademarks, raw materials, and/or production processes in exchange for a fee or royalty
Licensing
A partnership established for a specific project or for a limited time
Joint Venture
A partnership formed to create competitive advantage on a worldwide basis
Strategic alliance
The ownership of overseas facilities
Direct Investment
A corporation that operates on a worldwide scale, without significant ties to any one nation or region
Multinational Corporation (MNC)
A plan, used by international companies, that involves customizing products, promotion, and distribution according to cultural, technological, regional, and national differences
Multinational Strategy
A strategy that involves standardizing products (and, as much as possible, their promotion and distribution) for the whole world, as if it were a single entity
Global Strategy
Relations with or between employees and the behavior of individuals and groups in organizational settings
Human relations
An employee’s attitude toward their job, employer, and colleagues
Morale
The personal satisfaction and enjoyment felt after attaining a goal
Intrinsic Rewards
Benefits and/or recognition received from someone else
Extrinsic rewards
a theory that arranges the five basic needs of people—physiological, security, social, esteem, and self-actualization—into the order in which people strive to satisfy them.
Maslow’s Hierarchy
Movement of employees from one job to another in an effort to relieve the monotony often associated with job specialization
Job rotation
The incorporation of motivational factors, such as opportunity for achievement, recognition, responsibility, and advancement, into a job.
Job enrichment
A formal, written explanation of a specific job, usually including job title, tasks, relationship with other jobs, physical and mental skills required, duties, responsibilities, and working conditions
Job description
A description of the qualifications necessary for a specific job, in terms of education, experience, and personal and physical characteristics
Job specification
Forming a pool of qualified applicants from which management can select employees
Recruiting
The process of collecting information about applicants and using that information to make hiring decisions
Selection
- The application
- The interview
- Testing
- Reference Checking
Steps in the selection process
Prohibits discrimination in employment and created the Equal Employment Opportunity Commission
Title VII of the Civil Rights Act
Provides employees with feedback on how well they are doing as well as areas for improvement
Performance appraisals
Occurs when employees quit or are fired and must be replaced by new employees
Turnover
Financial rewards based on the number of hours the employee works or the level of output achieved
Wages
A financial reward calculated on a weekly, monthly, or annual basis
Salary
Nonfinancial forms of compensation provided to employees, such as pension plans, health insurance, paid vacation and holidays, and the like
Benefits
Bonuses, Profit sharing, Labor unions, collective bargaining, labor contract
Additional compensation
Employee organizations formed to deal with employers for achieving better pay, hours, and working conditions
Labor unions
Sexual orientation, age, gender, race, ethnicity, and abilities
Primary characteristics of diversity
Education, work background, income, marital status, parental status, military experience, religious beliefs, geographic location
Secondary characteristics of diversity
- More productive use of a company’s human resources.
- Reduced conflict among employees of different ethnicities, races, religions, and sexual orientations as they learn to respect each other’s differences.
- More productive working relationships among diverse employees as they learn more about and accept each other.
- Increased commitment to and sharing of organizational goals among diverse employees at all organizational levels.
- Increased innovation and creativity as diverse employees bring new, unique perspectives to decision-making and problem-solving tasks.
- Increased ability to serve the needs of an increasingly diverse customer base.
- Increased inclusion, which recognizes contributions, presence, and perspectives of different groups, integrating them into the work environment.
Benefits of Diversity, Equity, and Inclusion
