Ch 1: Business and Society Relationship Flashcards
society
a grouping of ppl with common traditions, values, institutions, interests
macroenvironment
total environment outside a firm
society, aka the macroenvironment, includes (4)
socio-cultural environment
technology
economic environment
political environment
In our pluralistic society power is dispersed among many groups and people. The intention is →
power is not held by any one single institution or a small number of groups (no king, czar, etc)
we live in a “special interest society” meaning..
there is a group for every cause (NGOs, etc)
social environmental factors leads to…
which leads to…
business criticism
corporate response
how does affluence/education become a factor in the social environment?
creates RISING societal EXPECTATIONS, especially through growth of public awareness through media
an increasing gap between expectations and firm performance leads to… (3)
- rising expectations outpacing business ability
- entitlement mentality
- Rights Movement
entitlement mentality
individuals are owed something just because they are members of a society (like jobs, healthcare, etc.)
Rights Movement, 1948
USSC hears more cases aimed at establishing various legal rights that didn’t exist before, impacting how people expect to be treated
Ex. WHO declares every human being has the right to the highest attainable standard of physical and mental health; right to education… right to food.. right to.. right to…
fair or not, Bis Business takes the “heat” for…
stagnation of living standards
stakeholders
beings a business interacts with that have a vested interest in the firm
In this class we view Business Ethics from the POV of an…
internal stakeholder
business
organizations that sell goods or services for profit
ethics
based on standards of right & wrong that govern behavior in terms of rights, fairness, etc.
