CH 3 Flashcards
Understand the impact of general and task environment on businesses. What can a manager control and what can they not?
A manager may be able to control the task environment, because of its constant interaction with the organization.
A manager will have a harder time controlling the general environment
What is a social audit?
A systematic assessment of a company’s performance in implementing socially responsible programs
Discuss the internal stakeholders of an organization and the role they play in the success of the organization.
employees –> talent
owners –> their goal is to make a profit
board of directors –> oversee firm’s activities and ensure that management acts in shareholder’s best interest
Discuss why it’s important to consider each of the stakeholders in your decision making process
It’s important, because stakeholders make up the environment of an organization, whatever the organization decides on could impact the stakeholders
What is the task environment?
- customers: pay for goods and services
- competitors: compete for customers or resources
- suppliers: provides supplies
- distributors: a person or an organization that helps another organization sell its good and services to customers
- strategic allies: relationship between two organizations who joined forces to achieve advantages neither can perform as well alone
- unions and associations
- local communities
- financial institutions
- government regulators: regulatory agencies that establish ground rules under which organizations may operate
- special interest groups: groups whose members try to influence specific issues
What is the general environment?
- Economic forces
- technological forces
- sociocultural forces
- demographic forces
- political-legal forces
- international forces
What are ethics?
The standards of right and wrong that influence behavior
What are the four approaches to deciding ethical dilemmas?
- Utilitarian approach, which is guided by what will result in the greatest good for the greatest number of people
- Individual approach is guided by what will result in the individual’s best long-term interests, which ultimately are in everyone’s self-interest
- The moral-rights approach is guided by respect for the fundamental rights of human beings
- Justice approach is guided by respect for impartial standards of fairness and equity
What are values?
The relatively permanent and deeply held underlying beliefs and attitudes that help determine a person’s behavior
What is corporate social responsibility?
The notion that corporations are expected to go above and beyond following the law and making a profit
