Chapter 1 Flashcards
Business
May be defined as the collection of private, commercially oriented (profit-oriented) organizations, ranging in size from one person proprietorships to corporate giants.
Business Power
Refers to the ability and the capacity to produce an effect or bring influence to bear on a situation or people. Power can be positive or negative.
Economic Environment
Focuses on the nature and direction of the economy in which business operates.
Entitlement mentality
The belief that someone (he or she) is owed something just because they are a member of society.
Ethics
Refers to issues of right, wrong, fairness, and justice, and business ethics focuses on ethical issues that arise in the commercial realm.
Iron Law of Responsibility
In the long run those who do not use power in a manner society considers responsible will tend to lose it.
Macroenvironment
The total environment outside the firm. (the broadest level)
Pluralism
A condition in which there is a diffusion of power among the society’s many groups and organizations. “wide decentralization and diversity of power concentration”.
Political Environment
focuses on the processes by which laws get passed and officials get elected and all other interactions between the firm, elected officials, and government.
Revolution of Rising Expectation
An attitude or belief that each succeeding generation ought to have a standard of living higher than that of its predecessor.
Social Contract
That set of two way understandings that characterizes the relationship between major institutions like that of business and society.
Social Environment
As one component it, focuses on demographics, lifestyles, and social values of society.
Social Problem
The gap between society’s expectations of social and conditions and the present social realities.
Society
May be defined as a community , a nation, or a broad grouping of people having common traditions, values, institutions, and collective activities and interests.
Stakeholders
are the individuals or groups with which business interacts who have a “stake” or vested interest, in the firm.
