Chapter 2 Flashcards
Helps identify internal and external stakeholders
Stakeholder framework
The formal system of accountability and control of ethical and socially responsible behavior
Corporate governance
Those who have a stake or claim in
some aspect of a company’s products, operations,
markets, industry, and outcomes
Stakeholder
2 types of stakeholders
Primary Stakeholders
Secondary Stakeholders
those whose continued association is absolutely necessary for a firm’s survival
Primary Stakeholders
do not typically engage in transactions with the firm and are not essential to a firm’s survival
Secondary Stakeholders
An organization’s obligation to maximize its positive impact on stakeholders and minimize its negative impact
Social Responsibility
Four levels of social responsibility
- Economics
- Legal
- Ethical
- Philanthropic
Top 10 Companies with the
Best CSR Reputations
- Microsoft
- Walt Disney
- BMW
- Lego
- Daimler
- Apple
- Rolls Royce
- Rolex
10.Intel
Founded by Gordon Moore and Robert Noyce, on JULY 18, 1968(USA)
Intel
Founded by Hans Wilsdorf and Alfred Davis(1905) at United Kingdom
Rolex
Founded by Peter Schwarzenbauer(1998) at United Kingdom
Rolls Royce
Founded by Steve Jobs and Steve Wozniak on APRIL 1, 1976 at USA
Apple
Founded by Ola Kallenius on JUNE 28,1926 at Germany
Daimler
Founded by Ole Kirk Christiansen(1949) at Denmark
Lego
BMW Stands for:
Bayerishe Motoren Werke
Founded by Camillo Castiglioni and Franz Josef Popp and Karl Rapp on MARCH 7, 1916 at Germany
BMW
Founded by Walter Elias Disney(1946) at USA
Walt Disney
Founded by Bills Gates and Paul Allen on APRIL 4, 1975
Microsoft
Founded by Larry Page and Sergey Brin on September 4, 1998 at USA
The extent to which businesses strategically meet their economic, legal, ethical, and philanthropic responsibilities
Corporate Citizenship
one of an organization’s
greatest intangible assets with tangible
value
Reputation
4 Social Responsibility
Issues
Social
Consumer protection
Sustainability
Corporate governance
Deals with concerns that affect the welfare of our entire society, associated with the common good
Social
The company has the responsibility of taking precautions to prevent consumer harm
Consumer protection
Businesses can no longer afford to ignore the natural environment as a stakeholder
Sustainability
Research shows it has a strong positive relationship with social responsibility
Formal systems of accountability, oversight, and control
Corporate governance
3 types/system of corporate governance
Accountability
Oversight
Control
How closely workplace decisions align with a firm’s strategic direction
Accountability
A system of checks and balances to minimize opportunities for misconduct
Oversight
The process of auditing and improving
organizational decisions and actions
Control
Founded in classic economic precepts
Shareholder model
A broader view of the purpose of business
Stakeholder model
Holds final responsibility for its firm’s
success, failure, and ethicality of actions
Role of Board of Directors
