Chapter 3 Flashcards
Clawbacks
rescinding the tax breaks when firms don’t deliver promised jobs
Code of ethics
consists of a formal written set of ethical standards guiding an organization’s actions
Competitors
people or organizations that compete for customers or resources
Corporate governance
the system of governing a company so that the interests of corporate owners and other stakeholders are protected
Corporate social responsibility (CSR)
the notion that corporations are expected to go above and beyond following the law and making a profit
Customers
are those who pay to use an organization’s goods or services
Demographic forces
are influences on an organization arising from changes in the characteristics of a population, such as age, gender, or ethnic origin
Distributor
a person or an organization that helps another organization sell its goods and services to customers
economic forces
consist of the general economic conditions and trends-unemployment, inflation, interest rates, economic growth-that may affect an organization’s performance
ethical behavior
behavior that is accepted as “right” as opposed to “wrong” according to those standards
ethical climate
represents employees’ perceptions about the extent to which work environments support ethical behavior
ethical dilemma
a situation in which you have to decide whether to pursue a course of action that may benefit you or your organization but that is unethical or even illegal
ethics
are the standards of right and wrong that influence behavior
external stakeholders
people or groups in the organization’s external environment that are affected by it
general environment
includes six forces: economic, technological, sociocultural, demographic, political-legal, and international
government regulators
regulatory agencies that establish ground rules under which organizations may operate
individual approach
is guided by what will result in the individual’s best long-term interests, which ultimately are in everyone’s self-interest
insider trading
the illegal trading of a company’s stock by people using confidential company information
internal stakeholders
consist of employees, owners, and the board of directors, if any
international forces
changes in the economic, political, legal and technological global system that may affect an organization
justice approach
is guided by respect for impartial standards of fairness and equity
macroenvironment
same as general environment
moral-rights approach
is guided by respect for the fundamental rights of human beings
owners
consist of all those who can claim it as their legal property
philanthropy
making charitable donations to benefit humankind
political-legal forces
are changes in the way politics shape laws and laws shape the opportunities for and threats to an organization (monopolies)
ponzi scheme
using cash from newer investors to pay off older ones
sarbanes-oxley act of 2002
SOX, established requirements for proper financial record keeping for public companies and penalties of as much as 25 years in prison for noncompliance
social responsibility
is a manager’s duty to take actions that will benefit the interests of society as well as of the organization
sociocultural forces
are influences and trends originating in a country’s, a society’s, or a culture’s human relationships and values that may affect and organization (obesity)
special-interest groups
are groups whose members try to influence specific issues (ie NRA)
stakeholders
the people whose interests are affected by an organization’s activities
strategic allies
describes the relationship of two organizations that join forces to achieve advantages neither can perform as well alone
supplier
a person or organization that provides supplies- that is, raw materials, services, equipment, labor, or energy to other organizations
task environment
consists of 11 groups that present you with daily tasks to handle: customers, competitors, suppliers, distributors, strategic allies, employee organizations, local communities, financial institutions, government regulators, special-interest groups, and mass media
technological forces
are new developments in methods for transforming resources into goods or services
utilitarian approach
is guided by what will result in the greatest good for the greatest number of people
value system
the pattern of values within an organization. Values are the relatively permanent and deeply held underlying beliefs and attitudes that help determine a person’s behavior
values
the relatively permanent and deeply held underlying beliefs and attitudes that help determine a person’s behavior
whistle-blower
is an employee who reports organizational misconduct to the public
Kohlberg theories (ethics)
Level 1, preconventional-follows rules
Level 2, conventional-follows expectations of others
Level 3, postconventional-guided by internal values
