Chapters 2, 3, 9, 10 Flashcards
business ethics
principles and standards that determine acceptable conduct in business
ethical issue
-an identifiable problem, situation, or opportunity that requires a person to choose from among several actions that may be evaluated as right or wrong, ethical or unethical
ethical issue examples (5)
-bribery
-misuse of company time
-abusive and intimidating behavior
-misuse of company resources
-conflict of interest
ethical choice
making decisions based on ethics
codes of ethics
formalized rules and standards that describe what a company expects of its employees
social responsibility
Business’s obligation to maximize its positive impact and minimize its negative impact on society
social responsibility requirements
Stage 1: Financial and economic viability
Stage 2: Compliance with legal and regulatory requirements
Stage 3: Ethics, principles, and values
Stage 4: Philanthropic activities
social responsibility issues (7)
-relations with owners/stockholders
-employee relations
-consumer relations
-sustainability issues (pollution)
-alternative energy
-community relations
-response to environmental issues
business responsibility
the practice of creating customer value through the active concern for people, ethics, equity, and environmental impacts while running a profitable business
absolute advantage
a monopoly that exists when a country is the only source of an item, the only producer of an item, or the most efficient producer
comparative advantage
the bias of most international trade, when a country specializes in products that it can supply more efficiently or at a lower cost than it can produce other items
outsourcing
the transferring of manufacturing or other tasks to countries where labor and supplies are less expensive
balance of trade
the purchase of goods and services from foreign sources
trade deficit
-a nation’s negative balance of trade
-exist when a country imports more products then they export
trade surplus
a country exports more then they import
Barriers to international trade (6)
-economic
-ethical
-legal
-political
-social/cultural
-technological
GATT (general agreement on Tariffs and trade)
-trade agreement
-signed by 23 countries in 1947
-tariff negotiations
-place where international trade problems could be discussed/resolved
WTO (world trade organization)
deals with the rules of trade between nations
NAFTA (north american free trade agreement)
-eliminates most tariffs and trade restrictions on agricultural and manufactured products
-encourage trade among Canada, US, and Mexico
EU (European union)
-union of European nations established in 1958
-promote trade among its members
-one of the largest single markets today
world bank
-organization established by the industrialized nations in 1946
-loan money to underdeveloped and developing countries
-formally known as the international bank for reconstruction/development
IMF (International monetary fund)
-organization established in 1947
-promote trade among member nations by eliminating trade barriers and fostering financial cooperation
licensing
trade agreement in which one company allows another company to use its company name, product, patents, brands, trademarks, raw materials, and production in exchange for fee/royalty
exporting
the sale of goods and services to foreign markets
importing
the purchase of goods and services from foreign services
joint venture
a partnership established for a specific project or for a limited time
strategic alliance
a partnership formed to create competitive advantage on a worldwide basis
direct investment
the ownership of overseas facilities
multinational corporation
a corporation that operates on a worldwide scale, without significant ties to any one nation or region
International business strategies
-multinational: customizing products, promotion, and distribution according to national differences
-global: standardizing products for the whole world
human relations
study of the behavior of individuals and groups in organizational settings
morale
an employees attitude toward the job, employer, and colleagues
intrinsic rewards
the personal satisfaction and enjoyment felt after attaining a goal
extrinsic rewards
benefits and/or recognition received from someone else
Maslow’s hierarchy of Needs
-theory that arranges the five basic needs of people into the order in which people strive to satisfy them
-physiological needs, security, social, esteem, self actualization
job rotation
movement of employees from one job to another in an effort to relieve the boredom associated with job specialization
job enrichment
-incorporation of motivational factors
-opportunity for achievement, recognition, responsibility, and advancement into a job
job description
-written explanation of a specific job
-including job title, tasks, relationship with other jobs, physical/mental requirements, duties, responsibilities, working conditions
job specification
description of the qualifications necessary for a specific job
performance appraisals
provide employees with feedback on how well they are doing as well as areas for improvement
wages
financial rewards based on the number of hours the employee works or the level of output achieved
salary
a financial reward calculated on a weekly, monthly, or annual basis
benefits
nonfinancial forms of compensation provided to employees
additional compensation
bonuses/profit sharing
labor unions
employee organizations formed to deal with employers for achieving better pay, hours, and working conditions
characteristics of diversity
primary- unchangeable
secondary- chanegable
primary characteristics
-unchangable
-age, gender, race, ethnicity, abilities, sexual orientation
secondary characteristics
-changeable
-education, income, location, religion
