Corporations and Stakeholders Flashcards
When companies make donations of their goods and services to charitable organizations these gifts are called _____ donations.
in-kind
Explanation
Products manufactured by the firm, technical support, recycling and reuse of obsolete equipment are all examples of in-kind donations.
A person who owns part of a business is called a ___________.
stockholder
Explanation
Stockholders are investors in or owners of a business.
A ___________ is anyone who can affect an organization, or can be affected by it.
stakeholder
Explanation
A stakeholder can be a stockholder, an employee, or even the customers or the community in which the organization exists.
A _________ agency is any of a wide variety of administrative groups established to protect the rights of one or more groups of stakeholders from the potentially harmful actions of business.
regulatory
Explanation
Some better known examples of regulatory agencies include the Occupational Safety and Health Administration (OSHA), the Equal Employment Opportunity Commission (EEOC), and the Environmental Protection Agency (EPA).
According to Wheeler and Sillanpaa, stakeholders can be categorized into _______, secondary, social and nonsocial groups.
primary
Explanation
Primary social stakeholders are influential and have a direct stake in the organization. They include: suppliers, business partners, customers, the local community, managers, employees, shareholders and investors.
The natural ___________ is an example of a primary nonsocial stakeholder.
environment
Explanation
Other nonsocial stakeholders include: animals, insects, and future generations.
Local state and federal government, the media, special interest groups and competitors are all _________ social stakeholders.
secondary
Explanation
Secondary social stakeholders have less accountability than primary social stakeholders but they have the power to influence public opinion.
Environmental protection groups and animal rights activists fall under the heading of ________ nonsocial stakeholders.
secondary
Explanation
Secondary stakeholders can quickly become primary stakeholders after a major media event. Examples include media coverage of boycotts and demonstrations.
According to Richard Edwards, employee rights are based on law, contracts, and ________ promises.
employer
Explanation
Edwards believed employee rights serve to provide desired outcomes and protect employees from undesired consequences.
________ employee rights are provided by law.
Statutory
Explanation
Various state, local and federal laws have given workers certain rights, including workplace safety, equal employment opportunity and collective bargaining.
A worker’s ___________ rights are based on a contract with the employer.
contractual
Explanation
An employment contract for example, specifies the details of employment.
Employer promises are also called _______ rights.
enterprise
Explanation
Examples of enterprise rights include access to a grievance system and the right to a personnel evaluation at specified intervals. Enterprise rights are in writing and usually found in the employee handbook.
Under the employment _______ doctrine, employers can fire their employees at any time for any cause or no cause.
at will
Explanation
According to the employment at will doctrine, the employment relationship is voluntary and subject to termination at any time by either party.
The massive layoffs in recent years have led to an increase in wrongful discharge lawsuits, with employees claiming that their firings have been done with either __________ advance notice or explanation.
inadequate
Explanation
Because of the increase in wrongful discharge claims, human resources departments have taken extra precautions to try to prevent such occurrences, including requiring new employees to sign employment at will forms.
The implied contract exception to the employment-at-will rule refers to dismissal in spite of promises made regarding job security or contrary to set procedures, whereas the implied ________ exception describes the situation when an employer has acted unfairly.
covenant
Explanation
In this situation, the employer has acted in bad faith resulting in the termination of the employee’s position. This violates the implied covenant by causing harm unjustifiably. Hence, employees can seek damages for wrongful dismissal.
In order to avoid wrongful dismissal suits, HR experts suggest that employers give clear reasons when firing an employee, create and follow termination rules, ________ performance shortcomings and act in a consistent manner with all employees in similar circumstances.
document
Explanation
Consistency will bear out that the employer is not treating an employee in a particularly unfavorable way and hence the employer should be able to fend off the charge.
__________ dismissal occurs when an employee resigns because of unpleasant or unreasonable working conditions placed on him or her by the employer.
Constructive
Explanation
This is the definition of constructive dismissal and arises when conditions are so bad that the employee is “forced” to resign.
In nonunionized workplaces, the formal procedures such as the step-review and peer-review systems to handle employees’ grievances are collectively known as ___________ dispute resolution (ADR).
alternative
Explanation
In unionized workplaces, the grievance procedure is normally included in the labor agreements. Employers in nonunionized workplaces have introduced ADR to discourage unionization and to reduce the chances of being taken to court for discrimination or wrongful dismissal claims.
Some states recognize three _________ to the employment-at-will principle and these are the implied contract, implied covenant and violation of public policy.
exceptions
Explanation
Employers cannot fire employees when it is viewed to be in the best interests of society as a whole. For example, an employer cannot fire an employee for refusing to carry out a criminal activity or for reporting breaches of health and safety rules to the OSHA.
The focus of Total Quality Management (TQM) is the ________ stakeholder.
consumer
Total Quality Management (TQM) is a philosophy of __________ that is driven by the constant attainment of customer satisfaction through the continuous improvement of all organizational processes.
management
Explanation
TQM maintains an intense focus on the customer, a concern for continual improvement, accurate performance measurements, and the empowerment of employees.
___________ is the movement which seeks to protect and inform consumers about products, and has resulted in safer products, and honest packaging and advertising.
Consumerism
Explanation
This movement is known as consumerism, and focuses on keeping products safe and honestly packaged and advertised.
The spirit of ________ in the 1960s started a movement known as Consumerism, which pressures businesses to consider consumer needs and interests.
activism
Explanation
Consumerism prompted President Kennedy to announce a bill of rights for consumers, including the right to safety, the right to be informed, the right to choose, and the right to be heard. These rights laid the foundation for consumer-oriented legislation in the decades to come.
___________ is the study of safe and efficient work environments.
Ergonomics
Explanation
Ergonomics also refers to making tools and equipment more comfortable and easy to use–i.e. an ergonomic mouse is designed to cause less wrist fatigue and fit more naturally to your hand.
