enterprise and society Flashcards
what is ethics?
the manner by which we live our lives according to a standard of “right’ “wrong” behaviour
what are moral standards?
principles based on religious, cultural or philosophical beliefs by which judgements are made about goodand bad behaviour
what is a stakeholder?
any organisation/entity/person that has an interest in the ethical operation of the organisation
what are the rules of ethical decision making?
-utilitarian rule
-moral rights rule
-practical rule
-justice rule
what is the utilitarian rule?
an ethical decision should produce the greatest good for the greatest number of people
what is the justice rule?
an ethical decision should distribute benefits and harm among people in a fair, equitable, and impartial manner
what is the practical rule?
an ethical decision should be one that a manager has no hesitation about communicating to people outside the company because the typical person in a society would think the decision is acceptable
what is the moral rights rule?
an ethical decision should maintain and protect the fundamental rights and privileges of people
what are the effects of ethical behaviour?
-increased efficiency + effectiveness
-increased company performance
- increased national standard of living, well-being and prosperity
what are the effects of unethical behaviour?
-reduced efficiency + effectiveness
-reduced company performance
-reduced national standard of living, well-being and prosperity
what is social responsibility?
the way a company’s manager and employees view their duty or obligation to make decisions that protect, enhance, and promote the welfare and well-being of stakeholders and society as a whole
why be socially responsible?
-helps to build a good reputation
-quality of life in the company increases
what are the 4 approaches to social responsibility?
1.obstructionist
2.defensive
3.accommodative
4.proactive
what is an obstructionist approach?
companies and their managers choose not to behave in a socially responsible way and instead, behave unethically and illegally
what is a defensive approach?
companies and their managers behave ethically to the degree that they stay within the law and strictly abide by legal requirements
what is an accommodative approach?
companies and their managers behave legally and ethically and try to balance the interests of different stakeholders as the need arises e.g DELL
what is a proactive approach?
companies and their managers actively embrace socially responsible behaviour, going out of their way to learn about the needs of different stakeholder groups and using organisational resources to promote the interest of all stakeholders e.g LEGO
reasons for CSR:
-build connection, reputation and trust among customers
-long term survival
-shareholders activism
-influence of pressure groups
-concern for environment
Reasons for not promoting CSR:
-may take management focus away from core business activity
-may appear cosmetic (no genuine social benefit)
-may make organisation more vulnerable to revelation of bad/ unethical business practice
what does equality focus on in the workplace? what does it aim to eliminate?
focuses on the fair treatment of all employees. Aims to eliminate any signs of discrimination in the workplace
what does equity take into account in a business?
a person’s unique circumstances e.g paid internships
is equity the same as equality?
no
what does inclusion concentrate on?
the idea that making employees feel valued and safe at work is every employer’s responsibility
what does inclusion foster and allow?
it fosters employees uniqueness and allows leaders to create effective teams by embracing each employees individual qualities and being open to every employees feedback
sources of diversity:
-age
-gender
-race and ethnicity
-religion
-disability
-sexual orientation
what is distributive justice in the workplace?
where there is a fair distribution of pay, promotions, job titles and office space
what is procedural justice in the workplace?
the use of fair procedures to determine how to distribute outcomes to organisational members
why manage diversity?
-enhances profitability
-increased innovation
-new pool of potential employees
-enhanced brand image
how to achieve diversity management:
-secure top management commitment
- increase diversity awareness and skills
-attention to how employees are evaluated
-empower employees to challenge discriminatory
- provide diversity training
what is the global environment?
The set of global forces and conditions that operate beyond an organisation’s boundaries but affects a manager’s ability to acquire and utilise resources
what is the task environment?
the set of forces and conditions that originates with suppliers, distributors, customers, and competitors and affects an organisation’s ability to obtain inputs and dispose of its outputs e.g new product introduction
what is the general environment?
the wide-ranging global, economic, technological, sociocultural, demographic, political, and legal forces that affect an organisation and its task environment e.g natural disaster
what is a supplier?
Individuals and organizations that provide an organization with the input resources that it needs to produce goods and services
what is meant by global outsourcing?
The purchase or production of inputs or final products from overseas suppliers to lower costs and improve product quality or design
what is a distributor?
organisations that help other organisations sell their goods or services to customers
what is a customer?
individuals and groups that buy goods and services that an organisation produces
what is a competitor?
organisations that produce goods and services that are similar to a particular organisation’s goods and services
what are barriers to entry?
factors that make it difficult and costly for the organisations to enter a particular task environment or industry
what are economic forces?
interest rates, inflation, unemployment, economic growth, and other factors that affect the general health and well-being of a nation or the regional economy of an organisation
what is technology in the general environment?
The combination of skills and equipment that managers use in designing, producing, and distributing goods and services
what are sociocultural forces?
Pressures emanating from the social structure of a country or society or from the national culture
what is national culture?
The set of values that a society considers important and the norms of behaviour that are approved or sanctioned in that society
what is demographic forces?
Outcomes of change in, or changing attitudes toward, the characteristics of a population, such as age, gender, ethnic origin, race, sexual orientation, and social class
what are political and legal forces?
Outcomes of changes in laws and regulations, such as deregulation of
industries, privatization of organizations, and increased emphasis on environmental protection
what is globalisation?
The set of specific and general forces that work together to integrate and connect economic, political, and social systems across countries, cultures, or geographical regions so that nations become increasingly interdependent and similar
what is a tariff?
a tax that government imposes on imported or, occasionally, exported goods
what is a free trade doctrine?
the idea that if each country specializes in the production in the production of the goods and services that it can produce most efficiently. this will result in the best use of global resources and lower prices
what is individualism?
A worldview that values individual freedom and self-expression and
adherence to the principle that people should be judged by their individual achievements rather their social background
what is collectivism?
A worldview that values subordination of the individual to the goals of the group and adherence to the principle that people should be judged by their contribution to the group
