Functional Areas of Business Flashcards
Key Functional Areas of Business
HRM, finance, accounting, supply chain management, operations management, marketing
people domain
managing interpersonal relationships within organizations
money domain
associated w Aristotle’s ideas about chrematistics
managing other organizations and resources domain
ideas about managing relationships btwn organizations
value chain
the sequence of activities whereby an organization acquires the resources it needs, engages In day-to-day operations to use and add value to these resources and utilizes it’s value-added outputs to further it’s interests
HR domains and value chain
domain: people
value chain: input (hiring), conversion (training), output (dismiss employees)
finance domain and value chain
Domain: money
Value chain:
Input (raising money/financing), output ( spending money/investment)
accounting domain and value chain
Domain: money
Value chain:
Conversion process( auditing, creating reports for transparency for how $ spent)
supply chain management domain and value chain
Domain: resources
Value chain: Inputs (managing inventory coming in)
operations management domain and value chain
Domain: resources
Value chain:
Conversion Process (how do you deal with inputs to make your products )
marketing domain and value chain
Domain: resources
Value chain:
Outputs (how are all our resources going to who we’re selling to?)
supply chain management focuses on
inter-organizational logistics, and specifically on ensuring that organizations find optimal ways to acquire the supplies that they need from other organizations
globalization
the increasing movement of goods, services and capital across national borders
-aided by neoliberalism policies/free trade
transnational corporations
firms that control assets abroad
international financial and trade institutions
organizations/institutions that support globalization
ie WTO, world bank, UN
problem w international financial and trade institutions
these guidelines they give aren’t laws, difficult to implement/ensure businesses follow
International NGOs (non governmental organizations) in Supply Chain Management:
keep companies accountable on human rights violations, environmental standards. Evaluate externalities that businesses aren’t.
globalization and the race to the bottom
The race to the bottom refers to a firm’s attempts to undercut competitor prices by sacrificing standards in areas such as quality, safety and wages.
attempts to fix working conditions in developing countries
company level policies and programs, global codes of conduct for corporations, multi-stakeholder initiatives (private regulation)
company level policies and programs in fixing working conditions
Practices, codes of conduct, standards within individual companies that aim to address these issues
-Nike (procedures for how they hire factories)
-Gap
-H&M wage increase (minimum wage requirement for factory contract)
problem w company level policies and programs in fixing working conditions
how do we implement this?? factories can subcontact other factories etc
global codes of conduct for corporations
The UN Global compact
The OECD guidelines for multinational corporations
Principles for CSR (Kairos Canada)
multi stakeholder initiatives (private regulation) in attempts to fix labour conditons
Reporting standards
-Global reporting initiative (GRI)
Certification standards
-International organization for standardization (ISO)
-Forestry Stewardship Council (FSC)
operations management
includes both production management and service operations, refers to directing and controlling the processes that convert an organization’s resources (inputs) into finished goods and services (outputs)
externalities
the cost or benefit that affects a party who did not choose to incur that cost or benefit, often lead to market failures
what is a market failure?
when the allocation of goods and services within the market is not efficient, leads to misallocation of resources
business as a contributor of climate change
Business has been a major contributor to carbon in the atmosphere
Funding climate change skepticism
Lobbying against regulation
negative impacts of climate change on business
Climate change is changing the landscape of business
-Businesses that depend on water
-Tourism
-Commodity-based businesses (oil, steel)
business as a part of the solution of climate change
technological innovations (clean energy), meat replacements
ways to limit environmental harm caused by business
regulations, laws, market driven approaches, environmental NGOs, multistakeholder initiatives, corporate driven approaches
environment canada
Federal dpt responsible for the environment. Operates various programs, tracks and reports on environmental issues, administers environmental legislation and regulations
Canadian Council of Ministers of the Environment (CCME)
Comprises of environment ministers from the federal/ provincial, and territorial governments and meets at least once a year to discuss national environmental priorities and determine work to be carried out under the auspices of CCME
Canadian Environmental Assessment Agency (CEAA)
provide high-quality environmental assessments that contribute to informed decision making relating to sustainable development
strengths of environmental regulations
Power for oversight and sanctions in cases of non-compliance
Externally controlled so more stakeholder interests considered
weaknesses of environmental regulations
Susceptible to lobbying and corporate influence
Can be viewed by industry as inefficient since government may not have the necessary knowledge of an industry
Cannot regulate outside jurisdiction
strengths of environmental laws
Have the power to enforce compliance and can sanction non-
compliance
Potentially less susceptible to influence than regulations
weaknesses of environmental laws
Fines are often not a deterrent for large corporations
Several instances where corporate executives have avoided criminal
accountability
market driven environmental approaches
Market incentives for protecting the environment
-Carbon tax
-Emissions trading
-Emission reduction credits (offsets)
-Carbon capture and storage
strengths of market driven environmental approaches
Incentives for companies
Potentially “efficient” bc it is incorporated into the market
weaknesses of market driven environmental approaches
Allows corporations to continue to be environmentally destructive without addressing internal issues
greenpeace canada
Greenpeace is an independently funded
organization that works to protect the environment”
energy probe
“Energy Probe is a consumer and environmental research team, active in the fight against nuclear power, and dedicated
to resource conservation, economic efficiency, and effective utility regulation”
friends of the earth canada
charitable, non-profit environmental organization. Our mission is to serve as a national voice for the environment, working with others to inspire the renewal of our communities and the earth, through research, education and advocacy”
pollution probe
Canadian environmental organization that defines environmental problems through research, promotes understanding through education, and presses for practical solutions through advocacy”
strengths of environmental NGOs
Can effectivley pressure corporations into changing policies
Externally (stakeholder) controlled
weaknesses of environmental NGOs
Does not possess the same amount of power as regulations or laws
Potential for co-optation
Multi-stakeholder environmental initiatives
Numerous organizations and actors from different areas come together to develop standards, rules, policies, and principles around environmental performance
strengths of Multi-stakeholder environmental initiatives
Inputs from multiple stakeholders
Are often transnational in focus
Encourage collaboration and cooperation
weaknesses of Multi-stakeholder environmental initiatives
Voluntary (can withdraw)
Slow progress
Often watered-down to satisfy all parties
corporate driven environmental approaches
Almost all corporations have policies and programs aimed at addressing environmental issues
strengths of corporate driven environmental approaches
Internally controlled for more likelihood for efficiencies and integration
Company buy-in
weaknesses of corporate driven environmental approaches
No external oversight or enforcement
Company has complete discretion
marketing
“planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services.
Marketing affects almost every aspect of daily life, and it is something you are exposed to all the time. From deciding how to package a product (and what the product should be) to getting the product to market, marketers perform a wide variety of tasks”
consumer capitalism
a theoretical economic and social political condition in which consumer demand is manipulated, in a deliberate and coordinated way, on a very large scale, through mass-marketing techniques, to the advantage of sellers
consumerism and the natural environment
It is not enough simply to “green” consumption by buying more sustainably produced goods- it is essential to reduce consumption.
systematic barriers
obstacles within social, economic, or organizational structures that disadvantage certain groups of people based on factors such as race, gender, ethnicity, disability or socioeconomic status
systematic barriers manifest in the form of
Policies
Practices
Norms
Attitudes
finance concerned with
raising money and spending money
accounting concerned with
the measurement of wealth and the financial impact of transaction
income inequality
the extent to which income is evenly distributed within a population
how do we measure income inequality
gini coefficient
arguments for economic inequality
-promotes innovation
-if everyone is equal no one is exceptional
arguments against inequality
as we see an increase in inequality…
-decrease in life expectancy
-increase in infant mortality
-increased social problems
