Pt 1 & 2 (Ch 1 - 4) Flashcards
Society
Refers to human beings and to the social structures they collectively create
Interactive social system
Together , society & business form this in which the actions of ea profoundly influence the other.
Stakeholder theory of the firm
corporations serve a broad public purpose: to create value for the society. multiple obligations and ALL stakeholders interests must be taken into account
General business system
intro in 40s, argues that all organisms are open to, and interact with, their external environments
Ownership theory of the firm
Aka property or finance theory — firm is seen as the property of the owners. Shareholder’s interests are paramount & take precedence over the interest of others
Stakeholder
refers to persons and groups that affect, or are affected by , an org’s decisions, policies and operations.
Stakeholder analysis
to identify relevant stakeholders and to understand both their interests and the power they may have to assert these interests
Stakeholder coalitions
when interests are similiar, stakeholders may form coalitions, temporary alliances to pursue a common interest
Stakeholder dialogue
A business and its stakeholders come together for face-to-face conversations about issues of common concern
Stakeholder engagement
the process of ongoing relationship building between a business and its stakeholders
Stakeholder interests
the nature of ea group’s stake
market Stakeholder
aka primary stakeholders —- those that engage in economic transactions w/the company
Stakeholder power
examples: voting, economic, political & legal power. the ability to use resources to make an event happen or to secure a desired outcome.
Business
Org that are engaged in making a profit or providing a service for a profit
Boundary-spanning dept
depts w/in the org that reach across the dividing line that separates the company from groups and people in society
competitive intelligence
systematic & continuous process of gathering, analyzing managing info about its competitor
environmental analysis
provides managers w/the info about external issues and trends that enables an org to develop a strategy that minimizes threats and takes adv of new opportunities
environmental intelligence
the acquisition of info gained from analyzing the multiple environments affecting organizations
issue identification
involves anticipating emerging concerns — through media, expert views, legislature
issue management
a structured and systematic process to aid org in identifying, monitoring, and selecting public issues that warrant organizational action
issue management process
issue identification, issue analysis, policy options, program design, results
performance expectations gap
what the firm wants to do or is doing and what stakeholders expect
public affairs management
a
public issue
an issue that is of mutual concern to an org and one or more of the org’s stakeholders
charity principle
an idea that the wealthiest members of society should be charitable toward the less fortunate
corporate social responsibility
CSR - corp should be held accountable for any of its actions that affect people, their communities, and the environment
enlightened self interest
the company’s self-interest in the long term to provide true value to its customers, to help its employees to grow, and to behave responsibly as a corporate citizen
iron law of responsibility
says that in the long run, those who do not use power in ways that society considers responsible will tend to lose it
legal obligations
as a member of society , the firm must abide by the laws and regulations governing the society
stewardship principle
believe they have an obligation to see that everyone – particularly those in need or at risk — benefits from their firm’s actions. Managers are in the position of public trust
balanced scorecard
CSR: focused on a set of key financial and nonfinancial indicators w/4 quadrants: people and knowledge, internal, customer and financial
citizenship profile
a
corporate citizenship
90s — it entails proactively building stakeholder partnerships, discovering business opportunities in serving society and transforming a concern for financial performance into a vision of integrated financial and social performance
department of corporate citizenship
a
global corporate citizenship
the process of identifying, analyzing, and responding to the company’s social, political, and economic responsibilities as defined thru law and public policy, stakeholder expectations, and voluntary acts flowing from corporate values and business strategies
social & environmental reports
a
social performance audit
a systematic evaluation of an org’s social, ethical and environmental performance.
transparency
clear public reporting of an org’s performance to various stakeholders, includes social and environmental data
triple bottom line
CSR: incorporated into the financials are social and environmental impacts
nonmarket stakeholders
people & groups who — although they do not engage in direct economic exchange w/the firm — are nonetheless affected by or can affect its action
