Social Business + Te Ao Maori Flashcards
What are the 3 theory’s of business ethics?
Stock/shareholder theory
Stakeholder theory
Social contract theory
The stock/shareholder theory
Holds that a company has no ethical obligations to society other than to earn the largest possible profit for its stockholders or owners within limits of business ethics and the law
The stakeholder theory
Holds that a company is morally obligated to all parties with a stake in the outcome of its activities, including employees, the community and the environment as well as stockholders.
Social contract theory
Holds that all businesses operate under an unwritten contract with the society as a whole, in which the society allows the company to do business under th condition that its actions benefit society.
How can ethical decisions in business be strongly affected
By which theory of business ethics informs the decision making process.
Social license to operate (SLO)
The ongoing acceptance of a company or industry’s standards business practices and operating procedures buy its employees, stakeholders and the general public. SLO is created and maintained slowest over time as a company builds trust with the community it operates in and other stakeholders.
Trust value chain
You are only as strong as your weakest link, your trust value chain is either built or destroyed and follows a distinct and simple path.
Social business
In a social business, the investors / owners can gradually recoup the money invested but cannot take any dividend beyond that point. The purpose on investment is purely to achieve one or more social objectives through the operation of the company. No personal gain is desired by the investors. The company must cover all costs and be financially stable while achieving the social objective in sectors suck as healthcare, education, poverty, environment, housing, climate urgency etc.
Corporate social responsibility (CSR)
The continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as the local community and society at large.
Types of CSR
Environment
Ethical / human rights / legal
Philanthropic
Economic
Ethical CSR
Refers to a companies commitment to operate their business in an ethical manner that upholds human rights principles
Philanthropic CSR
Refers to a corporations aims, goals and objectives for actively bettering society as a whole
Economic CSR
Refers to the practice of making financial decisions based on a commitment to doing good. E.g. investing in alternative energy sources.
Strategic CSR
Assisting the firms profit potential
Strategic CSR
Assisting the firms profit potential
Non-strategic CSR
Completely integrative and ethical
Disadvantages of CSR
May take management focus away from core business activities. May appear cosmetic - without genuine social benefit. May make organization more vulnerable to revelation of bad / unethical business practice
CSR Report
A report published by a company or organization which may be shown on their website for the public to see. It includes the companies social, environmental, and economic impact on society. It can help companies identify fresh new ways to improve overall performance and thus have an overall financial benefit.
Global Reporting Initiative (GRI)
International not for profit organization, with a network based structure. To enable all companies and organizations to report their economic, environmental, social and governance performance, GRI produces free sustainability reporting guidelines.
Māori worldview (te ao Māori)
The worldview is the central systemization of ceneptions of reality to which members of its culture assent from and which stems their value system. The worldview lies at the very heart of the culture, interacting w and influencing every aspect of the culture.
It’s a holistic worldview that focuses on interconnections and is grounded in tikanga customary values.
Indigenous definition 3 elements:
1- descent from populations inhabiting a region prior to later inhabitants
2- goegraphical, politicial and/or economic domination by later inhabitants or immigrants.
3- maintenance of some distinctive social-cultural norms and institutions.
Māori definition
The term Māori denotes the indigenous people of NZ. Māori are tangata Whenua, described has as the people of the land referring to their status as First Nation peoples of NZ.
Relationships, sense of connectedness
Whanaungatanga - value
Sacred relationships of god
Wairuatanga - value
