Social Factors Flashcards
What are ethics?
What you view as right/ wrong (individual)
Definition of business ethics
Standards/ behaviours that influence choices of managers
Definition of CSR
What an organization does to and for stakeholders, organizational ethical conduct, how businesses handle conflicting stakeholder interests
6 ways to influence managerial preferences
1) select: hiring criteria aligns with values of company
2) show: managerial role modelling, leading by example
3) tell: mission statement, code of conduct
4) teach: ethics booklets and training
5) reward: goals, evaluation on criteria and rewards/ recognition
6) reinforces: employee protection mechanisms, whistleblowers
4 approaches to CSR
1) proactive: scanning, looking for opportunities
2) accommodative: will do more when asked- willing to give
3) defensive: do what is legally required
4) obstructionist: do the bare minimum
What are your 5 stakeholders
1) environment
2) employees
3) customers
4) investors
5) society
What is the definition of a stakeholder?
Anyone who is affected or who affects your business
Describe the environment as a stakeholder
Paradigm shift in thinking, people now care more about it, pollution decreases profitability, societal attitude shift, 20 years ago it was make take and waste now it’s reduce reuse recycle
What is the definition of greenwashing
Packaging is just green, tricks customers
Describe customers as a stakeholder
Make sure your pricing/ advertising is honest, give them customer rights, avoids adverse actions, safe products, give opportunity for feedback, educate customers, no false advertising, surge pricing
Describe society as a stakeholder
Poverty, health, education
Humans development index measured society’s development through health education and living standards
Diffuse political chaos and terrorism
Affects human capabilities
Attitude shift, millennials want to change the world
Describe investors as a stakeholder
Financial management, reporting
- manager aligns with values of stakeholders
- being transparent in financial statements
- no insider trading
- longer return on investments
- shirking; being lazy because they know they will still be paid
Describe employees as stakeholders
Hiding, promotions compensation, training
- provides businesses w talent, skills, labour
- they run your company. Make sure your hire and promote fairly
- safe working conditions
- respect them, protect whistleblowers
Strategically managing stakeholders steps
1) identify key stakeholders
2) what category are they in
3) bass your strategy off the category they are in
4) implement, execute these strategies
What are the categories for stakeholders
1) mixed blessing
2) supportive
3) non- supportive
4) marginal
