Unit 1 Introduction to Business Decision Making Flashcards
What is management?
Administration of an organization that makes decisions such as what price to set, who to employ, what type of business to start, when to expend and/or how to cope in a crisis
Two Stakeholder theories
Normative perspective and
Instrumental perspective
What is stakeholders?
Anyone who has an impact on, or is affected by business decisions (investors, shareholders, employee, customers, rival businesses, etc.)
What is the Normative perspective?
How one “ought to behave” - ethical, moral principles
What is the Instrumental perspective?
How one “needs to behave” - how much time, money
Organizational stakeholders
Managers, employees and investors responsible for governing the organization
Market stakeholders
Customers, suppliers, and competitors
Societal stakeholders
Community groups, government, physical environment such as non-governmental organizations
The central role of stakeholders
Business decisions are fundamentally about stakeholder relations
Corporate Responsibility
Contribute to an economically efficient, socially equitable, and environmentally sustainable development while ensuring profitability and economic growth
Social license
How much community support a project, company or industry has in a region
Two certificates on CR
Benefit Corporations (or B Corp, developed in the US), T2 Tea
What is the ripple effect?
The continuing and spreading results of an event or action
