Unit 3 Chapter 4 Flashcards
Corporate culture
The set of important assumptions that are shared by people working in a particular business and influence the ways in which decisions are taken there.
Stakeholders
All the people who have an interest or ‘stake’ in a particular business. Stakeholder groups include customers, employees, suppliers, shareholders, government, pressure groups and local communities. Sometimes the environment is referred to as a stakeholder as well.
Corporate social responsibility (CSR)
Takins decisions on a way that takes into account all the stakeholders’ interests. Treating employees, customers and suppliers fairly, avoiding polluting activities and contributing positively to lives in the local community might all be part of this.
Ethical decision making
Following codes of practice that embody moral values. The objective is to do the right thing, acting with honesty and integrity and taking into consideration the interests of everyone affected by the decision.
Social and cultural differences
They come from the fact that individual societies and groups within them may have a distinctive way of life. This will affect their patterns of consumption and the products they favour. But it will also affect the way they do business with one another.
Joint ventures
They involve businesses in a collaborative relationship with a local producer. They are of particular value to businesses that want to produce and/sell in an unfamiliar market. They can be used as a way to spread risks.
Protectionism
The term for government policies aimed at protecting the domestic economy from the effects of imports that might otherwise damage domestic industries and reduce employment.
Trade barriers
Include anything the slows or prevents free trade from taking place, e.g. tariffs and quotas.
Quotas
Physical limits on the level of specific imports in any one year.
