bus 682 midterm 1

-Company pioneered the use of scenaios in corporate planning
-one of world's largest

An environmental force of unknown origin and mysterious action that provides the energy for events

-An economic metamorphosis in England in the late 1700s
-occurred when certain neccessary conditions were present and shifted the country from simple agrarian economy into a growing industrial economy

Statistical measure of inequality in which...
-zero is perfect equality (everyone has same wealth)
-100 is absolute inequality (single person has all wealth)

-sufficiency of capital, labor, natural resources, and fuels
-adequate transporation
-strong markets
-ideas and institutions that support the productive blend of all the above ingredients

-the creation of networks of human interaction that span worldwide distances
-increased economic activity
-changed cultures
-accelerated by new technologies

An international actor having a ruling authority, citizens, and a territory with fixed borders

A set of reinforcing beliefs and values that constructs worldview

Industrial revolution was facilitated by 2 ideologies...

dominant ideology that humanity was in upwards motion toward material betterment

dominant ideology that constant improvement characterized

dominant ideology that evolutionary competition in human society weeds out the unfit and advances humanity

dominant ideology that hard work, saving, thrift, and honesty lead to salvation

forces that influence market operations in the economic environment

6 Key External Environments

a system of shared knowlege, values, nrms, customs, an rituals acquired by social learning

2 long-term global trends in govenerment environment

consists of legislation, regulation, and litigation

depleted mineral resources, killed species, forest cover reduction, unbalanced nitrogen cycle in 20th century are due to...

consists of 4 groups--employees, managers, board of directors, owners--each with diff objective, beliefs, needs and functions that must be coordinated

company that once had more than 90% of market share of the American oil market

leader of ExxonMobil that emphasized...
-control
-efficiency
-centralized organization
-suppression of competitors
-social responsiblity

basic agreement or social contract existing between economic institutions and other networks of power in a society

networks of power in the business-government-society field

4 models of the business-government-society relationship

the economy that emerges when people move beyond subsistence production to production for trade and markets take on a more central role

an economic idelogy with a bundle of values including private ownership of means of production, the profit motive, free competition, and limited government restrain in markets

a market economy in which the dominant businesses are large firms run by salaried managers, not small firms run by owner-entrepreneurs

economic philosophy that rejects government intervention in markets

according to this model of the BGS relationship...
-government regulation should be limited
-markets will discipline private economic activity to promote social welfare
-proper measure of corporate performance is profit
ethical duty of management is to promote the interests of shareholders

-model of the BGS relationship that represents the perspective of business critics
-business and government dominate the great mass of people
-focus on the defects and inefficiencies of capitalism

a political pattern, recurrent in world history, in which common people who feel oppressed or disadvantagedseek to take power from a ruling elite seen as thwarting fulfillment of the collective welfare; opposd the dominance model

an ideology holding that workers should revolt against property owning capitalists who exploit them , replacing economic and political domination with more equal and democratic socialist institutions

-model of multiple forces
-suggest exchanges of power among them, attributing constant dominance to none
-rejects absolute primacy of business crediting more power to a combo of forces and interactions

entities in a relationship with the corporation in which they, the corporation, or both, are affected immediately, continuously and powerfully

entities in a relationship with the corporation in which the effects on them, the corporation, or both are less significant and pressing

-exponents of this BGS relationship model debate how to identify wo or what is a stakeholder
-reorders the priorities of management away from those in the market cap. model

actions taken by managers to adapt to a company to changes in its market and sociopolitical environments

a statement of vision that creates insight by describing patterns or relationships in a diffuse subject matter

the study of phenomena moving through time

The American Tobacco company case illustrates...

Founder of American Tobacco co. that used Rockefeller's methods

The force or strength to act or to compel another entity to act

The force behind an act by a co, industry, or sector

the rightful use of power

level of business power that is the direct cause of visible, immediate changes, both great and small

level of corporte power that shapes society over time thru the aggregate changes of industrial growth

sphere of corporate power that is the ability of the corp to influence events, activities, and people by virtue of control over resources

spehere of corporate power that is the ability to influence the direction, rate, characteristics, and consequences of physical innovations as they develop

sphere of corporate power that is the ability to influence governments

sphere of corporate power that is the ability to shape the laws of society

sphere of corporate power that is the ability of influence cultural values, habits, and institutions such as the family

sphere of corporate power that is the impact of a company on nature

sphere of corporate power that excercised over employees, managers, stockholders, consumers, and citizens

the Railroad revlution changed...

perspective on business power; view that business is the most powerful instituion in society bc of its control of wealth

perspective on businnes powerl view that business power is excercised in a society where other institutions also have great power

a small group of individuals in control of the economy, govnt and military

-organizer for the United Mine Workers
-helped launch the International Workers of the World (1905)

a society with a largely agricultural economy

a price giving a moderate profit; one inspired by fairness, not greed

a price determined by the interaction of supply and demand

the lending of money for interest

the belief that hard work and adherence to a set of virtues such as thrift, saving, and sobriety would bring wealth and God's approval

a political reform movement that arose among farmers in the late 1800s; blamed social problems on industry and sought radical reforms such as govnt ownership of railroads

a turn-of-the-20th-century political moevement that associated moderate social reform with progress

the doctrine of a classless society in which property is collectively owned and income from labor is equally divided among members; rejects values of capitalism

members of broad political and social reform movement in the early years of the 20th century

members of contemporary left-leaning groups who advocate more radical corporate reform than did old time progressives

a zone of ideas, discourse and action, dominated by progressive values, that transcends national societies and focuses on global issues

a coalition of groups united by opposition to economic globalization dominated by corporate capitalism

company that discovered a compound that killed animal parasites, introduced as a veterinary drug, believed it can help humans

the duty of a corporation to create wealth in ways that avoid harm to, protect, or enhance societal assets

an agent of a company whose corporate role puts him or her in a position of power over the fate of not just stockholders, but also others such as customers employees, and communities

a belief that managers served society by making companies profitable and that aggregate success by many managers would resolve major social problems

a philopshy of the lates 1800s and early 1900s that use evolution to explain the dynamics of human society and institutions

the application of one nation's laws within the borders of another nation

statements of philosophy, policy and principle found in nonbinding

a standard that arises over time and is enforced by social sanction or law

a rule, natural law, or truth used as a standard guide to conduct

formal statements of aspirations principles, guidelines, or rules for corporate behavior

the practice of a corporation publishing info about its economic, social, and environmental performance

the idea that ethical consumers will pay a premium for commodities from producers in developing nations who use sustainable methods

a model of the methods an organization can use to achive certain goals

the foundation, established by Bill Gates, that has given out more than 13 billion

The underlying idea or theory that explains how a business will create value by making and selling products or service in the market

business model in which the central strategy for creating value is based on meeting market demands while complying with the law

business model that creates value by meeting market demands and, in the process, mitigating social problems or improving society in some way

A company must first find an objective, or a vision of what it will achieve, then create a method for reaching it in order to determine its...

Steps for CSR implementation...

shows performance on a triple bottom line of economic, social, and environmental results

csr--The state in which company social strategies, structures, and processes are visible to external observers

csr--Documentation and disclosure of how closely corporate operations conform to the goal of sustainable development

csr--Economic growth that meets current needs without social and environmental impacts that harm future generations

csr--An accounting of a firm’s economic, social, and environmental performance

CSR--Verification by audit that information in a corporate sustainability report is reliable

A form of corporate philanthropy in which charitable activities reinforce strategic business goals

A form of strategic philanthropy in which charitable contributions are based on purchases of a product

An emerging form of philanthropy that uses market forces to achieve results

Bernard Ebbers...

The belief that business should be conducted without reference to the full range of ethical standards, restraints, and ideals in society

Business actions are judged by the general ethical standards society, not by a special set of more permissive standards

The theory that because human nature is everywhere the same, basic ethical rules are applicable in all cultures

The theory that ethical values are created by cultural experience; Different cultures may create different values and there is no universal standard by which to judge which values are superior

Payments awarded to redress actual, concrete losses suffered by injured parties

Payments in excess of a wronged party’s actual losses to deter similar actions and punish a corporation that has exhibited reprehensible conduct

A nonviolent economic offense of cheating and deception done in the course employment for personal or corporate gain

An agreement between a prosecutor and a corporation to delay prosecution while the company takes remedial actions

An agreement in which U.S. attorneys decline prosecution of a corporation that has taken appropriate steps to report a crime, cooperate, and compensate victims

A person hired by a corporation to oversee fulfillment of conditions in an agreement to avoid criminal indictment

3 levels of corporate culture

A system of structures, policies, procedures, and controls
used by corporations to promote ethical behavior and ensure compliance with laws and regulations

An ethics and compliance program that emphasizes following rules in laws, regulations, and policy.

son of poor Russia immigrant; From the mailroom a 21-year-old launched the career that made him “the richest man in Hollywood”

-principle of conduct: Act only according to that maxim by which you can at the same time will that it should become a universal law

-principle of conduct: Business is like a game with permissive ethics and any action that does not violate the law is permitted

-principle of conduct: Test an ethical decision by asking how you would feel explaining it to a wider audience such as newspaper readers, television viewers, or your family

-principle of conduct: Avoid behavior that is excessive or deficient of a virtue

-principle of conduct: The end justifies the means

-principle of conduct: Do unto others what you would have them do unto you

-principle of conduct: What is good or right is understood by an inner moral sense based on character development and felt as intuition (Self-interest may be confused with ethical insight)

-principle of conduct: Justice is the interest of the stronger
(criticism-Confusion of ethics with force)

-principle of conduct: Be loyal to the organization

-principle of conduct: A person has the right to freedom of action unless such action deprives another person of a proper freedom

-principle of conduct: A set of rules for making decisions having both good and evil consequences

-principle of conduct: Each person has protections and entitlements that others have a duty to respect

-principle of conduct: Each person should act fairly toward others in order to maintain the bonds of community

-principle of conduct: The greatest good for the greatest number

Ethical behavior stems from character virtues built up by habit

A method used to map activity in neural networks during ethical decision making

A method of ethical reasoning in which insight comes from answering a list of questions

-specialized in helping defense contractors get project funding through earmarks (crime)
-pioneer in art of earmarking
-caught by FBI
-charged with 11 criminal counts of illegal campaign contributions and false reporting (2010)

insertions in defense spending bills

Amendment that protects the right of a business to organize and press its agenda on government

A government in which powers are divided between a central government and subdivision governments

A clause in the Constitution, Article VI, Section 2, setting forth the principle that when the federal government passes a law within its powers, the states are bound by that law

The constitutional arrangement that separates the legislative, executive, and judicial functions of the national government into three branches, giving each nconsiderable independence and the power to check and balance the others

The power of judges to review legislative and executive actions and strike down laws that are unconstitutional or acts of officials that exceed their authority

A group that represents the political interests of many companies and industries

A group representing the interests of an industry or industry segment

A combination of business interests, including corporations, trade associations, and peak associations, united to pursue a political goal

Advocating a position to government; articulate diverse interests in the great sweep of American pluralism

Direct interaction with government officials or staff in meetings, phone calls, or e-mail

Indirect lobbying activity designed to build friendly relations with lawmakers, officials, and staff

The technique of generating an expression of public, support for the position of a company, industry, or any interest

A political committee carrying a company’s name formed to make campaign contributions

Money that is unregulated as to source or amount under federal election law

Money raised and spent under the strict contribution limits and rules in federal election law