MGMT Ch 2.txt

  1. Scenario
    A plausible story of the future based on assumptions baut how current trends might play out.
  2. What are the 3 dominant forces in the change of the global business environment?
    • 1. globalization
    • 2. technological change
    • 3. liberalization
  3. Liberalization
    An econoic policy of lowering tariffs and other barriers to encourage foreign trade.
  4. What are the nine deep historical forces?
    • 1. Change
    • 2. Industrial Revolution
    • 3. inequality
    • 4. Population Growth
    • 5. Technology
    • 6. Globalization
    • 7. Nation-States
    • 8. Dominant Ideologiies
    • 9. Great Leaders
  5. Historical Forces
    An environmental force of unknown origin and mysterious action that provides the energy for events. The discussion divides this force, somewhat artificially, into nine seperate but related forces causing distinct chains of events.
  6. The Industrial Revolution
    An economic metamorphosis in England in the late 1700s. It occurred when certain necessary conditions were present and shifted the country from a simple agrarian economy into a growing industrial economy.
  7. Gini Index
    A statistical measure of inequality in which zero is perfect equality (everyone has the same amount of wealth) and 100 is absolute inequality (a single person has all wealth).
  8. Replacement Fertility Rate
    The number of children a woman must have on average to ensure that one daughter survives to reproductive age.
  9. What are the five waves of technological innovation?
    • 1. Water power Texttiles Iron
    • 2. Steam Rail Steel
    • 3. Electricity Chemicals Internal-Combustion engine
    • 4. Petrochimicals Electronics Aviation
    • 5.Digital networks software new media biotechnology
  10. Globalization
    The creation of networks of human interaction that span worldwide distances.
  11. Nation-State
    An international actor having a ruling authority, citizens, and a territory with fixed borders.
  12. Ideology
    A set of reinforcing beliefs and values that constructs a worldview.
  13. What are the six key external environment factors?
    • 1. Economic
    • 2. Technology
    • 3. Government
    • 4. Nature
    • 5. Culture
    • 6. Law
  14. Trade Liberalization
    A philosophy in which nations promote trade by easing restrictions, including both tariff and non tariff barriers. This philosophy, sometimes called simply liberalizatoin, is the bedrock of economic globalization
  15. Foreign Direct Investment
    Capital investment by private firms outside their home countries.
  16. Nanotechnology
    Technology that is developed on the scale of a nanometer, which is one-billionth of a meter
  17. Wiki
    A web site open to collaborative editing by multiple individuals
  18. Culture
    A system of shared knowledge, values, norms, customs, and rituals acquired by social learning
  19. Postmaterialist Values
    Values based on assumptions of security and affluence, for example, tolerance of diversity and concern for the environment.
  20. Democracy
    A form of government requiring three elements: popular sovereignty, political liberty, and majority rule
  21. Soft Law
    Voluntarily adopted guidelines for corporate behavior deriving from emerging norms and standards in international codes, declarations, and conventions
  22. Agrarian Society
    A society with a largely agricultural economy.
  23. What was an inaccurage economic doctrine that arose in the times of Greeks and Romans to explain commercial activity?
    The desire for riches was sspect due to the popular belief that the amount of wealth was fixed.
  24. What did Plato think about wealth?
    Plato thought that when people engaged in trade they inevitably succumbed to the temptation of excess and became grasping
  25. What did Aristotle think about wealth?
    Aristotle believed that the amount of happiness a person gained in life was equal to the amount of virtue accumulated in the sould and material possessions added nothing to happiness thus it was a waste of any virtue.
  26. In the Medieval World, what was the previaling theology of the Roman Catholic Church?
    It was intolerant of profit seeking
  27. Who was St. Thomas Aquinas influenced by?
    Influenced by Aristotle and also believed that merchants should only charge a just price.
  28. Just Price
    A price giving a moderate profit; one inspired by fairness, not greed
  29. Market Price
    A price determined by the interaction of supply and demand
  30. Usury
    The lending of money for interest
  31. Protestant Ethic
    The belief that hard work and adherence to a set of virtues such as thrift, saving, and sobrierty would bring wealth and God's approval
  32. Who were the Protestant referormers and what did they believe?
    Martin Luther and John Calvin believed that work was a means of serving God and if a person earned great wealth through hard work it was a sign of God's approval
  33. What influential book was writen in 1776?
    Adam Smith published his theory of capitalism writing that free markets harnessed greed for htepublic good and protected consumers from abuse in A wealth of nations
  34. Utopia
    A socially engineered model community dsigned to correct faults in the world so its members can find happiness
  35. Why did utopias fail?
    Like other utopias it required businesslike activities for subsistence, but it attracted more loafers than skilled farmers and artisans.
  36. Populist Movement
    A political reform movement that arose among farmers in the late 1800s. Populists blamed social problems on industry and sought radical reforms such as government ownership of railroards.
  37. Progressive Movement
    A turn-of-the-twentieth-century political movement that associated moderate social reform with progress. Progressivism was less radical than populism and had wider apeal.
  38. What were the Progressives able to accomplish?
    They broke up trusts and monopolies, outlawed corporate campaign contirbutions, restricted child labor, passed a corporate income tax, and regulated food and drug companies and public utilites. Additionally they were able to pass the 17th amendment requiring direct election of senators.
  39. Old Progressive
    Members of a broad political and social reform movement in the early years of the twentieth century.
  40. New Progressive
    Members of contemporary left-leaning groups who advocate more radical corporate reform than did old-time Progressives. New Progressives seek toavoid being branded as liberals and try to take advantage of favorable connotations in the word progressive.
  41. Nongovernmental Organization
    A term for voluntary, nonprofit organizations that are not affliated with governments.
  42. Civil Society
    A zone of ideas, discourse and action, dominated by progressive values that transcends national societies and focuses on global issues.
  43. Global Justice Movement
    A coalition of groups united by opposition to economic globalization dominated by corporate capitalism.
  44. Neoliberalism
    A word denoting both the ideology of using markets to organize society and a set of specific policies to free markets from state instrusion.
  45. Liberalism
    The philosophy of an open society in which the state does not interfere with rights of an individual.
  46. Economic Liberalism
    The philosophy that social progress comes when individuals freely pursue their self-interests in unregulated markets.
  47. Keynesianism
    An economic philosophy of active state intervention to stabilize the economy and stimulate employment.
  48. Chicago School
    The name given to a group of economists and to the free market doctrine they taught. It is synonymous with neoliberalism.
  49. Group of Eight
    Formerly an annual meeting where eight leaders of large industrial democracies met to discuss economic issues, since replaced by an expanded group of the wealthiest nations called the group of 20, G20.
  50. Ethics
    The study of good and evil, right and wrong, and just and unjust
  51. Business Ethics
    The study of good and evil, right and wrong, and just and unjust actions in business
  52. Theory of Amorality
    The belief that business should be conducted without reference to the full range of eithical standards, restraints, and ideals in society
  53. Theory of Moral Unity
    Business actions are judged by the general ethical standards of society, not by a special set of more permissive standards.
  54. Reciprocity
    A form of social behavior in which people behave supportively in the expectation that this behavior will be given in return.
  55. Realist School
    A school of thought that rejects ethical perfection, taking the position that human affair will be characterized by flawed behavior and ought to be depicted as they are, not as we might wish them to be.
  56. Ethical Universalism
    The theory that because human nature is everywhere the same, basic ethical rules are applicable in all cultures. There is some room for variation in the way these rules are followed.
  57. Ethical Relativism
    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
  58. Hypernorms
    Master ethical principles that underlie all other ethical principles. All variations of theical principle must conform to them.
  59. Compensatory Damages
    Payments awarded to redress actual, concrete losses suffered by injured parties.
  60. Punitive Damages
    Payments in excess of a wronged party’s actual losses to deter similar actions and punish a corporation that has exhibited reprehensivle conduct.
  61. White-Collar Crime
    A nonviolent economic offense of cheating and deception done for personal or corporate gain in the course of employment.
  62. Deferred Prosecution Agreement
    An agreement between a prosecuter and a corporation to delay prosecution while the company takes remedial actions
  63. Nonprosecution Agreemetn
    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.
  64. Monitor
    A person hired by a corporation to oversee fulfillment of conditions in an agreement to avoid criminal indictment
  65. Corporate Culture
    A set of values, norms, rituals, formal rules, and physical artifacts that exts in a company
  66. Ethics and Compliance Program
    A system of structures, policies, procedures, and controls used by corporations to promote ethical behavior andensure compliance with laws and regulations
  67. Compliance Approach
    Training employees to follow rules in laws, regulations and policies
  68. Ethics Approach
    Training employees to make decisions based on ethical values
  69. Deontological Ethics
    The idea that actions are right and wrong in themselves independently of any consequences
  70. Consequentialism
    The idea that actions are right or wrong, in part or whole, based on their consequences
  71. Categorical Imperative
    Act only according to that maxim by which you can at the same time will that it should become a universal law.
  72. Test of Universalizability
    Could this act be turned into a universal code of behavior?
  73. Conventionalist Ethic
    Business is like a game with permissive ethics and actions that do not violate the law are permitted.
  74. Disclosure Rule
    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.
  75. Doctrine of the Mean
    Virtue is achieved through moderation. Avoid behavior that is excessive or deficient of a virtue
  76. Ends-Means Ethic
    The end justifies the mean
  77. Golden Rule
    Do unto others as you would have them do unto you
  78. Practical Imperative
    Treat others as ends in themselves, not as means to other goals. This principle prohibits selfish manipulation of other people.
  79. Test of Reversibility
    Would you be willing to change places with the person or persons affected by your actions?
  80. Intuition Ethic
    What is good or right is understood by an inner moral sense based on character development and felt as intuition.
  81. Might equals Right
    Justice is the interest of the stronger
  82. Organization Ethic
    Be loyal to the organization
  83. Principle of equal freedom
    A person has the right to freedom of action unless such action deprives another person of a proper freedom.
  84. Proportionality
    A set of rules for making decisions having both good and evil consequences
  85. Principle of proportionality
    Managers can risk predictable, but unwilled, harms to people after weighing five factors: type of good and evil, probability, urgency, intensity of influence, and alternatives.
  86. Principle of Double Effect
    When both good and evil consequnces result from a decision, a manager has acted ethically if the good out-weigns the evil, if his or her intention is to achieve the good, and if there is no better alternative
  87. Rights Ethic
    Each person has protections and entitlements that others have a duty to respect
  88. Natural Rights
    Protections and entitlements that can be inferred by reason from the study of human nature
  89. Legal Rights
    Protections and entitlements conferred by law
  90. Theory of Justice
    Each person should act fairly toward others in order to maintain the bonds of community.
  91. Distributive Justice
    The benefits and burdens of company life should be distributed using impartial criteria.
  92. Retributive Justice
    Punishment should be evenhanded and proportionate to transgressions
  93. Compensatory Justice
    Victims should receive fair compensation for damages
  94. Utilitarian Ethic
    The greatest good for the greatest number.
  95. Virtue Ethic
    Ethical behaviors stem from character virtues built up by habit
  96. Cardinal Virtues
    The four most basic traits of an ethical character – justice, temperance, courage, and wisdom. They were identified by Plato
  97. Functional magnetic resonance imaging
    A method used to map activity in neural networks during ethical decision making.
  98. Critical Questions Approach
    A method of ethical reasoning in which insight comes from answer a list of questions.
  99. Business
    Profit-making activity that provides products and services to satisfy human needs
  100. Government
    Structures and processes in society that authoritatively make and apply policies and rules.
  101. Society
    A network of human relations composed of ideas, institutions, and material things
  102. Idea
    An intangible object of thought
  103. Value
    An enduring belief about which fundamental life choices are correct
  104. Ideology
    A bundle of values that creates a particular view of the world
  105. Institution
    A formal pattern of relations that links people to accomplish a goal
  106. Material Things
    Tangible artifacts of a society that shape and are shaped by ideas and institutions
  107. Social Contract
    An underlying agreement between business and society on basic duties and responsibilities business must carry out to retain public support. It may be reflected in laws and regulations
  108. Market Economy
    The economy that emerges when people move beyond subsistence production to production for trade, and markets take on a more central role.
  109. Capitalism
    An economic ideology with a bundle of values including private ownership of means of production, the profit motive, free competition, and limited government restraint in markets.
  110. Managerial Capitalism
    A market economy in which the dominant businesses are large firms run by salaried managers, not smaller firms run by owner-entrepreneurs
  111. Laissez-Faire
    An economic philosophy that rejects government intervention in markets.
  112. Populism
    A political pattern, recurrent in world history, in which common people who feel oppressed or disadvantaged seek to take power from ruling elite seen as thwarting fulfillment of the collective welfare.
  113. Marxism
    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
  114. Stakeholder
    An entity that is benefitted or burdened by the actions of a corporation or whose actions may benefit or burden the corporation. The corporation has an ethical duty towards these entities
  115. Primary Stakeholders
    Entities in a relationship with the corporation win which they, the corporation, or both are affected immediately, continuously, and powerfully.
  116. Secondary Stakeholders
    Entities in a relationship with the corporation in which the effects on them, the corporation, or both are less significant and pressing
  117. Power
    The force or strength to act or to compel another entity to act
  118. Business Power
    The force behind an act by a company, industry, or sector
  119. Legitimacy
    The rightful use of power. Its opposite is tyranny, or the exercise of power beyond right.
  120. Dominance Theory
    The view that business is the most powerful institution in society, because of its control of wealth. This power is in adequately checked, and therefore excessive
  121. Pluralist theory
    The view that business power is exercised in a society where other institutions also have great power. It is counterbalanced and restricted and therefore not excessive
  122. Power Elite
    A small group of individuals in control of the economy, government, and military. The theory of its existence is associated with the America sociologist C. Wright Mills.
  123. Pluralistic Society
    A society with multiple groups and institutions through which power is diffused.
  124. Corporate Social Responsibility
    The duty of a corporation to create wealth in ways that avoid harm to, protect, or enhance societal assets
  125. Social Darwinism
    A philosophy of the late 1800s and early 1900s that used evolution to explain the dynamics of human society and institutions. The idea of “survival of the fittest” in the social realm implied that rich people and dominant companies were morally superior.
  126. Trustee
    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 of others such as customers, employees, and communities
  127. Service Principle
    A belief that managers served society by making companies profitable and that aggregate success by many managers would resolve major social problems.
  128. Friedmanism
    The theory that the sole responsibility of a corporation is to optimize profits while obeying the law
  129. Value Chain
    The sequence of coordinated actions that add value to a product or service.
  130. Civil Regulation
    Regulation by non state actors based on social norms or standards enforced by social or market sanctions
  131. External Cost
    A production cost not paid by a firm or its customers, but by members of society
  132. Business Model
    The underlying idea or theory that explains how a business will create value by making and selling products or services in the market
  133. Mission Statement
    A brief statement of the basic purpose of a corporation
  134. Strategy
    A basic approach, method, or plan for achieving an objective
  135. Transparency
    The state in which company social strategies, structures and processes are visible to external observers
  136. Sustainability Reporting
    Documentation and disclosure of how closely corporate operations conform the goal of sustainable development
  137. Sustainable Development
    Economic growth that meets current needs without social and environmental impacts that harm future generations
  138. Triple Bottom Line
    An accounting of a firm’s economic, social and environmental performance
  139. Assurance
    Verification by audit that information in a corporate sustainability report is reliable
  140. Philanthropy
    Charitable giving of money, property, or work for the welfare of society
  141. Checkbook Philanthropy
    A traditional form of corporate giving in which donations go to multiple worthy causes without any link to business strategy
  142. Strategic Philanthropy
    A form of corporate philanthropy in which charitable activities reinforce strategic business goals.
  143. Cause Marketing
    A form of strategic philanthropy in which charitable contributions are based on purchases of a product
  144. Philanthrocapitalism
    An emerging form of philanthropy that relies on market forces to achieve results.
  145. Micro-finance
    Small loans given to poor people.
Card Set
MGMT Ch 2.txt
MGMT Chapter 2