MGMT CH.5_6.txt

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

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.

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

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

The theory that the sole responsibility of a corporation is to optimize profits while obeying the law

The sequence of coordinated actions that add value to a product or service.

Regulation by non state actors based on social norms or standards enforced by social or market sanctions

A production cost not paid by a firm or its customers, but by members of society

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

A brief statement of the basic purpose of a corporation

A basic approach, method, or plan for achieving an objective

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

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

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

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

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

Charitable giving of money, property, or work for the welfare of society

A traditional form of corporate giving in which donations go to multiple worthy causes without any link to business strategy

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 relies on market forces to achieve results.

Small loans given to poor people.