MGMT CH.5_6.txt

  1. Corporate Social Responsibility
    The duty of a corporation to create wealth in ways that avoid harm to, protect, or enhance societal assets
  2. 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.
  3. 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
  4. Service Principle
    A belief that managers served society by making companies profitable and that aggregate success by many managers would resolve major social problems.
  5. Friedmanism
    The theory that the sole responsibility of a corporation is to optimize profits while obeying the law
  6. Value Chain
    The sequence of coordinated actions that add value to a product or service.
  7. Civil Regulation
    Regulation by non state actors based on social norms or standards enforced by social or market sanctions
  8. External Cost
    A production cost not paid by a firm or its customers, but by members of society
  9. 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
  10. Mission Statement
    A brief statement of the basic purpose of a corporation
  11. Strategy
    A basic approach, method, or plan for achieving an objective
  12. Transparency
    The state in which company social strategies, structures and processes are visible to external observers
  13. Sustainability Reporting
    Documentation and disclosure of how closely corporate operations conform the goal of sustainable development
  14. Sustainable Development
    Economic growth that meets current needs without social and environmental impacts that harm future generations
  15. Triple Bottom Line
    An accounting of a firm’s economic, social and environmental performance
  16. Assurance
    Verification by audit that information in a corporate sustainability report is reliable
  17. Philanthropy
    Charitable giving of money, property, or work for the welfare of society
  18. Checkbook Philanthropy
    A traditional form of corporate giving in which donations go to multiple worthy causes without any link to business strategy
  19. Strategic Philanthropy
    A form of corporate philanthropy in which charitable activities reinforce strategic business goals.
  20. Cause Marketing
    A form of strategic philanthropy in which charitable contributions are based on purchases of a product
  21. Philanthrocapitalism
    An emerging form of philanthropy that relies on market forces to achieve results.
  22. Micro-finance
    Small loans given to poor people.
Card Set
MGMT CH.5_6.txt
MGMT Chapter 5 & 6