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57 Cards in this Set
- Front
- Back
Pluralism |
Diffusion of power among society |
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Affluence |
Refers to the level of wealth, disposable income and standard of living |
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Social problem |
Gap between society's expectations of social conditions and the current social realities |
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Macro level |
Entire corporation system |
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Intermediate level |
Groups of corporations acting in concert in an effort to produce a desired effect |
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Iron law of responsibility |
In the long run, those who do not use power in a manner which society considers responsible will lose it |
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Social contract |
Reciprocal understanding between business and society |
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Managerial approach |
Business ethics, sustainability and stakeholder management |
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Philanthropy |
Charity |
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Sustainable development |
A pattern of resource use that aims to meet human needs while preserving the environment |
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Triple bottom line |
Economic social and environmental |
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Stake |
Interest |
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Stakeholder |
An individual or group that has has a stake in business |
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Power |
Ability or capacity to produce an effect |
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Strategic approach |
Stakeholders primarily as factors to be taken into consideration while making a profit for shareholders |
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Multifiduciary approach |
Stakeholders are more than just individuals who can wield economic and legal power |
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Stakeholders synthesis approach |
Preferred because it holds business does have moral responsibility to stakeholders |
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Supports stakeholders |
High potential for cooperation and low threat |
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Marginal stakeholders |
Low cooperation and threat |
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4 parts to CSR |
Economic legal ethical and philanthropic |
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Non supportive stakeholders |
Low cooperation and high threat |
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Mixed blessing stakeholders |
High cooperation and threat |
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Stakeholder symbiosis |
Recognizes that all stakeholders depend on each other for their success |
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Corporate governance |
Refers to the method the firm is being governed, directed, administered, or controlled |
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Clawback provision |
Allows shareholders to regain compensation from executives who fell short |
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Backdating |
Occurs when the recipient is given the option of buying stock at yesterday's price |
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Spring loading |
Granting stock at today's price with inside knowledge something good is going to happen |
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Bullet dodging |
Delaying stock until right after bad news |
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Poison pills |
Discourage hostile takeover |
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Golden parachute |
Is a contract in which a business agrees to make payments to key officers in the event of a change in the control of the business |
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Economic |
Required |
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Material information |
Information that a reasonable investor might want to use |
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Regulation fair disclosure |
Set limits on the common company practice of selective disclosure |
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Sarbanes oxley act aka SOX |
Amends the securities laws to provide better protection to investors in public companies by improving the financial reporting |
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Business Judgment |
Courts should not challenge board members who act in good faith |
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Ponzi scheme |
Lures investors in with fake promises |
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Enterprise level |
Asks the question what is the role of the organization in society |
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Corporate level |
What business should we be |
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Functional level |
How should a firm integrate its subfunctional activities |
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Sustainability report aka integrated report |
Value creation |
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Issue |
Gap between firms action and stakeholders expectations |
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Legal |
Required |
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Risk management |
Potential issues |
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Issue management |
Deals with issue that occur |
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Crisis management |
Deals with issues that escalated |
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Steps in issue management |
Identification, analysis, ranking, formulation, implementation, evaluation |
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Stages of crisis |
Prodromal warning stage, acute point of no return, chronic, resolution |
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Descriptive ethics |
Concerned with describing the morality of people and business |
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Elements of moral judgment |
Moral imagination, moral ID, evaluation, tolerance of moral disagreement, integration of managerial and moral competence and a sense of moral obligation |
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Golden rule |
Do unto others as you would have them do unto you |
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Biometric |
Eye scan finger prints etc |
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Ethical |
Expected |
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Philanthropic |
Desired/expected |
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Social intrapreneurship |
Companies that did not have a specific social agenda at first but later on did |
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Arguments against CSR |
Classical economics, business not equipped, dilutes business purpose, too much power already, global competition |
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Ethical test |
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Stages of corporate citizenship |
Credibility capacity coherence commitment. |