bus 682 midterm 1

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bus 682 midterm 1
2012-03-08 11:36:54
business government society

staley ch 1-8
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  1. -Company pioneered the use of scenaios in corporate planning
    -one of world's largest
    Royal Dutch SHELL
  2. An environmental force of unknown origin and mysterious action that provides the energy for events
    Historical force
  3. -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
    Industrial revolution
  4. Statistical measure of inequality in which...
    -zero is perfect equality (everyone has same wealth)
    -100 is absolute inequality (single person has all wealth)
    Gini index
  5. -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
    requirements for industrial growth
  6. -the creation of networks of human interaction that span worldwide distances
    -increased economic activity
    -changed cultures
    -accelerated by new technologies
  7. An international actor having a ruling authority, citizens, and a territory with fixed borders
  8. A set of reinforcing beliefs and values that constructs worldview
  9. Industrial revolution was facilitated by 2 ideologies...
    • -capitalism
    • -consituted democracy (protection of individuals' rights)
  10. dominant ideology that humanity was in upwards motion toward material betterment
  11. dominant ideology that constant improvement characterized
  12. dominant ideology that evolutionary competition in human society weeds out the unfit and advances humanity
    social darwinism
  13. dominant ideology that hard work, saving, thrift, and honesty lead to salvation
    protestant ethic
  14. forces that influence market operations in the economic environment
    • -overall economic activity
    • -commodity prices
    • -interest rates
    • -currency fluctuations
    • -wages
    • -competitor's actions
    • -government policies
  15. 6 Key External Environments
    • Economic
    • Technological
    • Cultural
    • Government
    • Legal
    • Natural
    • Internal
  16. a system of shared knowlege, values, nrms, customs, an rituals acquired by social learning
  17. 2 long-term global trends in govenerment environment
    • government activity has greatly expanded
    • more governments becoming opena nd democratic
  18. consists of legislation, regulation, and litigation
    legal environment
  19. depleted mineral resources, killed species, forest cover reduction, unbalanced nitrogen cycle in 20th century are due to...
    economic productivity and increased human ecological footprint
  20. consists of 4 groups--employees, managers, board of directors, owners--each with diff objective, beliefs, needs and functions that must be coordinated
    internal environment
  21. company that once had more than 90% of market share of the American oil market
    ExxonMobil Corp.
  22. leader of ExxonMobil that emphasized...
    -centralized organization
    -suppression of competitors
    -social responsiblity
    John D Rockefeller
  23. basic agreement or social contract existing between economic institutions and other networks of power in a society
    business-government-society field
  24. networks of power in the business-government-society field
    • business
    • government
    • society
    • idea
    • value
    • ideology
    • institution
    • material things
  25. 4 models of the business-government-society relationship
    • market capitalism model
    • dominance model
    • countervailing forces model
    • stakeholder model
  26. the economy that emerges when people move beyond subsistence production to production for trade and markets take on a more central role
    market economy
  27. 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
  28. a market economy in which the dominant businesses are large firms run by salaried managers, not small firms run by owner-entrepreneurs
    managerial economy
  29. economic philosophy that rejects government intervention in markets
  30. 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
    the market capitalism model
  31. -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
    dominance model
  32. 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
  33. 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
  34. -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
    countervailing forces model
  35. entities in a relationship with the corporation in which they, the corporation, or both, are affected immediately, continuously and powerfully
    primary stakeholders
  36. entities in a relationship with the corporation in which the effects on them, the corporation, or both are less significant and pressing
    secondary stakeholders
  37. -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
    stakeholder model
  38. actions taken by managers to adapt to a company to changes in its market and sociopolitical environments
    strategic management
  39. a statement of vision that creates insight by describing patterns or relationships in a diffuse subject matter
  40. the study of phenomena moving through time
  41. The American Tobacco company case illustrates...
    the power of commerce to change society
  42. Founder of American Tobacco co. that used Rockefeller's methods
    James B. Duke
  43. The force or strength to act or to compel another entity to act
  44. The force behind an act by a co, industry, or sector
    business power
  45. the rightful use of power
  46. level of business power that is the direct cause of visible, immediate changes, both great and small
    surface level
  47. level of corporte power that shapes society over time thru the aggregate changes of industrial growth
    deep level
  48. sphere of corporate power that is the ability of the corp to influence events, activities, and people by virtue of control over resources
    economic power
  49. spehere of corporate power that is the ability to influence the direction, rate, characteristics, and consequences of physical innovations as they develop
    technological power
  50. sphere of corporate power that is the ability to influence governments
    political power
  51. sphere of corporate power that is the ability to shape the laws of society
    legal power
  52. sphere of corporate power that is the ability of influence cultural values, habits, and institutions such as the family
    cultural power
  53. sphere of corporate power that is the impact of a company on nature
  54. sphere of corporate power that excercised over employees, managers, stockholders, consumers, and citizens
    power over individuals
  55. the Railroad revlution changed...
    • capital markets
    • american politics
    • american society
    • spread impersonality and an ethic of commerce
  56. perspective on business power; view that business is the most powerful instituion in society bc of its control of wealth
    dominance theory
  57. perspective on businnes powerl view that business power is excercised in a society where other institutions also have great power
    pluralist theory
  58. a small group of individuals in control of the economy, govnt and military
    power elite
  59. -organizer for the United Mine Workers
    -helped launch the International Workers of the World (1905)
    Mary "Mother" Jones
  60. a society with a largely agricultural economy
    Agregarian society
  61. a price giving a moderate profit; one inspired by fairness, not greed
    Just prices
  62. a price determined by the interaction of supply and demand
    Market price
  63. the lending of money for interest
  64. 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
    Protestant ethic
  65. 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
    populist movement
  66. a turn-of-the-20th-century political moevement that associated moderate social reform with progress
    progressive movement
  67. 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
  68. members of broad political and social reform movement in the early years of the 20th century
    Old progressive
  69. members of contemporary left-leaning groups who advocate more radical corporate reform than did old time progressives
    New progressive
  70. a zone of ideas, discourse and action, dominated by progressive values, that transcends national societies and focuses on global issues
    civil society
  71. a coalition of groups united by opposition to economic globalization dominated by corporate capitalism
    global justice movement
  72. company that discovered a compound that killed animal parasites, introduced as a veterinary drug, believed it can help humans
    Merck & Co. Inc
  73. the duty of a corporation to create wealth in ways that avoid harm to, protect, or enhance societal assets
    corporate social responsibility
  74. 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
  75. a belief that managers served society by making companies profitable and that aggregate success by many managers would resolve major social problems
    service principle
  76. a philopshy of the lates 1800s and early 1900s that use evolution to explain the dynamics of human society and institutions
    social darwinism
  77. the application of one nation's laws within the borders of another nation
  78. statements of philosophy, policy and principle found in nonbinding
    soft law
  79. a standard that arises over time and is enforced by social sanction or law
  80. a rule, natural law, or truth used as a standard guide to conduct
  81. formal statements of aspirations principles, guidelines, or rules for corporate behavior
    codes of conduct
  82. the practice of a corporation publishing info about its economic, social, and environmental performance
    sustainability reporting
  83. the idea that ethical consumers will pay a premium for commodities from producers in developing nations who use sustainable methods
    fair trade
  84. a model of the methods an organization can use to achive certain goals
    management standard
  85. the foundation, established by Bill Gates, that has given out more than 13 billion
    the Bill & Melinda foundation
  86. 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
  87. business model in which the central strategy for creating value is based on meeting market demands while complying with the law
  88. business model that creates value by meeting market demands and, in the process, mitigating social problems or improving society in some way
  89. 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...
    CSR strategy
  90. Steps for CSR implementation...
    • Create an effective CSR decision-making structure Develop an action plan that sets forth a multitude of
    • tasks that will bring the strategy to fruition
    • Establish performance targets and timelines for their
    • accomplishment
    • Setup incentives to encourage achievement of goals and
    • targets and encourage accountability
    • Align corporate culture with strategic intent
  91. shows performance on a triple bottom line of economic, social, and environmental results
    GRI guidelines (global reporting initiative)
  92. csr--The state in which company social strategies, structures, and processes are visible to external observers
  93. csr--Documentation and disclosure of how closely corporate operations conform to the goal of sustainable development
    sustainability reporting
  94. csr--Economic growth that meets current needs without social and environmental impacts that harm future generations
    sustainability development
  95. csr--An accounting of a firm’s economic, social, and environmental performance
    triple bottom line
  96. CSR--Verification by audit that information in a corporate sustainability report is reliable
  97. A form of corporate philanthropy in which charitable activities reinforce strategic business goals
    strategic philanthropy
  98. A form of strategic philanthropy in which charitable contributions are based on purchases of a product
    casue marketing
  99. An emerging form of philanthropy that uses market forces to achieve results
  100. Bernard Ebbers...
    • built WorldCom into a global telecommunications giant
    • used WorldCom stock as collateral for bank loans
    • reported false revenues and use accounting tricks to
    • disguise rising expenses (2000)
    • sentenced to 25 years in prison for securities fraud
  101. The belief that business should be conducted without reference to the full range of ethical standards, restraints, and ideals in society
    theory of amorality
  102. Business actions are judged by the general ethical standards society, not by a special set of more permissive standards
    theory of moral unity
  103. The theory that because human nature is everywhere the same, basic ethical rules are applicable in all cultures
    ethical universalism
  104. 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
    ethical relativism
  105. Payments awarded to redress actual, concrete losses suffered by injured parties
    compensatory damages
  106. Payments in excess of a wronged party’s actual losses to deter similar actions and punish a corporation that has exhibited reprehensible conduct
    punitive damages
  107. A nonviolent economic offense of cheating and deception done in the course employment for personal or corporate gain
    white-collar crime
  108. An agreement between a prosecutor and a corporation to delay prosecution while the company takes remedial actions
    deferred prosecution agreement
  109. 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
    non-prosecution agreement
  110. A person hired by a corporation to oversee fulfillment of conditions in an agreement to avoid criminal indictment
  111. 3 levels of corporate culture
    • Artifacts
    • Espoused values
    • Tacit underlying values
  112. A system of structures, policies, procedures, and controls
    used by corporations to promote ethical behavior and ensure compliance with laws and regulations
    ethics and compliance program
  113. An ethics and compliance program that emphasizes following rules in laws, regulations, and policy.
    compliance approach
  114. son of poor Russia immigrant; From the mailroom a 21-year-old launched the career that made him “the richest man in Hollywood”
    David Geffen
  115. -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
    categorical imperative
  116. -principle of conduct: Business is like a game with permissive ethics and any action that does not violate the law is permitted
    conventionalist ethic
  117. -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
    the disclosure rule
  118. -principle of conduct: Avoid behavior that is excessive or deficient of a virtue
    the doctrine of the mean
  119. -principle of conduct: The end justifies the means
    the ends-mean ethic
  120. -principle of conduct: Do unto others what you would have them do unto you
    the golden rule
  121. -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)
    intuition ethic
  122. -principle of conduct: Justice is the interest of the stronger
    (criticism-Confusion of ethics with force)
    the might-equals right ethic
  123. -principle of conduct: Be loyal to the organization
    the organization ethic
  124. -principle of conduct: A person has the right to freedom of action unless such action deprives another person of a proper freedom
    principle of equal freedom
  125. -principle of conduct: A set of rules for making decisions having both good and evil consequences
    the proportionality ethic
  126. -principle of conduct: Each person has protections and entitlements that others have a duty to respect
    the rights ethic
  127. -principle of conduct: Each person should act fairly toward others in order to maintain the bonds of community
    theory of justice
  128. -principle of conduct: The greatest good for the greatest number
    utalitarian ethic
  129. Ethical behavior stems from character virtues built up by habit
    virtue ethic
  130. A method used to map activity in neural networks during ethical decision making
    Functional magnetic resonance imaging
  131. A method of ethical reasoning in which insight comes from answering a list of questions
    Critical questions approach
  132. -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)
    Paul Magliocchetti and Associates Group (PMA Group)
  133. insertions in defense spending bills
  134. Amendment that protects the right of a business to organize and press its agenda on government
  135. A government in which powers are divided between a central government and subdivision governments
    federal system
  136. 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
    supremacy clause
  137. 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
    separation of powers
  138. 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
    judicial review
  139. A group that represents the political interests of many companies and industries
    peak assoiciations
  140. A group representing the interests of an industry or industry segment
    Trade association
  141. A combination of business interests, including corporations, trade associations, and peak associations, united to pursue a political goal
  142. Advocating a position to government; articulate diverse interests in the great sweep of American pluralism
  143. Direct interaction with government officials or staff in meetings, phone calls, or e-mail
    contact lobbying
  144. Indirect lobbying activity designed to build friendly relations with lawmakers, officials, and staff
    background lobbying
  145. The technique of generating an expression of public, support for the position of a company, industry, or any interest
    grassroots lobbying
  146. A political committee carrying a company’s name formed to make campaign contributions
    political action committee
  147. Money that is unregulated as to source or amount under federal election law
    soft money
  148. Money raised and spent under the strict contribution limits and rules in federal election law
    hard money