A plausible story of the future based on assumptions baut how current trends might play out.
What are the 3 dominant forces in the change of the global business environment?
2. technological change
An econoic policy of lowering tariffs and other barriers to encourage foreign trade.
What are the nine deep historical forces?
2. Industrial Revolution
4. Population Growth
8. Dominant Ideologiies
9. Great Leaders
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.
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.
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).
Replacement Fertility Rate
The number of children a woman must have on average to ensure that one daughter survives to reproductive age.
What are the five waves of technological innovation?
5.Digital networks software new media biotechnology
The creation of networks of human interaction that span worldwide distances.
An international actor having a ruling authority, citizens, and a territory with fixed borders.
A set of reinforcing beliefs and values that constructs a worldview.
What are the six key external environment factors?
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
Foreign Direct Investment
Capital investment by private firms outside their home countries.
Technology that is developed on the scale of a nanometer, which is one-billionth of a meter
A web site open to collaborative editing by multiple individuals
A system of shared knowledge, values, norms, customs, and rituals acquired by social learning
Values based on assumptions of security and affluence, for example, tolerance of diversity and concern for the environment.
A form of government requiring three elements: popular sovereignty, political liberty, and majority rule
Voluntarily adopted guidelines for corporate behavior deriving from emerging norms and standards in international codes, declarations, and conventions
A society with a largely agricultural economy.
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.
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
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.
In the Medieval World, what was the previaling theology of the Roman Catholic Church?
It was intolerant of profit seeking
Who was St. Thomas Aquinas influenced by?
Influenced by Aristotle and also believed that merchants should only charge a just price.
A price giving a moderate profit; one inspired by fairness, not greed
A price determined by the interaction of supply and demand
The lending of money for interest
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
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
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
A socially engineered model community dsigned to correct faults in the world so its members can find happiness
Why did utopias fail?
Like other utopias it required businesslike activities for subsistence, but it attracted more loafers than skilled farmers and artisans.
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.
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.
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.
Members of a broad political and social reform movement in the early years of the twentieth century.
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.
A term for voluntary, nonprofit organizations that are not affliated with governments.
A zone of ideas, discourse and action, dominated by progressive values that transcends national societies and focuses on global issues.
Global Justice Movement
A coalition of groups united by opposition to economic globalization dominated by corporate capitalism.
A word denoting both the ideology of using markets to organize society and a set of specific policies to free markets from state instrusion.
The philosophy of an open society in which the state does not interfere with rights of an individual.
The philosophy that social progress comes when individuals freely pursue their self-interests in unregulated markets.
An economic philosophy of active state intervention to stabilize the economy and stimulate employment.
The name given to a group of economists and to the free market doctrine they taught. It is synonymous with neoliberalism.
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.
The study of good and evil, right and wrong, and just and unjust
The study of good and evil, right and wrong, and just and unjust actions in business
Theory of Amorality
The belief that business should be conducted without reference to the full range of eithical standards, restraints, and ideals in society
Theory of Moral Unity
Business actions are judged by the general ethical standards of society, not by a special set of more permissive standards.
A form of social behavior in which people behave supportively in the expectation that this behavior will be given in return.
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.
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.
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
Master ethical principles that underlie all other ethical principles. All variations of theical principle must conform to them.
Payments awarded to redress actual, concrete losses suffered by injured parties.
Payments in excess of a wronged party’s actual losses to deter similar actions and punish a corporation that has exhibited reprehensivle conduct.
A nonviolent economic offense of cheating and deception done for personal or corporate gain in the course of employment.
Deferred Prosecution Agreement
An agreement between a prosecuter and a corporation to delay prosecution while the company takes remedial actions
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.
A person hired by a corporation to oversee fulfillment of conditions in an agreement to avoid criminal indictment
A set of values, norms, rituals, formal rules, and physical artifacts that exts in a company
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
Training employees to follow rules in laws, regulations and policies
Training employees to make decisions based on ethical values
The idea that actions are right and wrong in themselves independently of any consequences
The idea that actions are right or wrong, in part or whole, based on their consequences
Act only according to that maxim by which you can at the same time will that it should become a universal law.
Test of Universalizability
Could this act be turned into a universal code of behavior?
Business is like a game with permissive ethics and actions that do not violate the law are permitted.
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.
Doctrine of the Mean
Virtue is achieved through moderation. Avoid behavior that is excessive or deficient of a virtue
The end justifies the mean
Do unto others as you would have them do unto you
Treat others as ends in themselves, not as means to other goals. This principle prohibits selfish manipulation of other people.
Test of Reversibility
Would you be willing to change places with the person or persons affected by your actions?
What is good or right is understood by an inner moral sense based on character development and felt as intuition.
Might equals Right
Justice is the interest of the stronger
Be loyal to the organization
Principle of equal freedom
A person has the right to freedom of action unless such action deprives another person of a proper freedom.
A set of rules for making decisions having both good and evil consequences
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.
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
Each person has protections and entitlements that others have a duty to respect
Protections and entitlements that can be inferred by reason from the study of human nature
Protections and entitlements conferred by law
Theory of Justice
Each person should act fairly toward others in order to maintain the bonds of community.
The benefits and burdens of company life should be distributed using impartial criteria.
Punishment should be evenhanded and proportionate to transgressions
Victims should receive fair compensation for damages
The greatest good for the greatest number.
Ethical behaviors stem from character virtues built up by habit
The four most basic traits of an ethical character – justice, temperance, courage, and wisdom. They were identified by Plato
Functional magnetic resonance imaging
A method used to map activity in neural networks during ethical decision making.
Critical Questions Approach
A method of ethical reasoning in which insight comes from answer a list of questions.
Profit-making activity that provides products and services to satisfy human needs
Structures and processes in society that authoritatively make and apply policies and rules.
A network of human relations composed of ideas, institutions, and material things
An intangible object of thought
An enduring belief about which fundamental life choices are correct
A bundle of values that creates a particular view of the world
A formal pattern of relations that links people to accomplish a goal
Tangible artifacts of a society that shape and are shaped by ideas and institutions
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
The economy that emerges when people move beyond subsistence production to production for trade, and markets take on a more central role.
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.
A market economy in which the dominant businesses are large firms run by salaried managers, not smaller firms run by owner-entrepreneurs
An economic philosophy that rejects government intervention in markets.
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.
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
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
Entities in a relationship with the corporation win which they, the corporation, or both are affected immediately, continuously, and powerfully.
Entities in a relationship with the corporation in which the effects on them, the corporation, or both are less significant and pressing
The force or strength to act or to compel another entity to act
The force behind an act by a company, industry, or sector
The rightful use of power. Its opposite is tyranny, or the exercise of power beyond right.
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
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
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.
A society with multiple groups and institutions through which power is diffused.
Corporate Social Responsibility
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
Triple Bottom Line
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.