| Question |
Answer |
| The level of wealth, disposable income, and standard of living of the society. |
Affluence |
| The collection of private, commercially oriented (profit-oriented) organizations. |
Business |
| Focus on demographics, lifestyles, and social values of the society. |
Social Environment
|
| Focus on the nature and direction of the economy within which the business operates. |
Economic Environment |
| Focus on the processes by which laws get passed and officials get elected and all other aspects of the interaction between the firm, political processes, and government. |
Political Environment |
| The total set of technology-based advancements taking place in society. |
Technological Environment |
| A diffusion of power among society's many groups and organizations. Wide decentralization & diversity. |
Pluralism |
| Relationships between business and stakeholders are: |
Community, Government, Owner, Employee, Consumer |
| A society that is characterized by tens of thousands of special-interest groups, each pursuing its own focused agenda. |
Special-Interest Society |
| A belief or attitude that each succeeding generation ought to have a standard of living higher than that of its predecessor. |
Revolution of rising expectations. |
| A gap between society's expectations of social conditions and the current social realities. |
Social Problem |
| The belief that someone is owed something just because he or she is a member of society. |
Entitlement mentality |
| The ability or capacity to produce an effect or to bring influence to bear on a situation or people. |
Business power |
| Levels of Business Power |
Macro (the corporate system), Intermediate (several firms), Micro (single firm), Individual (single executive) |
| Spheres of Power |
Economic, Social/Cultural, Individual, Technological, Environmental, Political |
| Iron Law of Responsibility |
"In the long run, those who do not use power in a manner which society considers responsible will tend to lose it." |
| A set of two-way understandings that characterize the relationship between major institutions - in this case, business and society. |
Social Contract |
| Issues of right, wrong, fairness, and justice. |
Ethics |
| Individuals or groups with which business interacts who have a "stake", or vested interest, in the firm. |
Stakeholders |
| Corporate Social Responsibility emphasizes: |
obligation, accountability |
| Corporate Social Responsiveness emphasizes: |
action, activity |
| Corporate Social Performance emphasizes: |
outcomes, results |
| Contributions to charity and other worthy causes. |
Philanthropy |
| The social responsibility of business encompasses the economic, legal, ethical, and discretionary (philanthropic) expectations that society has of organizations at a given point in time. |
Corporate Social Responsibility |
| Business must be an economic institution - produce goods & services, sell them at fair prices, and make an adequate profit. |
Economic responsibilities of business. |
| Abide by the basic notions of fair practices as established by our lawmakers. |
Legal responsibility of business. |
| The full scope of norms, standards, values, and expectations that reflect what consumers, employees, shareholders, and the community regard as fair, just and consistent. |
Ethical responsibilities of business. |
| The expectation that a business will "give back." |
Philanthropic responsibility of business. |
| Four components of corporate social responsibility: |
Economic, Legal, Ethical, Philanthropic |
| Arguments against corporate social responsibility: |
Classical economics, business not equipped, dilutes business purpose, too much power already, and global competitiveness. |
| Arguments for corporate social responsibility: |
Enlightened self-interest, warding off government, resources available, proacting vs. reacting, and public support. |
| Benefits of corporate citizenship: |
Improved employee relations, improved customer relationships, improved business performance, and enhanced company marketing efforts. |
| Stages of corporate citizenship: |
Elementary, Engaged, Innovative, Integrated, Transforming |
| Dimensions of corporate citizenship: |
Citizenship concept, strategic intent, leadership, structure, issues management, stakeholder relationships, transparency. |
| "Triple Bottom Line" concept (John Elkington) |
Three key spheres of sustainability: economic, social, and environmental. |
Ch.18 LTI-MA 509
