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BUAD 4000 Midterm
Business, Government, and Society: A Managerial Perspective
| Question | Answer |
|---|---|
| A broad term encompassing a range of actions and institutions. | Business |
| Refers to structures and processes in a society that authoritatively make and apply policies and rules. | Government |
| a network of human relations that includes three interacting elements: Material things, Values and Ideologies, and Institutions | Society |
| What are the Four BGS Models | 1. Market Capitalism 2. Dominance 3. Countervailing Forces 4. Stakeholder |
| The market acts as a buffer between business and nonmarket forces | Market Capitalism |
| Government interference in economic life is slight (laissez-faire)is a key assumption of what model? | Market Capitalism |
| Individuals can own private property and freely risk investments is a key assumption of what model? | Market Capitalism |
| Consumers are informed about products and prices and make rational decisions is a key assumption of what model? | Market Capitalism |
| Moral restraint accompanies the self-interested behavior of business is a key assumption of what model? | Market Capitalism |
| Basic institutions such as banking and laws exist to ease commerce is a key assumption of what model? | Market Capitalism |
| There are many producers and consumers in competitive markets is a key assumption of what model? | Market Capitalism |
| What are the two main ideas behind Market Capitalism | Little government interference and less regulation |
| Government regulation should be limited is a BGS relationship according to what model? | Market Capitalism |
| Markets discipline private economic activity to promote social welfare is a BGS relationship according to what model? | Market Capitalism |
| The proper measure of corporate performance is profit is a BGS relationship according to what model? | Market Capitalism |
| The ethical duty of management is to promote the interests of shareholders | Market Capitalism |
| Increased prosperity comes at the cost of increased inequity is a critique of what BGS model? | Market Capitalism |
| Results in base values being energized and virtue being eroded is a critique of what BGS model? | Market Capitalism |
| Disparity of wealth is a basic source of political conflict within and between nations. | Inequality |
| What did the Industrial Revolution generate? | Inequality. Enormous wealth but exacerbated its uneven distribution |
| What does the Gini index do? | Measures Global income inequality. |
| What two things does the Gini Index tell us? | 1. Economic growth does not itself increase income inequality within nations. 2. If capitalism is harnessed to create economic growth, the poor will benefit |
| Business and government dominate and enrich a few at the expense of many | Dominance Model |
| Success of business depends on its ability to adjust to multiple social, political, and economic forces. | Countervailing Forces |
| What are the four forces that effect the Countervailing Forces Model? | Environmental Catalyst, The Public, Corporations, Government |
| Stakeholders are those whom the corporation benefits or burdens by its actions and those who benefit or burden the firm with their actions | Stakeholder Model |
| What are five primary Stakeholders? | Stockholders, Customers, Employees, communities, Governments |
| Debate about how to identify who or what is a stakeholder is a critique for what BGS model? | Stakeholder |
| Not a realistic assessment of the power relationships between the corporation and other entities is a critique for what BGS model? | Stakeholder |
| there is no single, clear, and objective measure to evaluate a firm's combined ethical/economic performance is a critique for what BGS model? | Stakeholder |
| A corporation that embraces many different stakeholders perform better. | Stakeholder |
| It is an ethical way to manage because stakeholders have moral rights that apply to way powerful corporations out to affect them | Stakeholder |
| What are the 9 Historical Forces | Great Leaders, Chance, Industrial Revolution, Inequality, Population Growth, Technology, Globalization, Nation States, Dominant Ideologies |
| Society-level shifts that influence the daily experiences of people and institutions. | Historical Forces |
| Great Leaders, Chance, Industrial Revolution, Inequality, Population Growth, Technology, Globalization, Nation States, Dominant Ideologies are what? | Historical Forces |
| Where did the Industrial Revolution start? | Britan |
| What did the Industrial Revolution do? | Shifted from a agrarian society to an industrial society. Reinforced values; drives growth and wealth. |
| What represents the gap between the rich and the poor? | Inequality |
| What rises with wealth, and is reinforced by social institutions? | Inequality |
| The poor still get richer, just not as fast as the rich is an example of | Inequality |
| Widening wealth gap between high and low income countries is an implication of what? | Population Growth |
| Growing strain on Earths eco system is an implication of what? | Population Growth |
| Demographic decline is an implication of what? | Population Growth |
| What Fuels Commerce and Reshapes Societies? | Technology |
| What is the integration of worldwide economies, societies, and cultures? | Glibalization |
| The collapse of the Berlin Wall is an example of what? | Globalization |
| Netscape (internet access for all)is an example of what? | Globalization |
| Workflow software(machines communicate with machines) is an example of what? | Globalization |
| Uploading is an example of what? | Globalization |
| Outsourcing is an example of what? | Globalization |
| Offshoring is an example of what? | Globalization |
| Supply Chaining is an example of what? | Globalization |
| Insourcing is an example of what? | Globalization |
| Informing (search engines) is an example of what? | Globalization |
| The Steroids (smart phones) is an example of what? | Globalization |
| ___________ are characterized by a ruling authority, citizens, and fixed geographic borders | Nation-States |
| ________ Is important because they are the unit at which many regulations of business reside | Nation-States |
| What are the Dominant Ideologies that contributed to the Industrial Revolution | Social Darwinism and Protestant Work Ethic |
| _________ Argues that ideas are susceptible to selective pressures, as when capitalism marginalized socialism. | Social Darwinism |
| _________ is the belief that hard work, saving, thrift, and honesty are necessary for salvation. | Protestant Work Ethic |
| ________ have brought both beneficial and disastrous changes to societies and businesses. | Leaders |
| What are two views of historic leaders? | Leaders simply ride the wave of history. Leaders themselves change history. |
| ____ simply ride the wave of history | Leaders |
| ____ themselves change history | Leaders |
| Proximal social contexts that influence business behavior. | External Environments |
| What are the six External Environments? | 1. Nature 2. Government 3. Technology 4. Economoy 5. Law 6. Culture |
| Where are the External Environments located in the circle? And what does it do? | The Middle, The External Environments are Reactive and Adaptive |
| ________ consists of forces that influence market operations | Economic Environment |
| _________ _________ concists of tech that influences and utilized by businesses | Technological Environment |
| Nanotechnology is an example of what External Environment? | Technology |
| _______ Environment consists of a society's shared knowledge, values, norms, and customs | Cultural |
| What can mitigate Cultural Environment? | Postmaterialist values (Global movement, values based on assumtpions of security, rid the world of racism, sexism, authoritarianism, promote concern for environment.) |
| _________ Environment consists of the laws and regulations imposed by nation-states | Government |
| What are the two important long-term global trends in government environment? | Government activity has greatly expanded. More governments are becoming open and democratic. |
| ____ Environment consists of legislation, regulation, and litigation. | Legal |
| What is one word for Legal Environment? | Restrictive |
| What was the take away from T.J. Hooper? | He had no radio and the tug owners were found negligent because they had not adopted a cutting-edge technology. |
| ________ Environment consists of the ecological systems that influence and are influenced by a business's activity. | Natural |
| Anything to Affect Nature is an example of what Environment force? | Natural |
| _______ Environment is with the corporation | Internal |
| What does Internal Environment include? | Employees, managers, the board of directors, and owners. |
| What is power? | The ability to exert influence and control over oneself and others. |
| What are the 5 bases of individual power? | Legitimate(position), Reward(control over), Coercive(control over), Expert(expertise of knowledge), Referent(others have desire to identify). |
| Tie Clep | Technology, Individuals, Environment, Cultural, Legal, Economic, Political. |
| What are seven Realms of Business Power? TIE CLEP | Technology, Individuals, Environment, Cultural, Legal, Economic, Political |
| _________ rightful use of power in line with the social contract | Legitimate business power |
| _____________ Implicit agreement to cooperate for social benefit | Social Contract |
| Business provide huge and critical contributions to society is an example of? | Social Contract |
| What are the two competing perspectives on business power? | Dominance theory and Pluralist theory. |
| The Pluralist theory is an example of what BGS model? | Countervailing Forces (Environmental catalysts, the public, business, government) |
| _____ The view that business is the most powerful institution in society, because of its control of wealth. | Dominance theory |
| Power is inadequalty checked and therefore, excessive is a belief of what theory? | Dominance theory |
| Elite dominance - small number of wealthy and powerful who control the nation is a belief of what theory? | Dominance theory |
| The idea that a small group of people controls the economy, government, and military. | Power Elite |
| _________ the view that business power is exercised in society where other institutions also have great power. | Pluralist theory |
| It is counterbalanced and restricted and therefore, not excessive | Pluralist theory |
| What is the basic idea behind the Pluralist theory? | Business power is held in check by other powers. |
| Where did distrust in business begin? | with the Greek and Romans |
| T/F: Philosophers reasoned that profit seeking was an inferior motive and that commercial activity led to excess, corruption, and misery. | True |
| What was the prevailing theology in the Middle Ages? | Intolerant of profit seeking. |
| ______ is 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 Embrace of capitalism. The Pie is growing. | Protestant Ethic |
| American economy began with _______, but ______ grew quickly. | agriculture, industry |
| _________ believed that industrial growth would increase national power and designed a grand scheme to promote manufacturing and finance. | Alexander Hamilton |
| _____________ believed than an agrarian economy of landowning farmers was the ideal social order. | Thomas Jefferson |
| Populist (1870 - 1890s) wasn't what? | Popular |
| __________ Refined the logic and lexicon for attacking business. | Populists (Lead way for Labor Unions) |
| In 1900 - 1918 _________ became a mainstream political doctrine. | Progressives |
| Progressives were more successful than Populists because? | They were United. |
| __________ a term for voluntary, nonprofit organizations that are not affiliated with governments. | Nongovernmental Organizations (NGO) |
| At their core, ______ represent social change and organize like-minded people across the globe. | NGOs |
| ________ exist to further the social and political goals of its members or funders | NOGs |
| ______ is ofted sponsored by NGOs and their members | Activism |
| Four ways Activists attack corporations. | 1. consumer boycotts 2. shareholder attacks 3. harassment, ridicule, and shaming 4. corporate campaign |
| ________, for the most part, brings changes that represent progress, a condition of improvement for humanity. | Capitalism |
| The Study of the Ends | Consequentialism/Utilitarianism |
| The ends, the consequences, the good example of? | Consequentialism/Utilitarianism |
| The study of duty or obligation | Deontology |
| the means, the standards, the right | Deaontology |
| Its all about how you arrive there. | Deaontology |
| ________ is the Greatest Good for the Greatest Number | Utilitarian also called consequentialism |
| Who are the primary proponents of Utilitarianism? | Jeremy Bentham and John Stuart Mill |
| _______ Argues that the ethical significance of an action is determined by the consequences of the act...in other words - the ends justify the means. | Utilitarianism |
| What are some advantages of Utilitarianism? | Maximizes good, provides a metric for social policy and moral conflicts |
| What are some challenges of Utilitarianism? | Can be difficult to measure, are there no universal rights? |
| ______ also called formalism and absolutism. | Deaontological |
| Who is the primary proponent of Deontology? | Immanual Kant |
| Immanual Kant believed? | Duty is the only pure and morale motive |
| What were the two imperatives? | Categorical and Practical |
| ______ act only according to principles that would succeed if everyone always adhered to them. | Categorical |
| __________ never use people as a means to an end. | Practical |
| Standards of behavior: duty, obligations, commitments, and responsibilities is for what Ideology? | Deaontology |
| ________ Believes individual rights should not be sacrificed for collective good. | Deaontology |
| What are the Advantages of Deontology | Protects individual rights, morally appealing (more noble than utilitarianism) |
| Disadvantages or Deontology | Requires prioritization, requires interpretation, inflexible. |
| The ____________ says that we should do unto others what we would have them do to us. | Golden Rule |
| ______ Ethic, Basic premise: each person has protections and entitlements that others have a duty to respect. | The Rights Ethic |
| right to life, liberty, pursuit of happiness is an example of? | The Rights Ethic |
| Each person should act fairly towards others in order to maintain the bonds of community. Act for the common good of society. This is an example of what theory? | The theory of Justice |
| What are the three conceptualizations of Justice? | Equity, Equality, Need |
| ________ Ethic, be loyal to the organization. | Organization Ethic |
| __________ Tests an ethical decision by asking how you feel explaining what you did to the entire world. | The Disclosure Rule |
| _________ what is good is simply understood. People intuitively know the difference between right and wrong. | The intuition ethic |
| ____________ Ethic is Classic Utilitarianism - Unprincipled/deceitful/immoral means may and even out to be used to achieve desirable moral ends. | Ends-Mean Ethic |
| Business is its own game, so anything legal is ethical. Is what Ethic? | Conventionalist Ethic |
| _________, Weigh the good and evil effect of your decisions. If good outweighs the bad and the intention is to achieve the good, then the act is ethical. | Proportionality |
| What is the first suggestion for making Ethical Decisions | 1. Pay attention to your ethical intuition |
| What is the second suggestion for making Ethical Decisions | 2. Consider some simple decision-making tactics to illuminate alternatives (pros and cons analysis) |
| What is the third suggestion for making Ethical Decisions | use the critical questions approach. - are my actions legal? - am i being fair and honest? - can I explain my actions to the person I admire most? |
| What is the fourth suggestion for making Ethical Decisions | Be publicly committed on ethical issues. |
| What is the fifth suggestion for making Ethical Decisions | Have the courage to follow through with your ethical reasoning |
| What is the sixth suggestion for making Ethical Decisions | Cultivate sympathy and charity towards others. |
| What is the seventh suggestion for making Ethical Decisions | Take your time when confronting an ethical dilemma |
| What is the eigth suggestion for making Ethical Decisions | Sort out ethical priorities early |
| Takeaways from Toby Groves | Most of us are capable of behaving in profoundly unethical ways, and we do it without even realizing it. Bounded ethicality - we often don't see the ethical big picture. |
| ________ The study of good and evil, right and wrong, and just and unjust actions in business. | Business Ethics |
| ______________ The degree to which a person sees him or herself as a "moral person." | Moral Idenity |
| Our ethics swing on the ______ pendulum effect. | Moral |
| _______ theory: business actions are judged by the general ethical standards of society, not by special set of permissive standards | moral unity |
| _________ theory: the belief that business should be conducted without reference to the full range of ethical standards, restraints, and ideals in society. | amorality |
| Where do our ethical frameworks come from? | Philosophy, religion, culture, law |
| __________: the primary foundation of most ethical frameworks. | Philosophy |
| What framework? Religious literature provide lessons for ethical behavior distilled through a modern lens? | Religion, the Golden Rule |
| _______ A system of shared values, rules, and norms transmitted across generations | Culture |
| The emergence of _________ economies brought a need for cooperation and coordinated effort. | Agricultural |
| _________ economies produced new norms for materialism and consumption | Industrial |
| _________ argues that humans are basically the same and should adhere to similar ethical rules. | Ethical Universalism |
| ______________ argues that ethical values emerge from cultures, and that universal standards cannot pass judgement on their legitimacy. | Ethical Relativism |
| ________ formalize ethical expectations | Laws |
| ___________________: payments awarded to redress actual, concrete losses suffered by injured parties. | Compensatory damages |
| ______________: payments in excess of a wronged party's actual losses to deter similar actions and punish a corporation that exhibited reprehensible conduct. | Punitive damages |
| What four forces help shape a companies Ethical decision-making? | Leader's Example, Strategies/Policies, Organization Culture, Individual Charactersistics |
| What are the two components of Ethical Leadership? | Moral Person and Moral Manager |
| Does ethical leadership matter? | Yes |
| What does the Honesty and Integrity model show? | Honesty starts at the top, sets the bar, it water falls. |
| ___________ set ethical norms and build corporate cultures | Leaders |
| __________ set norms, values, rituals and rules within the company | Corporate cultures |
| _________________ afford and constrain ethical actions | Strategies and policies |
| Ultimately, the ______________ of the individual employee will play an important role. | Characteristics |
| How do Corporations manage Ethics? | Checks and Balances |
| What are three ways corporations mange ethics? | Ethics and compliance programs, a compliance approach, an ethical approach. |
| What does every company need to be ethical? | Codes of conduct |
| What is necessary but insufficient in creating an ethical culture? | Codes of conduct |
| Often a short statement of guidelines at a high level of abstraction. | Codes of conduct |
| __________________ The duty of a corporation to create wealth in ways that avoid harm to, protect, or enhance societal assets. | Corporate Social Responsibility (CSR) |
| ____________ The fundamental idea is that corporations have duties that go beyond lawful execution of their economic function. | Corporate social responsibility CSR |
| What is not the sole duty of a corporation? | To go beyond lawful execution of their economic function. |
| What are seven activities of CSR? | 1. Leadership, vision, and values 2. The marketplace 3. the workforce 4. supply chain activities 5. stakeholder engagement 6. the community 7. the environment |
| What are some expectations of CSR? | Corporations are economic institutions run for profit. All firms must follow the law. |
| Corporations have a duty to correct adverse social impacts they cause, is an expectation of what? | CSR |
| Corporate behavior must comply with an underlying social contract, is an expectation of what? | CSR |
| Corporations should be transparent and accountable is an expectation of what? | CSR |
| What are the three basic arguments for CSR Justification? | 1. It is an ethical duty to promote social justice 2. social responsibility is practical (motivates employees) 3. it is necessary because other forces do not force full responsibility on corporations. |
| Is CSR proven to work and motivate employees and customers? | yes |
| What is the argument from the left against CSR | Radical progressives argue that CSR only masks the fundamentally evil nature of business. (The solution is tougher laws and regulations.) |
| What is the argument from the right against CSR? | Free Market conservatives argue that CSR constrains the fundamentally good nature of business, which can create more value by focusing on profit. (the solution is fewer laws and regulations.) |
| CSR first started with who? | Individuals because it was considered theft. |
| What are the three concentric circles of responsibility? | inner circle, intermediate circle, outer circle. |
| __________ efficient economic function to produce products, jobs, and economic growth. | inner circle |
| ____________- sensitivity to societal values and priorities (e.g. diversity in hiring) | intermediate circle |
| ___________ direct improvements to society that are not related to business itself (e.g. charitable donations) | outer circle |
| What are three Motives of CSR | Market actions, External Mandates, Voluntary actions. |
| __________ doing good as a side effect of earning money. | Market actions (does the most good) |
| _______________ doing good because the government requires it. | External Mandates |
| _________ exceeding the law to adhere to company-level codes of conduct. | Voluntary Actions (usually forced) |
| Formal statements of aspirations, principles, guidelines, and rules for corporate behavior. | Codes of Conduct |
| What needs to be internalized? | Codes of Conduct |
| What is the problem with CSR? | Reporting |
| What is the triple bottom line? | Economic, social, and environmental |
| The practice of a corporation publishing information about economic, social, and environmental performance. | Sustainability Reporting |
| What are the problems of sustainability reporting? | Defining and measuring social performance is difficult. Reports are not comparable from company to company. |
| T/F: The idea of corporate social responsibility has continuously expanded in meaning, changing ways because of how people see them. | True |
| The duty of a corporation to create wealth in ways that avoid harm to, protect, or enhance societal assets. | Corporate social responsibility. |
| _________ is the idea is that corporations have duties that go beyond lawful execution of their economic function. | CSR |
| What are the two types of business models? | Traditional and progressive |
| __________ model creates value by meeting market demands while complying with the law. | traditional business |
| __________ model integrates solutions to social problems into its core strategy. | progressive business |
| What question do we ask to figure out what business model we should use? | How are we going to make profit? |
| What are the four phases of that Social responsibility is implemented? | CSR Review, CSR Strategy, Implementation, Reporting and Verification |
| ____________ are continuous, and may be initiated by new internal or external pressures. | CSR Reviews |
| T/F : most of the time CSR Reviews are External? | True |
| During a CSR Review companies consider core _________ and __________ | mission, values |
| Did companies who had a mission statement perform better than companies who did not have one? | Yes |
| A ________ is a basic approach, method, or plan for achieving an objective. | strategy |
| What is the first step to implement a CSR strategy? | Is to build a formal organizational structure. |
| After the organizational structure is in place, an _____________ should be developed. | Action Plan |
| The ____________ brings a strategy into fruition by proposing specific, obtainable tasks. | Action Plan |
| What should be made after the Action play is developed? | Performance goals, and timelines. |
| How does a company manage its Reporting and Verification? | Social Audits, Triple Bottom Line |
| What is the Triple Bottom Line? | accounting of a firm's economic, social, and environmental performance. |
| _________ is commonplace - this is when a company donates to charity after a product is purchased. | Cause Marketing |
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