IBBM Chapter 2, Exam 2
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26 terms
Terms | Definitions |
|---|---|
 Define Business Ethics. | set of values and beliefs concerned with how such values and beliefs operate in business |
| What are the benefits of ethical behavior? | can recruit best employees, employees can be more motivated, may cut costs, business may attract new customers and increase customer loyalty, increase revenue |
| What is corporate social responsibility? | Businesses are responsible for acting morally toward all of their stakeholders, such as their employees and the community. |
| What are the benefits of social responsibility? | better reputation would attract more customers and highly trained and more efficient employees |
| What are the drawbacks or costs of ethical behavior? | Compliance costs might include: using more expensive resources, training employees, treating animals with respect, implementing safety systems. Loss of profit, stakeholder conflict (financial investors and suppliers) |
| What are the drawbacks or costs of social responsibility? | Costly to implement, costly to up keep, requires everyone to be committed to the exact same principles |
| Distinguish between the role of mission and vision statements of an organization. | a mission statement is the company presently and a vision statement is what they would like to achieve in the future |
| Explain the difference between strategic and tactical objectives. | a strategy is methods that businesses can use to achieve their mission or vision. They then form the long-term plans for the whole organization. Tactics are the short-term methods that firms can use to achieve their objectives. |
| Describe what is meant by establishing smart objectives. | well set objectives should be specific, measurable, agreed, realistic and timed. |
| Explain the value of corporate social responsibility. | it is important because it considers the ethical and environmental actions of a business |
| Who are the internal stakeholders? | Employees, shareholders/stockholders, managers |
| Define what a stakeholder is. | Individuals or organizations that have a direct interest in the activities and performance of a business. |
| What is the difference between a shareholder and a stakeholder? | A shareholder is an employee, manager, stockholder. A stakeholder is a person that doesn't own part of the business but takes special interest in it's activities |
| Examples of who the internal vs. external stakeholders are.. | internal: employees, shareholders, managers and directors of the business. external: customers, suppliers and the government. |
| Give main objectives of each stakeholder group. | Suppliers supply business with raw materials, customers purchase products, special interest groups advocate for change, competitor's are rivals and are interested in different aspects of your business, government has large influence on business behavior |
| What are ethics? | The moral Values and judgments (what s right and just) that society believes organizations should consider in their decision making. |
| What are directors? | The senior members of staff who have been elected by shareholders of a company to run the business on their behalf. |
| What are special interest groups? | Refers to the organization of people who have a common interest such as protection of the global environment, and collectively act to achieve that interest by swaying public opinion and support, lobbying government policy and influencing business behavior. |
| What is a pressure group? | A type of special interest group which consists of individuals with a common concern who seek to place demands on an organization to act in a particular way or to influence a change in their behavior. Examples include PETA and Greenpeace. |
| What are aims? | Are the long-term goals of a business, often expressed in the firm's mission statement. They are the general statement of a firm's purpose or intentions and tend to be qualitative in nature. |
| What are objectives? | The relatively shorter term targets of an organization. |
| What is Balance of Payments (Trade)? | An annual record of a country's export earnings and its import expenditure. A surplus exists if the value of exports exceeds that of imports. A deficit exists if the value of imports exceeds that of exports. |
| What is Economic Growth? | Measures the change in the Gross Domestic Product (GDP) of a nation over time. Growth is said to occur if there is an increase in GDP for two consecutive quarters. |
| What is Fiscal Policy. | Refers to government policies that deal with taxation and government expenditures in order to affect the level of economic activity. |
| What is Monetary Policy? | Refers to government policies concerned with changing interest rates in order to control the money supply and the exchange rate. |
| What is PEST Analysis? | A framework used to analyze the opportunities and threats of the political, economic, social and technological environments on business activity. It is one of many tools that can be used in the decision making process. |
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