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adm1101 midterm prep #1 (ch. 1 & cheating culture)

Terms in this set (30)

integrity
"whole" or "complete"
person who acts in integrity
"is grounded in solid ethical principles, and he or she acts in keeping with those principles"
company who acts in integrity
the appropriateness of a corporation's behaviour and its adherence to moral guidelines acceptable to society such as honesty, fairness, and justice
responsible corporation
responds to social, ethical, environmental responsibilities in addition to its economic obligations
what are the ten factors influencing attitudes toward business?
- standard of living: the standard of living a business provides

- decentralized decision making: making decisions independent from other businesses is considered favorable; it allows for a greater variety of goods and services to be produced

- allocation of resources

- self interest: individuals can behave in their own self1interest (acting in positive self interest promotes business success) self interest can be regarded as an inspirational and motivational source, or regarded as being negative (greedy)

- inequities in society: more it increases inequalities, more negatively it is regarded on

- business cycle: economic instability created in a business is resented in a society

- unemployment: layoffs

- innovation

- the media

- government: often identify issues in a business
what is the significance of business in its social context?
business affects, and is affected by the society in which it operates; managers must have an understanding of business' domestic macroenvironment to operate effectively
modified boulding triangle
depicts 3 segments of the Canadian macroenvironment --> business, civil society, government
government segment
federal, provincial, municipal
civil society segment
organized & unorganized social network (communities, NGOs, charities, etc)
what is at the apex of the boulding triangle? (3)

what does the inner territory represent?
pure reciprocity (civil society), pure exchange (business), pure coercion (government)

represents organizations embodying different mixes of the three; a variety of socioeconomic & governance relationships
business segment
corporations, partnerships, proprietorships
corporate culture
System of shared values and beliefs that interact with an organization's people, structure, and systems to produce behavioural norms (brown and harvey)
what does the Corporate Culture Index include? (6)
- Member identity
- Team emphasis
- People focus (empowerment)
- Departmental autonomy
- Control (rules, regulations)
- Risk tolerance
what is enron?

what is its corporate culture? (3)

what went wrong? (3)
a fortune 500 company that provided gas, electricity, pipelines both in US and worldwide.

- Generating wealth for employees/executives
- Fiercely competitive - encouraged risk
- Place where people could reach their potential

- Enron employees were trading paper w/o G&S; made sales look good but unrealistic
- Declared bankruptcy 2001 of $400 billion
- Legal issues
why is positive culture essential to an organization?
more positive, the better performance, adaptability, retention of talent
organizations need to handle 3 key issues.
recessions, deregulations, social factors
what are three drawbacks of developing organizational culture?
- Culture is developed over time
- Strong leaders may impose certain behaviours / culture
- Current culture may inhibit growth / prevent adaptation into new ways of doing business
according to callahan, what is a very common phenomenon?
illegal behaviour and being part of the "winning class"
what are the sorting mechanisms for each segment? (remember these only occur at the apex - purest form!)
- business: supply and demand (quid pro quo exchange)
- government: coercion and redistribution
- civil society: solidarity, reciprocity, collaboration, trust
true or false: the boundaries between each segment are well defined and rigid.
false. boundaries are fluid and continually evolve through interaction and interdependency.
what are some policy instruments government influence business & civil society? (5)
regulations, subsidies, tax, loan money and investments
how does civil society influence government and business?
causes both to moved in specified direction in delivering programs, services, and impose public opinion on their activities (stakeholders)
stakeholder
one that has a stake in an enterprise
pluralistic society
a society in which power is distributed, not centralized, and one that consists of a multitude of stakeholders directly or indirectly, influencing each other through a range of social relationships.
pluralism
a condition in which there is diffusion of power among society's many groups and organizations - a wide decentralization and diversity of power concentration
What is the relationship between pluralism and stakeholders and what does this mean for managers? (4 main points)**
- society's many groups and organizations are in fact stakeholders: those who can affect, or are affected by the actions of business.

- in a pluralistic society, power is diffused among stakeholders but not equally to each stakeholder: some stakeholders are more important than others, but all stakeholders need to be managed

- for managers, this means there is a need to understand stakeholders (who are key stakeholders, what are their "stakes", and how should they be managed.)

- there is also a need to understand each segment of the Canadian domestic macroenvironment since power must be shared among stakeholders in each segment
ethics of business
The rules, standards, codes, or principles, that provide guidance for morally appropriate behavior in managerial decision making.
csr
The way a corporation balances its social, environmental, and economical responsibilities
corporate sustainability
corporate activities keep sustainability of social, environmental, and economical stakeholders
triple bottom line
The evaluation of a company based on its economy, environment, ethics (social) impacts
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