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Ethical & Legal Issues Test 1
vocab
25
Management
09/22/2010

Additional Management Flashcards

 


 

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Term
Business
Definition
any organization that is engaged in making a product or providing a service for a profit
Term
Society
Definition

refers to human beings and to the social structures they collectively create

 

  • also used to refer to segments of humankind, such as members of a particular community, nation, or interest group
Term
General Systems Theory
Definition
  • first introduced in the 1940s
  • Argues that all organisms are open to, and interact with, their external environments
Term
Interactive Social System
Definition
the closely intertwined relationships between business and society
Term
Boundary- Spanning Departments
Definition
departments, or offices, within an organization that reach across the dividing line that separates a company from groups and people in society
Term
Ownership Theory of the Firm
Definition

a theory that holds that the purpose of the firm is to maximize the long-term return for its shareholders

 

  • also called property or finance theory of the firm
Term
Stakeholder
Definition
a person or group that affects, or is affected by, a corporation's decisions, policies, and operations
Term
Stakeholder Analysis
Definition
an analytic process used by managers that identifies the relevant stakeholders in a particular situation and seeks to understand their interests, power, and likely coalitions
Term
Stakeholder Coalitions
Definition
alliances among company's stakeholders to pursue a common interest
Term
Stakeholder Interests
Definition
the nature of each stakeholder group, its concerns, and what it wants from its relationship with the firm
Term
Market Stakeholder
Definition
a stakeholder that engages in economic transactions with a company
Term
Non-market Stakeholder
Definition
a stakeholder that does not engage in direct economic exchange with a company, but is affected by or can affect its actions
Term
Stakeholder Map
Definition
A graphical representation of the relationship of stakeholder salience to a particular issue
Term
Stakeholder Power
Definition
the ability of one or more stakeholders to achieve a desired outcome int their interactions with a company. The four types are voting power, economic power, political power, and legal power
Term
Stakeholder Salience
Definition
a stakeholder's ability to stand out from the background, to be seen as important, or to draw attention to itself or its issue. Stakeholders are more salient when they posses power, legitimacy and urgency
Term
Stakeholder Theory of the Firm
Definition
a theory that hold that the purpose of the firm is to create value for society
Term
Charity Principle
Definition
the idea that the wealthiest members of society should be charitable toward those less fortunate
Term
Corporate Power
Definition
refers to the capability of corporations to influence government, the economy, and society, based on their organizational resources
Term
Corporate Social Responsiblity (CSR)
Definition
a corporation should act in a way that enhances society and its inhabitantas and be held accountable for any of its actions that affect people, their communites, and their environment
Term
Enlightened Self-Interest
Definition
the view that holds it is in business's self-interest in the long run to provide true value to its stakeholders and behave responsible as a global corporate citizen
Term
Iron Law of Responsibility
Definition
says that in the long run, those whodo not use power in ways that society considers responsible will tend to lose it
Term
Legal Obligations
Definition
a belief that a firm must abide by the laws and regulations governing the society
Term
Reputation
Definition
refers to desirable or undesirable qualities associated with an organization or its actors that may influence the organization's relationships with its stakeholders
Term
Stewardship Principle
Definition
the idea that business managers, as public stewards or trustess, have an obligation to see that everyone- particularly those in need or at risk- benefits from the company's actions
Term
Definition