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sustainable ent
exam 1
41
Business
Undergraduate 4
11/26/2012

Additional Business Flashcards

 


 

Cards

Term

Environmental Burden/ Impact

(formula)

Definition

EB=F(PxCxT)

 

p=population

c=consumption

t=technology

Term

Driver's of Opportunity- 6 C's

 

Definition

1- cost

2- capital

3-consumers

4-climate

5-concienciousness

6-convergence

Term
Sustainibility Action Regims: Win-Win
Definition

Discovered

  Enhancing customer value

  Pollution prevention?

Un- or Under-discovered

  Energy efficiency?

  Fair Labor practices?

Term
Sustainiblity Action Regims: Win-Lose
Definition

Market Failure

The Green Prision

EX:

Externalizing costs

 

Monopolizing

 

Child labor

 

Term
Sustainibility Action Regimes: Lose-Win
Definition

Market Failure

The Green Prision

ex:

Long term thinking

 

Investment in natural capital

 

Eco-system protection

 

(bad for business)

Term
Sustainibility Action Regimes:  Lose-Lose
Definition

Nike-Failure to protect brand

Shell Oil-Brent Spar incident

ENRON-Corporate

  misconduct

Term

 

Good for BUS

win-win

win-lose

Bad for BUS

lose-win

lose-lose

 

Good Society

Bad for Society

 

Definition
Term
Private benefits and costs
Definition
The costs and benefits of an activity incurred by the person or organization performing that activity
Term
Social benefits and costs
Definition
The costs and benefits of an activity incurred by society
Term
Types of MKT failure
Definition

monopoly power

imperfect information

innapropriate gov intervention

public goods

externalities

Term
Market Failure- Monopoly
Definition
nEconomic effects
nLower quantity, higher price
nDiminished innovation
nOther forms of market power
nCollusion and tacit collusion
nOligopoly
nMonopsony (one buyer)
nEffects on the environment
Term
Market Failure- Imperfect information
Definition

Type 1:  Lack of awareness of new productive possibilities

To serve new or altered demand/markets
To utilize new production methods/technologies
Market gaps
Process of entrepreneurial discovery
Term
Five Catagories MKT Failure
Definition
Public Goods
Property Rights Entrepreneurship
Externalities
Institutional Entrepreneurship
Monopoly Power
Market Appropriating Entrepreneurship
Inappropriate Government Intervention
Political Entrepreneurship
Imperfect Information
Informational Entrepreneurship
Term
Social Entreprenuership
Definition

The process of creating social value by bringing together a unique combination of resources to pursue an opportunity. 

Social entrepreneurship is distinguished by the entrepreneur’s mission to create social value, and the prioritization of social value creation over the generation of personal or organizational financial wealth.

Term
Leveraged non-profits
Definition
Non-profits leveraging resources in new and innovative ways.  Exist because market failure prevents the ability to make profit.
Term
Hybrid non-profits
Definition
Blending non-profit and revenue-generating, “for-profit” strategies
Term
Social business ventures
Definition
For-profit, but main aim is not to maximize profit
Term
Market-driven social enterprises
Definition
garner sufficient revenues from the sales of their products and services to cover their costs of operation and enable their survival in competitive markets, while achieving their social missions.
Term
Market-augmented social enterprises
Definition
benefit from the revenue generation of their products and services, but do not attain sufficient revenues to provide competitive returns to investors. 
Term
Extra-market social enterprises
Definition
provide goods and services from which they are unable to generate significant revenues. They typically arise to fill market needs where direct economic incentives fail to support value creation.
Term
Market-convergent social enterprises
Definition
are actively engaged in the process of alteringmarket institutions and incentive systems to enable their social missions.  Such entrepreneurs understand market dynamics, and transform markets to better serve the public good and attain competitive returns for their owners and investors.   
Term
Green MKT in theory
Definition
Produce goods and services that provide greater environmental benefit, or less environmental cost, or create less environmental burden in their production
 
Such changes may raise costs, but enable the firm to capture higher prices or greater market share
 
Resulting in equivalent or better financial returns
Term
Environmental Cert. and Labeling
Definition

"For producers, they [eco-labels] are a way to express a personal ethic, the environmental-stewardship components of their operation, or the social benefits of their manufacturing practices.

 

For consumers, it's a way to use the everyday act of shopping to express their values."

Term
Types of Ecolabels
Definition
Type I:  Seals of approval
Identify products/services as being less harmful than similar products/services.
Third Party
Two approaches

A. Multi-dimensional; Green Seal, Blue Angel

B.  Single-attribute; Organic, Fair Trade, Dolphin Safe

ISO 14024
 

 

Type II: Self-Declaration Claims without third-party certification
e.g. trash bag biodegradability
ISO 14021
 

 

Type III: Eco-Profile Labels with report card format
Offers buyer information on label about multiple categories of environmental impact.
e.g. Scientific Certification Systems
ISO 14025
Term
six elements of a sucessful sustainable venture
Definition

Mission

Values

Plan

Legal Form

Team

Metrics

Term
Life cycle analysis
Definition
system boundaries of the assesed life cycle encompass acquisition and transportation of raw materials, brewing operations, business travel, employee commuting, transport and storage during distributing and retail, use and disposal of waste.
Term
Benefits Corporation
Definition
Benefit Corporations are a new class of corporation that 1) creates a material positive impact on society and the environment; 2) expands fiduciary duty to require consideration of non-financial interests when making decisions; and 3) reports on its overall social and environmental performance using recognized third party standards.  (Source: Benefitcorp.net)
Term
Bootstrapping
Definition
Goal is to reduce or eliminate the need for external funding
Term
Bootstrapping
Definition
Goal is to reduce or eliminate the need for external funding
Term
Financing from cash flow
Definition
Growth can be funded through positive cash flow
Works better with slow growth, or high margin venture
Term
Financing from debt
Definition
Non-dilutive source of capital
Concept of leverage
Need for collateral
Term
Financing from equity
Definition
Capital invested in return for a percentage ownership in the venture
Term

equity investor: angel investor

 

Definition
Individuals or small groups of investors who have sufficient net worth to engage in new venture investment on a regular basis
Term
equity investor: venture capitalist
Definition
Institutional investors who manage funds with the specific purpose of investing in high-potential new ventures
Term
Equity investor: strategic investor
Definition
Corporations with a strategic interest in the new venture
Term
Five Unique Sources of Financing for the Sustainable Venture
Definition
Cleantech Venture Capital
Impact Investors
Social or Sustainable Venture Business Plan Competitions
Crowdfunding
Microfinance
Term
Impact investor: social investment funds
Definition

 

Investment funds who raise capital to invest specifically in social ventures.

i.e. Acumen Fund, responsAbility, and Root Capital

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