Mgmt 320 - Midterm (Huwe)

descriptive
instrumental
normative

conservative
hard work
pro military

A detail, image, or character type that occurs frequently in literature and myth and is thought to appeal in a universal way to the unconscious and to evoke a response

all organisms are open to and interact with their external environments

Each needs the other, and each influences the other

stakeholder view is a more realistic description of how companies work, have to focus on all stakeholders to be successful

states that stakeholder theory is more effective at managing a business and ends up being more profitable because stakeholders are happier

Bundle of values that creates a particular view of the world

pro immigration
hard work
pro military
free market
(conservative)

less military
more social programs
victim attitude
equality of outcome
affordable education
(he's a liberal)

"hands off"
less government regulation
free market

conservative democrat

Liberal republican

Process of redrawing legislative boundaries for the purpose of benefiting the party in power.

An organization that produces or distributes a good or service for profit.

Human beings and their collective social structures

All those affected by a firm's decisions, policies, or operations

an interest or claim to an organization or business

a business' sole responsibility is to maximize wealth for its shareholders while remaining within the bounds of the law

corporations serve a broad public purpose: to create value for society

stakeholder management is the right thing to do
(with great power comes great responsibility)

person who exercises power on behalf of another

those that engage in economic transactions with the company as it carries out its purpose of providing society with goods and services

people and groups who - although they do not engage in direct economic exchange with the firm - are nonetheless affected by or can affect its actions

those who are employed by the firm

people or groups in the organization's external environment that are affected by it

1. Identify stakeholders
2. Identify stakeholder interests
3. What is the power of each stakeholder
4. Identify potential alliances/coalitions between
stakeholders

Voting power
Political power
Informational power
Legal power
Economic power

stakeholder has a legitimate right to cast a vote

ability to control resources/affect a company's bottom line

ability to influence government laws and regulations/ government laws and regulations

exercising the use of the law
ex: bringing lawsuit against somebody

having access to valuable data/ being able to bring information to attention of the public or key decision makers

act in a way that enhances society and be held accountable for its actions

Market
Gov. actions
Social investment
Reports
NGOs can use norms, principles, or laws to pressure
Morals
Codes of Conduct

Stewardship - 1950s
Responsiveness - 1960
Ethics - 1980s
Citizenship - 1990s

State "Benefit" Corporations

Must address all levels of triple bottom line

actions taken to put CSR into effect

Compare large corporations to size of countries. 100 largest produce 70% of greenhouse emissions

the realization that by helping others we are really helping ourselves in the end

In the long run, those who do not use power in a manner which society considers responsible will tend to lose it

people, planet, profit = social, environment, financial

Economic
environmental
labor practices
human rights
society (impact)
product responsibility

Main goal: earn money by solving environmental problems

Core motivation: Contribute to solving environmental problem and create economic value

NGOs

Main Goal: Achieve social goal and secure funding to achieve this

Core motivation:Contribute to solving societal problem and create value for society

Main goal: create sustainable development through entrepreneurial corporate activities

Core motivation: contribute to solving societal and environmental problems through the realization of a successful business

Annual financial documents mixed with social reporting such as GRI or Triple bottom line

Balances corporate power and responsibility

Discourages Gov. Regulation
- heads off increased regulation by thinking ahead by doing good

Lowers economic efficiency and profits

Imposes unequal costs among competitors

Owners
Employees
Suppliers
Customers

Government
Community
General public
NGOs

meant to give equal rights to freed slaves

Study of what is moral and just

What is ethical in one culture, may not be ethical in another

vice versa

Some things are always unethical - murder, kidnap

Principles of right and wrong behavior, as practiced by individuals or by society.

Fairness, if the share seems fair of who pays costs and gets benefit the action is ethical

having a different set of ethics for different situations ex: personal life vs business life

same set of ethics for everything

What is right/wrong varies depending on societal values

principles that apply across all contexts/cultures

the degree to which a person self-identifies as a moral person

reflects the process people use to determine whether a particular course of action is ethical or unethical (having to think about what is right or wrong)

(Consequentialism) The end justifies the means

the path justifies itself (formalism) its the path and not the outcome that matters, principles guide behavior

perceived fairness of a process

perceived fairness of the amount and allocation of rewards among individuals

Golden Rule ( treat others how you want to be treated)
Categorical Imperative ( do i want others doing what i'm doing?)
Intuition ( follow your gut)
Disclosure Rule (would i want to tell everybody about this)

Organization first (loyalty to organization)
Conventionalism (if its legal its ok)
Machiavellianism (ends justify the means)

Most managers are stages 3 and 4

Stages 5 and 6 are principle-centered reasoning

Virtues
Utilitarian
Rights
Justice

Values and character

Comparing benefits and costs - greatest good for the greatest number

Respecting entitlements - human rights - people are entitled to be treated a certain way

behaving in a way you hope everyone behaves the same way

Would you like it if your behavior was on the front paper

represents and unspoken understanding among employees of what is and is not acceptable behavior

gut feeling