Chapter 6 Key terms:
1. Business model: The underlying idea or theory that explains how a business will create value by making and selling products or services in the market.
2. Mission Statement: A brief statement of the basic purpose of an organization.
3.Stakeholder map: A diagram showing stakeholders and their relationship to their firm.
4.strategy: A basic approach, method, or plan for achieving and objective.
5.Transparency: The state in which company social policies, processes, and actions are visible to the external observers.
6. Sustainability reporting: Documentation and disclosure of how closely corporate performance conforms to the goal of sustainable development.
7. Sustainable Development: Economic growth that meets the needs of the present without consuming social and environmental resources in a way that harms future generations.
8.Triple Bottom line: An accounting of a firm's economic, social, and environmental performance.
9. Assurance: Verification by audit that information in a corporate sustainability report is correct.
10.Philanthropy: Concern for the welfare of society expressed by gifts of money or property to the needy or to activities for social progress.
11. Altruism: The desire to give to help, or improve others and society with no expectation of self gain in return.
12. Checkbook Philanthropy: A traditional, passive form of corporate philanthropy characterized by donations to multiple worthy causes without any relationship to business stategy.
13. Strategic Philanthropy: A form of corporate philanthropy in which charitable activities reinforce strategic business goals.
Reaction:
We learn in this chapter that corporations seek to be socially responsible. The main way to be socially responsible is to get involved in corporate philanthropy. We also learn that corporations must undertake a range of social initiatives. Companies must respond to multiple sources of pressures on corporations.
Sunday, 13 March 2011
Chapter 5 Corporate Social Responsibility
Chapter 5 Key terms:
1. Corporate Social Responsibility: The duty of a corporation to create wealth in ways that avoid harm to , protect, or enhance societal assets.
2.libertarians: those who believe in the maximum freedom, or liberty to act or use property without interference by others, especially government.
3. Social Darwanism: A Philosophy of the late 1800's and early 1900's that used evolution to explain the dynamics of human society and institutions. The idea of "survival of the fittest" in the social realm implied that rich people and dominants companies were morally superior.
4. Ultra vires: A latin phrase denoting acts beyond the powers given the corporation by law.
5. Trustee: An agent of a company whose corporate role puts him or her in a position of power of the the fate of not just stock holders, but of others such as customers, employees, and communities.
6. Service Principle : A belief that managers served society by making companies profitable and that aggregate success by many managers would resolve major social problems.
7. Friedmanism: The theory that the sole responsibility of a corporation it to optimize profits while obeying the law.
8.Value Chain: The sequence of coordinated actions that add value to a product or service
9. Civil Regulation: Regulation by nonstate actors based on social norms or standards enforced by social or market sanctions.
10. External cost: A production cost not paid by a firm or its customers, but by members of society.
11.Extraterritoriality: The application of one nation's laws within the borders of another nation.
12. Soft Law: Statements of philosophy, policy, and principle found in nonbonding international conventions that, over time, gain legitmacy as guidelines for interpreting the "hard lawa" in legally binding agreements.
13. Norm: A standard that arises overtime and is enforced by social sanction or law.
14. Principle: A rule, natural law, or truth used as a standard to guide conduct.
15. Codes of Conduct: Formal statements of aspirations, principles, guidelines, and rules for corporate behavior.
16. Sustainability reporting: The practice of a corporation publishing information about its economic, social, and environmental performance.
17. Fair trade: Payment of wages to small, marginal agricultural producers in developing nations sufficient to allow sustainable farming and labor practices.
18. Management Standard: A model of the methods an organization can use to achieve certain goals.
Reaction:
In this chapter, we find that corporations have been motivated primarily by profit because of two main reasons.
1) The idea of corporate social responsibility has continuously expanded in meaning
2)The power of stake holders to define corporate duty has increased.
It's focus was on explaining the idea of corporate social responsibility and its evolution.
1. Corporate Social Responsibility: The duty of a corporation to create wealth in ways that avoid harm to , protect, or enhance societal assets.
2.libertarians: those who believe in the maximum freedom, or liberty to act or use property without interference by others, especially government.
3. Social Darwanism: A Philosophy of the late 1800's and early 1900's that used evolution to explain the dynamics of human society and institutions. The idea of "survival of the fittest" in the social realm implied that rich people and dominants companies were morally superior.
4. Ultra vires: A latin phrase denoting acts beyond the powers given the corporation by law.
5. Trustee: An agent of a company whose corporate role puts him or her in a position of power of the the fate of not just stock holders, but of others such as customers, employees, and communities.
6. Service Principle : A belief that managers served society by making companies profitable and that aggregate success by many managers would resolve major social problems.
7. Friedmanism: The theory that the sole responsibility of a corporation it to optimize profits while obeying the law.
8.Value Chain: The sequence of coordinated actions that add value to a product or service
9. Civil Regulation: Regulation by nonstate actors based on social norms or standards enforced by social or market sanctions.
10. External cost: A production cost not paid by a firm or its customers, but by members of society.
11.Extraterritoriality: The application of one nation's laws within the borders of another nation.
12. Soft Law: Statements of philosophy, policy, and principle found in nonbonding international conventions that, over time, gain legitmacy as guidelines for interpreting the "hard lawa" in legally binding agreements.
13. Norm: A standard that arises overtime and is enforced by social sanction or law.
14. Principle: A rule, natural law, or truth used as a standard to guide conduct.
15. Codes of Conduct: Formal statements of aspirations, principles, guidelines, and rules for corporate behavior.
16. Sustainability reporting: The practice of a corporation publishing information about its economic, social, and environmental performance.
17. Fair trade: Payment of wages to small, marginal agricultural producers in developing nations sufficient to allow sustainable farming and labor practices.
18. Management Standard: A model of the methods an organization can use to achieve certain goals.
Reaction:
In this chapter, we find that corporations have been motivated primarily by profit because of two main reasons.
1) The idea of corporate social responsibility has continuously expanded in meaning
2)The power of stake holders to define corporate duty has increased.
It's focus was on explaining the idea of corporate social responsibility and its evolution.
Chapter 4 Critics of Business
Chapter 4 keyterms:
1. Agrarian society: A society with a largely agricultural economy.
2. Just Price: A price giving a moderate profit; one inspired by fairness, not greed.
3. Market Price: A price determined by the interaction of supply and demand.
4. Usury: The lending of money for interest.
5. Protestant ethic: The belief that hard work and adherence to a set of virtues such as thrift, savingm and sobriety would bring wealth and God's approval.
6. Populist Movement: A political reform movement that arose among farmers in the late 1800s. Populist blamed social problems on industry and sought radical reforms such as government ownership of railroads.
7.Progressive movement: A turn-of-the-century political movement that associated moderate social reform with progress. Progressivism was less radical than populism and had wider appeal.
8. Socialism: The doctrine of a classless society in which propery is collectively owned and income from labor is equally divided among members. It rejects the values of capitalism.
9.Old Progressive: A reference to political and social reformers at the beginning of the twentieth century.
10. New progressives: Members of left-leaning groups who advocate more radical corporate reforms than did the old progressives. New Progressives seek to avoid being branded a s liberals and try to take advantage of favorable connotations in the word progressive.
11.Nongovernmental organization: A term for voluntary organization that are not affiliated with governments.
12. Civil Society: A zone of ideas, discourse, and action that transcends national societies and focuses on global issues. It is dominated by progressive values.
13.Antiglobalism movement: A coalition of groups united by opposition by economic globalization dominated by corporations and trade liberalization.
14. Group of Eight: An annual meeting where leaders of the large industrial democracies discuss political and economic issues.
15. Neoliberalism: A term denoting both the ideology of using markets to recognize society and a set of policies to free markets from state intrusion.
16. Liberalism: The philosophy of an open society in which government does not interfere with rights of individuals.
17. Economic Liberalism: The philoshophy that social progress comes when individuals freely pursue their self-interests in unregulated markets.
18. World Social Forum: The annual meeting of the antiglobalism movement.
Reaction:
This chapter goes on to talk about how there is no question that industrial capitalism i s historical force for turbulent social change. The origins of critical attitudes toward business was something I found very interesting.
1) The belief that people in business place profit before more worthy values such as honesty, trust, justice, love, piety, aesthetics, tranquility and respect for nature.
2) Strain place on societies by economic development
1. Agrarian society: A society with a largely agricultural economy.
2. Just Price: A price giving a moderate profit; one inspired by fairness, not greed.
3. Market Price: A price determined by the interaction of supply and demand.
4. Usury: The lending of money for interest.
5. Protestant ethic: The belief that hard work and adherence to a set of virtues such as thrift, savingm and sobriety would bring wealth and God's approval.
6. Populist Movement: A political reform movement that arose among farmers in the late 1800s. Populist blamed social problems on industry and sought radical reforms such as government ownership of railroads.
7.Progressive movement: A turn-of-the-century political movement that associated moderate social reform with progress. Progressivism was less radical than populism and had wider appeal.
8. Socialism: The doctrine of a classless society in which propery is collectively owned and income from labor is equally divided among members. It rejects the values of capitalism.
9.Old Progressive: A reference to political and social reformers at the beginning of the twentieth century.
10. New progressives: Members of left-leaning groups who advocate more radical corporate reforms than did the old progressives. New Progressives seek to avoid being branded a s liberals and try to take advantage of favorable connotations in the word progressive.
11.Nongovernmental organization: A term for voluntary organization that are not affiliated with governments.
12. Civil Society: A zone of ideas, discourse, and action that transcends national societies and focuses on global issues. It is dominated by progressive values.
13.Antiglobalism movement: A coalition of groups united by opposition by economic globalization dominated by corporations and trade liberalization.
14. Group of Eight: An annual meeting where leaders of the large industrial democracies discuss political and economic issues.
15. Neoliberalism: A term denoting both the ideology of using markets to recognize society and a set of policies to free markets from state intrusion.
16. Liberalism: The philosophy of an open society in which government does not interfere with rights of individuals.
17. Economic Liberalism: The philoshophy that social progress comes when individuals freely pursue their self-interests in unregulated markets.
18. World Social Forum: The annual meeting of the antiglobalism movement.
Reaction:
This chapter goes on to talk about how there is no question that industrial capitalism i s historical force for turbulent social change. The origins of critical attitudes toward business was something I found very interesting.
1) The belief that people in business place profit before more worthy values such as honesty, trust, justice, love, piety, aesthetics, tranquility and respect for nature.
2) Strain place on societies by economic development
Chapter 3 Business Power
Chapter 3 Key terms:
1. Power: The force or strength to act or to compel another entity to act.
2. Business Power: The force behind an act by a company, industry, or sector.
3. Legitimacy: The rightful use of power. Its opposite is tyranny, or the exercise of power beyond right.
4. Dominance theory: The view that business is the most powerful institution in society, because of its control of wealth. This power is inadequately checked and therefore, excessive.
5. Pluralist theory: The view that business power is exercised in a society where other institutions also have great power. It is counterbalanced and restricted and , therefore, not excessive.
6.Power Elite: A small group of individuals in control of the economy, government, and military. The theory of its existence is associated with the American sociologist C. Wright Mills.
7. Pluralistic Society: A society with multiple groups and institutions which power is diffused.
Reactions:
Out this entire chapter, I found that the Two perspectives on Business power was the most interesting as far as whether or not business power is adequately checked or balanced which then leads to the two theories behind this, and that's the dominance theory and the pluralist theory. Both of which, I find interesting.
1. Power: The force or strength to act or to compel another entity to act.
2. Business Power: The force behind an act by a company, industry, or sector.
3. Legitimacy: The rightful use of power. Its opposite is tyranny, or the exercise of power beyond right.
4. Dominance theory: The view that business is the most powerful institution in society, because of its control of wealth. This power is inadequately checked and therefore, excessive.
5. Pluralist theory: The view that business power is exercised in a society where other institutions also have great power. It is counterbalanced and restricted and , therefore, not excessive.
6.Power Elite: A small group of individuals in control of the economy, government, and military. The theory of its existence is associated with the American sociologist C. Wright Mills.
7. Pluralistic Society: A society with multiple groups and institutions which power is diffused.
Reactions:
Out this entire chapter, I found that the Two perspectives on Business power was the most interesting as far as whether or not business power is adequately checked or balanced which then leads to the two theories behind this, and that's the dominance theory and the pluralist theory. Both of which, I find interesting.
Chapter 2 The Dynamic Environment
Chapter 2 keyterms:
1. Scenario: A plausible story of the future based on assumptions about how current trends might play out.
2. liberalization: An economic policy of lowering tariffs and other barriers to encourage trade.
3.Historical force: An environmental force of unknown origin and mysterious action that provides the energy for events. The discussion divides this force, somewhat artificially, into nine separate but related forces causing distinct chains of event.
4. Industrial Revolution: Transforming changes that turn agricultural economies into industrial economies. This transformation occurs in the presence of certain economic technological, political, and philosophical conditions.
5. Gini Index: A Statistical measure of inequality in which 0 is perfect equality (everyone has the same amount of wealth) and 100 is absolute inequality (a single person has all wealth).
6. Replacement Fertility rate: The number of children a woman must have on average to ensure that one daughter survives to reproductive age.
7. Globalization: The creation of networks of human interaction that span worldwide distances.
8. Nation-state: An international actor having a ruling authority, citizens, and a territory with fixed borders.
9. Ideology: A set of reinforcing beliefs and values that construct a worldview.
10. Trade liberalization: A Philosophy in which nations promote trade by easing restrictions, including both tariff and non tariff barriers. This philosophy, sometimes referred to as simply liberalization, is the bedrock of economic globalization.
11.Foreign Direct investment: Capital investment by private firms outside their home countries.
12.Nanotechnology: Technology that is developed on the scale of a nanometer, which is one-billionth of a meter.
13. Wiki: A web site open to collaborative editing by multiple individuals.
14. Culture: A system of shared knowledge, values, norms, customs, and rituals acquired by social learning.
15. Postmodern values: Values based on assumptions of affluence, for example, quality of life and self-expression.
16. Democracy: A form of government requiring three elements-popular sovereignty, political liberty and majority rule.
17. Soft law: Voluntarily adopted codes of conduct setting forth rules about corporate behavior. Guidelines are often derived from emerging international conduct standards.
Reaction:
The dynamic interconnections of business with historical forces and current events-the text goes on to talk about how the deep historical forces act to shape seven key environments where as the actions of a business constantly influence the deeper course of history- that to me, I found very interesting.
1. Scenario: A plausible story of the future based on assumptions about how current trends might play out.
2. liberalization: An economic policy of lowering tariffs and other barriers to encourage trade.
3.Historical force: An environmental force of unknown origin and mysterious action that provides the energy for events. The discussion divides this force, somewhat artificially, into nine separate but related forces causing distinct chains of event.
4. Industrial Revolution: Transforming changes that turn agricultural economies into industrial economies. This transformation occurs in the presence of certain economic technological, political, and philosophical conditions.
5. Gini Index: A Statistical measure of inequality in which 0 is perfect equality (everyone has the same amount of wealth) and 100 is absolute inequality (a single person has all wealth).
6. Replacement Fertility rate: The number of children a woman must have on average to ensure that one daughter survives to reproductive age.
7. Globalization: The creation of networks of human interaction that span worldwide distances.
8. Nation-state: An international actor having a ruling authority, citizens, and a territory with fixed borders.
9. Ideology: A set of reinforcing beliefs and values that construct a worldview.
10. Trade liberalization: A Philosophy in which nations promote trade by easing restrictions, including both tariff and non tariff barriers. This philosophy, sometimes referred to as simply liberalization, is the bedrock of economic globalization.
11.Foreign Direct investment: Capital investment by private firms outside their home countries.
12.Nanotechnology: Technology that is developed on the scale of a nanometer, which is one-billionth of a meter.
13. Wiki: A web site open to collaborative editing by multiple individuals.
14. Culture: A system of shared knowledge, values, norms, customs, and rituals acquired by social learning.
15. Postmodern values: Values based on assumptions of affluence, for example, quality of life and self-expression.
16. Democracy: A form of government requiring three elements-popular sovereignty, political liberty and majority rule.
17. Soft law: Voluntarily adopted codes of conduct setting forth rules about corporate behavior. Guidelines are often derived from emerging international conduct standards.
Reaction:
The dynamic interconnections of business with historical forces and current events-the text goes on to talk about how the deep historical forces act to shape seven key environments where as the actions of a business constantly influence the deeper course of history- that to me, I found very interesting.
Chapter 1 The Study of Business, Government and Society
Chapter 1
Keyterms:
1. Business: Profit-making activity that provides products and services to satisfy human needs.
2. Government: Structures and processes in society that authoritatively make and apply policies and rules.
3. Society: A network of human relations composed of ideas, institutions, and material things.
4. Idea: An intangible object of thought.
5. Value: An enduring belief about which fundamental life choices are correct.
6. Ideology: a bundle of values that creates a particular view of the world.
7. Institution: A formal pattern of relation that links people together to accomplish a goal.
8. Material things: Tangible artifacts of a society that shape and are shaped by ideas and institutions.
9. Social Contract: An underlying agreement between business society on basic duties and responsibilities business must carry out to retain public support. It may be reflected in laws and regulations.
10. Market economy: The economy that emerges when people move beyond subsistence production to production for trade, and markets take on a more central role.
11. Capitalism: An economy in which private individuals and corporations own the means of production and , motivated by the desire for profit, compete in free markets under conditions of limited restraint by government.
12. Managerial capitalism: A market economy in which the dominant businesses are large firms run by salaried managers, not smaller firms run by owner-entrepreneurs.
13. Laissez-faire: An economic philosophy that rejects government intervention in markets
14. Populism: a political pattern, recurrent in world history, in which common people who feel oppressed or disadvantaged seek to take power from a ruling elite seen as thwarting fulfillment of collective welfare.
15. Stakeholder: An entity that is benefited or burdened by the actions of a corporation or whose actions may benefit or burden the corporation. The corporation has an ethical duty toward these entities.
16. Primary stakeholders: Entities in a relationship with the corporation in which they, the corporation or both are affected immediately, continuously, and powerfully.
17. Secondary Stakeholders: Entities in a relationship with the corporation in which the effects on them, the corporation, or both are less significant and pressing.
18. Strategic management: Actions taken by managers to adapt a company to changes in its market and sociopolitical environments.
19. Theory: A statement or vision that creates insight by describing patterns or relationships in a diffuse subject matter. A good theory is concise and simplifies complex phenomena.
20. History: the study of phenomena moving through time.
Reaction:
This chapter covers interesting models of the BGS relationship as well as different perspectives, the use of theory, description, and case studies. The chapter went on to say that theories simplify and organize areas of knowledge by describing patterns or regularities in the subject matter and that they are important in every field. There are economic theories about the impact of government regulation, scientific theories regarding industrial pollution, political theories explaining corporate power and legal theories.
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