{"id":1005,"date":"2022-04-24T17:02:32","date_gmt":"2022-04-24T17:02:32","guid":{"rendered":"https:\/\/courses.lumenlearning.com\/suny-oswego-businesscommunicationmgrs2\/?post_type=chapter&#038;p=1005"},"modified":"2023-04-28T17:43:45","modified_gmt":"2023-04-28T17:43:45","slug":"13-8-key-terms-and-study-questions","status":"publish","type":"chapter","link":"https:\/\/courses.lumenlearning.com\/suny-oswego-businesscommunicationmgrs2\/chapter\/13-8-key-terms-and-study-questions\/","title":{"raw":"13.8 Key Terms and Study Questions","rendered":"13.8 Key Terms and Study Questions"},"content":{"raw":"<strong>Key Terms:\u00a0<\/strong>\r\n<ul>\r\n \t<li style=\"font-weight: 400;\" aria-level=\"1\"><strong>Utilitarianism<\/strong>: utilitarianism suggests that an ethical action is one whose consequence achieves the greatest good for the greatest number of people.<\/li>\r\n \t<li style=\"font-weight: 400;\" aria-level=\"1\"><strong>Deontology<\/strong>: contends that each of us owes certain duties to others (deon is a Greek word for duty or obligation) and that certain universal rules apply to every situation and bind us to these duties.<\/li>\r\n \t<li style=\"font-weight: 400;\" aria-level=\"1\"><strong>Virtue Theory (Kantianism)<\/strong>: focuses on the character of the decision-maker\u2014a character that reflects the training we receive growing up. In this view, our ethical analysis of a decision is intimately connected with the person we choose to be.<\/li>\r\n \t<li style=\"font-weight: 400;\" aria-level=\"1\"><strong>Phr\u00f3n\u0113sis<\/strong>: a type of practical wisdom that enables us to act virtuously.<\/li>\r\n \t<li style=\"font-weight: 400;\" aria-level=\"1\"><strong>Stockholders<\/strong>: those who own shares of the company\u2019s stock.<\/li>\r\n \t<li style=\"font-weight: 400;\" aria-level=\"1\"><strong>Shareholders<\/strong>: individuals and institutions that own stock (or shares) in a corporation.<\/li>\r\n \t<li style=\"font-weight: 400;\" aria-level=\"1\"><strong>Corporate Social Responsibility (CSR)<\/strong>: the practice by which a business views itself within a broader context, as a member of society with certain implicit social obligations and environmental responsibilities.<\/li>\r\n \t<li style=\"font-weight: 400;\" aria-level=\"1\"><strong>Ethical relativism<\/strong>: a philosophy according to which there is no right or wrong and what is ethical depends solely on the context.<\/li>\r\n \t<li style=\"font-weight: 400;\" aria-level=\"1\"><strong>Descriptive approach<\/strong>: sees the company as composed of various stakeholder groups, each with its own interests.<\/li>\r\n \t<li style=\"font-weight: 400;\" aria-level=\"1\"><strong>Instrumental approach<\/strong>: connects stakeholder management and financial outcomes, proposing that appropriate management of stakeholder interests is important and useful because it contributes to a positive bottom line.<\/li>\r\n \t<li style=\"font-weight: 400;\" aria-level=\"1\"><strong>Normative approach<\/strong>: considers stakeholders as ends in themselves rather than simply as means to achieve better financial results.<\/li>\r\n \t<li style=\"font-weight: 400;\" aria-level=\"1\"><strong>Enabling stakeholders<\/strong>: these are regulatory stakeholders including stockholders, legislatures, government regulators, and boards of directors.<\/li>\r\n \t<li style=\"font-weight: 400;\" aria-level=\"1\"><strong>Functional stakeholders<\/strong>: those who influence inputs, such as suppliers, employees, and unions, and those influencing outputs such as customers, distributors, and retailers.<\/li>\r\n \t<li style=\"font-weight: 400;\" aria-level=\"1\"><strong>Diffused stakeholders<\/strong>: include other organizations such as nongovernmental organizations (NGOs), voters, and mass media organizations with less direct relationships but potential for meaningful impacts on firms.<\/li>\r\n \t<li style=\"font-weight: 400;\" aria-level=\"1\"><strong>Normative stakeholders<\/strong>: these include competitors and peers influence the norms or informal rules of the industry<\/li>\r\n \t<li style=\"font-weight: 400;\" aria-level=\"1\"><strong>Key suppliers<\/strong>: these are lucrative or steady customers.<\/li>\r\n \t<li style=\"font-weight: 400;\" aria-level=\"1\"><strong>Triple Bottom Line (TBL)<\/strong>: this is a measure described in 1994 by John Elkington, a British business consultant, and it forces us to reconsider the very concept of the \u201cbottom line\u201d, which includes social (people), environmental (planet), and economic factors (profit).<\/li>\r\n<\/ul>\r\n<strong>Study Questions:<\/strong>\r\n\r\n<strong>SQ1 - What are the three approaches for examining the ethical nature of a decision?<\/strong>\r\n<ol>\r\n \t<li style=\"font-weight: 400;\" aria-level=\"1\">The first normative approach is to examine the ends, or consequences, a decision produces in order to evaluate whether those ends are ethical.<\/li>\r\n \t<li style=\"font-weight: 400;\" aria-level=\"1\">The second approach does examine the means, or actions, we use to carry out a business decision.<\/li>\r\n \t<li style=\"font-weight: 400;\" aria-level=\"1\">The third normative approach, typically called virtue theory, focuses on the character of the decision-maker\u2014a character that reflects the training we receive growing up.<\/li>\r\n<\/ol>\r\n<strong>SQ2 - What does CSR stand for and what is it concerned with?\u00a0<\/strong>\r\n\r\nCSR (Corporate Social Responsibility)\u00a0 is the practice by which a business views itself within a broader context, as a member of society with certain implicit social obligations and environmental responsibilities.\r\n\r\n<strong>SQ3 - What are the roles of a company\u2019s internal and external stakeholders?<\/strong>\r\n\r\nRegarding internal stakeholders, the board of directors\u2014in a company large enough to have one\u2014is responsible for defining and evaluating the ongoing mission of a business after its founding.\r\n\r\nExternal stakeholders are usually those outside of the organization who most directly influence a business\u2019s bottom line and hold power over the business.\r\n\r\n<strong>SQ4 - What are the three theoretical approaches to considering a stakeholder claim?\u00a0<\/strong>\r\n\r\nA descriptive approach, an instrumental approach, and a normative approach.\r\n\r\n<strong>SQ5 - What are the three major components to bringing about change in customer or donor expectations?<\/strong>\r\n\r\n(1) customer receptivity to a product or service offered by the company, (2) acknowledgement of the gap between customer receptivity and corporate action to reduce it, and (3) a system to bring about and maintain change in customer desires to bring it in line with precisely what the corporation can deliver.\r\n\r\n<strong>SQ6 - What are the three components of a TBL? What does TBL stand for?<\/strong>\r\n\r\nTBL - or Triple Bottom Line - has the three following components: social, economic, environmental","rendered":"<p><strong>Key Terms:\u00a0<\/strong><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><strong>Utilitarianism<\/strong>: utilitarianism suggests that an ethical action is one whose consequence achieves the greatest good for the greatest number of people.<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><strong>Deontology<\/strong>: contends that each of us owes certain duties to others (deon is a Greek word for duty or obligation) and that certain universal rules apply to every situation and bind us to these duties.<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><strong>Virtue Theory (Kantianism)<\/strong>: focuses on the character of the decision-maker\u2014a character that reflects the training we receive growing up. In this view, our ethical analysis of a decision is intimately connected with the person we choose to be.<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><strong>Phr\u00f3n\u0113sis<\/strong>: a type of practical wisdom that enables us to act virtuously.<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><strong>Stockholders<\/strong>: those who own shares of the company\u2019s stock.<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><strong>Shareholders<\/strong>: individuals and institutions that own stock (or shares) in a corporation.<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><strong>Corporate Social Responsibility (CSR)<\/strong>: the practice by which a business views itself within a broader context, as a member of society with certain implicit social obligations and environmental responsibilities.<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><strong>Ethical relativism<\/strong>: a philosophy according to which there is no right or wrong and what is ethical depends solely on the context.<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><strong>Descriptive approach<\/strong>: sees the company as composed of various stakeholder groups, each with its own interests.<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><strong>Instrumental approach<\/strong>: connects stakeholder management and financial outcomes, proposing that appropriate management of stakeholder interests is important and useful because it contributes to a positive bottom line.<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><strong>Normative approach<\/strong>: considers stakeholders as ends in themselves rather than simply as means to achieve better financial results.<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><strong>Enabling stakeholders<\/strong>: these are regulatory stakeholders including stockholders, legislatures, government regulators, and boards of directors.<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><strong>Functional stakeholders<\/strong>: those who influence inputs, such as suppliers, employees, and unions, and those influencing outputs such as customers, distributors, and retailers.<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><strong>Diffused stakeholders<\/strong>: include other organizations such as nongovernmental organizations (NGOs), voters, and mass media organizations with less direct relationships but potential for meaningful impacts on firms.<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><strong>Normative stakeholders<\/strong>: these include competitors and peers influence the norms or informal rules of the industry<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><strong>Key suppliers<\/strong>: these are lucrative or steady customers.<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><strong>Triple Bottom Line (TBL)<\/strong>: this is a measure described in 1994 by John Elkington, a British business consultant, and it forces us to reconsider the very concept of the \u201cbottom line\u201d, which includes social (people), environmental (planet), and economic factors (profit).<\/li>\n<\/ul>\n<p><strong>Study Questions:<\/strong><\/p>\n<p><strong>SQ1 &#8211; What are the three approaches for examining the ethical nature of a decision?<\/strong><\/p>\n<ol>\n<li style=\"font-weight: 400;\" aria-level=\"1\">The first normative approach is to examine the ends, or consequences, a decision produces in order to evaluate whether those ends are ethical.<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\">The second approach does examine the means, or actions, we use to carry out a business decision.<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\">The third normative approach, typically called virtue theory, focuses on the character of the decision-maker\u2014a character that reflects the training we receive growing up.<\/li>\n<\/ol>\n<p><strong>SQ2 &#8211; What does CSR stand for and what is it concerned with?\u00a0<\/strong><\/p>\n<p>CSR (Corporate Social Responsibility)\u00a0 is the practice by which a business views itself within a broader context, as a member of society with certain implicit social obligations and environmental responsibilities.<\/p>\n<p><strong>SQ3 &#8211; What are the roles of a company\u2019s internal and external stakeholders?<\/strong><\/p>\n<p>Regarding internal stakeholders, the board of directors\u2014in a company large enough to have one\u2014is responsible for defining and evaluating the ongoing mission of a business after its founding.<\/p>\n<p>External stakeholders are usually those outside of the organization who most directly influence a business\u2019s bottom line and hold power over the business.<\/p>\n<p><strong>SQ4 &#8211; What are the three theoretical approaches to considering a stakeholder claim?\u00a0<\/strong><\/p>\n<p>A descriptive approach, an instrumental approach, and a normative approach.<\/p>\n<p><strong>SQ5 &#8211; What are the three major components to bringing about change in customer or donor expectations?<\/strong><\/p>\n<p>(1) customer receptivity to a product or service offered by the company, (2) acknowledgement of the gap between customer receptivity and corporate action to reduce it, and (3) a system to bring about and maintain change in customer desires to bring it in line with precisely what the corporation can deliver.<\/p>\n<p><strong>SQ6 &#8211; What are the three components of a TBL? What does TBL stand for?<\/strong><\/p>\n<p>TBL &#8211; or Triple Bottom Line &#8211; has the three following components: social, economic, environmental<\/p>\n","protected":false},"author":545042,"menu_order":8,"template":"","meta":{"_candela_citation":"[]","CANDELA_OUTCOMES_GUID":"","pb_show_title":"on","pb_short_title":"","pb_subtitle":"","pb_authors":[],"pb_section_license":""},"chapter-type":[],"contributor":[],"license":[],"class_list":["post-1005","chapter","type-chapter","status-publish","hentry"],"part":769,"_links":{"self":[{"href":"https:\/\/courses.lumenlearning.com\/suny-oswego-businesscommunicationmgrs2\/wp-json\/pressbooks\/v2\/chapters\/1005","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/courses.lumenlearning.com\/suny-oswego-businesscommunicationmgrs2\/wp-json\/pressbooks\/v2\/chapters"}],"about":[{"href":"https:\/\/courses.lumenlearning.com\/suny-oswego-businesscommunicationmgrs2\/wp-json\/wp\/v2\/types\/chapter"}],"author":[{"embeddable":true,"href":"https:\/\/courses.lumenlearning.com\/suny-oswego-businesscommunicationmgrs2\/wp-json\/wp\/v2\/users\/545042"}],"version-history":[{"count":5,"href":"https:\/\/courses.lumenlearning.com\/suny-oswego-businesscommunicationmgrs2\/wp-json\/pressbooks\/v2\/chapters\/1005\/revisions"}],"predecessor-version":[{"id":1869,"href":"https:\/\/courses.lumenlearning.com\/suny-oswego-businesscommunicationmgrs2\/wp-json\/pressbooks\/v2\/chapters\/1005\/revisions\/1869"}],"part":[{"href":"https:\/\/courses.lumenlearning.com\/suny-oswego-businesscommunicationmgrs2\/wp-json\/pressbooks\/v2\/parts\/769"}],"metadata":[{"href":"https:\/\/courses.lumenlearning.com\/suny-oswego-businesscommunicationmgrs2\/wp-json\/pressbooks\/v2\/chapters\/1005\/metadata\/"}],"wp:attachment":[{"href":"https:\/\/courses.lumenlearning.com\/suny-oswego-businesscommunicationmgrs2\/wp-json\/wp\/v2\/media?parent=1005"}],"wp:term":[{"taxonomy":"chapter-type","embeddable":true,"href":"https:\/\/courses.lumenlearning.com\/suny-oswego-businesscommunicationmgrs2\/wp-json\/pressbooks\/v2\/chapter-type?post=1005"},{"taxonomy":"contributor","embeddable":true,"href":"https:\/\/courses.lumenlearning.com\/suny-oswego-businesscommunicationmgrs2\/wp-json\/wp\/v2\/contributor?post=1005"},{"taxonomy":"license","embeddable":true,"href":"https:\/\/courses.lumenlearning.com\/suny-oswego-businesscommunicationmgrs2\/wp-json\/wp\/v2\/license?post=1005"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}