BUS 101C: FINAL EXAM
99 Cards in this Set
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competitive pricing; deceptive trade practices; packaging and labeling; consumer credit disclosure and reporting; online privacy
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FTC (Federal Trade Commission)
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standards for radiation exposure; toxic chemical research; safety, effectiveness, and labeling of drugs, foods, food additives, cosmetics, and medical devices
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FDA (Food and Drug Administration)
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safety standards for consumer products; flammable fabrics, hazardous substances, poison prevention packaging
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Consumer Protection Safety Commission
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motor vehicle safety standards; national uniform speed limit; consumer safeguards for altered odometers
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National Highway Traffic Safety Administration (Transportation Department)
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fair competition; consumer civil rights
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DOJ (Department of Justice)
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airline safety
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National Transportation Safety Board
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fairness and transparency in consumer financial products and services
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Consumer Financial Protection Bureau
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inspection of meat and poultry
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Department of Agriculture
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authority over genetically modified food and some chemicals that may affect consumers
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EPA (Environmental Protection Agency)
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the legal responsibility of a firm for injuries caused by something it made or sold
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Product Liability
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courts have held that manufacturers are responsible for injuries resulting from use of their products, whether or not the manufacturers were negligent or breached a warranty
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Strict Liability Doctrine
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- right to organize and bargain
- right to a safe and healthy workplace
- right to privacy
- duty to discipline fairly and justly
- right to blow the whistle
- right to equal employment opportunity
- right to be treated with respect for fundamental human rights
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Employee Rights/Employer Duties
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- no drug or alcohol abuse
- no actions that would endanger others
- treat others with respect and without harassment of any kind
- honesty; appropriate disclosure
- loyalty and commitment
- respect for employer's property and intellectual capital
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Employee Duties/Employer Rights
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adapting the job to the worker, rather than forcing the worker to adapt to the job
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Ergonomics
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act that gives workers the right to a job "free from recognized hazards that are causing or likely to cause death or serious physical harm"
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Occupational Safety and Health Act (1970)
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given powers by Congress; to set and enforce safety and health standards
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Occupational Safety and Health Administration (OSHA)
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legal doctrine that means employees are hired and retain their jobs "at the will of" the employer
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Employment-at-Will
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Exceptions to employment-at-will
Employees cannot be fired...
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- because of race, gender, religion, national origin, age, or disability
- if this would constitute a violation of public policy, as determined by the courts
- if it would violate the Worker Adjustment Retraining Notification Act (WARN), which requires most big employers to provide …
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3 occasions for drug testing
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- preemployment screening: tests all or selected applicants
- random testing of employees: may occur at various times throughout the year
- testing for cause: when an employee is believed to be impaired by drugs and unfit for work
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when an employe reports alleged organizational misconduct to media, government, or high level officials in the company, in belief that their employer has done something wrong or harmful to the public
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Whistle-Blowing
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Dodd-Frank Act
(in regards to whistle-blowing
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requires the government to pay a reward to whistleblowers who voluntarily provide information that leads to successful prosecutions for violations of federal securities laws
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Sarbanes-Oxley Act
(in regards to whistle-blowing)
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makes it illegal for employers to retaliate in any way against whistleblowers who report information that could affect the company's shares
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4 Conditions for Whistle-blowing
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- the organization is doing (or will do) something that seriously harms others
- the employee has tried and failed to resolved the problem internally
- reporting the problem publically will probably stop or prevent the harm
- the harm is serious enough to justify the probable cos…
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an unofficially acknowledged barrier to advancement in a profession, especially affecting women and members of minorities
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Glass Ceiling
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fewer opportunities to move sideways into jobs that lead to the top - also plays as an obstacle for minorities and women
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Glass Walls
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Equal Employment Opportunity
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promote equal treatment of employees
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Equal Employment Opportunity Commission
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enforces these laws :
Equal Pay Act: equal pay for same work of men and women
Civil Rights Act: prohibits discrimination in employment based on..
Age Discrimination Act: protects individuals are & over 40 years old
EEO Act: increases power of EEOC
Pregnancy Discrimination A…
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2 step process that companies can use to deflect harassment lawsuits
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1. develop a zero-tolerance policy on harassment and communicate it with employees
2. establish a complaint procedure, including ways to report incidents without retaliation, and quickly resolve problems
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Family and Medical Leave Act
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- paternal leave: when a mother or father is granted time off when children are born or adopted and during the important early months of a child's development
- family leave: when the care of elderly relatives is involved
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Collaborative Partnership
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voluntary partnerships of companies, communities, and governments toward some specific goal
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Civic Engagement
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active involvement of companies and individuals to change and improve communities
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Mutual Interdependence
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companies and their communities need things from each other
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company benefits of community involvement
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- enhance reputation
- ability to respond quickly to stakeholder wants
- loyalty from customers, employees, neighbors
- avoidance of government regulation
- earned right to do business "license to operate"
- built social capital (goodwill and trust) that enhance the quality…
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community benefits of corporate involvement
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- Economic development
- Crime abatement: makes communities more attractive to other businesses, employees, consumers
- Housing
- Job training: help communities by training their employees; makes community member more marketable
- Aid to minority businesses
- Disaster Relief
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CSR (Corporate Social Responsibility)
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businesses acting in ways that enhance society while being held accountable for their actions that affect their stakeholders
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Arguments for CSR
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- balances corporate power with responsibility and accountability
- discourages government intervention
- promotes long-term profits
- improves business goodwill and reputation
- helps forgive past mistakes of the business
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Arguments against CSR
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- places responsibility for social good on businesses instead of individuals
- costs associated with CSR that reduce profits and may be passed on the stakeholders
- may require skills that the business doesn't possess
- lowers efficiencies as businesses address stakeholder-relate…
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negative externality
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a cost that is suffered by a third party as a result of an economic transaction
In a transaction, the producer and consumer are the first and second parties, and third parties include any individual, organization, property owner, or resource that is indirectly affected
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predatory pricing
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when businesses charge something lower than their competition (in hopes of driving out competition)
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horizontal tie-ing
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the practice of selling one product or service as a mandatory addition to the purchase of a different product or service
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de-regulation
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scaling back of regulatory actions from the government
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World Trade Organization (WTO)
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establishes rules for trade among nations; eliminates barriers to trade (quotas, tariffs)
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"respondeat superior"
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"let the master answer"
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common law
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body of law coming from judicial decisions
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statutory law
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written law coming from legislation
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functions of law
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- to define relationships among the members of society establishing what activities are okay and not okay
- to allocate authority
- to deal with trouble cases
- to adapt and redefine relationships as necessary as life changes; as our societal and social norms grow, laws should re…
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economic sanctions
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when governments order companies not to conduct business in another country because of war, human rights violations, or lack of a legitimate government
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fiscal policy
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refers to patterns of government collecting and spending funds that are intended to stimulate or support the economy
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monetary policy
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refers to policies that affect the supply, demand, and value of a nation's currency
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re-regulation
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the increase or expansion of government regulation, especially in areas where the regulatory activities had previously been reduced
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trade associations
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coalitions of companies in the same or related industries
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sustainable development
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the need for balance between economic progress and environmental protection
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three factors make sustainable development difficult:
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population growth, world income inequality, and the rapid industrialization of many developing nations
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commons
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a shared resource that a group of people use collectively
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global commons
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resources shared by all nations
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Montreal Protocol
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world leaders agreed to cut CFC production and later to ban CFCs, along with other ozone depleting chemicals
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Kyoto Protocol
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purpose is to stabilize the concentration of greenhouse gases in the atmosphere at a level that would prevent dangerous interference with the climate system
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life-cycle analysis
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collecting information on the lifelong environmental impact of a product, all the way from extraction of raw material to design, manufacturing, distribution, use, and ultimate disposal
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carbon neutrality
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when an organization or individual produces net zero emissions of greenhouse gases
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Clean Water Act
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aims to restore & maintain the integrity of all surface water in the US
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Pollution Prevention Act of 1990
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aims to reduce pollution at the source, rather than treat the dispose of waste at the end of the pipe (source reduction)
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US Clean Air Act of 1990
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established emission levels (caps) and permitted companies with emissions below the cap to sell (trade) their rights to the remaining permissible amount to firms that faced penalties because their emissions were above the cap
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Stakeholder Theory
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consider all affected stakeholders while doing business
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Edward Freeman - which theory?
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Stakeholder Theory
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Friedman Doctrine
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views shareholders as the economic engine of the organization and the only group to which the firm must be socially responsible
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Milton Friedman - which theory?
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Friedman Doctrine or "Shareholder Theory"
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environmental intelligence
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the acquisition of information gained from analyzing the multiple environments affecting organizations
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competitive intelligence
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the systematic and continuous process of gathering, analyzing, and managing external information about the organization's competitors that can affect the organization's plans, decisions, and operations
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iron law of responsibility
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in the long run those who do not use power in the ways that society considers responsible will tend to lose it
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why should business be ethical?
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- meet demands of business stakeholders
- to enhance business performance
- to comply with legal requirements
- to prevent or minimize harm
- to promote personal morality
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egoism
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self interest
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benevolence
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friendship/ concern for others
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principle
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personal morality/ integrity
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compliance-based ethics
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seeks to avoid legal sanction
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integrity-based ethics
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combine a concern for the law with an emphasis on the employee responsibility for ethical conduct
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Sarbanes-Oaxly Act
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U.S. law enacted in 2002 that greatly expanded the powers of the SEC to regulate information disclosure in the financial markets and the accountability of an organization's senior leadership regarding the accuracy of this disclosure
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rational maximization
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desire to get as much for oneself as possible
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nationalization
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when full or partial control is taken of private financial institutions, typically to avert a crisis
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Adam Smith
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- father of capitalist theory
- "Wealth of Nations"
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Sherman Anti-Trust Act of 1980
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outlawed monopolies
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Fair Labor Standards Act of 1938
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national minimum wage for workers
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autonomy
(ethics game)
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the individual is considered to be the most important
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equality
(ethics game)
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the group is considered to be the most important
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rationality
(ethics game)
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individual primarily uses their head and reason to determine the right action
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sensibility
(ethics game)
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individual follows their heart and uses intuition to determine the right action
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Rights and Responsibilities Lens
(ethics game)
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examine important ideals; doing one's duty; focus on finding principles that would apply to all people
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Relationship Lens
(ethics game)
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seek justice and care for those less fortunate; fulfill our duties in service to a perfectly just community
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Results Lens
(ethics game)
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focus on the immediate moment; individual results, goals, and what makes individuals happy
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Reputation Lens
(ethics game)
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focus on the larger picture; focus on virtues that are valued by the community
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2 concepts of capitalism
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1. the pursuit of personal gain will eventually benefit all of society
2. an economy has a natural design - it will regulate itself
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the essence of capitalism is ________ ________
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economic freedom
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the invisible hand
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guides the economy through the combination of self-interest, private ownership, and competition
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John Maynard Keynes believed that..
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government intervention can help stabilize a capitalist economy
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capitalist economic system
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- owner of production is individual
- benefactors are first the individual and second society
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socialist economic system
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- owner of production is state or society
- benefactor is society
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fascist economic system
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- owner of production is the state
- benefactors are first the state and second society
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consideration
(in contract law)
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the value or benefit that a party provides to the others with who the contract is made
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express warranty
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specific warranty made by the seller regarding the product
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implied warranty
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only legally imposed on the seller
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BUS 101C: FINAL EXAM