Business and Society: Stakeholders, Ethics, and Public Policy 17th Edition Chapters
1,2,&3
1. Boundary-spanning departments: Departments, or offices, within an
organization that reach across the dividing line that separates a company from
groups and people in society
2. Business: An organization that is engaged in making a product or providing
a service for profit
3. External Stakeholder: Individuals or groups that may have important
transactions with a firm but are not directly employed by the firm, such as customers
or suppliers
4. Focal Organization: The organization from whose perspective a stakeholder
analysis is conducted
5. General System theory: A theory that holds that all organisms are open to,
and interact with, their external environment
Organisms do not exist in isolation but can only be understood in relationship to
their surroundings.
Businesses are embedded in a broader social environment with which they
constantly interact.
6. Interactive social system: The closely intertwined relationships between
business and society
7. Internal Stakeholder: Individuals who are employed by the firm, such as
employees and managers
8. Ownership theory of the firm: A theory that holds that the purpose of the firm
is to maximize that long- term return for its shareholders (also known as the property
or finance theory of the firm)
9. Society: Refers to human being and to the social structures they collectively
create; specifically refers to segments of humankind, such as members of a
particular community, nation, or interest group.
10. Stakeholder: A person or group that affects, or is affected by, a corporation's
decisions, policies, and operations.
11. Stakeholder Salience: A stakeholder's ability to stand out from the
background, to be as important, or to draw attention to itself or its issue.
Stakeholders are more salient when they possess power, legitimacy, and urgency
, Business and Society: Stakeholders, Ethics, and Public Policy 17th Edition Chapters
1,2,&3
12. Issue Management: The active management of public issues once they come
to the attention of a business organization
13. Performance- Expectations gap: The perceived distance between what a
firm wants to do or is doing and what the stakeholder expects
14. B Corporation: A business that explicitly seeks to blend its social objectives
with its financial goals
Must meet rigorous, independent social and environmental performance standards.
B Corporation must prove its socially responsible by meeting the B Lab standards
15. Corporate Citizenship: This term refers to the actions corporations take to
put their commitments to corporate social responsibility into practice worldwide
16. Corporate Social Responsibility: The idea that businesses should act in a
way that enhances society and their stakeholders and should be held accountable
for any of its actions that affect people, their communities, and their environment.
17. Enlightened Self Interest: The view that holds it is in a company's self-
interest in the long run to provide true value to its stakeholders
18. Integrated Reporting: The combining of legally required financial information
with social and environmental information into a single report
19. Iron Law of Responsibility: The belief that those who do not use their power
in ways that society considers responsible will tend to lose their power in the long
run 20. Reputation: The desirable or undesirable qualities associated with an
organization or its actors that may influence the organization's relationships with its
stakeholders
21. Social Audit: A systematic evaluation of an organization's social, ethical, and
environmental performance
22. Transparency: Clear public reporting of an organization's performance to
various stakeholders.
23. Corporation: Legally, an artificial legal "person," created under the laws of a
particular state or nation. Socially and organizationally, it is a complex system of
people, technology, and resources generally devoted to carrying out a central
economic mission as it interacts with a surrounding social and political environment.
24. Business and society together ______: form an interactive social system
25. Stakeholder Theory of the Firm: Corporations serve a broad public purpose:
to create value for society.
1,2,&3
1. Boundary-spanning departments: Departments, or offices, within an
organization that reach across the dividing line that separates a company from
groups and people in society
2. Business: An organization that is engaged in making a product or providing
a service for profit
3. External Stakeholder: Individuals or groups that may have important
transactions with a firm but are not directly employed by the firm, such as customers
or suppliers
4. Focal Organization: The organization from whose perspective a stakeholder
analysis is conducted
5. General System theory: A theory that holds that all organisms are open to,
and interact with, their external environment
Organisms do not exist in isolation but can only be understood in relationship to
their surroundings.
Businesses are embedded in a broader social environment with which they
constantly interact.
6. Interactive social system: The closely intertwined relationships between
business and society
7. Internal Stakeholder: Individuals who are employed by the firm, such as
employees and managers
8. Ownership theory of the firm: A theory that holds that the purpose of the firm
is to maximize that long- term return for its shareholders (also known as the property
or finance theory of the firm)
9. Society: Refers to human being and to the social structures they collectively
create; specifically refers to segments of humankind, such as members of a
particular community, nation, or interest group.
10. Stakeholder: A person or group that affects, or is affected by, a corporation's
decisions, policies, and operations.
11. Stakeholder Salience: A stakeholder's ability to stand out from the
background, to be as important, or to draw attention to itself or its issue.
Stakeholders are more salient when they possess power, legitimacy, and urgency
, Business and Society: Stakeholders, Ethics, and Public Policy 17th Edition Chapters
1,2,&3
12. Issue Management: The active management of public issues once they come
to the attention of a business organization
13. Performance- Expectations gap: The perceived distance between what a
firm wants to do or is doing and what the stakeholder expects
14. B Corporation: A business that explicitly seeks to blend its social objectives
with its financial goals
Must meet rigorous, independent social and environmental performance standards.
B Corporation must prove its socially responsible by meeting the B Lab standards
15. Corporate Citizenship: This term refers to the actions corporations take to
put their commitments to corporate social responsibility into practice worldwide
16. Corporate Social Responsibility: The idea that businesses should act in a
way that enhances society and their stakeholders and should be held accountable
for any of its actions that affect people, their communities, and their environment.
17. Enlightened Self Interest: The view that holds it is in a company's self-
interest in the long run to provide true value to its stakeholders
18. Integrated Reporting: The combining of legally required financial information
with social and environmental information into a single report
19. Iron Law of Responsibility: The belief that those who do not use their power
in ways that society considers responsible will tend to lose their power in the long
run 20. Reputation: The desirable or undesirable qualities associated with an
organization or its actors that may influence the organization's relationships with its
stakeholders
21. Social Audit: A systematic evaluation of an organization's social, ethical, and
environmental performance
22. Transparency: Clear public reporting of an organization's performance to
various stakeholders.
23. Corporation: Legally, an artificial legal "person," created under the laws of a
particular state or nation. Socially and organizationally, it is a complex system of
people, technology, and resources generally devoted to carrying out a central
economic mission as it interacts with a surrounding social and political environment.
24. Business and society together ______: form an interactive social system
25. Stakeholder Theory of the Firm: Corporations serve a broad public purpose:
to create value for society.
