MGT 166 Final Review

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MGT 166 Final Review by Mind Map: MGT 166 Final Review

1. Fudge Factor

1.1. If we can justify it to ourselves

1.2. If others near do same

1.3. If it's for good cause

1.4. Our distance from the matter

2. Cheating Factors

2.1. Our chances of being caught

2.2. The consequences of being caught

3. Marketing Ethics

3.1. Place

3.1.1. Anticompetitive practices

3.1.2. Payment of slotting allowances for shelf space in stores

3.1.3. "Gray Marketing": diversion of goods outside sanctioned channels

3.2. Price

3.2.1. Price Gouging

3.2.2. Predatory pricing

3.2.3. Price discrimination

3.2.4. Misleading prices

3.2.5. Price Fixing

3.3. People

3.3.1. Low wages

3.3.2. Poor working conditions

3.4. Promotion

3.4.1. Questionable sales techniques

3.4.2. Deception and manipulation in advertising

3.4.3. Intrusiveness of direct marketing

3.4.4. Alleged social harm of some advertisements

3.5. Product:

3.5.1. Safety

3.5.2. Quality

3.5.3. Social impact of products, e.g. tobacco

4. Decision-making steps to solve ethical dilemmas: 1. Identify the ethical issue 2. Identify thse affected by the decision 3. Identify all possible courses of action 4. Examine pros and cons

5. Vocabulary

5.1. Ecosystem Services:

5.1.1. Resource and processes that are supplied by natural ecosystems; the capacity of nature to provide services, e.g., fresh water, clean air, waste decomposition, stable climate

5.2. Sovereignty

5.2.1. -The quality of having supreme, independent authority over a geographic area, such as a territory. -In legalistic sense, it is the exclusivity of jurisdiction. -It is the degree to which decisions made by a sovereign entity might be contradicted by another authority

5.3. Cause Related Marketing

5.3.1. Promotions in which a portion of the purchase price of a product or service is donated to a social cause; links marketing and corporate philanthropy

5.4. Socially Responsible Investing (SRI)

5.4.1. An investment strategy which seeks to consider both financial return and social good; also known as sustainable, socially conscious, green or ethical investing

5.5. Fair Trade

5.5.1. A trading partnership, based on dialogue, transparency and respect, that seeks greater equity in international trade. It contributes to sustainable development by offering better trading conditions to, and securing the rights of, marginalized producers and workers.

5.6. Human Rights

5.6.1. Fundamental rights to which any person is entitled simply for being human They are universal and egalitarian. The rights are all interrelated, interdependent and indivisible

5.7. CSR orSustainability Reporting

5.7.1. The action by which an organization publicly communicates its economic, environmental, and social performance

5.8. Greenwashing

5.8.1. Used to describe the act of misleading consumers regarding the environmental practices of a company or the environmental benefits of a product or service.

5.9. Corporate Governance

5.9.1. -The stystem by which the company is directed and controlled -Guarantees an entreprise is directed and controlled in a responsible, professional, and transparent manner with the purpose of safe-guarding its long-term success. -Intended to increase the confidence of shareholders and capital-market investors

5.10. Biomimicry

5.10.1. The development of sustainable technologies inspired by ideas from nature.

5.11. Downcycling

5.11.1. -The process of converting waste materials or useless products into new materials or products of lesser quality and reduced utility. -Eventually, the materials are so degraded that they are no longer feasible to use, and then they become part of the waste stream. NOT recycling

5.12. Social Business

5.12.1. -Generally, a business which has a social rather than financial objective -A non-loss, non-dividend company designed to address a social objective within the highly regulated marketplace of today. Distinct from non-profits because the business should seek to generate a modest profit, although this will be used to expand the company's reach, improve the products/service, or in other ways to subsidize the social mission.

5.13. Collaborative Consumption

5.13.1. Described the rapid explosion in traditional sharing, bartering, lending, trading, renting, gifting, and swapping. Three categories Product Service Systems They enable companies to offer goods as a service rather than sell them as products. Defined as selling the function of a product or the service it provides, rather than the physical product, e.g.: buying voicemail service instead of an answering machine. Goods that are privately owned can be shared or rented peer-to-peer. Product Service Systems appeal to the increasing number of people shifting to a usage mind-set: They want the benefits of a product, but they don’t need to own the product outright Redistribution Used or preowned goods are moved from somewhere they are not needed to somewhere they are. In some markets, the goods may be free, as on Freecycle and Kashless. In others, the goods are swapped (as on thredUP and SwapTree) or sold for cash (as on eBay and craigslist). Collaborative Lifestyles People with similar needs or interests band together to share and exchange less-tangible assets such as time, space, skills, and money. These exchanges happen mostly on a local or neighborhood level, as people share working spaces (for example, on Citizen Space or Hub Culture), gardens (on SharedEarth or Landshare), or parking spots (on ParkatmyHouse). Collaborative lifestyle sharing happens on a global scale, too, through activities such as peer-to-peer lending (on platforms like Zopa and Lending Club) and the rapidly growing peer-to-peer travel (on Airbnb and Roomorama)

5.14. Extended Producer Responsibility (EPR)

5.14.1. -Firms which manufacture import and/or sell products and packaging are seen as financially or physically responsible for such products from the beginning of the materials supply chain throughout disposal at the end of product's useful life. -Increasingly, we are expecting manufacturers to take back spent products and manage them through reuse, recycling, or disposal -EPR internalizes costs throughout the product lifecycle -Shifts responsibility from government to private industry

5.15. Life Cycle Assessment (LCA)

5.15.1. A technique to assess environmental impacts associated with all the stages of a product's life, i.e., from raw material extraction through materials processing, manufacture, distribution, use, repair and maintenance, and disposal or recycling. While typically used to assess enviornmental impacts, this technique could be used to identify social impacts of a product's life cycle as well

5.16. Value

5.16.1. Benefits relative to costs Relative worth, merit, or importance Value is NOT value

5.17. Values

5.17.1. Defined as important and lasting beliefs or ideals shared by the members of a culture about what is good or bad and desirable or undesirable. NOT the same as value

5.18. Shared Value

5.18.1. Involves a firm creating economic value in a way that also creates value for society by addressing society's needs and challenges Can be defined as policies and operating practices that enhance the competitiveness of a company while simultaneously advancing the economic and social conditions in the communities in which it operates

5.19. Externalized Costs

5.19.1. Negative impacts associated with economic transactions which concern people outside of those transactions. These costs occur when producing or consuming a good or service imposes a cost upon a third party, e.g., society True cost of producing/consuming product is not borne by the producer or the consumer.

5.20. License to Operate

5.20.1. Refers to a local community's tacit permission for a company's project or ongoing presence in an area. Development of LTO occurs outside of formal permitting or regulatory processes, and it requires sustained investment to acquire and maintain social capital within the context of trust-based relationships

5.21. Business Case

5.21.1. The argument for doing something. The WHY It captures the reasoning for initiating a project or task

5.22. Business Model

5.22.1. Term used to represent core aspects of a business, incuding purpose, target consumers, product/service offerings, strategies organizational structures, trading practices, distribution model, and operational processes and policies

5.23. Stakeholder

5.23.1. A person, group, organization, or system who affects or can be affected by an organization's actions

5.24. Competitive Advantage

5.24.1. The edge a company has over its rivals that allows it to generate greater sales or profit margins, or to retain more customers than its competition

5.25. Stakeholder Theory

5.25.1. The business entity should be used as a vehicle for coordinating stakeholder interests instead of maximizing shareholder (owner) profit

5.26. Shareholder

5.26.1. Any person, company, or other institution that owns at least one share of a company's stock. They are a company's owners. They have the potential to profit if the company does well, but that comes with the potential to lose if the company does poorly. Same as "stockholder"

5.27. Globalization

5.27.1. The increasingly worldwide relationships of culture, people, and economic activity. Most often, it refers to economics: the global distribution of the production of goods and services, through reduction of barriers to international trade such as tariffs, export fees, import quotas, etc. The term can also refer to the transnational circulation of ideas, languages, and popular culture

5.28. Corporate Social Responsibility/Sustainability

5.28.1. "Continuing commitment by business to behave ethically and contribute to economic development WHILE improving the quality of life in the workforce and its families as well as of the local community and society at large" (World business council on sustainable development)

6. Role of the Board of Directors

6.1. Guarantee that an enterprise is directed and controlled in a responsible, profesional, and transparent manner with the purpose of safeguarding its long-term success Intended to increase the confidence of shareholders and capital-market investors

6.2. Board Functions/Governance Functions

6.2.1. Ownership Linkage Accountability: Alignment of workplace decisions with firm's stated strategic direction Transparency Ensures compliance with ethical and legal considerations

6.2.2. Writing Policy Oversight A system of checks and balances that prevent unethical and illegal activities

6.2.3. Monitoring Control The process of auditing and improving organizational decisions and actions

7. Assessment of Environmental, Social, and economic impacts

7.1. Suppliers AND Company activities

7.1.1. Environmental Impacts -Energy conservation -Fossil fuels vs renewables -Water consumption -Wastes -GHG emissions -Toxic materials

7.1.2. Social impacts -Worker health and safety -Workforce diversity -Human rights -Community integration

7.1.3. Economic Impacts -Jobs, economic growth -Tax base

7.2. Customers

7.2.1. Environmental Impacts -Energy use and type -Water consumption -Durability -Recycle/remanufacture

7.3. Customer Health and Safety -Toxics exposure -Ergonomics

7.4. Social Innovations -Partnerships with schools -Support of local charities

8. Social business in comparison to traditional and non-profit organizations

8.1. Table:

9. All information was transcribed from a final study guide whose intellectual property belongs to Professor Moran