Communication in Business

Question	Answer
Affluence	The level of wealth, disposable income, and standard of living of the society
Business	The collection of private, commercially oriented organisations. Business involves the transformation of inputs (factors of production) into outputs (goods and services) to meet particular needs or wants of people in society (consumers).
Business Dominance Model	Business occupies a privileged position in policy making, unmatched by any other group. This privileged position arises from government dependence on business to ensure a healthy economy. This results in business being able to "control without trying"
Business Power	The ability or capacity to produce an effect or to bring influence.
Cause Related Marketing (CRM)	Marketing activities that usually link an organisation's product(s) directly to a social cause through the firm's marketing plan
Corporate Citizenship	Comprised of three areas: Corporate social responsibility is seriously considering the impact of the company's actions on society, Corporate social responsiveness is about action, Corporate social performance is about outcomes.
Corporate Governance	How a company is set up to ensure it operates in a way that meets its social, economic, philanthropic and ethical responsibilities. It refers to the method by which a firm is being governed and to the goals for which it is being governed.
Oversight	Relates to a system of checks and balances that limit employees' and managers' opportunities to deviate from policies and codes of conducts.
Accountability	Relates to how well the content of workplace decisions are aligned with a firm's stated strategic direction
Control	Involves the process of auditing and improving organisational decisions and actions
Corporate Public Policy	A firm's posture, stance, strategy or position regarding the public, social, global, and ethical aspects of stakeholders and corporate functioning.
Corporate Social Performance	Brings together three major dimensions: Social responsibility - Economic, Legal, Ethical and Philanthropic. Social responsiveness - Reaction, Defensiveness, Accommodation or Proactive. Social/ stakeholder Issues - Consumers, Environment, Employees, etc.
Entitlement Mentality	The general belief that someone is owed something just because he/she is a member of society
Global Compact	A communication framework established by the United Nations in 2000. It is a voluntary initiative to promote and advance responsible business by having participant businesses internalise 10 principles as part of business strategy, operations and culture, and to also facilitate partnerships in support of broader UN goals
Globalisation	The shift toward a more integrated and interdependent world economy. Globalisation has two facets: the globalisation of markets, and the globalisation of production
Two macro factors underlie the trend toward greater globalisation:	The decline in barriers to the free flow of goods, services, and capital since the end of World War II, and Technological change.
Ideology	A system of beliefs and values. An ideology can be a framework of political understanding and commitment E.g. Socialism, Conservatism, Liberalism.
Iron Law of Responsibility	In the long run, those who do not use power in a manner society considers responsible will tend to lose it.
Legitimacy	The perception or belief that a stakeholder's actions are proper, desirable or appropriate within a given context. This definition suggests that stakeholder actions are considered legitimate when claims are judged to be reasonable by other stakeholders and by society in general
Market Optimists	A political view that the role of government should be restricted as far as possible and leave things to the "free market".
Market Pessimists	A political view that the role of governments is to step in to rectify the failings of markets.
Neocorporatism/ Neocorporatist Model	The Neocorporatist Model emphasises the importance of economic interests (i.e. business and labour). Governments need to secure the cooperation and support of business and the trade unions in order to be able to manage the economy effectively. This model includes the concept of "tri-partism" and "social partners" between these groups.
Offshore outsource/ Offshoring	Refers to the relocation of business processes to a different country.
Outsourcing	Refers to the relocation of business processes to a different company
Philanthropy	A desire to help humankind as indicated by acts of charity and the love of humankind. a more restricted contemporary usage of the word is "business giving". In actual practice, it is difficult to assess the true motives behind businesses' or anyone's giving of themselves or their financial resource.
Pluralism/ Pluralist Mode	The Pluralist Model emphasises the plurality of groups or interests seeking to influence government i.e. A diffusion of power among society's groups and organisations. Thus, business influence is nothing special and group competition is a healthy part of the democratic process.
Power	A stakeholder has power to the extent it has access to coercive, utilitarian or symbolic means to impose or communicate its views to an organisation
Coercive power	Involves the use of physical force, violence or some type of restraint.
Utilitarian power	Involves financial or material control, such as boycotts that affect a company's bottom line.
Symbolic power	Relies on the use of symbols that connote social acceptance, prestige or some other attribute.
Profit Motive	Along with "competition", "profit" is one of the two key drivers of business behaviour. The profit motive means that businesses produce only goods and services that consumers are willing to pay for at prices that yield profit.
Public Affairs	The management processes that focus on the formalisation and institutionalisation of corporate public policy.
Social Contract	A set of two-way understandings that characterise the relationship between the major institutions of society and business. The Social Contract is partially articulated through i) laws and regulations established by society within which business operate, and also through ii) shared understandings that evolve as to each group's expectations of the other.
Social Media	Forms of electronic communication through which users create online communities to share information, ideas, personal messages and other content.
Social Media Management	Monitoring, contributing to, filtering, measuring and otherwise guiding the social media presence of a brand, product, individual or company.
Social Media Strategy	The deployment and development of modern strategic plans for social media; having a specific goal or direction for the social media of a brand, product, individual or company.
Social Problem	A gap between society's expectations of social conditions and the current social realities. From the business firm's perspective, the social problem is experienced as the gap grows between society’s expectations of the firm's social performance and its actual social performance.
Society	A community, a nation or a broad grouping of people having common traditions, values, institutions and collective activities and interests.
Special Interest Group	A group, however loosely or tightly organised, that is determined to encourage or prevent changes in public policy without trying to be elected. Also called an advocacy group, a lobbying group, or a pressure group. E.g. The Sierra Club, Greenpeace, Human Rights Campaign.
Spin (Doctoring)	The presentation of one side of the situation, usually only the positive side.
Stakeholders	Those people and groups to whom an organisation has responsibility, and who have a "stake" or claim in some aspect of the company's products, operations, markets, industry or outcomes. These people and groups are influenced by businesses, but also have the ability to affect businesses. Stakeholders can include customers, investors, shareholders, employees, suppliers, governments, communities, etc
Primary stakeholders	Those people/groups whose continued association is absolutely necessary for a firm's survival; these include employees, customers, investors and shareholders as well as the governments and communities that provide necessary infrastructure.
Secondary stakeholders	Those people/groups that do not typically engage in transactions with a company and thus are not essential for its survival; they include media, trade associations and special interest groups.
Core stakeholders	A specific subset of strategic stakeholders that are essential for the survival of the organisation.
Strategic stakeholders	Those stakeholder groups that are vital to the organisation's success and the particular set of opportunities and threats that it faces at a particular point in time.
Environmental stakeholders	All others in the organisation's environment that are not core or strategic.
Stakeholder Approach	The approach taken by businesses to manage their interactions with stakeholders. One major challenge embedded in the stakeholder approach is to determine whether it should be seen as a way to better manage stakeholders or as a way to treat stakeholders more ethically
Strategic approach	Views stakeholders primarily as factors to be taken into consideration and managed while the firm is pursuing profits for its shareholders. They can both facilitate or impede the firm’s pursuit of its strategic objectives. Managers take stakeholders into account because offended stakeholders might resist or retaliate. This is an instrumental view of stakeholders.
Multi-fiduciary approach	Views stakeholders as more than just individuals or groups who can wield economic or legal power. Management has a fiduciary responsibility to stakeholders just as it has this same responsibility to shareholders. In this approach, management’s traditional fiduciary, or trust duty, is expanded to embrace stakeholders on roughly the same footing with shareholders. Thus, shareholders are no longer of exclusive importance as they were under the strategic approach.
Stakeholder Synthesis approach	Holds that business has moral responsibilities to stakeholders but they should not be seen as part of a fiduciary obligation. As a consequence, management’s basic fiduciary responsibility to shareholders is intact, but it is also expected to be implemented within a context of ethical responsibility to other stakeholders. This ethical responsibility is business’s duty not to harm, coerce, lie, cheat, steal, etc. The result is the same in the multi-fiduciary and stakeholder synthesis views, however, the rationale is different.
Stakeholder Concept	Comprises three views of the firm in which the evolution and progress of the stakeholder concept parallels the growth and expansion of the business enterprise
Production View of the firm	Owners thought of stakeholders as only those individuals or groups that supplied resources or bought products or services.
·Managerial View of the firm	With the growth of corporations and the resulting separation of ownership and control, business firms began to see their responsibilities toward other major constituent groups.
Stakeholder View of the firm	The view that management must perceive of its stakeholders as not only those groups that management thinks have some stake in the firm, but also those groups that themselves think or perceive that they have a stake in the firm. It encompasses many different individuals and groups that are embedded in the firm’s internal and external environment. Each stakeholder group is composed of subgroups E.g. the government stakeholder group includes federal, state and local government groups as subgroups.
Strategic Management	The overall management process that strives to identify corporate purpose and to position a firm relative to its market environment.
Strategy Levels	Enterprise-Level Strategy: "What is the role of the organisation in society?" Corporate-Level Strategy: "What business(es) are we in or should be in?" Business-Level Strategy: "How we should compete in a given business or industry?" Functional-Level Strategy: "How should a firm integrate sub-functional activities and relate them to its functional areas?"
Strategic Philanthropy	An approach in which corporate giving and other philanthropic endeavours of a firm are designed in a way that best fits with the firm's overall mission, goals or objectives.
The State	The State is comprised of the complex set of institutions that make up the public sector as a whole.
Urgency	Stakeholders exercise greater pressures on managers and organisations when they stress the urgency of their claims. Urgency is based on two characteristics: time sensitivity and the importance of the claim to the stakeholder.
Victimisation Philosophy	The belief by a number of individuals and groups that they are victims of society. E.g. People who sue airlines or restaurants such as McDonalds for not having sufficiently large enough seats.

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	Created by ella.longland almost 9 years ago