Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
28 Cards in this Set
- Front
- Back
Shareholder approach |
1) A clear mission for the firm 2) A single type of clients (shareholders) 3) A system without ambiguity of motivation for the management 4) Clear system for decision making, of responsibility and rewards for the management
|
|
Stakeholder approach |
1) More missions with potential conflicts among them 2) Many types of "clients" with different objectives and conflicts among them (shareholders, clients, employees, suppliers, community...) 3) Ambiguous system for motivation for the management 4) Ambiguous system for decision making, of responsibility and rewards |
|
Corporate social responsibility, control system, vigilance and punishment from the shareholders point of view |
The control system and punishment is built by the market (goods, services and finance), laws and public authorities |
|
Corporate social responsibility, control system, vigilance and punishment from the stakeholders point of view |
The company has internal systems of control and punishment, built by a set of objectives of different clients |
|
Philosophy from a shareholders approach |
Economic value is the only interest in the firm |
|
Principle from a shareholder approach |
The strategy has to create value for a shareholder |
|
Instrument from a shareholder approach |
Financial system with quantitative indicators to measure the value creation |
|
Control systems from a shareholder approach |
Externalize the control system, vigilance and punishment to the society |
|
Criticism from a shareholder approach |
A unique focus toward shareholder could facilitate a short-term vision and fraud. |
|
Philosophy from a stakeholder approach |
Conciliate different interest of different groups of interests |
|
Principle from a stakeholder approach |
The strategy reaches a consensus of profits for different stakeholders with the objective of the firm's survival |
|
Instrument from a stakeholder approach |
Subjective and objective measures with a holistic evaluation for the firm's positioning |
|
Control system from a stakeholder approach |
Internalize the complex system, of the society to different levels of organization |
|
Criticism from a stakeholder approach |
The internalization of the social loads to the company makes it lose competitiveness in the market |
|
Vision |
• The ideal for the organization and its future direction |
|
Mission |
• Concrete view of the firm’s business, its customers and how it will serve |
|
Value (Philosophy) |
Understood as ethical, esthetical, or moral values, which is the object of Axiology studies, |
|
Value (economics) |
An economic concept |
|
Management by Values (MBV) |
a concept based on Management by |
|
MBI |
Management by Instructions |
|
MBO |
Management by Objectives |
|
Characteristics of MBV |
|
|
An integral model of management by values |
• Measure economic, ethic, and emotional
|
|
Is shareholder a part of stakeholder? |
YES |
|
What do financial tools do? |
They help control and monitor economic profit/value of the firm, beyond accounting profit. |
|
What can happen if maximization of value is the only objective of the firm? |
It could potentially increase fraudulent behavior |
|
Mission and value are... |
High level strategic input |
|
Ethical values... |
Are important for the firm's strategy and management, besides economic values. |