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33 Cards in this Set
- Front
- Back
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Philosophy (Rand) |
“Study of existence, of a man, and of man’s relationship to existence.” |
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Rights (Rand) |
(Rand is not a Rights theorist) “A right is a moral principle defining and sanctioning a man’s freedom of action in a social context…” |
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Justice (Rawls) |
A characteristic set of principles for assigning basic rights and duties and for determining what they take to be the proper distribution of the benefits and burdens of social cooperation. |
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Hypernorms (Donaldson & Dunfee) |
“Moral precepts fundamental to all human beings.” |
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Price gouging (Zwolinski) |
“A practice in which prices on certain kinds of necessary items are raised in the wake of an emergency to what appear to be unfair or exploitatively high levels.” |
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Stakeholder (Donaldson & Preston) |
Stakeholders are persons or groups with legitimate interests in procedural and/or substantive aspects of corporate activity. |
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Corporate governance (Ryan) |
Roles, responsibilities, and balance of power among executives, directors, and shareholders. |
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Shareholder activism (Goranova & Ryan) |
Actions taken by shareholders with explicit intention of influencing corporations, policies, and practices. |
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Moral philosophy vs. moral psychology |
Moral philosophy: Is the study of how people should behave in moral situations Moral psychology: Is the study of how people behave in moral situations |
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Negative rights vs. positive rights |
Negative rights: The right to PURSUE something Positive rights: The right TO something (like a cake) |
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Utilitarian vs. rights justifications of capitalism |
Utilitarian justifications of capitalism: Capitalism is the economic system that best maximizes the common good Rights justifications of capitalism: Capitalism is the only economic system that respects fundamental human rights, such as property rights and freedom of association |
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Subjective egoism vs. objective egoism |
Subjective egoism: Decides what’s moral based on what’s good for me in the short term; Humans are fundamentally different, therefore cannot judge Objective egoism: Decides what’s moral based on what’s good for me in the long term; Humans are fundamentally similar, therefore can judge |
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Absolutism vs. relativism |
Absolutism: Is some moral rules stay the same through time and space Relativism: Morality itself changes through time and space |
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Collectivism vs. individualism |
Collectivism: Humans are fundamentally members of groups. Individualism: Humans are fundamentally individuals who can join groups. |
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Be able to recreate Donaldson and Preston’s stakeholder “target.” |
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Explain briefly the terms descriptive, instrumental, and normative. |
Descriptive: How managers do treat their stakeholders Instrumental: How managers should treat their stakeholders in order to achieve a certain goal Normative: How managers should treat their stakeholders because it is the right or moral thing to do, even at the expense of profits |
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(1) Dormant Stakeholder |
Have power nothing else, little or no action; Ex. Ex-employee that know stuff such as trade secrets |
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(2) Discretionary Stakeholder |
No pressure on company; most likely to receive philanthropy |
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(3) Demanding Stakeholder |
Urgency but nothing else; irksome and annoying; not dangerous (no power) |
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(4) Dominant Stakeholder |
Have influence, power and legitimacy but no urgency; Ex. Happy shareholders with no reason to interfere |
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(5) Dangerous Stakeholder |
Power and urgency; coercive or possibly violent; Ex. Someone in lobby with dynamite |
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(6) Dependent Stakeholder |
Legitimacy and urgency with no power; dependent on a third party |
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(7) Definitive Stakeholder |
Have power, urgency, and legitimacy; Ex. Angry shareholders |
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Power |
The extent to which they have the means to impose their will. |
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Legitimacy |
Socially accepted structures or behaviors (society decides) |
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Urgency |
Consists of 2 things: time sensitive and critical |
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How do these circles intersect? |
Latent (one circle), expectant (2 circles), or definitive (3 circles) |
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Generally, what is stakeholder management? |
“Stakeholder management requires, as its key attribute, simultaneous attention to the legitimate interests of all appropriate stakeholders.” |
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What was the original definition of a stakeholder? |
“Anyone who can affect or be affected by the firm.” |
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What is Donaldson’s and Preston’s definition? |
“Stakeholders are persons or groups with legitimate interests in procedural and/or substantive aspects of corporate activity.” |
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According to Donaldson and Preston, what are the two assumptions that must be accepted for the theory to work? |
The theory’s “fundamental basis is normative and involves the acceptance of the following ideas: (a) Stakeholders are persons or groups with legitimate interests in procedural and/or substantive aspects of corporate activity. Stakeholders are identified by their interest in the corporation, whether or not the corporation has any corresponding functional interest in them. (b) The interests of all stakeholders are of intrinsic value |
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What are the three normative justifications that have been offered to support the core of the theory? |
The Kantian justification: use others merely as a means; trying to get rid of instrumental and left with normative The feminist ethic of care justification: align stakeholder and feminine care The pluralist property rights justification: if you use social contract theory use multiple theories; everyone owns the firm, everyone is taken care of; the problem is that ethical theories all contradict each other |
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What are the four problems with the stakeholder theory? |
The stakeholder definition problem → Who are the stakeholders? The intrinsic value problem The priority/balancing problem → How can you keep everyone happy? The normative justification problem → Needs a strong moral representation |
