1
Q
A
2
Q
A
3
Q
International management
A
the management of business operations conducted in more than one country.
4
Q
Globalization
A
the extent to which trade and investments, information, social and cultural ideas, and political cooperation flow between countries.
5
Q
Global mind-set
A
the ability of managers to appreciate and influence individuals, groups, organizations, and systems that possess different social, cultural, political, institutional, intellectual, and psychological characteristics.
6
Q
Cognitive dimension
A
knowing about the global environment and global business, mentally understanding how cultures differ, and having the ability to interpret complex global changes.
7
Q
Psychological dimension
A
the emotional and affective aspect. It includes a liking for diverse ways of thinking and acting, a willingness to take risks, and the energy and self-confidence to deal with the unpredictable and uncertain.
8
Q
Learning by thinking
A
requires a genuine curiosity about other people and cultures, an interest in and study of world affairs and international business, and the ability to open your mind and appreciate different viewpoints.
9
Q
Learning by doing
A
means cultivating relationships with people across cultural and national boundaries.
10
Q
Multinational corporation (MNC)
A
typically receives more than 25 percent of its total sales revenues from operations outside the parent’s home country.
11
Q
Offshoring
A
a practice called offshoring or global outsourcing.
12
Q
Exporting
A
the company maintains its production facilities within the home nation and ships those products for sale in foreign countries.
13
Q
Joint venture
A
one company shares costs and risks with another firm, typically in the host country, to develop new products, build a manufacturing facility, or set up a sales and distribution network.
14
Q
Political risk
A
the risk of loss of assets, earning power, or managerial control due to political changes or instability in a host country.
15
Q
Ethnocentrism
A
a natural tendency of people to regard their own culture as superior and to downgrade or dismiss other cultural values.
16
Q
Power distance
A
High power distance means that people accept inequality in power among institutions, organizations, and people. Low power distance means that people expect equality in power.
17
Q
Uncertainty avoidance
A
High uncertainty avoidance means that members of a society feel uncomfortable with uncertainty and ambiguity and, therefore, support beliefs and structures that promise certainty and conformity. Low uncertainty avoidance means that people have great tolerance for the unstructured, the unclear, and the unpredictable.
18
Q
Individualism
A
an orientation that favors a loosely knit social framework in which individuals are expected to take care of themselves.
19
Q
Collectivism
A
a preference for a tightly knit social framework in which individuals look after one another and organizations protect their members’ interests.
20
Q
Masculinity
A
associated with a preference for achievement, heroism, assertiveness, work centrality (with resultant high stress), and material success.
21
Q
Femininity
A
reflects the values of relationships, cooperation, group decision making, and quality of life.
22
Q
Long-term orientation
A
includes a greater concern for the future and highly values thrift and perseverance.
23
Q
Short-term orientation
A
is more concerned with the past and the present and places a high value on tradition and meeting social obligations.
24
Q
Assertiveness
A
Placing a high value on assertiveness means that a society encourages toughness, assertiveness, and competitiveness.
25
Future orientation
refers to the extent to which a society encourages and rewards planning for the future over short-term results and quick gratification.
26
Gender differentiation
refers to the extent to which a society maximizes gender role differences.
27
Performance orientation
A society with a high performance orientation places great emphasis on performance and rewards people for performance improvements and excellence.
28
Humane orientation
refers to the degree to which a society encourages and rewards people for being fair, altruistic, generous, and caring.
29
Implicit communication
means that people send and receive unspoken cues, such as tone of voice or body language, in addition to the explicit spoken words when talking with others.
30
High-context culture
people are sensitive to circumstances surrounding social exchanges.
31
Low-context culture
people use communication primarily to exchange facts and information; meaning is derived primarily from words.
32
Cultural intelligence (CQ)
the ability to use reasoning and observation skills to interpret unfamiliar gestures and situations and devise appropriate behavioral responses.
33
Cognitive component
encompasses a person’s observational and learning skills and the ability to pick up on clues to understanding.
34
Emotional aspect
concerns one’s self-confidence and self-motivation.
35
Physical component
refers to a person’s ability to shift his or her speech patterns, expressions, and body language to match those of people from a different culture.
36
General Agreement on Tariffs and Trade (GATT)
started as a set of rules to ensure nondiscrimination, clear procedures, the negotiation of disputes, and the participation of lesser-developed countries in international trade.
37
World Trade Organization (WTO)
represents the maturation of GATT into a permanent global institution that can monitor international trade and has the legal authority to arbitrate disputes on some 400 trade issues.
38
European Economic Community
evolved into the 27-nation European Union (EU), whose members are identified in Exhibit 4.7.
39
USMCA
replaces NAFTA, and Canada began the ratification process when that country’s parliament returned to session on January 27, 2020.
40
Ethics
the code of moral principles and values that governs the behaviors of a person or group with respect to what is right or wrong.
41
Ethical dilemma
arises in a situation concerning right or wrong when values are in conflict.
42
Moral agent
the individual who must make an ethical choice in an organization.
43
Normative ethics
uses several approaches to describe values for guiding ethical decision making.
44
Utilitarian approach
holds that moral behavior produces the greatest good for the greatest number.
45
Individualism approach
contends that acts are moral when they promote the individual’s best long-term interests.
46
Moral-rights approach
asserts that human beings have fundamental rights and liberties that cannot be taken away by an individual’s decision.
47
individualism approach
The individualism approach contends that acts are moral when they promote the individual’s best long-term interests.* In theory, with everyone pursuing self-direction, the greater good is ultimately served because people learn to accommodate each other in their own long-term interest.
48
moral-rights approach
The moral-rights approach asserts that human beings have fundamental rights and liberties that cannot be taken away by an individual’s decision. Thus, an ethically correct decision is one that best maintains the rights of those affected by it. To make ethical decisions, managers need to avoid interfering with the fundamental rights of others, such as the right to privacy, the right of free consent, or the right to freedom of speech.
49
justice approach
The justice approach holds that moral decisions must be based on standards of equity, fairness, and impartiality. Three types of justice are of concern to managers.
50
distributive justice
Distributive justice requires that different treatment of people not be based on arbitrary characteristics. For example, men and women should not receive different salaries if they have the same qualifications and are performing the same job.
51
procedural justice
Procedural justice requires that rules be administered fairly. Rules should be clearly stated and consistently and impartially enforced.
52
compensatory justice
Compensatory justice argues that individuals should be compensated for the cost of their injuries by the party responsible.
53
practical approach
The practical approach sidesteps debates about what is right, good, or just and bases decisions on prevailing standards of the profession and the larger society, taking the interests of all stakeholders into account.
54
conventional moral level
Most managers operate at a conventional moral level influenced by others, while only about 20% reach a postconventional level where independent ethical reasoning makes them stand out as ethical role models who attract followers.
55
team effectiveness
Research has shown that people will work harder and more effectively for people who put others’ interests and needs above their own.
56
Harvard psychologists study
A study by Harvard psychologists of teams in the U.S. intelligence system found that the single biggest predictor of a team’s effectiveness was the amount of help and support that members gave to one another.
57
companies against hiring takers
Many companies, such as Berkshire Hathaway, Robert W. Baird & Company, and IDEO, now have official policies against hiring people who act like takers.
58
social responsibility
The concept of social responsibility, like ethics, is easy to understand: It means distinguishing right from wrong and doing right. It means being a good corporate citizen.
59
corporate social responsibility (CSR)
The formal definition of corporate social responsibility (CSR) is management’s obligation to make choices and take actions that will contribute to the welfare and interests of society, not just the organization.
60
trade-off in performance
However, managers often must consider a trade-off that exists between the firm’s financial performance and its performance on ESG-type dimensions. Improving one may involve a cost to the other.
61
stakeholder
A stakeholder is any group or person within or outside the organization that has some type of investment or interest in the organization’s performance and is affected by the organization’s actions (employees, customers, shareholders, and so forth).
62
stakeholder mapping
There is also growing interest in a technique called stakeholder mapping, which provides a systematic way to identify the expectations, needs, importance, and relative power of various stakeholders, which may change over time. Stakeholder mapping helps managers identify or prioritize the key stakeholders related to a specific issue or project.
63
primary stakeholder group dissatisfaction
When any primary stakeholder group becomes seriously dissatisfied, the organization’s viability is threatened.
64
Newsweek ranking
Since 2009, Newsweek has published a ranking that assesses the environmental performance of the 500 largest publicly traded companies in the United States and the 500 largest publicly traded global companies.
65
greenwashing
Greenwashing occurs when a company tries to portray itself as more environmentally minded than it actually is. One of the most flagrant examples is Volkswagen.
66
deforestation
Deforestation is a major threat to the planet and is causing companies to push back on rain forest land-clearing as part of their environmental ambitions. Nestlé, for example, has stopped buying Brazilian-produced soybeans that cannot be traced back to specific extant plantations rather than to converted land.
67
sustainability
Sustainability refers to the ability to generate wealth with environmental responsibility and social stewardship, thereby meeting the current and future needs of stakeholders while preserving the environment and society so that future generations can meet their needs as well.
68
triple bottom line
The term triple bottom line refers to measuring an organization’s social performance, its environmental performance, and its financial performance, as illustrated in Exhibit 5.5. This is sometimes called the three Ps: People, Planet, and Profit.
69
benefit corporation
A benefit corporation is a for-profit organization whose stated purpose includes creating a material positive impact on society; it is required to consider the impact of all decisions not only on shareholders but also on employees, the community, and the environment; and it voluntarily holds itself to high standards of accountability and transparency.
70
formation of benefit corporation
Such a company validly incorporated for social benefit can be formed in two ways: through direct incorporation in states that recognize benefit corporations as legal entities, or through certification by B Lab, a nonprofit organization that specializes in external social impact auditing.
71
charter of benefit corporation
To become a benefit corporation, the company must include in its charter specifically what it is doing to aid the public and society.
72
B Lab
One of the strongest proponents of benefit corporation legislation is B Lab, a nonprofit organization founded in 2006 by three friends. Being a Certified B Corporation means a company meets B Lab’s highest standards of verified overall social and environmental performance, public transparency, and legal accountability.
73
management responsibility
Management is responsible for creating and sustaining conditions in which people are likely to behave themselves.
74
values-oriented approach
A values-oriented approach directly targets individuals’ internal desire to be ethical. Relating to an employee’s personal values brings individual and organizational values into congruence.
75
ethical leadership
Ethical leadership means that managers are models of honesty and trustworthiness, are fair in their dealings with employees and customers, and behave ethically in both their personal and professional lives.
76
volunteerism
Volunteerism refers to actively giving time and skills to a volunteer or charitable organization. Companies as diverse as Google, Accenture, Mattel, FedEx, and Goldman Sachs give employees time off for volunteer activities or sponsor “day of service” events where employees provide time to a charitable organization.
77
importance of sustainability skills
In one survey, 88 percent of top executives said it was important that future managers have the mind-set and skills to address sustainability issues.
78
global volunteerism programs
Some of today’s best companies are taking a new approach to developing managers: They have established global volunteerism programs that place employees with nonprofit organizations or small businesses, often in developing countries, to provide free or low-cost technical and managerial assistance.
79
code of ethics
One primary mechanism is a code of ethics —a formal statement of the company’s values concerning ethics and social issues.
80
principle-based statements
Principle-based statements are designed to affect corporate culture; they define fundamental values and contain general language about company responsibilities, quality of products, and treatment of employees.
81
policy-based statements
Policy-based statements generally outline the procedures to be used in specific ethical situations. General statements of principle are often called corporate credos.
82
Google’s Code of Conduct
Google’s Code of Conduct starts with these words: “Don’t be evil.” Googlers generally apply those words to how we serve our users.
83
codes of ethics effectiveness
Codes of ethics in and of themselves do little to influence and ensure ethical behavior among employees and managers.
84
ethics committee
An ethics committee is a group of executives (and sometimes lower-level employees as well) appointed to oversee company ethics. The committee provides rulings on questionable ethical issues and assumes responsibility for disciplining wrongdoers.
85
structure-oriented approach
A structure-oriented approach, rather than acting on individuals’ internal ethical desires, instead uses structures, incentives, choices, task groupings, and policies to reduce the temptation to act unethically.
86
chief ethics officer
Chief ethics officer, sometimes called a chief ethics and compliance officer. This company executive oversees all aspects of ethics and legal compliance, including establishing and broadly communicating standards, conducting ethics training programs, dealing with exceptions or problems, and advising senior managers on the ethical and compliance aspects of decisions.
87
accountability for unethical behavior
No organization can rely exclusively on codes of conduct and ethical structures to prevent all unethical behavior. Holding organizations accountable depends to some degree on individuals who are willing to speak up if they detect illegal, dangerous, or unethical activities.
88
whistle-blowing
Employee disclosure of any corrupt, illegal, unethical, or illegitimate practices on the employer’s part is called whistle-blowing.
89
perception of whistle-blowers
Unfortunately, many managers still look on whistle-blowers as disgruntled employees who aren’t good team players. Yet to maintain high ethical standards, organizations need people who are willing to point out wrongdoing.
EVRRTING
flashcards
Decks in class (21)
# Cards
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Film Funding - New Cards71
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MKTG Quiz 420
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Intl. Bsns. Exam #159
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B. Phi. Writing Prep8
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MKTG Exam #176
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Philosophy Exam #140
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MKTG (Lectures 10, 11 + Guest)20
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INTL Business Exam #248
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Marketing Quiz37
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MKTG Quiz - 14, 15, and 1622
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MKTG Exam #267
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MKTG Quiz - 17, 18, & 1921
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INTL BUS EXAM #355
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MKTG Quiz #105
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MKTG - New Material for Final36
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FIN EXAM #125
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MGMT Daft 7-988
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GEM Stuff6
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MGMT Quiz Concepts4
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test89
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MGMT1
