BSM 600 Study Guide - Final Guide: Strategic Choice, Business Ethics, Competitive Advantage
Document Summary
Outsourced labor implies we can charge lower prices, sell more, make more profits. Ethics: trying to figure out what"s the right thing to do for the business and consumers. The same as ethics in general; the different between right and wrong. Business actions have to be judged in the context of society"s standards of right and wrong. We exist because we see ourselves as making a different in the world. Self dealing: managers take advantage of their position to further their own private interests rather than those of the firm. Need to have more knowledge; people don"t speak up. Short termism: managers focus short term performance objectives at the expense of longer term strategic objectives (usually to boost bonuses), sacrificing long run performance. Visible (external) eg. fines, public apology, managing crisis, lawsuits. Show that you"re addressing the problem publicly, taking social responsibility, acknowledge your mistake and apologize. Ceo may be asked to leave turbulent inside organization.