Business Administration 1220E Study Guide - Quiz Guide: Profit Maximization, Organizational Learning

• School: Western University
• Department: Business Administration
• Course: Business Administration 1220E
• Professor: Alexander Miller

Document Summary

Organizational learning: stage 1: defensive stage, denial, rejections, stage 2: compliance, reduce risks of litigation, protect reputation, stage 3: managerial, long-term problem, stage 4: strategic, competitive edge, stage 5: civil, educational practices. Business take a lead in environmental issues > improvement beyond compliance. Emphasis on profit maximization > more than that: different goals at the same time (e. g. giving precedence to benefits to employees rather than stakeholders) Essential role of environmental regulation is to close any gap between the degree of environmental control exercised by firms and the degree that would be warranted by social-benefit cost analysis. Point at which extra benefits of improvement are equal to extra costs for environmental control. Different goals of firms reflect interests of different stakeholders. Protecting the environment through cost minimization: efficiency (recycling, waste minimization, etc) ppp = pollution prevention pays, pressure groups: costly encounters, interests of employees. Ethical investors raise issues (e. g. arms trade, environmental damage)