board of directors Governing body elected by a corporation's stockholders, charged with overseeing the general management of the firm to ensure that it is being run in a way that best serves the stockholders' interests

code of ethics A formal, written statement of the values and ethical standards that guide a firm's actions

competitor An organization that competes with other organizations for resources

customer Whoever pays money to acquire an organization's products or services

direct investment When a firm headquartered in one country builds or purchases operating facilities or subsidiaries in a foreign country

economic community A set of countries that agree to markedly reduce or eliminate trade barriers among member nations (a formalized market system)

economic dimension The overall health and vitality of the economic system in which the organization operates

ethical behavior Behavior that conforms to generally accepted social norms

ethical compliance The extent to which an organization and its members follow basic ethical standards of behavior

ethics An individual's personal beliefs regarding what is right and wrong or good and bad

European Union (EU) The first and most important international market system

export restraint agreement Accord reached by governments in which countries voluntarily limit the volume or value of goods they export to and import from one another

exporting Making a product in the firm's domestic marketplace and selling it in another country

external environment Everything outside an organization's boundaries that might affect it

general environment The set of broad dimensions and forces in an organization's surroundings that create its overall context

importing Bringing a good, service, or capital into the home country from abroad

interest group A group formed by its own individual members to attempt to influence business

joint venture A special type of strategic alliance in which the partners share in the ownership of an operation on an equity basis

legal compliance The extent to which an organization complies with local, state, federal, and international laws

licensing An arrangement whereby one company allows another company to use its brand name, trademark, technology, patent, copyright, or other assets in exchange for a royalty based on sales

managerial ethics Standards of behavior that guide individual managers in their work

maquiladora Light assembly plant built in northern Mexico close to the U.S. border and given special tax breaks by the Mexican government

North American Free Trade Agreement (NAFTA) An agreement between the United States, Canada, and Mexico to promote trade with one another

organization culture The set of values, beliefs, behaviors, customs, and attitudes that helps an organization's members understand what it stands for, how it does things, and what it considers important

owner Whoever can claim property rights on an organization

philanthropic giving Awarding funds or gifts to charities or worthy causes

political-legal dimension The government regulation of business and the general relationship between business and government

quota A limit on the number or value of goods that can be traded

regulator A unit that has the potential to control, legislate, or otherwise influence the organization's policies and practices

regulatory agency An agency created by the government to regulate business activities

social responsibility The set of obligations an organization has to protect and enhance the societal context in which it functions

strategic alliance A cooperative arrangement between two or more firms for mutual benefit

strategic partner (strategic ally) An organization working together with one or more other organizations in a joint venture or similar arrangement

supplier An organization that provides resources for other organizations

tariff A tax collected on goods shipped across national boundaries

task environment Specific organizations or groups that affect the organization

technological dimension The methods available for converting resources into products or services

unethical behavior Behavior that does not conform to generally accepted social norms

whistle blowing The disclosure by an employee of illegal or unethical conduct on the part of others within the organization