GMGT 1010 (Business and Society) TEST 1
NOTES Everything you need for the first
term test UNIVERSITY OF MANITOBA.
,GMGT 1010 Test 1 – Classes 1- 7
Capitalism and Management Thoughts
Why does Business and Society Matter?
• Business plays an important role in the social and environmental issues facing the world
• Each of us will encounter these issues in your career and have to navigate through them
Part 1: Setting the Stage
• What is the Canadian Business System?
• What is the history of capitalism and how does it differ across countries?
• What is the history of management thought?
• What are the functional areas of business and how do they fit together?
The Canadian Business System
What is a national business system?
How a society organizes its economic activity
• Business firms
• Government
• Labour
• The Market
• Finance/investors
The Market
Capitalism: an economic system that allows for private ownership of the means of production
and assumes that economic decision-making is in the hands of individuals or enterprises who
make decisions expecting it to earn a profit.
Means of Production:
• Land
• Labour
• Capital
, Three Central Features of Capitalism:
1. Wage labour
2. Private ownership of land
3. Production for exchange and profit
Types of Capitalism:
Laissez-Faire Capitalism
• Minimum government intervention
• Government strictly limited to police and fire protection
Examples: US
Stakeholder Capitalism
• Business accepts broader responsibilities beyond financial responsibilities to
shareholders
• Balance the needs of shareholders with stakeholders such as employees, suppliers,
customers, local communities
Examples: Germany
Clean Capitalism
• Incorporates social, economic, and ecological costs (and benefits) into the marketplace
and the prices we pay
• Externalities
Examples: Canada
NOTES Everything you need for the first
term test UNIVERSITY OF MANITOBA.
,GMGT 1010 Test 1 – Classes 1- 7
Capitalism and Management Thoughts
Why does Business and Society Matter?
• Business plays an important role in the social and environmental issues facing the world
• Each of us will encounter these issues in your career and have to navigate through them
Part 1: Setting the Stage
• What is the Canadian Business System?
• What is the history of capitalism and how does it differ across countries?
• What is the history of management thought?
• What are the functional areas of business and how do they fit together?
The Canadian Business System
What is a national business system?
How a society organizes its economic activity
• Business firms
• Government
• Labour
• The Market
• Finance/investors
The Market
Capitalism: an economic system that allows for private ownership of the means of production
and assumes that economic decision-making is in the hands of individuals or enterprises who
make decisions expecting it to earn a profit.
Means of Production:
• Land
• Labour
• Capital
, Three Central Features of Capitalism:
1. Wage labour
2. Private ownership of land
3. Production for exchange and profit
Types of Capitalism:
Laissez-Faire Capitalism
• Minimum government intervention
• Government strictly limited to police and fire protection
Examples: US
Stakeholder Capitalism
• Business accepts broader responsibilities beyond financial responsibilities to
shareholders
• Balance the needs of shareholders with stakeholders such as employees, suppliers,
customers, local communities
Examples: Germany
Clean Capitalism
• Incorporates social, economic, and ecological costs (and benefits) into the marketplace
and the prices we pay
• Externalities
Examples: Canada
