Causal Claims and Accounting Essentials

Drawing a connection between two events, inferring that one caused the other.

The fallacy of assuming a causal relationship just because one event follows another.

A relationship between two variables, where they tend to change together.

When the assumed effect actually causes the assumed cause.

Establishing causal relationships by manipulating one variable and observing its effect on another.

When two events vary together, one affecting the other.

The cause must come before the effect in time.

Two events occurring together and varying in a predictable way.

A plausible explanation for how the cause leads to the effect.

Summarizing, analyzing, and reporting financial transactions.

Using accounting to make better business decisions.

Independent examination of financial records.

Accounting for tax purposes.

Reports that communicate a company's financial performance and position.

A snapshot of a company's financial position at a specific point in time.

Reports a company's financial performance over a period of time.

Reports a company's cash inflows and outflows over a period of time.

Role of government in the economy.

Funding and capital structure of corporations

Financial management for individuals and families.

A link between lenders and borrowers

A medium of exchange

Company's sustainability metrics

The process of creating a valuable product or service

Organizations that interact with and rely on their external environment.

Organizations that are self-contained and do not interact with their external environment.

Organizations are composed of people and rely on interactions and relationships.

Organizations are created with specific goals or objectives in mind.

A business interacts with and relies on its external environment for resources, customers, and information, while providing products or services as outputs.

Traditional management methods focusing on compartmentalizing tasks, supervising workers, and motivating them.

Modern approaches to productivity emphasize using management science, operations research, and supply chain management to optimize processes.

Business activities that cross national borders, involving factors like globalization and cultural differences.

The increasing interconnectedness of economies worldwide through trade, investment, and information flow.

The increasing interconnectedness of national, regional, and local economies worldwide, driven by free trade and multinational corporations.

A situation where countries do not restrict imports or exports, allowing goods and services to move freely across borders. The opposite of protectionism, which uses government regulations to favor local businesses.

A company with operations in multiple countries. They operate across national boundaries, contributing to globalization by sharing resources and expertise.

The study of how individuals and groups behave within organizations.

The management of people within an organization, including recruitment, training, compensation, and performance evaluation.

Creating long-term shifts in behavior that require widespread public support beyond individual campaigns.

A core element of driving systematic change that promotes a positive vision for the future, appeals to people's sense of justice and humanity, and inspires action.

Brand advocacy includes promoting a positive vision, appealing to people's sense of justice and shared humanity, using resonant symbols, calling for specific actions, empowering people to act, and bringing people together on shared platforms.

A period marked by a focus on efficiency and the emergence of professional managers.

The debate between 'number people' who focus on efficiency and 'people people' who prioritize human needs in management.

A famous study that revealed the impact of social and psychological factors on worker productivity and revealed the importance of human factors in workplaces.

Organizations need to collaborate with partners, including government agencies, private sector companies, and even competitors to access complementary skills, expertise, resources, and networks.

For successful partnership, organizations need to ensure a good fit between their values, goals, and resources.

Different structures and models used by organizations to achieve their purpose, particularly in response to new challenges like sustainability and social impact.

A form of entrepreneurship focused on solving social problems through the creation of sustainable businesses that generate social and environmental impact alongside financial returns.

Organizations owned and controlled by their members, who share in the benefits and responsibilities of the enterprise. Often focused on social or environmental goals.

Businesses that prioritize giving back to the community and are often locally focused, with profits reinvested in community projects or social causes.

Issues impacting the long-term viability of organizations and society as a whole, including social, environmental, and economic factors.

A period marked by technological advancements, globalization, shareholder capitalism, and a shift towards innovation and human talent.

A prominent thinker who advocates for the idea of a democratic economy, emphasizing the importance of alternative organizational forms.

A system characterized by shared resources, peer production, and a focus on collective action, often driven by technology-mediated platforms.

The exploration of various organizational structures and models, including cooperatives, worker-owned businesses, and social enterprises, to address social and environmental challenges.

The part of the economy owned and operated by individuals or groups, not the government, for profit.

A business model that considers the interests of all stakeholders, including employees, customers, suppliers, and the community, not just shareholders.

A system prioritizing shareholder wealth maximization, often emphasizing short-term profits and financial returns.

Master of Business Administration - a postgraduate degree in business, often associated with management and leadership skills.

Two events vary together in a predictable way, meaning one changes as the other does.

A positive feedback loop where good performance in one area leads to improvements in another, creating a self-reinforcing cycle.

A form of capitalism that incorporates social and environmental considerations into business practices, seeking long-term sustainability and positive impact.

A challenge in measuring sustainability where there are no clear guidelines or regulations for companies to follow.

Companies have control over what information they include in their sustainability reports, leading to potential bias and lack of transparency.

Sustainability goals that are vague or unrealistic, making it difficult to assess actual progress.

The complex and unclear networks of suppliers and manufacturers involved in producing goods can make it hard to track and assess environmental and social impacts.

Sustainability reporting often focuses on developed nations, neglecting the impacts and opportunities in developing countries.

The inconsistent and subjective nature of sustainability ratings can be misleading and make it difficult to compare companies fairly.

Diverse approaches and metrics make it difficult to compare sustainability performance across different industries and sectors.

A proactive and ambitious strategy involving measurement, action, and global cooperation to address sustainability challenges.

Traditional management methods focusing on compartmentalizing tasks, supervising workers, and motivating them through clear rules and procedures.

The management of the transformation process, where resources are converted into goods or services.

The management of the flow of goods and services, from raw materials to the final customer, including procurement, logistics, and information technology.

Business activities that cross national borders, involving factors like globalization, trade, and cultural differences

A movement advocating for significant changes in the economy, aiming for a more equitable and sustainable system.

A period marked by technological advancements, globalization, and a shift from shareholder capitalism towards innovation, human talent, and sustainability.

Partnerships succeed when organizations share compatible values, goals, and resources, ensuring mutual benefit.