Business Environment Course Overview

7/27/2019 Business Environment Course Overview

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Business Environment

Course Overview

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§ What is, and what should be, the role of business in society?

§ How should businesses best manage allof the stakeholder issues that impactthem, and that they impact?

• External stakeholders (customers,government, interest groups, etc.)

• Internal stakeholders (employees, owners)

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http://d/Program%20Files/TurningPoint/2003/Questions.html




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The Business and Society Relationship

Chapter 1

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Outline of Topics

§ Business and Society

§ Society as the Macroenvironment

§ A Pluralistic Society

§ A Special-Interest Society

§ Business Criticism and Corporate Response

§ Focus of the Book

§ Structure of the Book

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§ Business scandals, incidents

• Examples: Bernie Madoff (2008), Enron/Arthur Anderson(2001), Exxon Valdez (1989), Union Carbide - Bhopal

(1984)

§ Business issues

• Examples: downsizing retirement pensions, environmentalpollution, product liability

§ Broad societal concerns

• General feeling with much of public that business is notethical and cannot be trusted (particularly since 2001)

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The Business and Society Relationship

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Course focuses on large businesses (visibility,

power, widely recognized brands), but issues apply

to small and medium-sized companies as well.

Business and Society

B u s i n e s s T h e c o l l e c t i o n o f p r i v a t e ,

c o m m e r c i a l l y o r i e n t e d o r g a n i z a t i o n s

S o c i e t y A b r o a d g r o u p o f p e o p l e a n d o t h e r

o r g a n i z a t i o n s , i n t e r e s t g r o u p s ,

a c o m m u n i t y , a n a t i o n .

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Society as Macroenvironment

Segment Focus

Social Demographics, lifestyles, social values

Political

Processes for passing of laws and election

of officials. Interactions between firms,politics, and government

EconomicNature and direction of the economy in

which business operates

TechnologicalChanges in technological advancements

taking place in society

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Pluralistic Society

§ Definition:

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• A society in which there is wide

decentralization and diversity of power concentration.



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Pluralistic Society

Strengths Weaknesses

§ Prevents concentration of

power

§ Maximizes freedom of

expression and action

§ Disperses individual

allegiances and loyalties

§ Provides checks andbalances

§ Pursuit of self-interest

§ Proliferates organizationsand groups withoverlapping goals

§ Forces conflicts to center stage

§ Promotes inefficiency

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§

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Business and Stakeholder Relationships

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Special-Interest Society

Special Interests groups…

§ make life more complex for business and government

§ huge number of groups/interests

§ pursue their own focused agenda

§ are more active, intense, diverse and focused

§ attract a significant following

§ often work at cross purposes, with no unified set of goals

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Factors in the Social Environment

§ Affluence and education

§ Awareness through television and the Internet

§ Revolution of rising expectations

§ Entitlement mentality

§ Rights movement

§ Victimization philosophy

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Social Environment, Business

Criticism, and Corporate Response

Factors in the Social Environment

Affluence Education Awareness

Rising Expectations Rights Movement

Entitlement

Mentality

Victimization

Philosophy

Business CriticismBusiness Criticism

Increased Concern for the

Societal Environment

Increased Concern for the

Societal Environment A Changed Social ContractA Changed Social Contract

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Society’s Expectations Versus

Business’s Actual Social PerformanceSociety’sExpectations

of Business

Performance

S o c i a l P e r f o r m a n c e :

E x p e c t e d a n d A

c t u a l

1960s 2000s

Time

SocialSocial

ProblemProblem

Business’s Actual

Social Performance

Social ProblemSocial Problem

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B u s i n e s s

P o w e r T h e a b i l i t y o r c a p a c i t y t o p r o d u c e

a n e f f e c t o r t o b r i n g i n f l u e n c e

I r o n L a w o f

R e s p o n s i b i l i t y

I n t h e l o n g r u n , t h o s e w h o d o n o t u s e

p o w e r i n a m a n n e r s o c i e t y c o n s i d e r s

r e s p o n s i b l e w i l l t e n d t o l o s e i t

Business Criticism: Use & Abuse of Power

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Levels and Spheres of Corporate Power

Levels

Spheres

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Elements in the Social Contract

Laws or Regulations:

“Rules of the Game”

Two-Way Shared

Understandings of Each Other

Society or Societal

Stakeholder

Groups

Business

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Themes in Textbook: Managerial

Approach

Managerial

Approach

Managerial

Approach

Business

Ethics

Business

EthicsStakeholder

Management

Stakeholder

Management

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Theme: Urgent vs. Enduring Issues

1. Short-Term:Issues or crises arise on the spur of themoment and management must

formulate quick responses.

2. Long-Term:

Issues or problems are a long-termconcern and management must developa thoughtful organizational response.

3.

4.

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E t h i c s R e f e r s t o i s s u e s o f r i g h t , w r o n g ,

f a i r n e s s , a n d j u s t i c e .

B u s i n e s s

E t h i c s

F o c u s e s o n e t h i c a l i s s u e s t h a t a r i s e

i n t h e c o m m e r c i a l r e a l m .

Theme: Business Ethics

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S t a k e h o l d e r s

I n d i v i d u a l s o r g r o u p s w i t h w h i c h

b u s i n e s s i n t e r a c t s w h o h a v e a

v e s t e d i n t e r e s t i n t h e f i r m .

§ E x t e r n a l s t a k e h o l d e r s

§ I n t e r n a l s t a k e h o l d e r s

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Theme: Stakeholders

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1. The Business and Society Relationship

2. Corporate Citizenship: Social Responsibility, Responsiveness and

Performance

3. The Stakeholder Approach to Business, Society, and Ethics

1. The Business and Society Relationship

2. Corporate Citizenship: Social Responsibility, Responsiveness and

Performance

3. The Stakeholder Approach to Business, Society, and Ethics

PART

ONE

Business, Society, and Stakeholders

Corporate Governance and Strategic Management Issues

4. Corporate Governance: Foundational Issues5. Strategic management and Corporate Public Affairs

6. Issues and Crisis Management

4. Corporate Governance: Foundational Issues5. Strategic management and Corporate Public Affairs

6. Issues and Crisis Management

PART

TWO

Organization and Flow of Book

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7. Business Ethics Fundamentals

8. Personal and Organizational Ethics

9. Business Ethics and Technology

10. Ethical Issues in the Global Arena

7. Business Ethics Fundamentals

8. Personal and Organizational Ethics

9. Business Ethics and Technology

10. Ethical Issues in the Global Arena

PART

THREE

Business Ethics and Management

External Stakeholder Issues

11. Business, Government and Regulation

12. Business’s Influence on Government and Public Policy

13. Consumer Stakeholders: Information Issues and Responses14. Consumer Stakeholders: Product and Service Issues

15. The Natural Environment as Stakeholder

16. Business and Community Stakeholders

11. Business, Government and Regulation

12. Business’s Influence on Government and Public Policy

13. Consumer Stakeholders: Information Issues and Responses

14. Consumer Stakeholders: Product and Service Issues

15. The Natural Environment as Stakeholder

16. Business and Community Stakeholders

PART

FOUR


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17. Employee Stakeholders and Workplace Issues

18. Employee Stakeholder: Privacy, Safety, and Health

19. Employment Discrimination and Affirmative Action

17. Employee Stakeholders and Workplace Issues

18. Employee Stakeholder: Privacy, Safety, and Health

19. Employment Discrimination and Affirmative Action

PART

FIVE

Internal Stakeholder Issues


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Business Environment Course Overview

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