Chapter Chapter 5 5 Strategic Strategic Management Management and and Corporate Corporate Public Public Affairs Affairs © 2012 South-Western, a part of Cengage Learning 1
Jan 12, 2016
Chapter 5Chapter 5Strategic Strategic
Management Management and Corporate and Corporate Public AffairsPublic Affairs
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The Concept of Corporate Public Policy
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Corporate public policy is a firm’s posture, stance, strategy or
position regarding the public, social, global, and ethical aspects of
stakeholders and corporate functioning
Affirmative Action
Sexual harassmentProduct safety
Employee privacy
EnvironmentalSustainability
Corporate Public Policy and Strategic Management
Strategic management
•Refers to the overall management process that focuses on positioning the firm relative to its market environment.
Corporate public policy
•The part of overall strategic management that focuses specifically on the public, ethical, and stakeholder issues the firm faces.
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Emphasis on Enterprise-Level Strategy
For what do we stand?•Key Questions:• What is the role of our organization in society?
• How is our organization perceived by our stakeholders?
• What principles/values does our organization represent?
• What obligations do we have to society at large, including the world?
• What are the broad implications for our current mix of businesses and allocation of resources?
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Manifestations of Enterprise-Level Thinking
• Codes of ethics
• Codes of conduct
• Mission statements
• Values statements
• Corporate creeds
• Vision statements
• Policy-oriented codes and statements
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Core Values
Core Values
•The deeply ingrained principles that guide all of a company’s actions and decisions.
•They serve as cultural cornerstones.
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Importance of Core Values
Apple’s Core Values
•Focus on making great products
•Innovation
•Focus on the few projects that are truly meaningful
•Collaboration
•Never settle for less than excellence
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Enterprise-Level Strategic Thinking
Establishment of committees•Public policy/issues•Ethics•Governance•Social audit•Corporate philanthropy•Corporate citizenship•Ad hoc committees
Public affairs office
Identification/analysis of social or public issues
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The Strategic Management Process
1. Goal formulation
2. Strategy formulation
3. Strategy evaluation
4. Strategy implementation
5. Strategic control
6. Environmental analysis
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Components of Strategy Formulation
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Strategic Corporate Social Responsibility
Responsive CSR•Addresses generic social impacts through good corporate citizenship and value chain social impacts by mitigating harm.
Strategic CSR•Transforms value chain social impacts into activities that benefit society while reinforcing corporate strategy.•Advances strategic philanthropy that leverages competitiveness.
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Public Affairs
Public Affairs
•The management processes that focus on the formalization and institutionalization of corporate public policy.
EmbracesCorporate public policyIssues and crisis managementGovernmental relationsCorporate communications
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Buffering and Bridging
Two types of corporate public affairs activities
1.Activities that buffer the organization from the social and political environment.
2.Activities that bridge the organization with that environment.
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Tools and Techniques•Environmental monitoring/scanning
•Working with the grassroots
•Constituency building
•Issue advertising
•Lobbying
•Political action committees
•Corporate social audits
•Web activism
•Coalitions and alliances
•Community investment
•Stakeholder management14
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Competencies for International Public Affairs
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