Transcript The Business and Society Relationship Search the Web

The Business
and Society
Relationship
Search the Web
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© 2005 by Nelson, a division of Thomson Canada Limited.
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Chapter One Objectives
• Characterize the relationship of business and society
• Describe the strengths and weaknesses of pluralism
• Clarify how our pluralistic society has become a specialinterest society
• Identify and discuss the factors leading up to business
criticism
• Identify the major criticisms of business and
characterize business’s general response
• Identify the major themes of the book: managerial
approach, ethics, and stakeholder management
© 2005 by Nelson, a division of Thomson Canada Limited.
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Chapter One Outline
• Business and
Society
• Society as the
Macroenvironment
• Our Pluralistic
Society
• Our Special-Interest
Society
• Criticism and
Corporate
Response
• Focus of the Book
• Structure of the
Book
• Summary
© 2005 by Nelson, a division of Thomson Canada Limited.
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Introduction to Chapter One
The Business and Society Relationship
• Specific incidents versus societal concerns
– Firestone and discrimination
• Major Firestone issues:
– Ethical behaviour
– Social responsibility
– Corporate role and responsibility
© 2005 by Nelson, a division of Thomson Canada Limited.
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Business and Society Relationship
Business is the collection of private, commercially
oriented (profit-oriented) organizations.
Society is a numerous interest groups, more or less
formalized organizations, and a variety of institutions.
Community
Government
Business
Owners
Employees
Consumers
© 2005 by Nelson, a division of Thomson Canada Limited.
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Society as the Macroenvironment
The macroenvironment is the total
societal/business context and composed
of four segments:
• Social
• Political
• Economic
• Technology
© 2005 by Nelson, a division of Thomson Canada Limited.
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Society as the Macroenvironment
Four segments of the Macroenvironment
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Social environment
Economic environment
Political environment
Technological environment
© 2005 by Nelson, a division of Thomson Canada Limited.
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Pluralistic Society
Diffusion of Power
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Strengths
Prevents concentration
of power
Maximizes freedom
Disperses individual
allegiances
Creates diversified
loyalties
Provides safeguards
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Weaknesses
Pursuit of self-interest
Proliferates
organizations with
similar goals
Forces conflicts
Promotes inefficiency
© 2005 by Nelson, a division of Thomson Canada Limited.
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The Stakeholder Relationship
Environmental Groups
Local
Provincial
General Public
Federal
Community
Unions
Corporate
Raiders
Private
Citizens
Government
Older
Employees
Business
Owners
Employees
Consumers
Institutional
Investors
Women
Minorities
Civil Activists
Consumer Activists
Liability Threats
© 2005 by Nelson, a division of Thomson Canada Limited.
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Special-Interest Society
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Makes life more complex for business
Pursue their own agenda
Are both focused and diverse
Generate power and money
© 2005 by Nelson, a division of Thomson Canada Limited.
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Criticism and Response
Affluence
Education
Awareness
Factors in the Social Environment
Rising Expectations
Rights Movement
Entitlement
Victimization
Business Criticism
Environmental
Concerns
© 2005 by Nelson, a division of Thomson Canada Limited.
The New Social
Contract
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Business Criticism
Social Environment Factors
• Affluence and
• Entitlement
education
mentality
• Awareness through the • Rights movement
media
• Revolution of Rising
expectations
© 2005 by Nelson, a division of Thomson Canada Limited.
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Social Performance:
Expected and Actual
Expectations versus
Social Performance
Society’s
Expectations
of Business
Performance
Social
Problem
Social
Problem
1960s
© 2005 by Nelson, a division of Thomson Canada Limited.
Business’
Actual Social
Performance
2000s
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Business Criticism Power
• Use and abuse of power
– The ability to produce a desired effect
• Iron Law of Social Responsibility
– The use of power or its inevitable loss
© 2005 by Nelson, a division of Thomson Canada Limited.
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Business Criticism
Levels and Spheres of Corporate Power
Levels Macro Intermediate
Spheres
Level
Level
Micro Level Individual
Level
Economic
Social/Cultural
Individual
Technological
Environmental
Political
© 2005 by Nelson, a division of Thomson Canada Limited.
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Business Criticism Response
Elements In the Social Contract
Laws or Regulations:
“Rules of the Game”
Stakeholder
Groups
Business
Shared Understanding
© 2005 by Nelson, a division of Thomson Canada Limited.
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Focus of the Book
• The managerial approach
• The ethics theme
• The stakeholder management theme
© 2005 by Nelson, a division of Thomson Canada Limited.
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Structure
BUSINESS, SOCIETY, AND STAKEHOLDERS
PART ONE
1. The Business and Society Relationship
2. Corporate Citizenship: Social Responsibility, Responsiveness, and
Performance
3. The Stakeholder Approach to Business, Society, and Ethics
STRATEGIC MANAGEMENT FOR CORPORATE
STAKEHOLDER PERFORMANCE
PART TWO
4.
5.
Strategic Management and Corporate Public Affairs
Issues Management and Crisis Management
© 2005 by Nelson, a division of Thomson Canada Limited.
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Structure
BUSINESS ETHICS AND MANAGEMENT
PART
THREE
PART
FOUR
6.
7.
8.
9.
10.
11.
12.
13.
14.
Business Ethics Fundamentals
Personal and Organizational Ethics
Business Ethics and Technology
Ethical Issues in the Global Arena
EXTERNAL STAKEHOLDER ISSUES
Business, Government, and Regulation
Consumer Stakeholders: Information Issues and Responses
Consumer Stakeholders: Product and Service Issues
The Natural Environment as Stakeholder
Business and Community Stakeholders
© 2005 by Nelson, a division of Thomson Canada Limited.
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Structure
INTERNAL STAKEHOLDER ISSUES
PART FIVE
15.
16.
17.
18.
Employee Stakeholders and Workplace Issues
Employee Stakeholder: Privacy, Safety, and Health
Employment Discrimination and Employment Equity
Owner Stakeholders and Corporate Governance
CASES
© 2005 by Nelson, a division of Thomson Canada Limited.
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Selected Key Terms
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Affluence
Business
Business ethics
Business power
Economic environment
Education
Entitlement mentality
Ethics
Iron law of responsibility
Macroenvironment
Pluralism
• Political environment
• Revolution of rising
expectations
• Rights movement
• Social contract
• Social environment
• Social problem
• Society
• Special-interest society
• Stakeholders
• Technological environment
© 2005 by Nelson, a division of Thomson Canada Limited.
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