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[123doc] - business-and-society-ethics-sustainability-and-stakeholder-management-9e-chapter-1.ppt
- 1. © 2015 CengageLearning 1
- 2. Chapter 1 The Businessand Society Relationship © 2015 Cengage Learning 2
- 3. Learning Outcomes 1. Characterizebusiness and society and their interrelationships. 2. Describe pluralism and identify its attributes, strengths, and weaknesses. 3. Clarify how a pluralistic society becomes a special-interest society. 4. Identify, discuss, and illustrate the factors leading up to business criticism. 5. Pinpoint the major criticisms of business and characterize business’s general response. 6. Describe the major themes of the book: managerial approach, ethics, sustainability and stakeholder management. © 2015 Cengage Learning 3
- 4. Chapter Outline • Businessand 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 • Summary • Key Terms • Discussion Questions © 2015 Cengage Learning 4
- 5. Business and Society Business- • the collection of private, commercially oriented organizations ranging in size from one-person proprietorships to corporate giants. Society - • a community, a nation, or a broad group of people with common traditions, values, institutions, and collective activities and interests. Macroenvironment - • the total environment outside the firm, the comprehensive societal context in which the organization resides. Society • is the macroenvironment in which businesses operate. © 2015 Cengage Learning 5
- 6. Conceptualizing the Macroenvironment © 2015Cengage Learning 6
- 7. Segments of theMacroenvironment © 2015 Cengage Learning 7
- 8. A Pluralistic Society- • Prevents power from being concentrated in the hands of a few. • Maximizes freedom of expression and action, and strikes a balance between monism, on the one hand, and anarchy on the other. • Creates a widely diversified set of loyalties to many organizations, and minimizes the danger that a leader of any one organization will be left uncontrolled. • Provides a built-in set of checks and balances, in that groups can exert power over one another with no single organization (business or government) dominating and becoming overly influential. © 2015 Cengage Learning 8
- 9. Business and Stakeholder Relationships ©2015 Cengage Learning 9
- 10. Special Interest Groups- • Make life more complex for business and government. • Can number in the tens of thousands in some societies. • Pursue their own focused agendas. • Are active, intense, diverse and focused. • Can attract a significant following. • Often work at cross purposes, with no unified goals. • A special-interest society is pluralism taken to the extreme. © 2015 Cengage Learning 10
- 11. Social Environment, BusinessCriticism and Corporate Response © 2015 Cengage Learning 11 Factors in the Social Environment Affluence Education Awareness Rising Expectations Rights Movement Entitlement Mentality Victimization Philosophy Business Criticism Increased Concern for the Societal Environment A Changed Social Contract
- 12. Factors in theSocial Environment Affluence and Education - • Create higher expectations of major institutions. • Growing public awareness through television, movies, and the Internet. The Revolution of rising expectations - creates a social problem, a gap between societal expectations for social conditions and social realities. This can lead to: • Entitlement mentality • Rights movement • Victimization philosophy © 2015 Cengage Learning 12
- 13. Society’s Expectations Versus Business’Actual Social Performance © 2015 Cengage Learning 13 Society’s Expectations of Business Performance Social Performance: Expected and Actual 1960s 2010s Time Social Problem Business’s Actual Social Performance Social Problem
- 14. Business Criticism: Use andAbuse of Power Business Power - • the ability or capacity to produce an effect or to bring influence to bear on a situation or people Iron Law of Responsibility - • In the long run, those who do not use power in a manner society considers responsible will tend to lose it © 2015 Cengage Learning 14
- 15. Levels and Spheresof Corporate Power © 2015 Cengage Learning 15 15 Macro Level The business system Intermediate Level Several firms Micro Level A single firm Individual Level A Single Executive Economic Social/Cultural Individual Technological Environmental Political Levels Spheres
- 16. Elements in theSocial Contract © 2015 Cengage Learning 16 Laws or Regulations: “Rules of the Game” Two-Way Shared Understandings of Each Other Society or Societal Stakeholder Groups Business
- 17. Focus of theBook Managerial Approach Business Ethics Stakeholder Management Sustainability © 2015 Cengage Learning 17
- 18. A Managerial Approach •Managers are practical, and have begun to deal with social and ethical concerns in ways similar to those they use to manage traditional business functions such as marketing, finance, operations, & risk management. • As a result, managers have been able to convert seemingly unmanageable concerns into ones that can be dealt with in a balanced and impartial fashion. • At the same time, managers have had to integrate traditional economic and financial considerations with ethical and social considerations. © 2015 Cengage Learning 18
- 19. Urgent versus EnduringIssues Short-Term - • Issues or crises arise on the spur of the moment and management must formulate quick responses. Long-Term - • Issues or problems are a long-term concern and management must develop a thoughtful organizational response. © 2015 Cengage Learning 19
- 20. A Business EthicsTheme Ethical questions - • inevitably and continually come into play during business operations. Ethics - • refers to issues of right, wrong, fairness, and justice. Business Ethics - • focuses on ethical issues that arise in the commercial realm. Ethical questions - • permeate business’s activities as it attempts to interact with major stakeholder groups. © 2015 Cengage Learning 20
- 21. A Sustainability Theme Sustainability- Has become one of businesses’ most pressing mandates. Sustainable development - is a pattern of resource use that aims to meet current needs while preserving the environment for future generations. Sustainability embraces criteria which are: • Environmental • Economic • Social Sustainability concerns the ability of businesses to survive and thrive over the long term. © 2015 Cengage Learning 21
- 22. Stakeholder Management Theme Stakeholders- • Individuals or groups with which business interacts and who have a vested interest in the firm. • In this text, we consider: • External stakeholders, such as government, consumers, the natural environment, community members • Internal stakeholders, such as employees, those involved in corporate governance, and others. © 2015 Cengage Learning 22
- 23. Structure of theBook (1 of 2) Part One: Business, Society, and Stakeholders 1. The Business and Society Relationship 2. Corporate Citizenship: Social Responsibility, Performance and Sustainability 3. The Stakeholder Approach to Business, Society, and Ethics Part Two: Corporate Governance & Strategic Management Issues 4. Corporate Governance: Foundational Issues 5. Strategic Management and Corporate Public Policy 6. Issue, Risk and Crisis Management © 2015 Cengage Learning 23
- 24. Structure of theBook (2 of 2) Part Three: Business Ethics and Management 7. Business Ethics Fundamentals 8. Personal and Organizational Ethics 9. Business Ethics and Technology 10. Ethical Issues in the Global Arena Part Four: External Stakeholder Issues 11. Business, Government, and Regulation 12. Business Influence on Government and Public Policy 13. Consumer Stakeholders: Information Issues and Responses 14. Consumer Stakeholders: Product and Service Issues 15. Sustainability and the Natural Environment 16. Business and Community Stakeholders © 2015 Cengage Learning 24
- 25. Organization and Flowof the Book Part Five: Internal Stakeholder Issues 17. Employee Stakeholders and Workplace Issues 18. Employee Stakeholders: Privacy, Safety, and Health 19. Employment Discrimination and Affirmative Action Cases © 2015 Cengage Learning 25
- 26. • affluence • business •business ethics • business power • economic environment • education • entitlement mentality • ethics • Iron Law of Responsibility • macroenvironment • managerial approach • pluralism • political environment • revolution of rising expectations • rights movement • social contract • social environment • social problem • society • special-interest society • stakeholder management • stakeholders • sustainability • sustainable development • technological environment • victimization philosophy © 2015 Cengage Learning 26 Key Terms