Business & Society ETLW 302 Tara Ceranic Salinas, PhD

Public Issues: Problems for organizations and their stakeholders

Business and Public Issues Why do public issues matter? No organization can ignore legitimate stakeholders (or illegitimate stakeholders in some cases)

Public Issues Performance Expectation Gap Public issues often develop in predictable ways and companies can better prepare themselves by understanding the life cycle of these issues

Public Issue Life Cycle Phase 1: Changing Stakeholder Expectations Phase 2: Political Action Phase 3: Formal Government Action Phase 4: Legal Implementation

Strategic Approach to Public Issues Company must think proactively about how its plans will affect stakeholders (positively/negatively) Issues should be managed carefully and consistently An organization’s actions must be linked to its values and its performance must be linked with commitments

The Middle Class A steady job, owning a home, two cars in the garage, an annual family vacation, the ability to send your kids to college and a little left over to sock away for retirement. FAMILY income of: $48,000-$145,000

Middle Class 1971: 70% 2016: 50% 30% increase in cost of living, but median income (even when adjusted for inflation) hasn’t budged “Middle class squeeze”

Federal minimum wage = $7.25/hour (Enacted July, 2009) = $15,080/YEAR -taxes (Soc. Sec/Medicare) = $13,926.38 Original minimum wage = .25/hour (October 1938)

$11,880 for individuals $16,020 for a family of 2 $20,160 for a family of 3 $24,300 for a family of 4 $28,440 for a family of 5 $32,580 for a family of 6 $36,730 for a family of 7 $40,890 for a family of 8

Minimum wage in CA San Diego = $9.00/hour as of February, 2015 ($18,720) $11.50 by 2017 ($23,920) LA = $15/hour by 2020 ($31,200) SF = $15/hour by 2018

Minimum Wage by the Numbers $18,720*2 = $37,440/year Monthly rent in SD: Part time child care: Car payment: Gas: Car Insurance: Food: Clothing/Misc.:

Why are we talking about this? This is an ethical issue As future managers you have the ability to impact what people get paid This may be YOU! ($48-145,000)