Strategic Management and Corporate Public Affairs Chapter 5 Strategic Management and Corporate Public Affairs Strategic Management and Corporate Public Affairs Chapter 5 Prepared by Deborah Baker Texas Christian University Diunduh dari Sumber : www.csub.edu/~mattaran/home2/body_content/.../Chapter%205.ppt‎ Business and Society: Ethics and Stakeholder Management, 7e • Carroll & Buchholtz Copyright ©2009 by South-Western, a division of Cengage Learning.  All rights reserved

Chapter 5 Learning Outcomes Strategic Management and Corporate Public Affairs Chapter 5 Learning Outcomes Describe the concept of corporate public policy and relate it to strategic management. Articulate the four major strategy levels and explain enterprise-level strategy. Explain corporate social performance reporting. Identify the major activities of public affairs departments. Highlight key trends with respect to the public affairs function. Link public affairs with the strategic management function. indicate how public affairs may be incorporated into every manager’s job. Diunduh dari Sumber : www.csub.edu/~mattaran/home2/body_content/.../Chapter%205.ppt‎ 2

Chapter 5 Outline The Concept of Corporate Public Policy Strategic Management and Corporate Public Affairs Chapter 5 Outline The Concept of Corporate Public Policy Four Key Strategy Levels The Strategic Management Process Public Affairs Public Affairs as a Part of Strategic Management The Corporate Public Affairs Function Today Important Public Affairs Concepts Today Public Affairs Strategy Incorporating Public Affairs Thinking into All Managers’ Jobs Future of Corporate Public Affairs in the Twenty-First Century Summary Key Terms Discussion Questions Diunduh dari Sumber : www.csub.edu/~mattaran/home2/body_content/.../Chapter%205.ppt‎

Introduction to Chapter 5 Strategic Management and Corporate Public Affairs Introduction to Chapter 5 The chapter provides a broad overview of how social, ethical, and public issues fit into the general strategic management process of the organization. Diunduh dari Sumber : www.csub.edu/~mattaran/home2/body_content/.../Chapter%205.ppt‎

The Concept of Corporate Public Policy Chapter 5 Strategic Management and Corporate Public Affairs The Concept of Corporate Public Policy 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 AIDS in Workplace Affirmative Action Sexual harassment Product safety Employee privacy Environmental Sustainability Diunduh dari Sumber : www.csub.edu/~mattaran/home2/body_content/.../Chapter%205.ppt‎

Corporate Public Policy and Strategic Management Chapter 5 Strategic Management and Corporate Public Affairs 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 the strategic management process that focuses specifically on the public, ethical, and stakeholder issues the firm faces Diunduh dari Sumber : www.csub.edu/~mattaran/home2/body_content/.../Chapter%205.ppt‎

Relationship of Ethics to Strategic Management Chapter 5 Strategic Management and Corporate Public Affairs Relationship of Ethics to Strategic Management For business ethics to have meaning it must be linked to business strategy because the linkage permits management issues to be addressed in ethical terms. The concept of corporate public policy and the linkage between strategic management and ethics can be better understood in terms of: Four key strategy levels Steps in the strategic management process Diunduh dari Sumber : www.csub.edu/~mattaran/home2/body_content/.../Chapter%205.ppt‎

Four Key Strategy Levels Chapter 5 Strategic Management and Corporate Public Affairs Four Key Strategy Levels Corporate-Level Strategy Business-Level Strategy Functional-Level Strategy Enterprise-Level Strategy “What business(es) are we in or should be in?” “How should we compete in a given business or industry?” “How should a firm integrate subfunctional activities and relate them to its functional areas?” “What is the role of the organization in society?” Diunduh dari Sumber : www.csub.edu/~mattaran/home2/body_content/.../Chapter%205.ppt‎

The Hierarchy of Strategy Levels Chapter 5 Strategic Management and Corporate Public Affairs The Hierarchy of Strategy Levels Corporate-Level Strategy Business-Level Strategy Functional-Level Strategy Enterprise-Level Strategy Feedback Figure 5-1 Diunduh dari Sumber : www.csub.edu/~mattaran/home2/body_content/.../Chapter%205.ppt‎

Emphasis on Enterprise-Level Strategy Chapter 5 Strategic Management and Corporate Public Affairs Emphasis on Enterprise-Level Strategy Key Questions What is the role of our organization in society? How is our organization perceived by our stakeholders? What principles or 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? http://www.microsoft.com/about/corporatecitizenship/citizenship/default.mspx @ Diunduh dari Sumber : www.csub.edu/~mattaran/home2/body_content/.../Chapter%205.ppt‎

Emphasis on Enterprise-Level Strategy Chapter 5 Strategic Management and Corporate Public Affairs Emphasis on Enterprise-Level Strategy Manifestations of Enterprise-Level Thinking Codes of ethics Codes of conduct Mission statements Values statements Corporate creeds Vision statements Policy-oriented codes and statements Diunduh dari Sumber : www.csub.edu/~mattaran/home2/body_content/.../Chapter%205.ppt‎

Emphasis on Enterprise-Level Strategy Chapter 5 Strategic Management and Corporate Public Affairs Emphasis on Enterprise-Level Strategy Johnson & Johnson Credo We are responsible to our doctors, nurses, and all others who use our products and services. We are responsible to our employees. We are responsible to our communities. We are responsible to our stockholders. Figure 5-3 Diunduh dari Sumber : www.csub.edu/~mattaran/home2/body_content/.../Chapter%205.ppt‎

Importance of Core Values Chapter 5 Strategic Management and Corporate Public Affairs Importance of Core Values Alcoa’s Core Values Integrity Safety and health Quality of work Treatment of people Accountability Profitability Diunduh dari Sumber : www.csub.edu/~mattaran/home2/body_content/.../Chapter%205.ppt‎

Importance of Core Values Chapter 5 Strategic Management and Corporate Public Affairs Importance of Core Values Herman Miller’s Core Values Inclusiveness & Diversity Supplier Diversity Design Innovation The Environment Operational Excellence Technology Diunduh dari Sumber : www.csub.edu/~mattaran/home2/body_content/.../Chapter%205.ppt‎

Enterprise-Level Strategic Thinking Chapter 5 Strategic Management and Corporate Public Affairs 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 Diunduh dari Sumber : www.csub.edu/~mattaran/home2/body_content/.../Chapter%205.ppt‎

The Strategic Management Process Chapter 5 Strategic Management and Corporate Public Affairs The Strategic Management Process Goal formulation Strategy formulation Strategy evaluation Strategy implementation Strategic control Environmental analysis Diunduh dari Sumber : www.csub.edu/~mattaran/home2/body_content/.../Chapter%205.ppt‎

Strategic Management Process and Corporate Public Policy Chapter 5 Strategic Management and Corporate Public Affairs Strategic Management Process and Corporate Public Policy Figure 5-4 Diunduh dari Sumber : www.csub.edu/~mattaran/home2/body_content/.../Chapter%205.ppt‎

Components of Strategy Formulation Chapter 5 Strategic Management and Corporate Public Affairs Components of Strategy Formulation Figure 5-5 Diunduh dari Sumber : www.csub.edu/~mattaran/home2/body_content/.../Chapter%205.ppt‎

Corporate/Society Intersections Chapter 5 Strategic Management and Corporate Public Affairs Corporate/Society Intersections Generic social issues Value chain social impacts Social dimensions of competitive context Responsive CSR Strategic CSR Diunduh dari Sumber : www.csub.edu/~mattaran/home2/body_content/.../Chapter%205.ppt‎

Strategic Integration of Business and Society Chapter 5 Strategic Management and Corporate Public Affairs Strategic Integration of Business and Society Identify the points of intersection. Choose which social issues to address. Create a corporate social agenda. Integrate inside-out and outside-in practices. Create a social dimension to the value proposition. Diunduh dari Sumber : www.csub.edu/~mattaran/home2/body_content/.../Chapter%205.ppt‎

Social Auditing and Performance Reporting Chapter 5 Strategic Management and Corporate Public Affairs Social Auditing and Performance Reporting Three Essential Steps Set standards against which performance may be compared Compare actual performance with planned performance Take corrective action to bring actual and planned performance into alignment Diunduh dari Sumber : www.csub.edu/~mattaran/home2/body_content/.../Chapter%205.ppt‎

Development of the Social Audit Chapter 5 Strategic Management and Corporate Public Affairs Development of the Social Audit Social Audit A systematic attempt to identify, measure, monitor, and evaluate an organization’s performance with respect to its social efforts, goals, and programs. Diunduh dari Sumber : www.csub.edu/~mattaran/home2/body_content/.../Chapter%205.ppt‎

The Social Audit Figure 5-6 Chapter 5 Strategic Management and Corporate Public Affairs The Social Audit Figure 5-6 Diunduh dari Sumber : www.csub.edu/~mattaran/home2/body_content/.../Chapter%205.ppt‎

Drivers for Social Performance Reports Chapter 5 Strategic Management and Corporate Public Affairs Drivers for Social Performance Reports Expectations from societal and public interests groups Globalization Diunduh dari Sumber : www.csub.edu/~mattaran/home2/body_content/.../Chapter%205.ppt‎

Global Reporting Initiative Chapter 5 Strategic Management and Corporate Public Affairs Global Reporting Initiative Global Reporting Initiative Established in 1997 with the mission of developing globally applicable guidelines for reporting on the economic, environmental, and social performance of corporations, governments, and non-governmental organizations. Diunduh dari Sumber : www.csub.edu/~mattaran/home2/body_content/.../Chapter%205.ppt‎

Public Affairs Public Affairs Chapter 5 Strategic Management and Corporate Public Affairs Public Affairs Public Affairs The management processes that focus on the formalization and institutionalization of corporate public policy. Embraces… Corporate public policy Issues and crisis management Governmental relations Corporate communications Diunduh dari Sumber : www.csub.edu/~mattaran/home2/body_content/.../Chapter%205.ppt‎

Public Affairs Management: Relationships Chapter 5 Strategic Management and Corporate Public Affairs Public Affairs Management: Relationships Strategic Management Process Corporate Public Policy Issues Management Crisis Management Public Affairs Management Part of which is Enterprise-Level Strategy Environmental Analysis Figure 5-7 Diunduh dari Sumber : www.csub.edu/~mattaran/home2/body_content/.../Chapter%205.ppt‎

The Corporate Public Affairs Function Today Chapter 5 Strategic Management and Corporate Public Affairs The Corporate Public Affairs Function Today The growing magnitude and impact of government The changing nature of the political system The recognition by business that it was being outflanked by interests counter to its own The need to be more active in politics outside the traditional community-related aspects Diunduh dari Sumber : www.csub.edu/~mattaran/home2/body_content/.../Chapter%205.ppt‎

PAC’s Definition of Public Affairs Chapter 5 Strategic Management and Corporate Public Affairs PAC’s Definition of Public Affairs Public Affairs (from PAC) The management function responsible for interpreting the corporation’s non-commercial environment and managing the corporation’s response to that environment. Diunduh dari Sumber : www.csub.edu/~mattaran/home2/body_content/.../Chapter%205.ppt‎

Public Affairs Activities Chapter 5 Strategic Management and Corporate Public Affairs Public Affairs Activities Figure 5-8 Diunduh dari Sumber : www.csub.edu/~mattaran/home2/body_content/.../Chapter%205.ppt‎

Influence on Corporate Strategy Chapter 5 Strategic Management and Corporate Public Affairs Influence on Corporate Strategy Public Affairs… Identifies/prioritizes public policy issues Comments on strategic and business plans for sensitivity to emerging political/social trends Provides forecast of political/social trends Implements the strategic and business planning process Is represented on corporate planning committee Diunduh dari Sumber : www.csub.edu/~mattaran/home2/body_content/.../Chapter%205.ppt‎

Important Public Affairs Concepts Chapter 5 Strategic Management and Corporate Public Affairs Important Public Affairs Concepts Looking out and looking in Buffering and bridging Tools and techniques The use of ethical guidelines Diunduh dari Sumber : www.csub.edu/~mattaran/home2/body_content/.../Chapter%205.ppt‎

Looking Out and Looking In Chapter 5 Strategic Management and Corporate Public Affairs Looking Out and Looking In The public affairs function serves as a window: Looking out, the organization can observe the changing environment. Looking in, the stakeholders in that environment can observe, try to understand, and interact with the organization. Diunduh dari Sumber : www.csub.edu/~mattaran/home2/body_content/.../Chapter%205.ppt‎

Buffering and Bridging Chapter 5 Strategic Management and Corporate Public Affairs 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 Diunduh dari Sumber : www.csub.edu/~mattaran/home2/body_content/.../Chapter%205.ppt‎

Tools and Techniques Environmental monitoring/scanning Chapter 5 Strategic Management and Corporate Public Affairs 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 management Diunduh dari Sumber : www.csub.edu/~mattaran/home2/body_content/.../Chapter%205.ppt‎

Ethical Guidelines for Public Affairs Chapter 5 Strategic Management and Corporate Public Affairs Ethical Guidelines for Public Affairs Diunduh dari Sumber : www.csub.edu/~mattaran/home2/body_content/.../Chapter%205.ppt‎ Figure 5-9

International Public Affairs Chapter 5 Strategic Management and Corporate Public Affairs International Public Affairs The international dimension of public affairs is expanding: Companies expanding into new markets Changes in sales in existing markets Changes in CEO priorities Changes in regulatory burden Acquisition of new business units Diunduh dari Sumber : www.csub.edu/~mattaran/home2/body_content/.../Chapter%205.ppt‎

Competencies for International Public Affairs Chapter 5 Strategic Management and Corporate Public Affairs Competencies for International Public Affairs Development of intercultural competence Knowing the impact of societal factors on public affairs Understanding local public policy institutions and processes Nation state-specific applications of PA functions Language skills Understanding global business ethics Managing international consultants, alliances, and issue partners Diunduh dari Sumber : www.csub.edu/~mattaran/home2/body_content/.../Chapter%205.ppt‎

Public Affairs Strategy Chapter 5 Strategic Management and Corporate Public Affairs Public Affairs Strategy Best corporate social performance Institution oriented Collaborative/problem-solving strategy Worst corporate social performance Independent economic franchise Individual/adversarial external affairs strategy Diunduh dari Sumber : www.csub.edu/~mattaran/home2/body_content/.../Chapter%205.ppt‎

Miles’s Model of Corporate Social Performance Chapter 5 Strategic Management and Corporate Public Affairs Miles’s Model of Corporate Social Performance Figure 5-10 Diunduh dari Sumber : www.csub.edu/~mattaran/home2/body_content/.../Chapter%205.ppt‎

More Initiatives in Public Relations Strategy Chapter 5 Strategic Management and Corporate Public Affairs More Initiatives in Public Relations Strategy Integrating public affairs into corporate strategic planning Using strategic management audits for public affairs Building a balanced performance scorecard for public affairs Managing the corporation’s reputation Using core competencies to manage performance Respond to industry differences Issue life cycle challenges Diunduh dari Sumber : www.csub.edu/~mattaran/home2/body_content/.../Chapter%205.ppt‎

Public Affairs Thinking Chapter 5 Strategic Management and Corporate Public Affairs Public Affairs Thinking Make public affairs truly relevant Develop a sense of ownership of success Make it easy for operating managers Show how public affairs makes a difference Diunduh dari Sumber : www.csub.edu/~mattaran/home2/body_content/.../Chapter%205.ppt‎

The Future of Public Affairs Chapter 5 Strategic Management and Corporate Public Affairs The Future of Public Affairs Public affairs can help to develop value-based enterprises Public affairs executives can assert themselves as thought leaders Public affairs specialists have the opportunity to seek alternative arenas of resolution globally and domestically Diunduh dari Sumber : www.csub.edu/~mattaran/home2/body_content/.../Chapter%205.ppt‎

Selected Key Terms Strategic management processes Chapter 5 Strategic Management and Corporate Public Affairs Selected Key Terms Strategic management processes Corporate public policy Corporate public affairs Strategic management Enterprise-level strategy Corporate-level strategy Business-level strategy Core values Value shift Social audit Social performance report Global Reporting Initiative Public affairs Public affairs management Issues and crisis management Public affairs departments Public affairs strategy Collaborative/problem-solving strategy Individual/adversarial external affairs strategy Diunduh dari Sumber : www.csub.edu/~mattaran/home2/body_content/.../Chapter%205.ppt‎