Chapter 13 Copyright © 2008 McGraw-Hill Ryerson Ltd.1 Civil Society: Definition Civil society is composed of the voluntary, community, and social organizations or institutions that contribute to the functioning of society but are not related to or supported by government.

Chapter 13 Copyright © 2008 McGraw-Hill Ryerson Ltd.2 Non-Governmental Organizations (NGOs): Definition Any group that holds shared values or attitudes about an issue confronting society and advocates for changes relating to the issue. Usually, but not always, non-profit.

Chapter 13 Copyright © 2008 McGraw-Hill Ryerson Ltd.3 NGO Societal Issues Most Relevant to Business Animal rights Technology Economic Social development Workers’/human rights Environment Religious activism

Chapter 13 Copyright © 2008 McGraw-Hill Ryerson Ltd.4 The Case for NGOs Identifying opportunities and risks Influence on public opinion Innovation possibilities Reputation and trust by the public Expertise on specific issues Employee engagement

Chapter 13 Copyright © 2008 McGraw-Hill Ryerson Ltd.5 NGO Tactics Pressure on governments to change policies Damaging publicity Disrupt annual meetings Develop shareholder social policy resolutions Damaging physical property Picket managers’ homes Sponsor demonstrations or picket corporate locations Organize boycotts Launch letter-writing campaigns Initiate legal proceedings Develop anti-business websites Support anti-business documentaries Provide support for alternative sources of goods and services (e.g., fair-trade products)

NGO Tactics in Practice NoLogo Naomi Klein Chapter 13 Copyright © 2008 McGraw-Hill Ryerson Ltd.6

Chapter 13 Copyright © 2008 McGraw-Hill Ryerson Ltd.7 Strategies for Relationships with NGOs Proactively engage NGO Do not underestimate NGO’s influence Reversing a decision from a project shouldn’t be viewed as a defeat Sometimes selective concessions are sufficient Sometimes better to deal with “realist” NGO, not radical ones A preemptive strategy may be feasible

Chapter 13 Copyright © 2008 McGraw-Hill Ryerson Ltd.8 Partnership Relationships with NGOs Four key ingredients to a successful partnership:  Corporate and NGO leaders must show leadership  The corporation must be open to change  Must be a commitment to being committed  Partners must have a shared goal Source: Canadian Business for Social Responsibility, 2005

Chapter 13 Copyright © 2008 McGraw-Hill Ryerson Ltd.9 The Media Stakeholder Dealing with the media is part of managers’ responsibilities Legitimacy of business is dependent upon public’s knowledge of events and issues Information spread through newspapers, periodicals, radio, television, and social media (i.e., online technologies)

Chapter 13 Copyright © 2008 McGraw-Hill Ryerson Ltd.10 The Interaction Between Business and the Media Business complaints: Reporters not sufficiently knowledgeable Only interested in “bad” news Inherent bias Do not respect “off-the- record” comments Media complaints: Businesspeople dishonest Use excuse that they are only accountable to shareholders Overreact to reporting process

Chapter 13 Copyright © 2008 McGraw-Hill Ryerson Ltd.11 Ownership and the Media Business enterprises now own and operate major media outlets. Issues:  Newspaper monopolies  Interlocking ownership between print and broadcasting media  Licensing process favours some corporations over others  Newspaper chains more focused on profits than professional journalism

Chapter 13 Copyright © 2008 McGraw-Hill Ryerson Ltd.12 Changes in Media Attitudes Toward Business Now increased coverage of business and CSR in the media Now more favourable approach to business coverage Business more prepared to work with the media The media as a stakeholder influences business, but business can also influence the media

Chapter 13 Copyright © 2008 McGraw-Hill Ryerson Ltd.13 Policy Development Institutions (Think Tanks) An organization that researches and analyzes various important social, economic, and political issues confronting society Funded by government, corporations, trade unions, wealthy individuals, universities Examples: C.D. Howe Institute, Conference Board of Canada, Fraser Institute

Chapter 13 Copyright © 2008 McGraw-Hill Ryerson Ltd.14 Religious Institutions Influence of religion on business:  The impact on managerial decision making  The existence of businesses supplying religious goods and services  Spirituality in the workplace  Corporate response to religious activism

Chapter 13 Copyright © 2008 McGraw-Hill Ryerson Ltd.15 Educational Institutions Business now involved in the educational system from kindergarten to university Two distinct approaches:  Mutually beneficial partnership; or  Educational institutions should be unencumbered from corporate influence