Chapter 4-1 Chapter 4 BUSINESS & SOCIETY Ethics and Stakeholder Management Carroll & Buchholtz 6e Business and Society: Ethics and Stakeholder Management, 6e Carroll & Buchholtz Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Prepared by Deborah Baker Texas Christian University  STRATEGIC MANAGEMENT and PUBLIC AFFAIRS

Chapter 4-2 Chapter 4 Learning Outcomes 1. Explain the concept of corporate public policy and relate it to strategic management. 2. Articulate the four major strategy levels and explain enterprise-level strategy. 3. Relate the notion of social audits to strategic control. 4. Identify the major activities of public affairs departments. 5. Highlight trends with respect to the public affairs function. 6. Link public affairs with organizational characteristics. 7. Indicate how public affairs may be incorporated into every manager’s job.

Chapter 4-3 Chapter 4 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  Evolution of the Corporate Public Affairs Function  Current Perspectives on Corporate Public Affairs  Public Affairs Strategy  Incorporating Public Affairs Thinking into All Managers’ Jobs  Summary

Chapter 4-4 The Concept of Corporate Public Policy Corporate public policy focuses on the firm’s posture, stance, strategy or position regarding the public, social and ethical aspects of stakeholders and corporate functioning Corporate public policy focuses on the firm’s posture, stance, strategy or position regarding the public, social and ethical aspects of stakeholders and corporate functioning AIDS in Workplace Affirmative Action Sexual harassment Product safety Employee privacy

Chapter 4-5 Four Key Strategy Levels Corporate-Level Strategy Business-Level Strategy Functional-Level Strategy Enterprise-Level Strategy “What business 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?”

Chapter 4-6  benchmarking  business-level strategy  collaborative/problem- solving strategy  corporate-level strategy  corporate public affairs  corporate public policy  enterprise-level strategy  environmental auditing  functional-level strategy  Global Reporting Initiative (GRI)  individual/adversarial external affairs strategy  issues and crisis management  public affairs  public affairs department  public affairs management  public affairs strategy  social audit  social performance report  strategic management  strategy management processes  value shift Selected Key Terms