1. Chapter 2 Organizations: Their Political, Structural and Economic Environment
By: Arnica Trazo

2. Topics Political Environment of Business
Corporate Social Responsibility and Organizations
Contemporary Social Issues
Ethical Behavior in the Enterprise
Role of the State and Its Impact on Business Organizations

3. Objectives: Review the definition of economic system
Discuss the impact of political environment to a company’s operating system
Define Corporate Social Responsibility (CSR)
Elaborate contemporary Social Issues
Enumerate the six foundation of trust upon which ethical practice is built

4. Economic System -
consists of the production, distribution or trade, and consumption of limited goods and services by different agents in a given geographical location. The economic agents can be individuals, businesses, organizations, or governments. Transactions occur when two parties agree to the value or price of the transacted good or service, commonly expressed in a certain currency.

5. Political Environment of Business
Political environment impacts company’s international operating activities.
Political climate affects marketability of the product, inflow of investment and valuation of share price
The political environment includes all laws, government agencies, and lobbying groups that influence or restrict individuals or organizations in the society.

6. Political Environment
Philosophy of political parties
Nature of bureaucracy
The foreign policy
The political stability
Ideology of the party in power
Political Environment

7. Corporate Social Responsibility and Organizations (CSR)
According to Carroll and Buchholtz, CSR is defined as the economic, legal, ethical and discretionary expectations that society has of organizations at a given point in time.

8. Economic Responsibilities – refer to society’s expectation that organizations will produce goods and services that are needed and desired by customers and sell those goods and services at a reasonable price. Organizations are expected to be efficient, profitable and to keep shareholder interests in mind.
Legal Responsibilities – relate to the expectation that organizations will comply with the laws set down by society to govern competition in the marketplace. Legal responsibilities include consumer and product laws, environmental laws and employment laws.

9. Ethical Responsibilities – concern societal expectations that go beyond the law
Discretionary Expectations

10. Ethical Responsibility Ecological Responsibility
Economical
Responsibility
Ethical Responsibility
Ecological Responsibility

11. Contemporary Social Issues
- Corporations deal with various social issues and problems both directly related to their operation or not.
Three Contemporary Social Issues that are of major concern:
Environmental
Global
Technological

12. Ethical Behavior in the Enterprise
Six Foundation of Trust upon which ethical business practice is built:
Character
Ethics
Integrity
Laws
Morals
Values

13. Role of Government in Business
Private sector is the chief economic force of every country.
Constitution gives the government the power to regulate some commerce.
Consumer Protection
Contract Enforcement
Employee Protection
Environmental Protection
Investor Protection
Permission
Taxation

14. Role of Government in Business

15. Role of Government in Business

16. Role of Government in Business

17. Role of Government in Business

18. Role of Government in Business

19. Role of Government in Business

20. Role of Government in Business

21. Role of Government in Business