1. Business & Society ETLW 302
Tara Ceranic Salinas, PhD

2. Public Issues: Problems for organizations and their stakeholders

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

4. 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

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

6. 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

7. 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

8. 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”

9. 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)

10. $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

11. 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

12. 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.:

13. 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)