1. Archie B. Carroll Ann K. Buchholtz
Business & Society Ethics, Sustainability, and Stakeholder Management Eighth Edition
Archie B. Carroll
Ann K. Buchholtz
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2. Chapter 1 The Business and Society Relationship
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Learning Outcomes
Characterize business, society, and their interrelationships.
Describe pluralism and identify its attributes, strengths, and weaknesses.
Clarify how our pluralistic society has become a special-interest society.
Identify, discuss, and illustrate the factors leading up to business criticism.
Single out the major criticisms of business and characterize business’s general response.
Explain the major themes of the book: managerial approach, ethics, sustainability and stakeholder management.
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Chapter Outline
Business and Society
Society as the Macroenvironment
A Pluralistic Society
A Special-Interest Society
Business Criticism and Corporate Response
Focus of the Book
Structure of the Book
Summary
Key Terms
Discussion Questions
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Business and Society
Business
The collection of private, commercially oriented organizations ranging in size from sole proprietorships to corporate giants.
Society
A community, a nation, or a broad group of people with common traditions, values, institutions, and collective activities and interests.
Business and society interrelate in a macroenvironment as stakeholders.
A macroenvironment is the complete societal context in which the organization resides.
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6. Conceptualizing the Macroenvironment
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7. Segments of the Macroenvironment
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Pluralism
Pluralism
A diffusion of power among a society’s many groups.
Involves decentralization and diversity of power concentration.
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9. Special Interest Groups
Make life more complex for business and government
Can number in the tens of thousands in some societies
Pursue their own focused agendas
Are active, intense, diverse and focused
Can attract a significant following
Often work at cross purposes, with no unified goals
A special-interest society is pluralism taken to the extreme
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10. Factors in the Social Environment
Affluence and education
Create higher expectations of major institutions.
Growing public awareness through television, movies, and the Internet.
Revolution of rising expectations
Creates a social problem, a gap between societal expectations for social conditions and social realities.
Entitlement mentality
Rights movement
Victimization philosophy
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11. Business Criticism: Use and Abuse of Power
Business Power
The ability or capacity to produce an effect or to bring influence to bear on a situation or people.
Iron Law of Responsibility
In the long run, those who do not use power in a manner society considers responsible will tend to lose it.
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12. Elements in the Social Contract
Laws or Regulations:
“Rules of the Game”
Shared Understandings of Each Other
Society or Societal
Stakeholder Groups
Business
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13. Stakeholder Management
Focus of the Book
Managerial Approach
Business Ethics
Stakeholder Management
Sustainability
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Managerial Approach
What changes are occurring or will occur in society’s expectations of business that mandate business’s taking the initiative with respect to particular societal or ethical problems?
Did business, in general, or our firm, in particular, have a role in creating these problems?
Can we reduce broad social problems to a size that can be effectively addressed from a managerial point of view?
What are the specific problems, alternatives for solving these problems, and implications for management’s approach to dealing with social issues?
How can we best plan and organize for responsiveness to socially related business problems?
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15. Urgent versus Enduring Issues
Short-Term
Issues or crises arise on the spur of the moment and management must formulate quick responses.
Long-Term
Issues or problems are a long-term concern and management must develop a thoughtful organizational response.
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Business Ethics
Ethics
Refers to issues of right, wrong, fairness, and justice.
Business Ethics
Focuses on ethical issues that arise in the commercial realm.
Ethics questions permeate business’s activities as it attempts to interact with major stakeholder groups.
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Sustainability
Sustainable development meets the needs of the present without compromising the ability of future generations to meet their own needs.
Has become one of businesses’ most pressing mandates.
Includes the following criteria:
Environmental
Economic
Social
Concerns businesses’ abilities to survive and thrive over the long term.
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Stakeholders
Stakeholders
Individuals or groups with which business interacts and who have a vested interest in the firm.
External stakeholders
Internal stakeholders
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Key Terms
Affluence
Business
Business ethics
Business power
Society
Economic environment
Education
Entitlement mentality
Ethics
Iron Law of Responsibility
Macroenvironment
Managerial approach
Pluralism
Political environment
Revolution of rising expectations
Rights movement
Social contract
Social environment
Social problem
Society
Special-interest society
Stakeholder management
Stakeholders
Sustainability
Technological environment
Victimization philosophy
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