1. Key Topics Ch 5 & 6
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2. Today’s Class Oral presentation schedule and instruction
Instruction for case discussion thru BB
No participation  No points
Cover Ch 5 & 6 (foundation chapters: 1-6)
Essential topics but fragmented (many different topics)
Case 15 & 32 for in-class case discussion
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3. Individual Oral Presentation
Online course after today’s class. So, only come for your presentation
Review your presentation schedule on the class website - check your date!
Let me know if you are not on the schedule
All students in AVC on Thursday, June 29
It will be graded based on the “Rubric” and the instruction on the class website
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4. Individual Oral Presentation con’t
10 minutes for your presentation (+,_ 30 sce).
less than 9 minutes and 30 seconds (penalty)
more than 10 minutes and 30 seconds (penalty)
Only one media file is allowed
e.g., video clip from YouTube Video
length of a media file must be between 1:00 and 1:30 minutes. Otherwise, penalized.
Make sure NOT to read from your full report or slides (penalty).
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5. Case Discussion Thru BB
Instruction on the website
Make sure to use your group discussion board.
Make sure to discuss before the due date
Your answers must be posted by the end (11:59pm) of each due date.
Due dates: June 13, June 15, and June 20
Any postings after the due date will receive zero points.
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6. Case Discussion Thru BB con’t
Post your opinion for each question first based on facts from the case.
It must be minimum quarter page long based on single-space with one inch margin (top, bottom, left, & right) and Times New Roman 12 point-font size.
Then, post your reply to other’s opinion.
that is, you must assess other’s opinion
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7. Thoughts about Future…
Future Stakeholder
IBM Watson as Cancer Specialist (2:50)
Already cancer centers all over the world
Future of Grocery & Society
Amazon Go (1:49)
Plan to open 2000 stores….
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8. Business & Society Concerns
Where do we draw a line when it comes to disruptive technologies gradually replacing human labor?
Should governments take measures to protect our job market (and citizens)?
Should machines pay taxes?
Or just turn a blind eye allowing ‘free-market’ forces to take over and dominate?  
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9. Key Topics Strategic Management Corporate Public Policy
Strategic Management Process
Public Affairs as a Part of Strategic Management
Issue Management
Risk Management
Crisis Management
The Relationship Between Issue, Risk, and Crisis Management
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10. Strategic Management Highest level of overall planning
is the continuous planning, monitoring, analysis and assessment of all that is necessary for an organization to meet its goals & objectives and to position a firm to succeed in its market environment.
That is, strategic management incorporates environmental, ethical, and social concerns as well.
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11. Strategic Management Process
Strategic management consists of different level of strategies (e.g., enterprise level)
is simply defined as the way an organization defines and implements its strategies.
In detail, it is a continuous process in which the organization decides to implement a selected strategies, details the implementation plan and keeps on appraising the progress & success of implementation through regular assessment.
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12. Strategic Management Process (con’t)
Components of Strategic Management Process
Strategic Management Process (4:35)
Website: Strategic Management Process
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13. Four Key Strategy Levels (in SM)
Enterprise-level strategy -
What is the role of our firm in society?
Corporate public policy must be embedded
Corporate-level strategy -
What business should we be in?
Business-level strategy -
How should we compete in this business or industry?
Functional-level strategy -
How should we integrate subfunctional activities and relate them to changes in our functional areas?
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14. The Hierarchy of Strategy Levels: Continuous Process
Corporate-Level Strategy
Business-Level Strategy
Functional-Level Strategy
Enterprise-Level Strategy
Feedback
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15. Emphasis on Enterprise-Level Strategy (ELS)
What is the role of our organization in society?
How is our organization perceived by our stakeholders (e.g., reputation)?
What principles or values does our organization represent?
What obligations do we have to society at large, including to the world?
What are the broad implications for our current mix of businesses and allocation of resources?
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16. Other Additional ELS Emphasis's
Establishment of public-policy committees -
Sustainability
Ethics
CSR, Corporate Citizenship, etc.
Establishment of a Public affairs Office -
Included in strategic decision-making
Identification of social or public issues –
Integrated into strategic management processes
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17. Corporate Public Policy
Part of the strategic management of the organization that focuses specifically on the firm's posture, stance, or position regarding the public, social and ethical aspects of stakeholders and corporate functioning.
Thus, it must be fit into enterprise-level strategy.
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18. The Concept of Corporate Public Policy
Corporate public policy is a firm’s posture, stance, strategy or position regarding the environmental, social, global, and ethical aspects of stakeholders and corporate functioning
Affirmative Action
Sexual harassment
Product safety
Employee privacy
Environmental Sustainability
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19. Corporate Public Policy includes..
Corporate Social Responsibilities
Corporate citizenship
Sustainability
Stakeholder issues
Corporate governance
Business ethics
Privacy issues
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20. This linkage can be better understood when we think based on:
Relationship of Business Ethics in Corporate Public Policy to Strategic Management
To promote business ethics in corporate public policy, it should be linked to corporate strategy.
This linkage can be better understood when we think based on:
Four key strategy
Strategic management process
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21. Public Affairs Defined -
Also, part of the strategic management and embrace corporate public policy
“Public affairs represents an organization's efforts to monitor and manage its business environment.
It combines government relations, communications, issues management and corporate citizenship strategies to influence public policy, build a strong reputation and find common ground with stakeholders.”
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22. Public Affairs As a Part of Strategic Management
Strategic Management Process
Corporate Public Policy
Issues Management
Crisis Management
Public Affairs Management (1:35)
Part of which is
Enterprise-Level Strategy
Environmental Analysis
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23. Issue, Risk & Crisis Management
Issue Mgmt. – a gap between a firm’s actions and stakeholder’s expectations
Important of all and confusing of all
More straightforward than issue mgmt.
Risk Mgmt. – a potential issue that may or may not occur
Crisis Mgmt. – an issue that has escalated to a critical state
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24. Relationships Between Issue, Risk, and Crisis Management
Goal: To be effective issue, risk and crisis management, firms must close the gap between the firms’ situation and its stakeholders’ expectations.
Many of the crises firms face arise out of issue categories (so, firms should be monitoring and prioritizing through issue management systems).
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25. Relationships Between Issue, Risk, and Crisis Management con’t
Effective issue management may enable the firm to avoid a crisis, or minimize its impact, and is vital to post-crisis management.
On the other hand, effective risk management is keep issues from arising
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26. Issue Definition
A gap between what stakeholder’s expectation and what the firm is doing.
The gap typically involves debate, controversy, or differences of opinion that must be resolved.
At some point, the organization must make a decision on the matter, but that does not mean the issue can be resolved 100%.
Once an issue becomes public, its resolution becomes increasingly more difficult.
Issues are ongoing, and require ongoing responses.
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28. Analysis of Issues - Which stakeholder is affected by the issue?
Who started the ball rolling? (Historical view)
Who is now involved? (Contemporary view)
Who will get involved? (Future view)
Who is in a position to exert influence?
Who has expressed opinions on the issue?
Who should care about the issue?
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29. Model of Issues Management Process
Identification of Issues
Analysis of Issues
Prioritization of Issues
Formulation of Issue Responses
Implementation of Issue Responses
Evaluation, Monitoring, and Control of Results
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30. The Nature of Crises
A crisis is an extreme event that may threaten organization’s existence.
Damage: physical, reputation, financial, etc.
An organizational crisis is a low-probability, high-impact event that threatens the viability of the organization
Characterized by ambiguity of cause, effect, and means of resolution, as well as by a belief that decisions must be made swiftly.
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31. Types of Crises Economic Physical Personnel Criminal Information
Reputational
Natural disasters
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32. Relationships Between Issue, Risk, and Crisis Management
Difference Between Issues & Crisis Management? (2:40)
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33. Risk Management (1 of 2) How to manage risks and issues (2:10)
Risk management concerns potential issues; it addresses an issue that has not yet occurred, and tries to keep the issue from arising.
A “rules” approach to risk management can help prevent internal risks, but not those that stem from firm strategy or risks in the external environment.
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34. Risk Management (2 of 2)
A new framework for Risk management divides it into three categories:
Preventable risks – internal risks that offer no strategic benefit (breakdown of CSUB’s admission processes).
Strategic risks – risks taken to achieve greater returns (BP’s deep drilling)
External risks – external risks that cannot be controlled (natural disasters and economic shocks)
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35. Relationships Between Issue, Risk, and Crisis Management
How to manage risks and issues (2:10)
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