1. Business and Community Stakeholders
Chapter 16
Business and Community Stakeholders
Business and Community Stakeholders
Chapter 16
Prepared by Deborah Baker Texas Christian University
Business and Society: Ethics and Stakeholder Management, 7e • Carroll & Buchholtz Copyright ©2009 by South-Western, a division of Cengage Learning.  All rights reserved

2. Chapter 16 Learning Outcomes
Business and Community Stakeholders
Chapter 16 Learning Outcomes
Identify and discuss two basic ways of business giving.
Discuss reasons for community involvement, various types of community projects, and management of community stakeholders.
Explain the pros and cons of corporate philanthropy, provide a brief history of corporate philanthropy, and explain why and to whom companies give.
Differentiate between strategic philanthropy, cause-related marketing, and cause branding. 2

3. Chapter 16 Learning Outcomes
Business and Community Stakeholders
Chapter 16 Learning Outcomes
Characterize the nature of, magnitude of, reasons for, and impacts of outsourcing and business or plant closings.
Address steps that a business or plant might take before a decision to close is made.
Identify strategies that a business or plant might employ after a decision to close has been made. 2

4. Chapter 15 Outline Community Involvement
Business and Community Stakeholders
Chapter 15 Outline
Community Involvement
Corporate Philanthropy or Business Giving
The Loss of Jobs
Summary
Key Terms
Discussion Questions
Community Involvement
Various Community Projects
Managing Community Involvement
Community Involvement of Foreign-Based Firms
Joint Community Involvement Efforts
Corporate Philanthropy or Business Giving
A Brief History of Corporate Philanthropy
Giving to the “Third Sector”—the Nonprofits
Managing Corporate Philanthropy
Business and Plant Closings
Reasons for Plant Closings
What Should Business’s Do?
Community Lawsuits
Summary

5. Introduction to Chapter 15
Business and Community Stakeholders
Introduction to Chapter 15
This chapter focuses on community involvement and corporate philanthropy as community stakeholder issues. Additionally, the topic of outsourcing and business or plant closings as community stakeholder concerns are explored.

6. A Company’s Positive Impact
Chapter 16
Business and Community Stakeholders
A Company’s Positive Impact
Community Involvement
Corporate Philanthropy

7. Standards of Excellence in Corporate Community Involvement
Chapter 16
Business and Community Stakeholders
Standards of Excellence in Corporate Community Involvement
Leadership
Issues Management
Relationship Building
Strategy
Accountability
Infrastructure
Measurement
Figure 16-1

8. Benefits of Employee Volunteer Programs
Chapter 16
Business and Community Stakeholders
Benefits of Employee Volunteer Programs
Improving employee skills and training
Encouraging employee teamwork
Developing leadership skills
Developing the local labor pool
Recruiting and retaining employees
Improving corporate reputation

9. Corporate Community Involvement
Chapter 16
Business and Community Stakeholders
Corporate Community Involvement
Figure 16-2

10. Developing a Community Action Plan
Chapter 16
Business and Community Stakeholders
Developing a Community Action Plan
Know the community
Know the company’s resources
Select projects
Monitor projects

11. Philanthropy Philanthropy
Chapter 16
Business and Community Stakeholders
Philanthropy
Philanthropy
A desire to help mankind as indicated by acts of charity; love of mankind. @

12. Categories of Corporate Contributions Programs
Chapter 16
Business and Community Stakeholders
Categories of Corporate Contributions Programs
The Nondonor
The “What’s In It for Us” Donor
The “Company President Believes in Art Support” Donor
The “We Are a Good Citizen” Donor
The “We Care” Donor
Figure 16-3

13. To Whom Do Companies Give?
Chapter 16
Business and Community Stakeholders
To Whom Do Companies Give?
Major Categories of Recipients
Health and human services
Education
Civic and community activities
Culture and the arts

14. Managing Corporate Philanthropy
Chapter 16
Business and Community Stakeholders
Managing Corporate Philanthropy
Base giving on business resources and capabilities to enhance philanthropic outcomes
Focus on philanthropy that will enhance corporate profitability and also make a difference in the community

15. Factors Influencing Corporate Giving Priorities
Chapter 16
Business and Community Stakeholders
Factors Influencing Corporate Giving Priorities
Aligning closely with business needs
Limits on budgetary resources
Directions from the CEO and / or the Board
Strengthening the brand
Costs of responding to natural disasters
Being more responsive to stakeholders
Changes in the workforce
Other
Employee needs / requests
Community needs
Global giving
Figure 16-4

16. Community Partnerships
Chapter 16
Business and Community Stakeholders
Community Partnerships
Strategic Philanthropy
An approach by which corporate giving and philanthropic endeavors are designed to fit with the firm’s mission, goals, or objectives.

17. Strategic Philanthropy
Chapter 16
Business and Community Stakeholders
Strategic Philanthropy
Make as direct a contribution as possible to the financial goals of the firm.
Bring contribution programs into sharper alignment with business endeavors.
Ensure that philanthropy is well planned and managed.

18. Implementation of Strategic Philanthropy
Chapter 16
Business and Community Stakeholders
Implementation of Strategic Philanthropy
Integrate philanthropy into strategic goals and company mission.
Connect philanthropy with other community involvement programs.
Budget appropriately for philanthropy.
Ensure effective program infrastructure.
Formalize policies and guidelines for funding.
Involve employees in philanthropy-related activities.
Incorporate stakeholder communication.
Develop long-term business / nonprofit partnerships.
Figure 16-5

19. Cause-Related Marketing
Chapter 16
Business and Community Stakeholders
Cause-Related Marketing
Cause-Related Marketing
The direct link of a business’s product or service to a specified charity. “Quid pro quo strategic philanthropy.”
Businesses enhance their public image and increase sales
Nonprofit organizations get cash as well as visibility

20. Cause-Related Marketing
Chapter 16
Business and Community Stakeholders
Cause-Related Marketing
Cause Branding
A longer term commitment than cause-related marketing.
Related more directly to the firm’s line of business and the target audience.

21. The Loss of Jobs Outsourcing
Chapter 16
Business and Community Stakeholders
The Loss of Jobs
Outsourcing
The relocation of business processes to a different company.

22. Offshore Outsourcing Practices
Chapter 16
Business and Community Stakeholders
Offshore Outsourcing Practices
Go offshore for the right reasons
Choose your model carefully
Get your people on board
Be prepared to invest time and effort
Treat your partners as equals

23. Business and Plant Closings
Chapter 16
Business and Community Stakeholders
Business and Plant Closings
Diversification
Before Deciding to Close
New ownership
New owner
Employee ownership

24. Business and Plant Closings
Chapter 16
Business and Community Stakeholders
Business and Plant Closings
After Deciding to Close
Conduct a community impact analysis
Provide advance notice
Provide transfer, relocation, and outplacement benefits
Phase out the business gradually
Help attract replacement industry

25. Business and Plant Closings
Chapter 16
Business and Community Stakeholders
Business and Plant Closings
Community Impact
What groups will be affected?
How will they be affected?
What is the timing of initial and later effects?
What is magnitude of the effect?
What is the duration of the impact?
To what extent will the impact be diffused in the community?

26. Business and Plant Closings
Chapter 16
Business and Community Stakeholders
Business and Plant Closings
Worker Adjustment and Retraining Notification Act
Requires firms with 100 or more workers to provide 60 days advance notice before shutting down or conducting layoffs

27. Business and Plant Closings
Chapter 16
Business and Community Stakeholders
Business and Plant Closings
Directional support
Tactical support
Informational support
Emotional support
The Needs of Survivors

28. Key Terms Community involvement Community action program Philanthropy
Chapter 16
Business and Community Stakeholders
Key Terms
Community involvement
Community action program
Philanthropy
Third sector
Strategic philanthropy
Cause-related marketing
Cause branding
Outsourcing
Offshore outsourcing
Offshoring
Employee owned
Worker Adjustment and Retraining Notification Act (WARN)