1. Business ethics and business policy Introduction to the field

2. Business, Society, and the 21st Century key point: success tied to stakeholders

3. key point: success tied to B/G/S relationships u the Exxon example (text) u GM example (text and class) u Peregrine example (class)

4. What is B/G/S relationship based on? u Market capitalism model u Dominance model u Dynamic forces model u Stakeholder model

5. Exxon Valdez u World’s biggest company u Company’s biggest ship u Who is the Captain Hazelwood???

6. Business Ethics and Poliicy WHY DID GM LOSE GROUND??

7. neglect of stockholders? according to this course, not that simple neglect of stakeholders

8. GM

9. outside forces GM ignored - eg: (ask yourself: why important?) Rosa XXXXX Sheik XXXXXX Ralph XXXXX Eiji XXXXXX Rachel XXXXXX Ross XXXXX John Z. XxXXXXXX

10. stakeholder concept A key idea of course. not just stockholders!

11. Employees (Delorean) Competitors (Toyota, etc.) Etc. Suppliers (oil companies?) GM Customers (wine and cheese types like you and me!) Primary stakeholders???

12. General public (wine & cheese types again!) Foreign Governments (Yamani..) Social activists (Ralph, Rosa, Rachel) GM Secondary stakeholders??? Media (TV, including C-Span) Communities (Flint Michigan)

13. Shaping B.S. relations u 1. Strategic, social challenges u 2. Ethical expectations, values u 3. Global changes u 4. Changing role of government u 5. Ecology, resource concerns

14. Six major forces shaping business-society relations Business and its stakeholders Global economic change Changing role of government and public policy Strategic and social challenges Technology and new knowledge Ecological and natural resource concerns Ethical expectations and public values 1-7

15. Who are the stakeholders in YOUR firm?? u Who are the stakeholders in INLAND NATIONAL BANK????

16. Employees Competitors. Suppliers Primary stakeholders??? INB Customers

17. Communities General Public Foreign Governments Social Activists INB Secondary stakeholders??? Media

18. Note…. u distinction between primary and secondary not clear, not distinct

19. Peregrine

20. Poor Peregrine! u What is (was) Peregrine? u What went wrong? u Who got hurt?

21. banks, creditors general public (economy suffers) clients, investors government: less income,more demand taxi firms in Indonesia HKUST students who are now poorer worried German investors Asia Inc., and others on list poor Suharto and family Peregrine employees, families stockholders, partners competitors (more business, less confidence)

22. Peregrine & stakeholder model u Includes many of typical groups leaves out only a few: u religious groups u environmentalists u minorities u the poor u labor unions u political parties, groups

23. Basic BGS models u market capitalism? OK but a bit simplistic u dominance model: some truth. B&G do run many things, u especially in Indonesia u and in China u and in USA, and... u dynamic forces model: text favorite u stakeholder model: JFH favorite??

24. today’s business environment: u more historical factors u China: no respect for business u 1949: Mao abolishes business –HK thrives as outlet for China u 1978: Deng OKs rural food sales

25. today’s business environment (continued): u historical factors continued u 1978: Deng OKs rural food sales u no turning back! every year... u HK thrives as port for China u 1997: HK now key Chinese city

26. the pressure is on: expectations gap!!! strategic & social challenges ethical expectations global changes governments changing too environment

27. end of Business Environment u Reflect on stakeholder idea: Peregrine Investments Holdings Ltd NEXT: u how Web Assignments will work u begin term paper planning

28. WEB ASSIGNMENT 1 COMING SOON u OK to practice now! u OK to answer now but read chapters 5 and 6 first

29. term paper planning u in teams of two, invent two possible topics, and two possible TITLES u you are NOT obligated to keep these titles u you are NOT obligated to keep these topics

30. web assignment may look like: u Are corporations GOOD or EVIL? Or, in terms from text, do corporations follow idea of corporate social responsibility? u family name begin with A to L: in 150 to 250 words, convince us that corporations DO take social responsibility seriously, Give a HK (or Asia) example to help prove your point. u family name begin with M to Z: in 150 to 250 words, convince us that corporations DO Not take social responsibility seriously, Give a HK (or Asia) example to help prove your point.

31. web assignment #1 u great to include NAME of example u great to include SOURCE if possible u great to include WWW link if you can do it! u TIME TO DO IT!!! have fun!