1. Chapter 5 Strategic Management and Corporate Public Affairs
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2. The Concept of Corporate Public Policy
Corporate public policy is a firm’s posture, stance, strategy or position regarding the public, social, global, and ethical aspects of stakeholders and corporate functioning
Affirmative Action
Sexual harassment
Product safety
Employee privacy
Environmental Sustainability
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3. Corporate Public Policy and Strategic Management
Refers to the overall management process that focuses on positioning the firm relative to its market environment.
Corporate public policy
The part of overall strategic management that focuses specifically on the public, ethical, and stakeholder issues the firm faces.
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4. Emphasis on Enterprise-Level Strategy
For what do we stand?
Key Questions:
What is the role of our organization in society?
How is our organization perceived by our stakeholders?
What principles/values does our organization represent?
What obligations do we have to society at large, including the world?
What are the broad implications for our current mix of businesses and allocation of resources?
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5. Manifestations of Enterprise-Level Thinking
Codes of ethics
Codes of conduct
Mission statements
Values statements
Corporate creeds
Vision statements
Policy-oriented codes and statements
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6. © 2012 South-Western, a part of Cengage Learning
Core Values
Core Values
The deeply ingrained principles that guide all of a company’s actions and decisions.
They serve as cultural cornerstones.
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7. Importance of Core Values
Apple’s Core Values
Focus on making great products
Innovation
Focus on the few projects that are truly meaningful
Collaboration
Never settle for less than excellence
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8. Enterprise-Level Strategic Thinking
Establishment of committees
Public policy/issues
Ethics
Governance
Social audit
Corporate philanthropy
Corporate citizenship
Ad hoc committees
Public affairs office
Identification/analysis of social or public issues
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9. The Strategic Management Process
Goal formulation
Strategy formulation
Strategy evaluation
Strategy implementation
Strategic control
Environmental analysis
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10. Components of Strategy Formulation
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11. Strategic Corporate Social Responsibility
Responsive CSR
Addresses generic social impacts through good corporate citizenship and value chain social impacts by mitigating harm.
Strategic CSR
Transforms value chain social impacts into activities that benefit society while reinforcing corporate strategy.
Advances strategic philanthropy that leverages competitiveness.
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12. © 2012 South-Western, a part of Cengage Learning
Public Affairs
Public Affairs
The management processes that focus on the formalization and institutionalization of corporate public policy.
Embraces
Corporate public policy
Issues and crisis management
Governmental relations
Corporate communications
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13. Buffering and Bridging
Two types of corporate public affairs activities
Activities that buffer the organization from the social and political environment.
Activities that bridge the organization with that environment.
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14. © 2012 South-Western, a part of Cengage Learning
Tools and Techniques
Environmental monitoring/scanning
Working with the grassroots
Constituency building
Issue advertising
Lobbying
Political action committees
Corporate social audits
Web activism
Coalitions and alliances
Community investment
Stakeholder management
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15. Competencies for International Public Affairs
Development of intercultural competence
Knowing the impact of societal factors on public affairs
Understanding local public policy institutions and processes
Nation state-specific applications of PA functions
Language skills
Understanding global business ethics
Managing international consultants, alliances, and issue partners
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