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The Business and Society Relationship
Chapter 1 The Business and Society Relationship The Business and Society Relationship Business and Society: Ethics and Stakeholder Management, 7e • Carroll & Buchholtz Copyright ©2009 by South-Western, a division of Cengage Learning. All rights reserved Prepared by Deborah Baker Texas Christian University Chapter 1
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Chapter 1 Learning Outcomes
The Business and Society Relationship Chapter 1 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. Categorize the major themes of the book: managerial approach, ethics, and stakeholder management.
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Chapter 1 Outline Business and Society Society as the Macroenvironment
The Business and Society Relationship Chapter 1 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 Business and Society Business Defined Society Defined The Macroenvironment Role of Pluralism Weaknesses and Strengths of Pluralism Business Versus Multiple Publics and Systems Our Special-Interest Society Business Criticism and Corporate Response Factors in the Social Environment Criticisms: Use and Abuse of Power Response: A Changing Social Environment and Social Contract Focus of the Book Managerial Approach Two Broad Classes of Social Issues The Ethics Theme Structure of the Book Summary
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The Business and Society Relationship
Chapter 1 The Business and Society Relationship The Business and Society Relationship Business scandals Business issues Broad societal concerns We have the Enrons, World Com, Health South, etc.. And yesterday: More food poisoning (Don’t eat those peanut butter crackers)… Now Little Debbie too?
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Business and Society Business Society
Chapter 1 The Business and Society Relationship Business and Society A broad group of people and other organizations, interest groups, a community, a nation. Business The collection of private, commercially oriented organizations Society Business and society interrelate in a macroenvironment as stakeholders.
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Segments of the Macroenvironment
Chapter 1 The Business and Society Relationship Segments of the Macroenvironment Segment Focus Social Demographics, lifestyles, social values Political Processes for passing of laws and election of officials. Interactions between firms, politics, and government Economic Nature and direction of the economy in which business operates Technological Changes in technological advancements taking place in society
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A Pluralistic Society Strengths Weaknesses
Chapter 1 The Business and Society Relationship A Pluralistic Society Strengths Weaknesses Prevents concentration of power Maximizes freedom of expression and action Disperses individual allegiances Creates diversified set of loyalties Provides checks and balances Pursuit of self-interest Proliferates organizations and groups with overlapping goals Forces conflicts to center stage Promotes inefficiency
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Business and Stakeholder Relationships
Chapter 1 The Business and Society Relationship Business and Stakeholder Relationships Figure 1-2
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Special-Interest Society
Chapter 1 The Business and Society Relationship Special-Interest Society Special Interests groups… make life more complex for business and government number in the tens of thousands pursue their own focused agenda are more active, intense, diverse and focused attract a significant following often work at cross purposes, with no unified set of goals
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Social Environment, Business Criticism, and Corporate Response
Chapter 1 The Business and Society Relationship Social Environment, Business Criticism, and Corporate Response Factors in the Social Environment Affluence Education Awareness Rising Expectations Rights Movement Entitlement Mentality Victimization Philosophy Business Criticism Increased Concern for the Societal Environment A Changed Social Contract Figure 1-3
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Factors in the Social Environment
Chapter 1 The Business and Society Relationship Factors in the Social Environment Affluence and education Awareness through television and the Internet Revolution of rising expectations Entitlement mentality Rights movement Victimization philosophy
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Society’s Expectations Versus Business’s Actual Social Performance
Chapter 1 The Business and Society Relationship Society’s Expectations Versus Business’s Actual Social Performance Society’s Expectations of Business Performance Social Performance: Expected and Actual 1960s s Time Social Problem Business’s Actual Social Performance Are we wrong to have rising expectations? Name a few problems experienced at any One time. Figure 1-4
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Business Criticism: Use & Abuse of Power
Chapter 1 The Business and Society Relationship Business Criticism: Use & Abuse of Power Business Power The ability or capacity to produce an effect or to bring influence 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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Levels and Spheres of Corporate Power
Chapter 1 The Business and Society Relationship Levels and Spheres of Corporate Power Macro Level Intermediate Level Micro Level Individual Level Economic Social/Cultural Individual Technological Environmental Political Levels Spheres Figure 1-5
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Elements in the Social Contract
Chapter 1 The Business and Society Relationship Elements in the Social Contract Laws or Regulations: “Rules of the Game Two-Way Shared Understandings of Each Other Society or Societal Stakeholder Groups Business Figure 1-6
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Stakeholder Management
Chapter 1 The Business and Society Relationship Focus of the Book Managerial Approach Business Ethics Stakeholder Management
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Urgent vs. Enduring Issues
Chapter 1 The Business and Society Relationship Urgent vs. 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 Business Ethics
Chapter 1 The Business and Society Relationship Business Ethics Ethics Refers to issues of right, wrong, fairness, and justice. Business Ethics Focuses on ethical issues that arise in the commercial realm.
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Stakeholders Stakeholders
Chapter 1 The Business and Society Relationship Stakeholders Stakeholders Individuals or groups with which business interacts who have a vested interest in the firm. External stakeholders Internal stakeholders
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Organization and Flow of Book
Chapter 1 The Business and Society Relationship Organization and Flow of Book Business, Society, and Stakeholders The Business and Society Relationship Corporate Citizenship: Social Responsibility, Responsiveness and Performance The Stakeholder Approach to Business, Society, and Ethics PART ONE Corporate Governance and Strategic Management Issues Corporate Governance: Foundational Issues Strategic management and Corporate Public Affairs Issues and Crisis Management PART TWO Figure 1-7
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Organization and Flow of Book
Chapter 1 The Business and Society Relationship Organization and Flow of Book Business Ethics and Management Business Ethics Fundamentals Personal and Organizational Ethics Business Ethics and Technology Ethical Issues in the Global Arena PART THREE External Stakeholder Issues Business, Government and Regulation Business’s Influence on Government and Public Policy Consumer Stakeholders: Information Issues and Responses Consumer Stakeholders: Product and Service Issues The Natural Environment as Stakeholder Business and Community Stakeholders PART FOUR Figure 1-7
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Organization and Flow of Book
Chapter 1 The Business and Society Relationship Organization and Flow of Book Employee Stakeholders and Workplace Issues Employee Stakeholder: Privacy, Safety, and Health Employment Discrimination and Affirmative Action PART FIVE Internal Stakeholder Issues CASES Assignment for Chapter 2: See if the company you work for Present or past has a CSR policy. If so what is it? Bring it to class. Be prepared to take a side. We will have a debate FOR or AGAINST CSR. Be Ready to choose your side.. Figure 1-7
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