1. SCHOOL OF BUSINESS ADMINISTRATION Business & Society ETLW 302D Tara Ceranic Salinas, PhD

2. SCHOOL OF BUSINESS ADMINISTRATION Public Issues: Problems for organizations and their stakeholders

3. SCHOOL OF BUSINESS ADMINISTRATION Business and Public Issues Why do public issues matter? No organization can ignore legitimate stakeholders (or illegitimate stakeholders in some cases)

4. SCHOOL OF BUSINESS ADMINISTRATION Public Issues Performance Expectation Gap Public issues often develop in predictable ways and companies can better prepare themselves by understanding the life cycle of these issues

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6. Public Issue Life Cycle Phase 1: Changing Stakeholder Expectations Phase 2: Political Action Phase 3: Formal Government Action Phase 4: Legal Implementation

7. SCHOOL OF BUSINESS ADMINISTRATION Strategic Approach to Public Issues Company must think proactively about how its plans will affect stakeholders (positively/negatively) Issues should be managed carefully and consistently An organization’s actions must be linked to its values and its performance must be linked with commitments

8. SCHOOL OF BUSINESS ADMINISTRATION What are some of the biggest public issues companies face today?

9. SCHOOL OF BUSINESS ADMINISTRATION Minimum Wage as a public issue

10. SCHOOL OF BUSINESS ADMINISTRATION Peter Schiff Walmart minimum wage increase Is minimum wage an ethical issue?

11. SCHOOL OF BUSINESS ADMINISTRATION Federal minimum wage = $7.25/hour (July 2015) = $15,000/YEAR = $3,000 below the poverty line Poverty line for family of 4 = $23,050 Original minimum wage =.25/cents (October 1938)

12. SCHOOL OF BUSINESS ADMINISTRATION Minimum wage in CA San Diego = $9.00/hour as of February, 2015 $11.50 by 2017 LA = $15/hour by 2020 SF = $15/hour by 2018

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16. Next Class Crisis management and consumer protection