1. © The McGraw-Hill Companies, Inc., 2002 All Rights Reserved. McGraw-Hill/ Irwin 1-1 Business and Society POST, LAWRENCE, WEBER The Corporation and Its Stakeholders Chapter 1

2. © The McGraw-Hill Companies, Inc., 2002 All Rights Reserved. McGraw-Hill/ Irwin 1-2 A range of levels for understanding the business-government-society relationship Figure 1-1a Broad conceptual level Society/Culture Economy/ Business Politics/ Government

3. © The McGraw-Hill Companies, Inc., 2002 All Rights Reserved. McGraw-Hill/ Irwin 1-3 A range of levels for understanding the business-government-society relationship Figure 1-1b Intermediate level Stakeholders Industry in general; industry sectors Governments: national, state, local, foreign

4. © The McGraw-Hill Companies, Inc., 2002 All Rights Reserved. McGraw-Hill/ Irwin 1-4 A range of levels for understanding the business-government-society relationship Figure 1-1c Practical, applied management level Primary and secondary stakeholders Corporation X Specific government agencies and actors

5. © The McGraw-Hill Companies, Inc., 2002 All Rights Reserved. McGraw-Hill/ Irwin 1-5 Relations between a business firm and its primary stakeholders Figure 1-2 Business firm (Managers) Wholesalers (Retailers) Creditors Suppliers Customers Stockholders Employees (Unions) Invest capital Lend money Sell materials Buy products Distribute products Sell labor

6. © The McGraw-Hill Companies, Inc., 2002 All Rights Reserved. McGraw-Hill/ Irwin 1-6 Relations between a business firm and some of its other (secondary) stakeholders Figure 1-3 Business Firm (Managers) The General Public Business Support Groups Foreign Governments Social Activist Groups Media Federal, State and Local Governments Local Communities Regulation, taxes Friendly, hostile Social demands Image, publicity Advice, research Positive, negative opinion Jobs, environment

7. © The McGraw-Hill Companies, Inc., 2002 All Rights Reserved. McGraw-Hill/ Irwin 1-7 Forces that shape the business and society relationship Figure 1-4 Economic competition: strategic and social challenges Ethical expectations and public values Changing role of government and public policy Ecological and natural resource concerns Technology and new knowledge Business and its Stakeholders

8. © The McGraw-Hill Companies, Inc., 2002 All Rights Reserved. McGraw-Hill/ Irwin 1-8 Global Internet usage, 2000-2005 Exhibit 1-A Top Nations in Internet Use at Year-end, 2000 Users (millions) Percentage of total 1. United States135.7 36.20% 2. Japan 26.9 7.80 3. Germany 19.1 5.10 4. UK 17.9 4.77 5. China 15.8 4.20 6. Canada 15.2 4.05 7. South Korea 14.8 3.95 8. Italy 11.6 3.08 9. Brazil 10.6 2.84 10. France 9.0 2.39 11. Australia 8.1 2.16 12. Russia 6.6 1.77 13. Taiwan 6.5 1.73 14. Netherlands 5.4 1.45 15. Spain 5.2 1.39 Source: http://www.c-i-a.com

9. © The McGraw-Hill Companies, Inc., 2002 All Rights Reserved. McGraw-Hill/ Irwin 1-9 Global Internet usage, 2000-2005 374.9 million worldwide Internet users per year. Top 15 countries accounted for 80% of users. The United States leads with over 35% of users. By 2005, 600 million Internet users are expected. Exhibit 1-A (continued)