Business Environment Course Overview

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Business Environment Course Overview
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• What is, and what should be, the role of business
  in society?
• How should businesses best manage all of the
  stakeholder issues that impact them, and that
  they impact?
• External stakeholders (customers, government,
  interest groups, etc.)
• Internal stakeholders (employees, owners)

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The Business and Society Relationship
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Outline of Topics
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• 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

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The Business and Society Relationship
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• Business scandals, incidents
• Examples Bernie Madoff (2008), Enron/Arthur
  Anderson (2001), Exxon Valdez (1989), Union
  Carbide - Bhopal (1984)
• Business issues
• Examples downsizing retirement pensions,
  environmental pollution, product liability
• Broad societal concerns
• General feeling with much of public that business
  is not ethical and cannot be trusted
  (particularly since 2001)

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Business and Society

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A broad group of people and other organizations,
interest groups, a community, a nation.
Society
Course focuses on large businesses (visibility,
power, widely recognized brands), but issues
apply to small and medium-sized companies as
well.
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Society as Macroenvironment

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Pluralistic Society

• Definition
• A society in which there is wide decentralization
  and diversity of power concentration.

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Pluralistic Society
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• Prevents concentration of power
• Maximizes freedom of expression and action
• Disperses individual allegiances and 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
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Special-Interest Society

• Society viewed as...
• A whole
• Subgroups by geography
• Nation, state, region, city/town, neighborhood
• Subgroups by interest (Interest Groups)
• Gender, race, profession, religion, etc.
• Other interests (environment, health, social
  equity, etc.)
• Individuals

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Special-Interest Society
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• make life more complex for business and
  government
• huge number of groups/interests
• 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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Factors in the Social Environment
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• Affluence and education
• Awareness through television and the Internet
• Revolution of rising expectations
• Entitlement mentality
• Rights movement
• Victimization philosophy

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Social Environment, Business Criticism, and
Corporate Response

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Societys Expectations VersusBusinesss Actual
Social Performance

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Business Criticism Use Abuse of Power
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Levels and Spheres of Corporate Power
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Levels
Spheres
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Elements in the Social Contract
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Themes in Textbook Managerial Approach
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Theme Urgent vs. Enduring Issues
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• Short-TermIssues or crises arise on the spur of
  the moment and management must formulate quick
  responses.
• Long-TermIssues or problems are a long-term
  concern and management must develop a thoughtful
  organizational response.

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Theme Business Ethics
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Theme Stakeholders
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Organization and Flow of Book
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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

PARTTWO
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Organization and Flow of Book
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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
• Businesss 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

PARTFOUR
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Organization and Flow of Book
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