business - society relationship - chapter 1
TRANSCRIPT
Chapter 1
THE BUSINESS and SOCIETY RELATIONSHIP
Prepared by Deborah Baker Texas Christian University Chapter 1- 1
BUSINESS & SOCIETY Ethics and Stakeholder Management Carroll & Buchholtz 6e
Business and Society: Ethics and Stakeholder Management, 6e Carroll & Buchholtz Copyright 2006 by South-Western, a division of Thomson Learning. All rights reserved
The Business & Society Relationship Business criticism, scrutiny & scandals! Issues: executive compensation, abuse of corporate power, sexual harassment, product liability, toxic waste disposal, whistle blowing, political action committees Businesses must deal with societal concerns: the rights movement, loss of jobs to foreign countries, & workplace safety What is the role of business vs. the role of government in our society? What must a co. do to be considered socially responsible?
Chapter 1- 2
Business and Society: Ethics and Stakeholder Management, 6e Carroll & Buchholtz Copyright 2006 by South-Western, a division of Thomson Learning. All rights reserved
Business & Society
Business
The collection of private, profit-oriented organizations. A broad group of people, interest groups, a community, a nation. (shared interests & beliefs or common cause)
Society
Larger corporations are more visible, more powerful, more criticized, more impact on society Business & society interrelate in a macroenvironmentChapter 1- 3Business and Society: Ethics and Stakeholder Management, 6e Carroll & Buchholtz Copyright 2006 by South-Western, a division of Thomson Learning. All rights reserved
The MacroenvironmentSegment Social Economic Political Technological FocusDemographics, lifestyles, social values Nature & direction of the economy Government influence Technological advancements What kinds of ethical issues are we facing?
Chapter 1- 4
Business and Society: Ethics and Stakeholder Management, 6e Carroll & Buchholtz Copyright 2006 by South-Western, a division of Thomson Learning. All rights reserved
U.S. as a Pluralistic SocietyPower is diffused among societys many groups & organizations
Strengths
Weaknesses
Prevents domination Maximizes freedom of expression Individuals are loyal to many organizations or groups Built-in checks & balances(B. exert power over one another)
Organizations & groups have overlapping goals causing confusion(who do we trust?)
Pursuit of self-interest promotes conflict & inefficiency
Chapter 1- 5
Business and Society: Ethics and Stakeholder Management, 6e Carroll & Buchholtz Copyright 2006 by South-Western, a division of Thomson Learning. All rights reserved
Stakeholders
What is a stakeholder? Anyone impacted by the organization s D/M Who are they?
What makes an environment complex? More SH means more uncertaintyChapter 1- 6Business and Society: Ethics and Stakeholder Management, 6e Carroll & Buchholtz Copyright 2006 by South-Western, a division of Thomson Learning. All rights reserved
Stakeholders
Community
Government Business
Owner Consumer
Employees
Consumer activists Product liability threatsChapter 1- 7Business and Society: Ethics and Stakeholder Management, 6e Carroll & Buchholtz Copyright 2006 by South-Western, a division of Thomson Learning. All rights reserved
Special-Interest SocietySpecial Interests groups
make life more complex for business!! number in the tens of thousands pursue their own limited agenda are more active, intense, diverse & focused attract a significant following (more $ and power) often work at cross purposes, with no unified set of goals.
@Chapter 1- 8
http://www.goodmoney.com/directry_active.htm
Business and Society: Ethics and Stakeholder Management, 6e Carroll & Buchholtz Copyright 2006 by South-Western, a division of Thomson Learning. All rights reserved
Factors in the Social Environment Creating Atmosphere of Criticism of Business?
Affluence and educationgreater expectations & more criticism
Public awareness through television Entitlement mentality Rights movement Victimization philosophy Revolution of rising expectations (creating social problem)Chapter 1- 9Business and Society: Ethics and Stakeholder Management, 6e Carroll & Buchholtz Copyright 2006 by South-Western, a division of Thomson Learning. All rights reserved
Societys Expectations versus Businesss Actual Social PerformanceSocietys Expectations of Business Performance
Social Performance: Expected and Actual
Social Problem
Social Problem
Businesss Actual Social Performance
1960s TimeChapter 1- 10
1990s
Business and Society: Ethics and Stakeholder Management, 6e Carroll & Buchholtz Copyright 2006 by South-Western, a division of Thomson Learning. All rights reserved
What is societys #1 criticism of business?
Abuse of powerExamplesChapter 1- 11Business and Society: Ethics and Stakeholder Management, 6e Carroll & Buchholtz Copyright 2006 by South-Western, a division of Thomson Learning. All rights reserved
Iron Law of Responsibility In the long run, those who do not use power in a mannersociety considers responsible will tend to lose it
When power gets out of balance, E. forces respond &pressure B. to be more responsible to bring it back into balance. Enron & Arthur Anderson Tobacco co. Physicians & HMOs
Chapter 1- 12
Business and Society: Ethics and Stakeholder Management, 6e Carroll & Buchholtz Copyright 2006 by South-Western, a division of Thomson Learning. All rights reserved
The Social ContractChanging as expectations change, creating confusion
Laws or Regulations: Rules of the Game
BusinessTwo-Way Shared Understandings of Each Other
Society or Stakeholder Groups
Chapter 1- 13
Business and Society: Ethics and Stakeholder Management, 6e Carroll & Buchholtz Copyright 2006 by South-Western, a division of Thomson Learning. All rights reserved
Focus of the BookManagerial Approach
Business EthicsRight vs. wrong
Stakeholder ManagementWhat is it?
Chapter 1- 14
Business and Society: Ethics and Stakeholder Management, 6e Carroll & Buchholtz Copyright 2006 by South-Western, a division of Thomson Learning. All rights reserved