01-analytical framework 2012

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Poppy S. Winanti & Riza Noer Arfani

Business Environment: Sociology & Politics

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Overview Defining Politics and Political System

Defining Politics

Political System Business Government Society Natural

Environment Relations

Intersectoral Partnerships

Business Society Nature Interface

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Defining Politics

Politics is the process of who getswhat, when, and how (HaroldLasswell)

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Defining Politics...contd

Power

Distributionof

Resources

Politics

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Defining Politics...contd

A struggle overscarce resources,

and power can beseen as the meansthrough whichthis struggle is

conducted

Theexistence of

scarcity

The ability toachieve a

desiredoutcome

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Politics as power

"Politics is the process of who gets what, when, and how."

politics = allocation

wealth

status

power

values (resources)

Politics is a process of allocating scarce values.

*Source: Masoed, n.d+


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Political System

A network of relationships through which

government generates outputs (policies) inresponse to inputs (demands or support) fromthe general public

(Heywood, 2002)

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ENVIRONMENT

ENVIRONMENT

Conversion

Feedback

Feedback

I

N

P

U

T

Demands

Support

Decisions

Policies

Laws

O

U

T

P

U

T

POLITICAL SYSTEM

*Source: Masoed, n.d+


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Government Business Civil Society

[Waddell and Brown, 1997]

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Intersectoral Partnerships

(Waddell-Brown)

Intersectoral

Partnerships

the state(government)

civil societythe market(business)

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Government Creation and maintenance of public order and the

distribution of public goods.

State organisations include thevarious levels ofgovernment:

Bureaucracies organised often as departments orministries;

States appointed bodies such as the judiciary, regulatorboards, and councils, etc.


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Business The efficient production of goods and services.

Common market organisational forms:

Public corporations Private companies

Private partnership, etc.


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Civil Society The expression and preservation of core community

values and beliefs.

Civil society includes NGOs, peoples movements,citizens groups, consumer associations, religiousinstitutions, womens organisations, and indigenouspeoples associations.


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Intersectoral partnerships By joining together the sectors, a new range of

outcomes arise that are impossible for the sectorsworking independently:

Finance industry and economic development

Environmental concerns

Health and education

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[Marcus, Kurucz, and Colbert, 2010]

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Different conceptions

EmbeddedIntertwined

Disparate

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The Disparate View

Drawn primarilyfrom traditional

managementstudies and aneoclassical

economic

orientation

Society andnature are

regarded asseparable fromand peripheralto the business

system

Theindependence of

the business,societal, and

natural system

Systematicallyexcludes

consideration ofsocial and

environmentalphenomena that

cannot be

economicallyquantified

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The Disparate View ... Contd

B NS

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The intertwined view .

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Society and nature areregarded as more

centrally important andtreated in an integratedfashion with the business

system

The interests ofbusiness, society,and/or nature ascomplementary

The social andenvironmental

phenomena are seento bewithin rather

than outside theproblem domain


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The intertwined view

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B S

N



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The intertwined view (Contd)Business as entities with a broader range of

responsibility to society beyond thecreation of shareholder values

In management scholarship focused on theinterrelationship between social and

economic issuesCorporate SocialResponsibility(CSR)

In business natural environmentrelationssustainability/sustainable

development

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The embedded view Business, society, and nature are

viewed as nested systems

Business is seen to exist within

society and society within thebroader natural environment

Innately

inter-related

Nature can be regarded as the

most important domain followedby society and then business

Both society and economyareentirelydependent on nature

Value ofhierarchy

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The embedded view (Contd)

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BS

N


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Reference Heywood, A. (2002), Politics 2nd Ed, Hampshire: Palgrave.

Masoed, M. (n.d), Defining Politics and Political System, Handouts.

Marcus, J. Kurucz, E.C., and Colbert, B.A., (2010), Conceptions of theBusiness-Society-Nature Interface: Implications for ManagementScholarship, Business and Society, 49(3), pp. 402-438.

Waddell, S. and Brown, L.D., (1997), Fostering Intersectoral Partnering:A Guide to Promoting Cooperation among Government, Business, and

Civil Society Actors, Institute for Development Research Reports Vol.13, No. 3.

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