chapter 1
Post on 30-Dec-2015
33 Views
Preview:
DESCRIPTION
TRANSCRIPT
Chapter 1- Business and Society: Ethics and Stakeholder Management, 6e • Carroll & BuchholtzCopyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved
1
Chapter 1 THE BUSINESS and SOCIETY RELATIONSHIP
BUSINESS & SOCIETYEthics and Stakeholder Management
Carroll & Buchholtz 6ePrepared by Deborah BakerTexas Christian University
Chapter 1- Business and Society: Ethics and Stakeholder Management, 6e • Carroll & BuchholtzCopyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved
2
Chapter 1 Learning Outcomes
1. Characterize business, society, and their interrelationships.
2. Describe pluralism and identify its attributes, strengths, and weaknesses.
3. Clarify how our pluralistic society has become a special-interest society.
4. Identify, discuss, and illustrate the factors leading up to business criticism.
5. Single out the major criticisms of business and characterize business’s general response.
6. Categorize the major themes of the book: managerial approach, ethics, and stakeholder management.
Chapter 1- Business and Society: Ethics and Stakeholder Management, 6e • Carroll & BuchholtzCopyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved
3
Chapter 1 Outline
Business and Society
Society as the Macroenvironment
Our Pluralistic Society
Our Special-Interest Society
Business Criticism and Corporate Response
Focus of the Book
Structure of the Book
Summary
Chapter 1- Business and Society: Ethics and Stakeholder Management, 6e • Carroll & BuchholtzCopyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved
4
Business criticism and scandals
Issues, such as executive compensation, abuse of corporate power, and sexual harassment
Broad societal concerns, such as the “rights” movement, discrimination, loss of jobs to foreign countries, and workplace violence
The Business and Society Relationship
Chapter 1- Business and Society: Ethics and Stakeholder Management, 6e • Carroll & BuchholtzCopyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved
5
Business and society interrelate in a macroenvironment as stakeholders.
Business and Society
BusinessThe collection of private, profit-oriented organizations
SocietyA broad group of people and other organizations, interest groups, a community, a nation.
Chapter 1- Business and Society: Ethics and Stakeholder Management, 6e • Carroll & BuchholtzCopyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved
6
Society as the Macroenvironment
Social EconomicEconomic
PoliticalPolitical TechnologicalTechnological
Chapter 1- Business and Society: Ethics and Stakeholder Management, 6e • Carroll & BuchholtzCopyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved
7
Segments of the Macroenvironment
Social demographics, lifestyles, social values
Segment Focus
Politicalinteractions between firms, politics, and government
Economic nature and direction of the economy
Technological changes in technological advancements
Chapter 1- Business and Society: Ethics and Stakeholder Management, 6e • Carroll & BuchholtzCopyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved
8
Pluralistic Society
Strengths Weaknesses
Prevents concentration of power
Maximizes freedom of expression and action
Disperses individual allegiances
Creates diversified set of loyalties
Provides checks and balances
Pursuit of self-interest
Proliferates organizations and groups with overlapping goals
Forces conflicts to center stage
Promotes inefficiency
Chapter 1- Business and Society: Ethics and Stakeholder Management, 6e • Carroll & BuchholtzCopyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved
9
Business and Stakeholder Relationships
Business
Community Government
Employees
Consumer
Owner
Environmental groups
General publicLocalStateFederal
Corporate raiders
Private citizens
Institutional Investors Consumer activistsProduct liability threats
Unions
Older e
mplo
yees
Wom
en a
nd m
inorit
ies
Civil L
iberti
es a
ctivis
ts
Chapter 1- Business and Society: Ethics and Stakeholder Management, 6e • Carroll & BuchholtzCopyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved
10
Special-Interest Society
Special Interests groups…
make life more complex for business
number in the tens of thousands
pursue their own limited agenda
are more active, intense, diverse and focused
attract a significant following
often work at cross purposes, with no unified set of goals
http://www.goodmoney.com/directry_active.htm@
Chapter 1- Business and Society: Ethics and Stakeholder Management, 6e • Carroll & BuchholtzCopyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved
11
Social Environment, Business Criticism,
and Corporate Response
Factors in the Social Environment
Affluence Education Awareness
Rising Expectations Rights Movement
EntitlementMentality
VictimizationPhilosophy
Business CriticismBusiness Criticism
Increased concern for theSocietal Environment
Increased concern for theSocietal Environment A Changed Social ContractA Changed Social Contract
Chapter 1- Business and Society: Ethics and Stakeholder Management, 6e • Carroll & BuchholtzCopyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved
12
Factors in the Social Environment
Affluence and education
Awareness through television
Revolution of rising expectations
Entitlement mentality
Rights movement
Victimization philosophy
Chapter 1- Business and Society: Ethics and Stakeholder Management, 6e • Carroll & BuchholtzCopyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved
13
Society’s Expectations versusBusiness’s Actual Social
PerformanceSociety’s Expectations of Business Performance
So
cial
Per
form
ance
: E
xpec
ted
an
d A
ctu
al
1960s 1990sTime
Social Social ProblemProblem
Business’s Actual Social Performance
Social ProblemSocial Problem
Chapter 1- Business and Society: Ethics and Stakeholder Management, 6e • Carroll & BuchholtzCopyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved
14
Business Criticism: Power
Use and abuse of power
Business power refers to the ability or capacity to produce an effect or to bring an influence to bear on a situation or people
Iron Law of Responsibility
In the long run, those who do not use power in a manner society considers responsible will tend to lose it
Chapter 1- Business and Society: Ethics and Stakeholder Management, 6e • Carroll & BuchholtzCopyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved
15
Levels and Spheres of Corporate Power
Macro Level
Intermediate Level
Micro Level
Individual Level
Economic
Social/Cultural
Individual
Technological
Environmental
Political
LevelsSpheres
Chapter 1- Business and Society: Ethics and Stakeholder Management, 6e • Carroll & BuchholtzCopyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved
16
Elements in the Social Contract
Laws or Regulations:“Rules of the Game
Two-Way Shared Understandings of
Each Other
Society orSocietal
StakeholderGroups
Business
Chapter 1- Business and Society: Ethics and Stakeholder Management, 6e • Carroll & BuchholtzCopyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved
17
Focus of the Book
Managerial Approach
Managerial Approach
Ethics Ethics Stakeholder Management
Stakeholder Management
Chapter 1- Business and Society: Ethics and Stakeholder Management, 6e • Carroll & BuchholtzCopyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved
18
1. The Business and Society Relationship2. Corporate Citizenship: Social Responsibility, Responsiveness and
Performance3. The Stakeholder Approach to Business, Society, and Ethics
1. The Business and Society Relationship2. Corporate Citizenship: Social Responsibility, Responsiveness and
Performance3. The Stakeholder Approach to Business, Society, and Ethics
PART ONE
BUSINESS, SOCIETY, AND STAKEHOLDERS
STRATEGIC MANAGEMENT FOR CORPORATE STAKEHOLDER PERFORMANCE
4. Strategic Management and Public Affairs5. Issues Management and Crisis Management
4. Strategic Management and Public Affairs5. Issues Management and Crisis Management
PARTTWO
Structure and Flow of Book
Chapter 1- Business and Society: Ethics and Stakeholder Management, 6e • Carroll & BuchholtzCopyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved
19
6. Business Ethics Fundamentals7. Personal and Organizational Ethics8. Business Ethics and Technology9. Ethical Issues in the Global Arena
6. Business Ethics Fundamentals7. Personal and Organizational Ethics8. Business Ethics and Technology9. Ethical Issues in the Global Arena
PART THREE
BUSINESS ETHICS AND MANAGEMENT
EXTERNAL STAKEHOLDER ISSUES
10. Business, Government and Regulation 11. Business’s Influence on Government and Public Policy12. Consumer Stakeholders: Information Issues and Responses13. Consumer Stakeholders: Product and Service Issues14. The Natural Environment as Stakeholder15. Business and Community Stakeholders
10. Business, Government and Regulation 11. Business’s Influence on Government and Public Policy12. Consumer Stakeholders: Information Issues and Responses13. Consumer Stakeholders: Product and Service Issues14. The Natural Environment as Stakeholder15. Business and Community Stakeholders
PARTFOUR
Structure and Flow of Book
Chapter 1- Business and Society: Ethics and Stakeholder Management, 6e • Carroll & BuchholtzCopyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved
20
16. Employee Stakeholders and Workplace Issues17. Employee Stakeholder: Privacy, Safety, and Health18. Employment Discrimination and Affirmative Action19. Owner Stakeholders and Corporate Governance
16. Employee Stakeholders and Workplace Issues17. Employee Stakeholder: Privacy, Safety, and Health18. Employment Discrimination and Affirmative Action19. Owner Stakeholders and Corporate Governance
PART FIVE
INTERNAL STAKEHOLDER ISSUES
CASES
Structure and Flow of Book
Chapter 1- Business and Society: Ethics and Stakeholder Management, 6e • Carroll & BuchholtzCopyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved
21
Selected Key Terms
affluencebusinessbusiness ethicsbusiness powereconomic environmenteducationentitlement mentalityethicsIron Law of Responsibilitymacroenvironmentpluralismpolitical environment
revolution of rising expectations
rights movementsocial contractsocial environmentsocial problemsocietyspecial-interest societystakeholderstechnological environmentvictimization philosophy
top related