Business ethics and
business policy

Introduction to the field

Business, Society, and the 21st Century

key point: success tied to stakeholders

key point: success tied to B/G/S relationships

the Exxon example (text)GM example (text and class)Peregrine example (class)

What is B/G/S relationship based on?

Market capitalism modelDominance modelDynamic forces modelStakeholder model

Exxon Valdez

Worlds biggest companyCompanys biggest shipWho is the Captain Hazelwood???

Business Ethics and Poliicy

WHY DID GM LOSE GROUND??

neglect of stockholders?
according to this course,
not that simple

neglect of stakeholders

GM

outside forces GM ignored - eg:

(ask yourself: why important?)

Rosa XXXXX

Sheik XXXXXX

Ralph XXXXX

Eiji XXXXXX

Rachel XXXXXX

Ross XXXXX

John Z. XxXXXXXX

stakeholder concept

A key idea of course.

not just stockholders!

Employees

(Delorean)

Competitors

(Toyota, etc.)

Etc.

Suppliers

(oil companies?)

GM

Customers

(wine and cheese types

like you and me!)

Primary stakeholders???

General public

(wine & cheese

types again!)

Foreign

Governments

(Yamani..)

Social activists

(Ralph, Rosa,

Rachel)

GM

Secondary stakeholders???

Media

(TV, including

C-Span)

Communities

(Flint Michigan)

Shaping B.S. relations

1. Strategic, social challenges2. Ethical expectations, values3. Global changes4. Changing role of government5. Ecology, resource concerns

Six major forces shaping business-society relations

Business and

its stakeholders

Global economic

change

Changing role of

government and

public policy

Strategic and social

challenges

Technology and new

knowledge

Ecological and

natural resource concerns

Ethical expectations

and public values

1-7

Who are the stakeholders in YOUR firm??

Who are the stakeholders in INLAND NATIONAL BANK????

Employees

Competitors

.

Suppliers

Primary stakeholders???

INB

Customers

Communities

General

Public

Foreign

Governments

Social

Activists

INB

Secondary stakeholders???

Media

Note.

distinction between primary and secondary not clear, not distinct

Peregrine

Poor Peregrine!

What is (was) Peregrine?What went wrong?Who got hurt?

banks,

creditors

general public

(economy suffers)

clients,

investors

government: less income,more demand

taxi firms in Indonesia

HKUST students who are now poorer

worried German investors

Asia Inc., and others on list

poor Suharto and family

Peregrine

employees,

families

stockholders,

partners

competitors

(more business,

less confidence)

Peregrine & stakeholder model

Includes many of typical groups

leaves out only a few:

religious groupsenvironmentalistsminoritiesthe poorlabor unionspolitical parties, groups

Basic BGS models

market capitalism? OK but a bit simplisticdominance model: some truth. B&G do run many things, especially in Indonesiaand in China and in USA, and . . .dynamic forces model: text favoritestakeholder model: JFH favorite??

todays business environment:

more historical factorsChina: no respect for business1949: Mao abolishes business

HK thrives as outlet for China

1978: Deng OKs rural food sales

todays business environment (continued):

historical factors continued1978: Deng OKs rural food salesno turning back! every year...HK thrives as port for China1997: HK now key Chinese city

the pressure is on:
expectations gap!!!strategic & social challenges
ethical expectations
global changes
governments changing too
environment

end of Business Environment

Reflect on stakeholder idea: Peregrine Investments Holdings Ltd

NEXT:

how Web Assignments will workbegin term paper planning

WEB ASSIGNMENT 1 COMING SOON

OK to practice now!OK to answer now but read chapters 5 and 6 first

term paper planning

in teams of two, invent two possible topics, and two possible TITLESyou are NOT obligated to keep these titlesyou are NOT obligated to keep these topics

web assignment may look like:

Are corporations GOOD or EVIL? Or, in terms from text, do corporations follow idea of corporate social responsibility?family name begin with A to L: in 150 to 250 words, convince us that corporations DO take social responsibility seriously, Give a HK (or Asia) example to help prove your point.family name begin with M to Z: in 150 to 250 words, convince us that corporations DO Not take social responsibility seriously, Give a HK (or Asia) example to help prove your point.

web assignment #1

great to include NAME of examplegreat to include SOURCE if possiblegreat to include WWW link if you can do it!TIME TO DO IT!!! have fun!