DBA 7035, Business, Government and Society 1
Course Learning Outcomes for Unit VII Upon completion of this unit, students should be able to:
2. Critique nonmarket issues affecting successful business strategies including the role of the news media. 2.1 Discuss the importance of consumer relations and philanthropic activities to businesses. 2.2 Explain the methods used by businesses to manage consumers. 2.3 Evaluate the role of technology in business strategy.
Reading Assignment Chapter 9: Community Relations and Strategic Philanthropy Chapter 10: Technology Issues
Unit Lesson Introduction The world is increasingly interconnected. Technology has been a driving force in the globalization of business, and the traditional business models are changing to adapt to the new imperatives of the 21st century. In particular, business and community leaders face new challenges as citizens, and governments, nonprofits, non-governmental organizations, and stakeholders have evolving expectations that must be addressed. In that regard, businesses have adopted a more socially responsible role, and they have become more directly involved with the communities in which they operate. As opposed to simply pursuing the profit motivation, businesses are looking to be full participants in their communities. Initially, the concept of corporate social responsibility (CSR) was related to a rather simple idea of philanthropy. In these situations, companies simply sponsored local charities. More recently, the concept has expanded and there are more corporations taking an active role, more generally in civic life, including issues of significance to the citizens in that community. Increasingly, the CSR concept has ensured that corporations align their profit motivations with broader economic, environmental, and social interests. To grow and prosper, companies must adapt to the changing community and cultural norms. In that regard, there has been a considerable movement to encourage companies to be more socially responsible and sustainable organizations. Over time, there have been a number of structural and organizational systems developed to frame the CSR initiatives for companies. As mentioned in a previous unit, the United Nations Global Compact, the Organization for Economic Cooperation and Development (OECD), the European Commission, and many individual countries have developed specific guidance to assist companies in the use and implementation of CSR initiatives within the organizations, broadly including businesses. Also, although most organizations do work on CSR initiatives individually, there are increasing opportunities for intercompany cooperation and synergies. As CSR has developed, there has been a considerable increase in the literature available on this topic. The business model of the 21st century is one that embraces the concepts of CSR and sustainability. These concepts have only become prominent in recent years, and companies have moved to develop products and services that are more socially responsible. Community Relations and Philanthropy As noted in Chapter 9, businesses of the 21st century are increasingly beginning to be a part of the community within which they operate. For example, Table 9.1 on pp. 291–292 of the textbook provides a list of community mission statements. In part, these illustrate that communities are important to businesses and
UNIT VII STUDY GUIDE
Community Relations, Philanthropy, and Technology
DBA 7035, Business, Government and Society 2
other organizations such as nonprofits. As these community ties are realized by companies, they are often expanded to include a community needs assessment (see Table 9.2 on p. 293 of the textbook). The needs assessment assists in aligning the business to the interests of the community. Initially, as companies became more active in community issues, the main activities included volunteerism and charitable giving. For example, charitable giving is something that includes employees conducting community-related activities or functions on company-supported time. In terms of charitable giving, Table 9.4 on p. 300 of the textbook provides examples of strategic philanthropy. In these instances, companies look to maximize a relationship with communities by leveraging their core competencies. There are also benefits to these strategic relationships. These benefits do illustrate that both the business and the philanthropic organization are building aligned interests. A specific example is a partnership between Habitat for Humanity and The Home Depot, which you can read more about in an article located in the suggested reading section of this unit. To actually develop a partnership such as the The Home Depot case, a firm needs to plan, organize, design, engage, and spend. Clearly, businesses are increasingly looking to reach out to the communities in which they operate to build mutually beneficial partnerships. Technology Technology is a huge and ever-growing part of our daily lives, and it is no different in an organization. Worldwide, there is a huge amount of technological change happening, and advances in technology facilitate innovation (Jones, 2012). In that regard, innovation is the term used when an organization uses its resources to find better ways to operate, or the organization develops new products that will fulfill the needs of their customers. Fundamentally, technology is used to streamline and improve many facets of an organization. One of those facets is communication and the speed at which it can occur. Technological advances such as video conferencing, e-mail, instant messaging, cloud computing, collaborative communications over the Internet, and data storage and management all play a part in giving an organization the ability to share ideas and improve its processes and products at lightning speed. This can lead to a greater amount of flexibility and dynamism in the organization as a whole. Of course, a key example of technology has been the Internet. The history of the Internet is illustrated in Table 10.2 on p. 329 of the textbook. Of interest is the recent introduction of this technology and the many changes and improvements to the Internet since its introduction in 1969. One key aspect of introducing technology is to ensure that all employees are trained on how to use the new systems. Indeed, many instances of the introduction of technology simply do not adequately address the training needs of employees. Technology in an organization can also reduce overall costs of operations and help an organization provide better customer service for its customers both directly and indirectly. By utilizing data management and storage electronically, organizations can have near instant access to information on every aspect of their business and customers. For example, customer relationship management (CRM) systems capture every interaction a company has with a customer that allows a company to develop a database on all customers. Of course, there are some important issues that we must be aware of as we look to apply technology in the workplace and in society. There are serious concerns about the safety and security of online systems. Also, there are concerns related to privacy as there are many instances of personal data being stored on the Internet. The top privacy concerns are illustrated in Table 10.3 on p. 332 of the textbook and these include hacking, marketing research, and location data among others. Businesses must be prepared to develop systems that are capable of securing personal and private data. An interesting case from Target that illustrates the importance of this issue is described in an article in the suggested reading section of this unit. Obviously, businesses using technology must carefully address the benefits and the risks associated with using technology. Another issue of concern is related to intellectual property (IP). The pervasive nature of technology has made the protection of IP rights more difficult. Fundamentally, technology is about improving productivity. A concern that has arisen is that technology is replacing people in the workplace. For example, in an article titled “Will Machines Eventually Take on Every Job?,” Nuwer (2015) suggests that technological breakthroughs endangers up to 47% of total employment in the United States. This is a staggering number, and it will generate considerable impacts in society and in
DBA 7035, Business, Government and Society 3
businesses. In fact, in the same article, the author notes that technology has and will continue to simply change the role of employees in the workplace—not eliminate it (Nuwer, 2015). In that regard, it is critical that employees have the correct job skills to meet the needs of the knowledge-based economy of today. Conclusion In summary, technology is a major driving factor in today’s business world by allowing an organization to be more responsive, knowledgeable, and innovative and react to its environments faster and more accurately than ever before. Fundamentally, technology has enabled firms to be more productive, which assists their competitive advantage position. A challenge for organizations is to adapt the technology to the needs of that business. It is important to align technology to our strategic needs and be fully aware of the advantages and disadvantages of the technology. In addition, with the growing pressure to be more socially responsible, the importance of community relations and philanthropy has become more important than ever before.
References Jones, G. (2012). Organizational theory, design, and change (7th ed.) [VitalSource version]. Retrieved from
http://online.vitalsource.com/books/9780133071566/page/3 Nuwer, R. (2015). Will machines eventually take on every job? Retrieved from
http://www.bbc.com/future/story/20150805-will-machines-eventually-take-on-every-job
Suggested Reading In order to access the following resources, click the links below: As noted in the Unit VII Lesson, Home Depot partnered with Habitat for Humanity to help provide homes to many veterans. The article below discusses that campaign. Habitat for Humanity. (2011). Volunteers to renovate 95 veteran’s homes; grant support part of the Home
Depot Foundation’s “Celebration of Service” campaign. Retrieved from http://www.habitat.org/newsroom/09-26-2011-hfh-and-home-depot-partner
The article below, which was also referenced in the Unit VII Lesson, describes a data leak experience by the retail chain Target. Riley, M., Elgin, B., Lawrence, D., & Matlack, C. (2014). Missed alarms and 40 million stolen credit card
numbers: How Target blew it. Retrieved from https://www.bloomberg.com/news/articles/2014-03- 13/target-missed-warnings-in-epic-hack-of-credit-card-data
Running head: UNIT III ASSIGNMENT 1
UNIT III ASSIGNMENT 4
Unit III Assignment
Institutional Affiliation
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Unit III Assignment
Explaining the impact of government on business
The government’s impact on business is observable. The impact is felt by businesses in several ways. The government usually comes up with many policies and regulations that businesses must adhere to (Ferrell, Thorne & Ferrell, 2016). Some of these policies and regulations concern content requirements, advertising, and product quality and standards.
The government usually changes the policies and regulations and regulations regularly. Businesses, therefore, need to be flexible enough to respond to changing regulations and policies. These policies and regulations that the government formulate impact businesses in one way or another. Stringent policies and regulations might impact negatively on businesses while favorable policies will positively impact on businesses. The government needs to consult business before implementing the policies and regulations.
Articulating the need for appropriate regulatory oversight of business
Regulations serve important and legitimate purposes. These purposes include protecting the rights of workers, protecting consumers, ensuring safety, health and improving welfare. Inappropriate regulatory oversight of businesses has impacted negatively on businesses. For instance, many regulations by the government have resulted in many businesses to suffer huge losses.
Inappropriate regulations have created unfavorable business environment for firms to operate in. This has hurt made it difficult for some businesses to conduct their operations well. This is the reason why there is a need for appropriate regulatory oversight of businesses. The regulatory oversight authority should always engage firms before executing any regulations.
Identifying the classes of political strategy
There are three classes of political strategy that can be used by businesses in any political process. The first one is an information strategy. In this political strategy, businesses provide the policymakers and decision-makers of the government with valuable information that is designed to impact their decisions and actions. The second strategy is the financial-incentives strategy. In this strategy, businesses offer incentives that are designed to impact the decisions of policymakers. The third strategy is the constituency building strategy. In this strategy, businesses develop alliances and gain from organizations that are similarly affected. This strategy also influences decision-makers cooperatively. The political strategy to be used however depends on the situation at hand.
Illustrating the application of political strategies and their importance
The identified political strategies can be used by businesses to advance their interests hence achieve their goals. For example, businesses can apply political strategies to hinder the implementation of a regulation that bans the production of a product. The company producing the product offer financial incentives to decision-makers in the government. This will result in the product not being banned from being produced. The political strategies are therefore important in ensuring that the operations of businesses are not disrupted.
Summarizing how corporations influence government decision-making
Most corporations use lobbying as a technique to impact the decision making of the government. After lobbying, the corporation will eventually influence and persuade the decision-makers to make decisions that are favorable to its interests. My chosen firm uses lobbying strategies to ensure that the government creates a favorable business environment.
Reference
Ferrell, O.C., Thorne, D., & Ferrell, L. (2016). Business and society: A strategic approach to social responsibility and ethics (5th ed.). Chicago, IL: Chicago Business Press.
Running head: BUSINESS AND SOCIETY 1
BUSINESS AND SOCIETY 4
Business and Society
Institutional Affiliation
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Business and Society
Explaining the governance structure of the organization
The governance structure of the company consists of three structures. There are top, middle and lower levels of governance structures. The Executive Board forms the top level of governance. The Executive Board must manage and oversee the day-to-day operations. The Executive Board also comes up with the strategic policies of the company. Each member of the board is designated to manage various parts of the company. The sub-division directors and departmental directors constitute the middle structure of governance. It is the function of the middle level management to implement programs of the company in conformity directives and policies of the board. They also initiate programs for various sub-divisions and departments of the company. The lower level governance management consists of supervisors who instruct and guide employees as they undertake their daily activities.
Analyzing the connection between businesses and society
Businesses and society are connected. There is a direct connection between the businesses and society. This is because businesses strive to fulfill the needs of the society and on the other hand the society is the source of resources the business requires to operate Ferrell, Thorne & Ferrell, 2016). It is therefore the responsibility of any business to take care of the society by producing that are of high quality and by engaging in corporate social responsibility activities. The connection between businesses and the society is also observed in terms of the useful role played by businesses that operate in the society. For instance, businesses create employment opportunities in the society. Large number of people are therefore employed. Businesses pays taxes to the government. The government in turn uses the tax paid by businesses to improve the welfare of the people in the society. Businesses produces goods and services that are demanded by various people in the society. Some items like goods that are produced by businesses are essential for survival of human beings. It can therefore be concluded that there is a direct connection and relationship between businesses and society.
The connection between businesses and society affects the corporate governance of the organization. First, the connection between the two have implications on the principles that guide corporate governance. The members of the society must be consulted by businesses when they are formulating principles that guide corporate governance. Businesses are supposed to include some members of the society in their governance. The members of the society will therefore have an opportunity to give suggestions on effective mechanisms and processes by which corporations can be operated and controlled.
Examining the future of corporate governance globally
Corporate governance aims to ensure that there is an effective and prudent management in a company. This will help to deliver the long-term success of a company. I anticipate seeing many changes in corporate governance in the future. These changes in corporate governance will be driven by disclosure, diversity, data and development of financial institutions (DFIs). There will be a demand for effectiveness, accountability to shareholders and increased board quality. My chosen firm compare with the global trends in that there are also changes in corporate governance within the company. This has resulted in the company performing well in the global arena. The management is ever accountable to the shareholders of the company. The members of the board are experienced and can make better decisions for the company.
Reference
Ferrell, O. C., Thorne, D., & Ferrell, L. (2016). Business and society: A strategic approach to social responsibility & ethics (5th ed.). Chicago, IL: Chicago Business Press.
Running head: UNIT I ASSIGNMENT 1
UNIT I ASSIGNMENT 5
Unit I Assignment
Institutional Affiliation
Insert the student’s name
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Unit I Assignment
Nescafe is a company that produces coffee brand called Nescafe. It is was established in 1938 and it is in Switzerland. The company has grown significantly over the years it has been in existence. The company now has offices and production units in various countries today.
Illustrating the concept and application of social responsibility
Nescafe usually act in a manner that benefits the society. The company therefore positively contributes to the welfare of the environment and society through its activities. Social responsibility takes on different meanings within companies. Nescafe has integrated social responsibility into the core of its operations. For instance, the company usually buy raw coffee to manufacture its product (Nescafe) and actively support sustainable coffee farming in the countries where they purchase coffee. The company also donates funds to communities in which the company operate. This also include education grants.
The company embraces social responsibility through philanthropy activities, environmental change, and promoting volunteering. The company also manage its negative environmental impact by reducing the level of pollution it emits into the environment. There is also the social responsibility of ethical practices for employees. This means that the company is offering a fair wage and salaries to its employees.
Explaining the benefits of social responsibility
There are several benefits of social responsibility to a company. They include better recognition of brand, positive reputation of business, increased sales and customer loyalty, reduction in operational costs, better performance financially, greater ability to attract talent and retain experienced staff, growth of the organization, and easier access to finances.
Social responsibility can help the company to build a reputation (Ferrell, Thorne & Ferrell, 2016). This can in turn lead to the company to have a competitive advantage in the industry. By reducing the level of pollution through reduction in emissions and wastes, the company will have a positive impact on the environment and save its finances. The company will therefore be able to lower its utility bills and save a lot. By being responsible, Nescafe Company make it easier to recruit new workers or retain the existing ones. Employees will be motivated to work for the company for a long period of time. The rate of turnover for the company will be low. This will eventually be reducing the costs that are associated with recruiting new employees. Another benefit of social responsibility is the growth of the company due to increased volume of sales and the number of customers.
Social responsibility is of great benefit to the society. The welfare of the society will be improved for example when the company finance some development projects such as roads in the regions it operates. The needy students in the society will be able to continue with their education after being given education scholarships and grants. As outlined above, most of the social responsibility activities benefit the society.
Applying the four Is of the non-market environment to my selected company
The four Is of the non-market environment include Issues, Interests, Institutions, and Information. Issues are the basic unit of analysis and the focus of non-market action. The key non-market issues in my selected company is the formulation of regulatory policies for manufactured coffee. Some of these regulatory policies potentially have negative consequences on the operations of the company. Interests of the non-market environment comprises of groups and individuals that have certain preferences concerning the non-market issues. Nescafe Company, activists and other interest groups may be concerned about coffee manufacturing policies that are likely to be implemented. Institutions of the non-market environment consist of the “rules in the society that shape interactions among individuals,” and these institutions offer platforms in which interests seek to impact the outcomes on issues. Some of the institutions that are likely to impact on the issue at hand include Governmental institutions (regulatory authorities and agencies and legislature), and non-governmental institutions (media, etc.). Information of the non-market environment concerns what the interests and institution officeholders believe or know about the issues at hand. In my selected company, the information may pertain to the risk that is associated with the products manufactured by the company and the technology used. The information may be provided by activists, firms, media, and government institutions.
Identifying the non-market influences and impact on my chosen company
The non-market environment consists of social, political, and legal regulations (Baron, 2013). The non-market influences have an influence on various aspects of my chosen company. The legal regulations that are in place compels the company to manufacture products that meet the required health and safety standards. The legal regulations also stipulate on the maximum amount of wastes that can be released into the environment. This will impact on the activities that the company will engage in to ensure environmental protection. The company will therefore devise new ways of reducing the level of pollution thus protecting the environment.
The international trade policy and regulations guide the volume of manufactured coffee that the company should release into the global market. The company will therefore not produce beyond the level it is required to produce. Legislative policies and regulations may impact on the operations of the company. Some of the legislative regulations that will impact on the company include minimum wage requirements. Social policies are likely to impact on the corporate social responsibility activities of the company.
References
Ferrell, O. C., Thorne, D., & Ferrell, L. (2016). Business and society: A strategic approach to social responsibility & ethics (5th ed.). Chicago, IL: Chicago Business Press.
Baron, D. P. (2013). Business and its environment (7th ed). Upper Saddle River, NJ: Prentice Hall.
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