Slide- CH 13

• Civil society is composed of voluntary, community, and social organizations that contribute to the functioning of society but are not related to or supported by the government
• Non-Governmental Organizations (NGOs) are groups that hold shared values or attitudes about an issue confronting society and advocate for changes relating to the issue
• NGOs are part of the private sector, not part of the government, and are also called public interest, special interest, or interest groups
• NGOs try to influence business through tactics like pressure on governments to change policies, damaging publicity, disrupting annual meetings, developing shareholder social policy resolutions, and more
• NGOs use tactics such as damaging physical property, occupying corporate premises, picketing managers' homes, sponsoring demonstrations, organizing boycotts, launching letter-writing campaigns, and initiating legal proceedings to influence business
• NGOs also engage in non-violent use of the Internet, develop anti-business websites and documentaries, provide support for alternative sources of goods and services, and create digital protest movements
• Partnerships between NGOs and businesses aim to address issues with human, technical, financial, and knowledge interests, requiring leadership, openness to change, commitment, and a shared goal for success
• Benefits of partnerships between NGOs and businesses include influencing public opinion, developing possibilities for innovation, enhancing reputation and trust, creating expertise, facilitating employee engagement, and building large networks with other stakeholders
• Dealing with the media is part of managers' responsibilities and can influence the public's views about a business
• Media Ownership and Concentration:

  • Rupert Murdoch bought National Geographic on Sept 10, 2015
  • Murdoch also owns Fox News, The Times, New York Post, BskyB, 21 Century Fox, etc.
• Business Complaints about the Media:

  • Reporters are criticized for not being sufficiently knowledgeable about business and economics
  • Media is accused of being interested only in "bad" news that can be sensationalized
  • Media is said to be unable to place information into the correct context
  • There's an inherent bias against business in the media, dominated by leftist journalists who neither support nor understand a market economy
  • Business reporting is criticized for being biased, oversimplified, and lacking in insight
  • Reporters are accused of not respecting "off-the-record" comments
• Issues in the Business and Media Relationship:

  • Social media allows for instant, interactive exchanges of information that can build or destroy a corporation's reputation
  • Challenges exist in HR regarding social media usage by employees
  • Challenges in marketing and advertising practices include potential distortion of endorsements and inappropriate data collection on consumers
• Challenges of Social Media:

  • Corporations and managers must develop relationships with NGOs and the media, recognizing their role in society and developing mechanisms for interaction
  • Involvement in social media should be guided by virtues such as honesty, trust, openness, respect, and fairness
  • Challenges include rights of privacy for consumers and employees, as well as ascertaining which information should be banned (freedom of speech vs. censorship)
• Policy Development Stakeholders (Think Tanks):

  • These organizations research and analyze important social, economic, and political issues confronting business and society
  • They attempt to influence government positions on various business and social issues
• Religious Institutions:

  • Impact on managerial decision making
  • Existence of businesses supplying religious goods and services
  • Spirituality in the workplace
  • Corporate response to religious activism
• Educational Institutions:

  • Controversy over business involvement in the education system
  • Corporations have economic, social, and environmental responsibilities to primary and secondary schools
• Approaches to understanding the relationships between corporations and stakeholders range from basic listing and mapping to stakeholder collaboration and social capital
• Stakeholder engagement is integral to corporate social responsibility or sustainability, involving creating value for all stakeholders and an honest, open, and respectful engagement vital to corporate strategy