Textbook- CH 13

• NGOs play an increasing role in the business and society relationship
• NGOs are part of civil society stakeholders, along with the media, community-based organizations, and religious institutions
• NGOs advocate for changes relating to societal issues and make claims or demands for actions consistent with their attitudes or principles
• NGOs are usually non-profit organizations supported by volunteer members and activists, distinct from government entities
• NGOs have existed for hundreds of years and have addressed issues like slavery opposition, women's voting rights, and better working conditions for children
• NGOs can operate locally or globally and focus on various issues such as animal welfare, technology, economic concerns, social development, workers' rights, human rights, and the environment
• NGO tactics to influence corporations include generating damaging publicity, disrupting meetings, developing shareholder resolutions, occupying premises, sponsoring demonstrations, organizing boycotts, and participating in digital protest movements
• Strategies for engaging with NGOs include:

  • Organizing buycotts (campaigning to buy from preferred sellers)
  • Launching letter-writing campaigns
  • Participating in digital protest movements
  • Holding public meetings
• NGOs can pressure corporations directly and indirectly through other stakeholders
• Managers may respond to NGO activism based on personal motives and beliefs, not just cost-benefit analysis or competitive positioning
• A more aggressive response toward NGOs, like discrediting them with negative attacks or launching legal action, is not recommended
• Corporations should proactively engage with NGOs, not underestimating their influence directly or indirectly through other stakeholders
• Partnership relationships with NGOs can bring together resources to address issues, with risks like damage to reputations and conflicts of interest
• The Canadian Boreal Forest Agreement (CBFA) was an agreement reached among nine environmental non-governmental organizations (ENGOs) and 21 forestry corporations in May 2010 for the management of the Canadian boreal forest
• The CBFA was considered a significant agreement illustrating cooperation between ENGOs and the forestry industry, but it was criticized for NGOs determining public policy through intimidation and unproven claims
• The agreement was terminated in 2018, highlighting the challenges of business and ENGO cooperation
• World Wildlife Fund Canada's approach to working with the private sector is constructive, solutions-oriented, collaborative, rigorous in standards, and challenging in objectives
• WWF's guiding principles for corporate engagement include measurable results supporting conservation objectives, transparency, and the right to public commentary
• WWF distinguishes four types of partnerships with companies: driving sustainable business practices, communications and awareness raising, philanthropic relationships, and employee engagement
• In its 2017 report, WWF Canada described partnerships with companies like Loblaw Companies Ltd., TELUS Corporation, The Coca-Cola Company, and others
• The media stakeholder is divided into traditional and social categories, with traditional media including newspapers, periodicals, books, television, and the Internet
• Traditional media portrays business operations and their relationship to society, with some portrayals being positive and others negative
• The extent to which popular media influences attitudes toward business is uncertain, but corporations facing negative coverage on social irresponsibility issues may face higher financial or credit risk
• Business coverage has shifted from print to live television dominance, with extensive and immediate coverage of business topics on television and radio
• Print media content is self-regulated by editors and reviewers, with associations like News Media Canada receiving consumer complaints about content
• Businesspersons have complaints about media coverage, such as lack of knowledge about business, sensationalizing bad news, and bias against business
• Libel chill is a phenomenon where businesses threaten legal action to prevent the publication of certain articles or books, leading to self-censorship by writers, editors, and publishers
• Media spin is a challenge in business coverage, where corporations use public relations experts to put a particular spin on corporate events or information, influencing how the media portrays them
• In business coverage, a challenge is media spin, where corporations can influence the interpretation of corporate events or information through public relations experts
• Reporters have been accused of repackaging corporate press releases without further input, potentially leading to biased reporting
• The media should not engage in irresponsible, inaccurate, or scandalous reporting, but businesses should not unduly influence reporters and publishers
• There is a debate on whether the media has a left-leaning, anti-business bias or a right-wing, corporate-agenda bias
• Corporations are concerned about the type and tone of information in the media and its influence on their reputation
• Research on the relationship between media exposure and change in corporate reputation has been inconclusive
• Business enterprises owning and operating media outlets raises issues of ownership concentration and potential biases
• The centralization of media and declining readership of newspapers are concerns, but there is increased coverage of business ethics and corporate social responsibility in the media
• Social media has a dynamic influence on the relationship between business and society, allowing for instant, interactive, and global exchanges of information
• Social media enables society to hold businesses more accountable, but also presents challenges such as disclosure of unethical practices and fake news
• Corporations should develop written policies to address issues arising from social media, outlining expectations for employee behavior on social platforms
• False information and misinformation can be spread about business corporations, posing a challenge for social platform providers in deciding which information should be banned, such as hate speech