SOCIAL RESPONSIBILITY AND GOOD GOVERNANCE ChAPTER 1
Ideology
A bundle of values that creates a particular view of the world
Institutions
A formal pattern of relations that links people together to accomplish a goal
Society
A network of human relations composed of ideas, institutions and material things.
Trade liberalization
A philosophy in which nations promote trades by easing restrictions including both tariff and non tariff barriers.
Cultural
A system of shared knowledge, values, norms, custom and rituals acquired by social learning.
Social Responsibility
Adoption by a business of a strategic focus for fulfilling the economic, legal, ethical and philanthropic responsibilities expected of it by its stakeholders
Value
An enduring belief about which fundamental life choices are correct
Historical forces
An environmental force of unknown origin and mysterious action that provides the energy for events.
Dominant ideologies
An ideology is a set of reinforcing beliefs and values that constructs a worldview.
Idea
An intangible object of thought
Nation-States
Aros in an unplanned way out of the wreckage of the roman empire. The institution of thus was well suited for western Europe, where boundaries are contiguous with the extent of language
Government Environment
Business simultaneously encouraged and constrained by governments. These are now two long term global trends in the government environment of major importance to business
Foreign Direct Investment
Capital investment by private firms outside their home countries
Corporations
Combine capital and labor, encourage risk by limiting liability and have continually beyond individual's lives
Internal environment
Consist of groups (managers, owners, employees and board of directors) with different objectives, beliefs, needs and function that managers must coordinate to achieve overall company goals
Economic Environment
Consists of forces that influence market operations, including overall economic activity, commodity prices, interest rates, currency fluctuations, wages, competitor's actions, technology change and government policies
Legal environment
Consists of legislation, regulation, and litigation. These are five enduring trends in this environment, all working to constrain business behavior
Counter-Veiling Forces Model
Depicts the BGS relationship as a flow of interactions among the major elements of society
Fifth wave (1990-2020)
Digital, networks, software, new media, biotechnology
Third wave (1900-1950)
Electricity, chemicals, internal combustion, engine
Democracy
Form of government requiring three elements - popular sovereignty, political liberty and majority rule
Economic activity
Geophysical force with power to change the natural environment just as it has strained the ability of human institutions to adopt so also has it overwhelmed the ability of the eco system to cleanse and regenerate
Cultural
Impart values, habits, norms in family, religious or educational institutions
Globalization
In economic realm, it refers to the development of increasingly integrated commercial system
Secondary stakeholders
Include a probably broad range of constituents in which the relationship involves less mutual immediacy, benefit, burden or power to influence
Market Capitalism Model
It depict business as operating within business environment, responding primarily to economic forces.
Benefit 4
It encourages both professional and personal development
Benefit 5
It enhances relationship with clients - essential to building and maintaining trust between the company and clients
Public value
It is about the value that an organization contributes to society
Inequality
It is an ubiquitous and is are its consequences, envy demands for fair attributions of wealth and doctrines to justify some people have more than others
Dominance Model
It represents primarily the perspective of business critics.
Benefit 3
It supports being an employer of choice. The company's ability to attract and retain high calibre
Benefit 2
It supports public value outcomes.
Great leadership
Leaders have brought both beneficial and disastrous changes to societies and businesses
Political
Make an economic policy, collect taxes, provide social safety nets, check and balance business power
Financial
Mobilize capital for saving, borrowing and lending
Globalization
Occurs when networks of economic, political, social, military, scientific or environmental interdependence grow to span worldwide distances.
Fourth wave (1950-1990)
Petrochemicals, electronics, aviation
Business
Profit making activity that provides product and services to satisfy human needs.
Judicial
Protect property rights, encourage investments by making disputes resolution predictable
Regulatory
Protect the public and investors from dishonesty, danger and fraud
Stakeholder Model
Shows the corporation at the center of an array of mutual relationship with persons, groups, entities called stakeholders
Primary stakeholders
Small number of constituents for which impact of the relationship is immediate, continuous and powerful on both the firm and the constituent
Second wave (1845-1900)
Steam, rail, steel
Government
Structures and processes in society that authoritatively make and apply policies and rules.
Benefit 1
The ability to have positive impact in the community, encourages business to act ethically and to consider the social and environmental impacts of their business.
Population Growth
The human population throughout history is upward
Stakeholder
Those whom the corporation benefit or burden the firm with their actions
Technology
Throughout recorded history, new technologies and devices have fueled commerce and reshaped societies
Industrial revolution
Transforming changes that form agricultural economies into industrial economies
Postmodern values
Values based on assumptions of affluence, for example quality of life and self expression
First wave (1785-1845)
Water power, textiles, iron
Technological environment
When this ability is harnessed to manufacturing, it will create chips of astonishing computing power that operate on an atomic scale comparable to the process of photosynthesis