Ch 3,4,8,9,

Arguments for and against Political Participation by business

Why business should be involved: -A pluralistic system invites many participants. -Economic stakes are high for firms -Business counterbalances other social interests -Business is a vital stakeholder of government Why Business should not be involved: -Managers are not qualified to engage in political debate. -Business is too big, too powerful -Business is too selfish to care about the common good -Business risks its credibility by engaging in partisan politics

Arguments for and against Corporate Social Responsibility.

(For) -Balances corporate power with responsibility. -Discourages government regulation. -Promotes long-term profits for business. -Improves stakeholder relationships. -Enhances business reputation. (Against) -Lowers economic efficiency and profit. -Imposes unequal costs among competitors. -Imposes hidden costs passed on to stakeholders. -Requires skills business may lack. -Places responsibility on business rather than individual.

Types of Public policy

-Economic Policy -Social Assistance Policies

Reason's why problems occur

-Personal gain and self interest -Competitive pressures on profits -Conflicts of interest -Cross-cultural contradictions

Strategies and tactics by which businesses may influence public policy

-Promoting an information strategy- Some firms pursue a political strategy that tries to provide government policymakers with info to influence their actions. -Promoting a financial Incentive strategy- Businesses may wish to influence government policymakers by providing financial incentives in the hope that the legislator will be persuaded to act in a certain way or cast a vote favorable to the business's interests. -Promoting a Constituency-Building strategy- Used to seek support from organizations or people who are also affected by the public policy or who are sympathetic to business's political position.

Arguments in favor of being ethical in business

-To meet demand of business stakeholders -To enhance business performance -To comply with legal requirements -To prevent or minimize harm -To promote personal morality

Different approaches to ethics presented in "Analyzing Ethical Problems in Business."

1. Identify and analyze the nature of an ethical problem 2. Decide which course of action is likely to produce an ethical result

Ethics

A conception of right and wrong conduct. It tells us whether our behavior is moral or immoral and deals with fundamental human relationships. how we think and behave toward others and how we want them to think and behave towards us.

Public policy

A plan of action undertaken by government officials to achieve some broad purpose affecting a substantial segment of a nation's citizens.

Reasons used to justify government regulations of business

Advocates for and against regulatory proposals often use both economic and ethical arguments to support their views. Sometimes firms will agree to self-regulate their actions to head off more costly government-imposed regulatory reform.

Difference between Economic Regulation and Social Regulation

Economic regulation- aim to modify the normal operation of the free market and the forces of supply and demand. Social Regulation- aimed at such important social goals as protecting consumers and the environment and providing workers with safe and healthy working conditions.

Levels of political involvement

Level 1: Limited Organizational Involvement- indirect and impersonal *Contribution to political action committee *Support of a trade association or industry activities Level 2: Moderate Organizational Involvement- Indirect yet personal *organizational lobbyist *employee grassroots involvement *Stockholders and customers encouraged to become involved Level 3: Aggressive Organizational Involvement- Direct and personal *Executive participation *Involvement with industry working groups and task forces *Public policy development

Corporate Social Responsibility

Means that the corporation should act in a way that enhances society and its inhabitants and be held accountable for any of its actions that affect people, their communities, and their environment.