Visvesvaraya Technological University Belgavi, P.G. Centre Kalaburagi -

585105

Presented By : SOURABH &

ISRAR

CONTENTSIntroduction to BGSDefinitions of BGSImportance of BGSModels of BGS and relationshipGlobal prospectiveHistorical prospects

Importance of BGS to Managers

To succeed in meeting its objectives a business must be responsive to both its economic and its non economic environment. Recognizing that a company operates not only within markets but within a society is critical. A basic agreement or social contract exists between the business institution and society. Managers must respect and adhere to society’s expectations. This contract defines the broad duties that business must perform to retain society’s support, but these duties are often ambiguous.

1. To Understand the role of business in society.

2. To understand the business power in society.

3. It becomes criteria for managerial decisions.

4. To understand the extent of corporate social

responsibility.

5. To know the ethical duties of managers and the need for

regulations.

6. To succeed in meeting the objectives of business.

7. To excel in managerial performance.

8. To monitor the non-economic environment by taking

stock of the situation before anything happens.

9. By recognizing that a company operates not only within

markets but within a society is a critical.

10. To think beyond profit in order to understand the forces

governing social responsibility.

Four Models of BGS Relationship

Market Capitalism Model Dominance Model Countervailing Forces Model Stakeholder Model

The Market Capitalism Model

The Market Capitalism Model The market capitalism model depicts business as operating within a market environment, responding primarily to powerful economic forces. The market acts as a buffer between business and nonmarket forces. History and nature of markets Adam Smith, The Wealth of Nations Capitalism Managerial capitalism

The Dominance Model

The Dominance Model Proponents of the dominance model believe that corporations and a powerful elite control a system that enriches a few at the expense of many.Populist reform movement opposed the dominance model.Marxism emerged in Europe about the same time.Most accurate in the 1800s, but is being resurrected due to the fear of transnational corporations in a global context.

The Countervailing Forces Model

Countervailing forces model conclusions:Business is deeply integrated into an open society and

must respond to many forces, both economic and noneconomic.

Business is a major initiator of change in society through its interaction with government, its production and marketing activities, and its use of new technologies.

Broad public support of business depends on its adjustment to multiple social, political, and economic forces.

BGS relationships continuously evolve as changes take place in the main ideas, institutions, and processes of society.

The Stakeholder Model

Stakeholders are those whom the corporation benefits or burdens by its actions and those who benefit or burden the firm with their actions.Primary stakeholdersSecondary stakeholders

Debate about how to identify who or what is a stakeholder.Stakeholder model is an ethical theory of management in which the welfare of each stakeholder must be considered as an end.

Global perspectives of BGS

A global perspective is far more than an understanding of worldwide business and international career opportunities.

Global perspective of BGS a) sustainable development. b) Globalization. c) Global issues. d) Global processes.

Historical perspective of BGS

The relationship is a stream of events, of which only one part exists today. Historical perspective is important for many reasons. It helps us see that today’s BGS relationship is not like that of others eras that current ideas and institutions are not the only alternatives; that historical forces are irrepressible; that corporations both cause and adopt to change; that our era is not unique in undergoing rapid change ; and that we are shaping the future now. When appropriate, we examine the antecedences of current arrangements.

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