Business ethics and business policy

Introduction to the field

Business, Society, and the 21st Century

key point: success tied to stakeholders

key point: success tied to B/G/S relationships

the Exxon example (text) GM example (text and class) Peregrine example (class)

What is B/G/S relationship based on?

Market capitalism model Dominance model Dynamic forces model Stakeholder model

Exxon Valdez World’s biggest company Company’s biggest ship Who is the Captain Hazelwood???

Business Ethics and Poliicy

WHY DID GM LOSE GROUND??

neglect of stockholders?according to this course,

not that simple

neglect of stakeholders

GMGM

outside forces GM ignored - eg:

(ask yourself: why important?)Rosa XXXXX

Sheik XXXXXXRalph XXXXXEiji XXXXXX

Rachel XXXXXXRoss XXXXX

John Z. XxXXXXXX

stakeholder conceptA key idea of course.

not just stockholders!

Employees(Delorean)

Competitors(Toyota, etc.)

Etc.

Suppliers(oil companies?)

GMGM

Customers(wine and cheese types

like you and me!)

Primary stakeholders???

General public(wine & cheese

types again!)

Foreign Governments

(Yamani..)

Social activists(Ralph, Rosa,

Rachel)

GMGM

Secondary stakeholders???

Media(TV, including

C-Span)

Communities(Flint Michigan)

Shaping B.S. relations

1. Strategic, social challenges 2. Ethical expectations, values 3. Global changes 4. Changing role of government 5. Ecology, resource concerns

Six major forces shaping business-society relations

Business andBusiness andits its

stakeholdersstakeholders

Global economic change

Changing role ofgovernment andpublic policy

Strategic and social challenges

Technology and new knowledge

Ecological andnatural resource concerns

Ethical expectationsand public values

1-7

Who are the stakeholders in YOUR firm??

Who are the stakeholders in INLAND NATIONAL BANK????

Employees

Competitors

.

Suppliers

Primary stakeholders???

INBINB

Customers

Communities

General Public

Foreign Governments

Social Activists

INBINB

Secondary stakeholders???

Media

Note….

distinction between primary and secondary not clear, not distinct

PeregrinePeregrine

Poor Peregrine!

What is (was) Peregrine?What went wrong?Who got hurt?

banks,creditors

general public(economy suffers)

clients, investors

government: less income,more demand

taxi firms in Indonesia

HKUST students who are now poorer

worried German investors

Asia Inc., and others on list

poor Suharto and family

PeregrinePeregrine

employees, families

stockholders,partners

competitors(more business, less confidence)

Peregrine & stakeholder model Includes many of typical groups

leaves out only a few: religious groups environmentalists minorities the poor labor unions political parties, groups

Basic BGS models market capitalism? OK but a bit simplistic dominance model: some truth. B&G do run

many things, especially in Indonesia and in China and in USA, and . . . dynamic forces model: text favorite stakeholder model: JFH favorite??

today’s business environment:

more historical factors China: no respect for business 1949: Mao abolishes business

–HK thrives as outlet for China 1978: Deng OKs rural food sales

today’s business environment (continued):

historical factors continued 1978: Deng OKs rural food sales no turning back! every year... HK thrives as port for China 1997: HK now key Chinese city

the pressure is on: expectations gap!!!

strategic & social challengesethical expectationsglobal changesgovernments changing tooenvironment

end of Business Environment

Reflect on stakeholder idea: Peregrine Investments Holdings Ltd

NEXT:

how Web Assignments will work begin term paper planning

WEB ASSIGNMENT 1 COMING SOON

OK to practice now! OK to answer now but read

chapters 5 and 6 first

term paper planning

in teams of two, invent two possible topics, and two possible TITLES

you are NOT obligated to keep these titles

you are NOT obligated to keep these topics

web assignment may look like: Are corporations GOOD or EVIL? Or, in

terms from text, do corporations follow idea of corporate social responsibility?

family name begin with A to L: in 150 to 250 words, convince us that corporations DO take social responsibility seriously, Give a HK (or Asia) example to help prove your point.

family name begin with M to Z: in 150 to 250 words, convince us that corporations DO Not take social responsibility seriously, Give a HK (or Asia) example to help prove your point.

web assignment #1 great to include NAME of example great to include SOURCE if

possible great to include WWW link if you

can do it! TIME TO DO IT!!! have fun!