COMM216
Lesson 1 (Ch.1 & 3)
Chapter 1: The Relationship between Business and Society
1.1 Business and Society Relationship
Threshold of fourth industrial revolution = VUCA
V-Volatile
U-Uncertain
C-Complex
A-Ambiguous
Pillar 1: Links ethics to management.
Pillar 2: Good organization, considers managing ethics inside the organization.
Pillar 3: Good citizenship, goes beyond organizational boundaries.
- Society: Community with broad grouping of people with common traditions, values, and
history
Canadian society= Pluralistic society
- Business: Private. Commercial-value oriented legal enterprises.
In CAD→ SME(small and med.-sized enterprises)= 99% of all businesses
, → 15% of enterprises are foreign owned
→ Crown corporations(owned by government)
- Social problems: Gap between business social performance and actual social
expectations
- Social licence: Privilege of operating in society with minimal formalized restrictions-that
is, legislation, regulation, or market requirements–based on maintaining public trust by
doing what is acceptable to stakeholders in the business and society relationship.
,1.2 Ethics and Business
= The rules, standards, codes, or principles that provide guidance for morally
appropriate behaviour in managerial decision-making related to the operation of the
business enterprise’s and business’s relationship with society.
- Decision-makers in Cad businesses:
- Owners:Direct(investors and entrepreneurs) and indirect(consumers who invest in
mutual funds or employees who contribute to pension plans).
- Board of directors: People who represent owners.
- Managers: Require variety of skills to oversee the operations of businesses in today’s
dynamic economic environment
1.3 Business as an Economic System
Terms:
- Capitalism: Economic system that allows for private ownership of the means of
production (land, labour, and capital) and assumes the economic decision-making is in
the hands of individuals or enterprises who make decisions expecting to earn profit.
- Free enterprise system: Economic system characterized by ownership of private
property by individuals and enterprises, the profit motive, a competitive market system,
and no involvement by government. Also referred to as the private enterprise system.
- Laissez-faire capitalism: An economic system operating with the absolute minimum of
interference by the government in the affairs of business. Government involvement is
strictly limited to providing essential services such as police and fire protection.
- Responsible enterprise system: Operating as a free enterprise system but incorporating
the element of accountability. This definition implies that business enterprises are
responsible to society for their actions and are answerable or accountable for being the
cause, agent, or source of something.
, 1.4 The Corporation and the Business System
Lesson 1 (Ch.1 & 3)
Chapter 1: The Relationship between Business and Society
1.1 Business and Society Relationship
Threshold of fourth industrial revolution = VUCA
V-Volatile
U-Uncertain
C-Complex
A-Ambiguous
Pillar 1: Links ethics to management.
Pillar 2: Good organization, considers managing ethics inside the organization.
Pillar 3: Good citizenship, goes beyond organizational boundaries.
- Society: Community with broad grouping of people with common traditions, values, and
history
Canadian society= Pluralistic society
- Business: Private. Commercial-value oriented legal enterprises.
In CAD→ SME(small and med.-sized enterprises)= 99% of all businesses
, → 15% of enterprises are foreign owned
→ Crown corporations(owned by government)
- Social problems: Gap between business social performance and actual social
expectations
- Social licence: Privilege of operating in society with minimal formalized restrictions-that
is, legislation, regulation, or market requirements–based on maintaining public trust by
doing what is acceptable to stakeholders in the business and society relationship.
,1.2 Ethics and Business
= The rules, standards, codes, or principles that provide guidance for morally
appropriate behaviour in managerial decision-making related to the operation of the
business enterprise’s and business’s relationship with society.
- Decision-makers in Cad businesses:
- Owners:Direct(investors and entrepreneurs) and indirect(consumers who invest in
mutual funds or employees who contribute to pension plans).
- Board of directors: People who represent owners.
- Managers: Require variety of skills to oversee the operations of businesses in today’s
dynamic economic environment
1.3 Business as an Economic System
Terms:
- Capitalism: Economic system that allows for private ownership of the means of
production (land, labour, and capital) and assumes the economic decision-making is in
the hands of individuals or enterprises who make decisions expecting to earn profit.
- Free enterprise system: Economic system characterized by ownership of private
property by individuals and enterprises, the profit motive, a competitive market system,
and no involvement by government. Also referred to as the private enterprise system.
- Laissez-faire capitalism: An economic system operating with the absolute minimum of
interference by the government in the affairs of business. Government involvement is
strictly limited to providing essential services such as police and fire protection.
- Responsible enterprise system: Operating as a free enterprise system but incorporating
the element of accountability. This definition implies that business enterprises are
responsible to society for their actions and are answerable or accountable for being the
cause, agent, or source of something.
, 1.4 The Corporation and the Business System
