THE STRATEGIC
MANAGEMENT OF
CORPORATE SOCIAL
RESPONSIBILITY
,CHAPTER 1: THE BUSINESS AND Segments:
Social Demographics, lifestyles &
SOCIETY RELATIONSHIP
social values.
BUSINESS DEFINED:
Economic The nature & direction of the
Businesses are the collection of private,
economy in which the
commercially oriented organisations ranging
business operates (inflation,
from one-family proprietorships to
unemployment, interest
multinational giants.
rates, income inequality).
Political Processes for passing laws
Why do we tend to focus on large/big
and election of officials. Also
businesses?
includes the interactions
• Products/ services & advertising are
between firms, the
widely known and are frequently in the
government and politics.
public eye.
Technological Rapidly changing
• Size is usually associated with power.
technological advancements
• Prevalence, power, visibility and impact
(new products, processes,
of big businesses out shine small
materials and means of
businesses.
communication).
SOCIETY DEFINED:
PLURALISTIC SOCIETY:
Society can be defined as a community, nation
Pluralism:
or broad group of people with common
Pluralism is the diffusion of power among
traditions, values, institutions, and collective
society’s many groups/ organisations.
activities & interests.
Pluralistic Society:
The Total Society:
Societies as the macroenvironment are
The total society is composed of –
pluralistic organisations that make up society
• numerous interest groups,
(traced to ¼ of environmental segments).
• more or less formalised organisations,
• A pluralistic society is one in which
and
there is wide decentralisation and
• a wide variety of institutions.
diversity of power concentration.
Groupings represent common cause/ share a
Characteristics:
common set of beliefs.
• Prevents power from being
concentrated in hands of few.
SOCIETY AS THE MACROENVIRONMENT:
The macroenvironment is the total environment • Disperses the allegiance of
outside of the firm. individuals to groups.
• Creates widely diversified set of
• The comprehensive social context in
loyalties to many organisations and
which organisations reside.
minimises the danger that a leader of
any one organisation will be left
uncontrolled.
Strengths:
• Prevents concentrated power.
• Maximises freedom of expression &
action.
, Weaknesses:
• Creates an environment in which
diverse institutions pursue own self-
interests with the result of no unified
direction.
• Goals overlap and cause confusions
about functions.
SPECIAL INTEREST GROUPS:
A special interest group is what a pluralistic General Criticism of Business:
society often becomes as pluralism expands. Use & Abuse of Power [the capability or ability
• A society develops and is characterised to produce an effect, have impact or bring
by tens of thousands of special interest influence to bear on a situation or society].
groups each pursuing their own
agendas. Iron Law of Responsibility:
Those who do not use power in a way that
Challenges: society considers responsible, tend to lose it.
• Can attract a significant following.
• Make life complex for businesses and LEVELS OF BUSINESS POWER:
the government. Macrolevel
• They are active, intense, focused and Entire corporate system of business
diverse. organisations (size, resources & dominance
• Often work at cross-purpose with no of system over society and our lives).
unified goals. Intermediate
Groups of organisations acting in concert to
BUSINESS CRITICISM: produce a desired effect (set prices, control
Social Environment Factors: markets, promote issues).
Affluence & • Create higher expectations of Microlevel
Education major institutions. Level of individual firm (exertion of power or
• Growing public awareness influence by any major corporation).
through TV, media, the Individual
internet… Corporate leaders exertion of power.
Rising • Creates a social problem [a
Expectations gap between social BUSINESS’S RESPONSE: A CHANGING SOCIAL
expectations for firms and CONTRACT
social performance and social Social Contract:
realities which results in A social contract is a set of reciprocal
entitlement mentality and understandings & expectations that
rights movement]. characterise the relationship between business
and society.
MANAGEMENT OF
CORPORATE SOCIAL
RESPONSIBILITY
,CHAPTER 1: THE BUSINESS AND Segments:
Social Demographics, lifestyles &
SOCIETY RELATIONSHIP
social values.
BUSINESS DEFINED:
Economic The nature & direction of the
Businesses are the collection of private,
economy in which the
commercially oriented organisations ranging
business operates (inflation,
from one-family proprietorships to
unemployment, interest
multinational giants.
rates, income inequality).
Political Processes for passing laws
Why do we tend to focus on large/big
and election of officials. Also
businesses?
includes the interactions
• Products/ services & advertising are
between firms, the
widely known and are frequently in the
government and politics.
public eye.
Technological Rapidly changing
• Size is usually associated with power.
technological advancements
• Prevalence, power, visibility and impact
(new products, processes,
of big businesses out shine small
materials and means of
businesses.
communication).
SOCIETY DEFINED:
PLURALISTIC SOCIETY:
Society can be defined as a community, nation
Pluralism:
or broad group of people with common
Pluralism is the diffusion of power among
traditions, values, institutions, and collective
society’s many groups/ organisations.
activities & interests.
Pluralistic Society:
The Total Society:
Societies as the macroenvironment are
The total society is composed of –
pluralistic organisations that make up society
• numerous interest groups,
(traced to ¼ of environmental segments).
• more or less formalised organisations,
• A pluralistic society is one in which
and
there is wide decentralisation and
• a wide variety of institutions.
diversity of power concentration.
Groupings represent common cause/ share a
Characteristics:
common set of beliefs.
• Prevents power from being
concentrated in hands of few.
SOCIETY AS THE MACROENVIRONMENT:
The macroenvironment is the total environment • Disperses the allegiance of
outside of the firm. individuals to groups.
• Creates widely diversified set of
• The comprehensive social context in
loyalties to many organisations and
which organisations reside.
minimises the danger that a leader of
any one organisation will be left
uncontrolled.
Strengths:
• Prevents concentrated power.
• Maximises freedom of expression &
action.
, Weaknesses:
• Creates an environment in which
diverse institutions pursue own self-
interests with the result of no unified
direction.
• Goals overlap and cause confusions
about functions.
SPECIAL INTEREST GROUPS:
A special interest group is what a pluralistic General Criticism of Business:
society often becomes as pluralism expands. Use & Abuse of Power [the capability or ability
• A society develops and is characterised to produce an effect, have impact or bring
by tens of thousands of special interest influence to bear on a situation or society].
groups each pursuing their own
agendas. Iron Law of Responsibility:
Those who do not use power in a way that
Challenges: society considers responsible, tend to lose it.
• Can attract a significant following.
• Make life complex for businesses and LEVELS OF BUSINESS POWER:
the government. Macrolevel
• They are active, intense, focused and Entire corporate system of business
diverse. organisations (size, resources & dominance
• Often work at cross-purpose with no of system over society and our lives).
unified goals. Intermediate
Groups of organisations acting in concert to
BUSINESS CRITICISM: produce a desired effect (set prices, control
Social Environment Factors: markets, promote issues).
Affluence & • Create higher expectations of Microlevel
Education major institutions. Level of individual firm (exertion of power or
• Growing public awareness influence by any major corporation).
through TV, media, the Individual
internet… Corporate leaders exertion of power.
Rising • Creates a social problem [a
Expectations gap between social BUSINESS’S RESPONSE: A CHANGING SOCIAL
expectations for firms and CONTRACT
social performance and social Social Contract:
realities which results in A social contract is a set of reciprocal
entitlement mentality and understandings & expectations that
rights movement]. characterise the relationship between business
and society.
