🌸
Chapter 1: Business and society
relationship
Created @February 13, 2023 11:01 AM
Type Lecture
Materials Chapter 1.pdf
Reviewed
What is corporate sustainability.
The network for business sustainability has a terminology list.
Comes from sustainable development- meets the needs of present generation without sacrificing
future generations needs and resources
Adopting sustainability creates value
Corporate sustainability needs to be cultivated, needs to become the base form of businesses.
They can do this by knowing what their clients ( stakeholders) need and want.
1. Treat employees and the environment well
2. Use natural resources well
💡 ESG —> Environmental, social and corporate governance
Business and society.
Chapter 1: Business and society relationship 1
, The relationship between business and society
business- a profit driven system where products or services are sold.
We want to engage with society in an ethical manner
What we do is influenced by our stakeholders ( chapter 3)
Sustainability is important to inf
This all takes place in our macro environment
💡 What=management approach- what: business ethics, who: stakeholders, why:
sustainability, where: macro-environment
Chapter 1 - week 2
You need to be able to answer the following questions
1. Define and explain business and society as founda-tional concepts. Describe how society is
viewed as the macroenvironment.
2. Explain the characteristics of a pluralistic society. Describe pluralism and identify its
attributes, strengths, and weaknesses
3. Clarify what is a special-interest society and how it poses special challenges for business.
4. Identify, discuss, and illustrate the factors leading up to business criticism and corporate
response. What is the general criticism of business? How may the balance of power and
responsibility be resolved?
5. Identify what is the changing social contract. Is it better or worse for stakeholders?
6. Make clear the major themes characterizing this book: managerial approach, business ethics,
sustainability, and stakeholder management.
1.1 Business and society.
Chapter 1: Business and society relationship 2
, Business - the collection of private, commercially orientated organisations ranging in size form
one-family proprietorships to multinational corporations.
Society- a community, nation, or broad grouping of people with common traditions, values,
institutions and collective activities and interests.
Macro-environment- the total environment outside the firm, thee comprehensive societal
context in which the organisation resides.
Society- is the macro-environment in which businesses operate.
💡 In discussion of business and society, why is there a tendency to focus on large-
sized rather than small- or medium-sized firms? Have the corporate ethics
scandals of the past decade affected small- and medium-sized firms? If so, in
what ways have these firms been affected?
ANSWER: resources are more for bigger firms, they’re statements are more visible than smaller
companies, large companies have a larger impact on society.
If we think we as a small business is not effective we are not seeing the bigger business. If
corporations don’t assume their responsibilities it could lead to more legislation. This means you
have to spend more time and capital on the admin, the work etc of more legislation which will
trickle down to smaller companies.
Institutional voids created by government leads to the private sector having to look after itself.
As businesses we don’t want government to step in bc they don’t always know about the ways to
run business and most likely only add things ( legislation) that will complicate our systems.
1.2 Society as the macro-environment.
Social Political
Economical Technological
SOCIAL - Demographics, lifestyles, social values
ECONOMICAL- Nature and direction of the economy in which business operates
TECHNOLOGICAL- Technological Processes for passing of laws and election of officials.
Chapter 1: Business and society relationship 3
Chapter 1: Business and society
relationship
Created @February 13, 2023 11:01 AM
Type Lecture
Materials Chapter 1.pdf
Reviewed
What is corporate sustainability.
The network for business sustainability has a terminology list.
Comes from sustainable development- meets the needs of present generation without sacrificing
future generations needs and resources
Adopting sustainability creates value
Corporate sustainability needs to be cultivated, needs to become the base form of businesses.
They can do this by knowing what their clients ( stakeholders) need and want.
1. Treat employees and the environment well
2. Use natural resources well
💡 ESG —> Environmental, social and corporate governance
Business and society.
Chapter 1: Business and society relationship 1
, The relationship between business and society
business- a profit driven system where products or services are sold.
We want to engage with society in an ethical manner
What we do is influenced by our stakeholders ( chapter 3)
Sustainability is important to inf
This all takes place in our macro environment
💡 What=management approach- what: business ethics, who: stakeholders, why:
sustainability, where: macro-environment
Chapter 1 - week 2
You need to be able to answer the following questions
1. Define and explain business and society as founda-tional concepts. Describe how society is
viewed as the macroenvironment.
2. Explain the characteristics of a pluralistic society. Describe pluralism and identify its
attributes, strengths, and weaknesses
3. Clarify what is a special-interest society and how it poses special challenges for business.
4. Identify, discuss, and illustrate the factors leading up to business criticism and corporate
response. What is the general criticism of business? How may the balance of power and
responsibility be resolved?
5. Identify what is the changing social contract. Is it better or worse for stakeholders?
6. Make clear the major themes characterizing this book: managerial approach, business ethics,
sustainability, and stakeholder management.
1.1 Business and society.
Chapter 1: Business and society relationship 2
, Business - the collection of private, commercially orientated organisations ranging in size form
one-family proprietorships to multinational corporations.
Society- a community, nation, or broad grouping of people with common traditions, values,
institutions and collective activities and interests.
Macro-environment- the total environment outside the firm, thee comprehensive societal
context in which the organisation resides.
Society- is the macro-environment in which businesses operate.
💡 In discussion of business and society, why is there a tendency to focus on large-
sized rather than small- or medium-sized firms? Have the corporate ethics
scandals of the past decade affected small- and medium-sized firms? If so, in
what ways have these firms been affected?
ANSWER: resources are more for bigger firms, they’re statements are more visible than smaller
companies, large companies have a larger impact on society.
If we think we as a small business is not effective we are not seeing the bigger business. If
corporations don’t assume their responsibilities it could lead to more legislation. This means you
have to spend more time and capital on the admin, the work etc of more legislation which will
trickle down to smaller companies.
Institutional voids created by government leads to the private sector having to look after itself.
As businesses we don’t want government to step in bc they don’t always know about the ways to
run business and most likely only add things ( legislation) that will complicate our systems.
1.2 Society as the macro-environment.
Social Political
Economical Technological
SOCIAL - Demographics, lifestyles, social values
ECONOMICAL- Nature and direction of the economy in which business operates
TECHNOLOGICAL- Technological Processes for passing of laws and election of officials.
Chapter 1: Business and society relationship 3
