Professional Documents
Culture Documents
Communication In Business
Competition and profit motive are the two key drivers of business
behaviour
The profit motive means that businesses produce only goods and
services that consumers are willing to pay for at prices that yields a
profit
A Changing Society:
• Dominance of free market economics
• Knowledge economy
• Labour power shifts
• Social obligations of business
• All of these events shape how business communicates and interact
Enviroment
Impact = Population x Technology x Affluence
Environmental policies, management systems and reports
Regulations and pressure from stakeholders
Equality
Crosses many sectors of business
o Treatment of employees of difference
o Discrimination due to religion or ethnicity
Community Building
Role of building community and infrastructure in the places of
operation.
o Education
o Malaria and HIV/AIDs programmes
o Infrastructure building
13/03/2013
Corporate citizenship: embraces all the facets of corporate
social responsibility, responsiveness, and performance.
Drivers:
Traditions and values
Reputation and image
Business strategy
Recruiting and retaining
employees
Customers and consumers
Expectations in the community
Laws and political pressures
Social Contract:
“Today, it is clear that the terms of the contract between society and
business are, in fact changing in substantial and important ways.
Business is being asked to assume broader responsibilities to society
than ever before, and to serve a wider range of human values….In as
much as business exists to serve society, its future will depend on the
quality of management’s response to the changing expectations of the
public. ” (From: Bernstein, A. 2000. Too much corporate power,
Businessweek September 1: 149. )
Stakeholders - primary/secondary: Individuals and groups with a
multitude of interests, expectations, and demands as to what business
should provide to society. It is a role, rather than a person.
External: outside the organization
Internal: inside the organization
• Primary stakeholders are those stakeholders that have a direct
stake in the organization and its success
• Secondary stakeholders are those that have a public or special
interest stake in the organization
• Core stakeholders are essential to the survival of the
• firm
• Strategic stakeholders are vital to the organization and the
threats and opportunities the organization faces
• Environmental stakeholders are all others in the organization's
environment
Views of stakeholders:
• Strategic approach considers stakeholders primarily as factors
managers should manage in pursuit of shareholder profits
• Multifiduciary approach considers stakeholders as a group to
which management has a fiduciary responsibility
• Synthesis approach considers stakeholders as a group to whom
management owes an ethical, but not a fiduciary responsibility
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Pluralism: Refers to a diffusion of power among society’s many groups
and organisations. Wide decentralization and diversity of power
Weaknesses
Pursuit of self-interest
Proliferates organizations and groups with overlapping goals
Forces conflicts to center stage
Can be inefficient
Iron law of Responsibility: In the long run, those who do not use
power in a manner society considers responsible will tend to lose it
Views
Globalisation critics argue that falling barriers to trade are destroying
manufacturing jobs in advanced countries
Supporters of globalisation contend that the benefits of this trend
outweigh the costs that
countries will specialise in what they do most
efficiently and trade for other goods and all
countries will benefit
Global Institutions
The World Trade Organization (WTO) is primarily responsible for
policing the world trading system and making sure that nation-states
adhere to the rules laid down in trade treaties signed by WTO members
The International Monetary Fund and the World Bank were created in
1944
The IMF was established to maintain order in the international
monetary system
The World Bank was established to promote economic development
The United Nations was established in1945 to:
maintain international peace and security;
develop friendly relations among nations;
cooperate in solving international problems and in promoting respect
for human rights; and
UN Global Compact:
Human Rights
Principle 1: Businesses should support and respect the protection of
internationally proclaimed human rights; and
Environment
Principle 7: Businesses should support a precautionary approach to
environmental challenges;
McDonalds
McDonald's employ more than 1.8 million people around the world
(People 2013)
McDonald's are one of the biggest trainers and employers in Australia
(Our People 2013).
Human rights is vital for high-quality corporate citizenship and is a key
performance indicator for companies globally (Business and Human
Rights 2013).
Sime Darby
Community development
Education
Employment
Environmental protection
13/03/2013