GSB 02, Introduction

7/29/2019 GSB 02, Introduction

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Islam, M.T. http://sites.google.com/site/kjatbd/

Government, Society, and Business

Md. Tarikul IslamJahangirnagar University, Bangladesh


Recapping

qRecapping In the last class we have seen

What to study? How to study? Evaluation method (s) etc.

Any question so far?


The Course: TopicsNo Topics

01 Govt., Society, and Business

02 Business Environment

03 Business Power

04 Critics of Business

05 Corporate Social Responsibility and Ethics

06 Globalization and media

07 Race, ethnicity, and migration

08 Religion

09 Politics, govt., and terrorism

10 Multinational corporations

11 Sustainability, pollution, and environment

12 Consumerism

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Topics Details

qGovernment, Society, and Businesso Government, Society, and Business-GSB

Introducing the concept of GSB Business environment Business power Critics of business

A group assignment would be the evaluation criteria


your opinion?

o What is Government? Business? Society?


Government Defined

qGovernment Definedo Government

Government refers to the structures and processesthrough which public policies, rules, and programs are

authoritatively made for society. It also includes a widerange of institutions at various levels either to design or to

implement policies on be half of government

Therefore government is a system without anypersonificationand personalization


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Business Defined

qBusiness Definedo Business

Business is a broad term encompassing a range of actionsand institutions which includes but not limited to

manufacturing, finance, trade, service etc.

Common feature of business After processing input one gets output, quality of

which depends on quality of inputs and proper

functioning and management of process

So key issues are inputs, outputs, and process What is process?


Business Process

Remember GIGO: Garbage In Garbage Out!!


How to do business?

qHow to do business?o There are many ways of doing business; but mainly through

organizations

What is an organization?


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.organization

o Organizations? An organization is a social arrangement which pursues

collective goals, which controls its own performance, and

which has a boundary separating it from its environment

Dont people do business without any organization?


Society Defined

qSociety Definedo Society

Society is a network of human relations with three parts-ideas, institutions, and material things

Ideas are intangible objects comprising of values,beliefs, and ideologies

Institutions are formal pattern of relations that linkpeople together to accomplish a goal

Material things include natural resources, land, andmanufactured products


Any question on these three?


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Main Theme of the Course!

o Main theme Study of the relationship in between three, but mostly of

business with the other two

o Because To survive in the market a business must be responsive to

these elements

These elements both affect and be affected by business Most importantly consumers come from society and

government is also a part of the total social system.

Therefore, business needs to be successful in relating theseelements at an appropriate ratio


Models: BGS Relationship

qModels: BGS Relationshipo Models

There are four models The market capitalism model The dominance model The dynamic forces model The stakeholder model


The market capitalism model: 1/2

With the following assumptions in place Economy would be laissez-faire; no/zero intervention from

government

Every individual would have maximum freedom wherewith the reasoning and motivation they will maximize theirown interest

Individuals can own private property and are free to riskbusiness investment. It has an impact on competition andquality of products in the market


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The market capitalism model: 2/2

The market capitalism model says Business exists within a market environment and market is

a buffer in between business units and non market factors

It is influenced by economic and business activities ratherthan political factors and other non market forces

Competition and competitive forces can settle themarket and market price

Social welfare should be in the agenda of governmentrather than business, and if government performs inlinemarket performance would be the social performance

eventually


The Dominance Model

qThe Dominance Modelo The model says that

Business and government dominate the great mass ofpeople

Through business and with the help of government, asmall elite group develops a system which increase thewealth of them at the expense of many

Government regulations and market forces are notadequate to make the proper ethical judgment

o This is the source of common critics of business that businesstake care of wealthy people only


The Dynamic Forces Model

qThe Dynamic Forces Modelo Model

The model says that business exists within an environmentwhere there are public and government and all theentities are affected by each other

o Model features Business remains in an open society where it has to be

responsible for many economic and noneconomic

factors

In the open system the business is neither isolated not itsdominant

Business is the major initiator of changes in society throughits innovation or adaptation with innovation with the useof technology and interaction with varied parts of the

society


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The Dynamic Forces Model: Features

o Model features contd Public support for business is a function of the business s

adjustment to multiple social, political, and economicforces. Failure to adjustment leads to total failure

The relationship evolves/develops gradually because ofthe changes in ideas, institutions, and processes of society

over time


The Stakeholder Model

qThe Stakeholder Model Putting the business in center the model portrays a mutual

or both way relationship of business with its stakeholders

It says both entities are affected by each other

What is stakeholder?


Stakeholders: 1/2

o Stakeholders Stakeholders are those factors that affect or beingaffected by the operations of a business; mainly of two

types-primary and secondary

Primary stakeholders are those who have animmediate, continuous, and powerful impact on firm.For example, owners and employees of the firm

Secondary stakeholders are those who have lesspower to affect or influence the firms activities. Butthey affect or are affected by firms operations.

Example includes media, environmentalists,universities, trade associations etc.

o Having stake is the key!


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Stakeholders: 2/2

o In an organization there are two types of people normally-internal and external

Internal People inside the organization like board of directors,

managers, employees etc.

External people People outside of the organization like consumers,

pressure groups, others from PEST

What is PEST? PESTE?


Stakeholders: List

qStakeholders: Listo A common list that does not include all stakeholders is

Board of Directors, management, owners Business partners Current and retired employees, and their families Suppliers Lenders Customers Government Communities where business operates and sells

Regions, Nations, Cities The Globe (Some environmental issues are global)


Ethics in the Stakeholder Model

qEthics takes placeo Unlike market capitalism model in this model business is owned

by varied investors and business is dependent on lots of other

like suppliers

o As the model focuses more on stakeholders and relationshipwith stakeholders, the issues of ethics pop up

What is ethics?


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Ethics

o There are various definitions. However one common way tomeasure whether your action is ethical or not Touch your soul

and ask yourself

o By the way, how the model might look like?


Stakeholders View


Stakeholders View


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Stakeholders View


Assignment

qAssignmento Think about a university in Seattle in USA. The university has

undergraduate, graduate, and post graduate programs. In

total there are 12000 students, 600 teachers, and 700 staffs.

Discuss the primary and secondary stakeholders of thisuniversity

Are you a stakeholder for the university? What kind ofstakeholder are you? How? Explain

o Consider the same questions in respect to JahangirnagarUniversity and explain your position?

o Submit before the next class-within 12 PM. Late delivery isnever honored!

o This is a group assignment


Managing stakeholders

o Given the pictures, dont you think that its very difficult for afirm to handle all the stakeholders?

How many will you satisfy? How will you do that?


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Polonskys Suggestions: 1/2

o Polonsky said that Identify the relevant stakeholder groups

Developing a stakeholders map with their relevance Why they are relevant and how?

Determine the stake and importance of each stakeholdergroup

Very difficult task because stakeholders have stake inbetween themselves too!

Can be done with the direct communication with thestakeholders

With time stakeholder and their relevant importancemight change


Polonskys Suggestions: 2/2

Determine how effectively the needs or expectationsof each group is being met

How the current organizational policy meet thestakeholders interest right now?

Where is the deviations, if any? Modify corporate policies and priorities to take into

consideration stakeholder interests

New policy if required is designed to meet theexpectations along with the contingency plan

The major aim is the reduction of deviations Which stakeholders to attain first?


Stakeholders Mapping

Stakeholders mapping is a process of creating a pictureof the stakeholders of an organization in terms of theirpower possessions, interests, supporting or constrainingbehavior etc.

There are varied methods of stakeholders mapping like Internal/external stakeholders analysis primary/secondary stakeholders analysis Forced field analysis SWOT analysis Actor influence diagram etc.

You shall study almost all in course of time in the program However lets see some other methods


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Power/Dynamism Matrix: 1/3 This stakeholder map classifies stakeholders in relation to

the power they hold and the dynamism of their stance

This map can be used to determine where political effortsshould be focused during the development of the newstrategies


Power/Dynamism Matrix: 2/3

The stakeholders in group Aand B are the easiest to

deal with

The stakeholders in group Care important, because

they are powerful. But astheir dynamism is low their

behavior can be predicted

and their expectations canoften be met in an easymanner


Power/Dynamism Matrix: 3/3

qStakeholders in group Drequires the most management

attention, because they arepowerful and their stance is

difficult to predict. They cansometimes be dealt with by

testing out the new strategies

with them before the finaldecisions are made


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Power/interest matrix: 1/3

o This stakeholder map classifies stakeholders in relation to thepower they hold and the extent to which they are likely to

show interest in the strategies of an organization

o This matrix helps in determining the relationship that a firmshould have with a group of stakeholder



The stakeholders in group Arequire only minimal efforts

and monitoring

The stakeholders in group Bcan be important to

i n f l u e n c e t h e m o r epowerful stakeholders and

therefore they should be

kept informed



Stakeholders in group C arepowerful, but keep less

interest in the organizationalpolicies. However they

might emerge as ro leplayers in certain events;

keep satisfied

Stakeholders in group D isb o t h p o w e r f u l a n dinterested in organizational

policies. Their acceptancematter in the new policy

acceptance in a firm


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Power, legitimacy, and urgency Model

o A more recent stakeholder mapping model maps stakeholderbehavior into seven types, depending on the combination of

three characteristics

power of the stakeholder to influence the organization Legitimacy of the relationship and actions of the

stakeholder with the organization in terms of desirability,properness or appropriateness

Urgency of the requirements being set for theorganization by a stakeholder in terms of critically and

time-sensitivity for the stakeholder





The stakeholders who showo n l y o n e o f t h e t h r e echaracteristics (1, 2, and 3) aredefined as latent stakeholders.They are sub-classified further

as dormant, discretionary ordemanding stakeholder


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q The stakeholder who show two ofthree characteristics (4, 5, and 6)a re de f ine d a s e x p e c t a n tstakeholders. They are sub-classified further as dominant,

d a n g e r o u s o r d e p e n d e n tstakeholders

q The stakeholders showing all threecharacteristics are called definitivestakeholders


Assignment

o Select any company in Bangladesh Identify the key stakeholders of the company Describe the key demands of the stakeholders Are there any conflict of the company strategy and the

demands of stakeholders? Please describe


qThank You!

q

GSB 02, Introduction

Documents

Transcript of GSB 02, Introduction