CH13 - Civil Society Stakeholders Flashcards
Civil society def
comprises the voluntary/paid community, and social organizations or institutions that contribute to the functioning of society but are not related to or supported by the government
NGO def
Non-governmental organization = any group that holds shared values or attitudes about an issue confronting society and advocates for changes relating to the issue
-> part of private sector, not part of gov
-> usually non-profit orgs supported by volunteers and activists
Examples of NGO values
-> animal welfare vs rights
-> economic (e.g. oppose capitalism)
-> social dev. (gap between rich/poor)
-> worker’s/human’s rights
-> environment
Tactics used by NGOs
- pressure on government to change policies
- developing shareholder social policy resolutions
- damaging physical property
- occupying corporate premises
- sponsoring demonstrations / picketing corporate locations
- launching letter-writing campaigns
- digital protest
- initiating legal proceedings
- non-violent use of internet
- develop anti-business websites
difference between charities and NGOs
- charity doesn’t pay taxes
- needs to support a cause deemed as “charitable” by gov
but otherwise the same as NGO
Why corps should not dismiss NGOs
- members very dedicated to cause
- allow wider cross-section of society to influence
- generate ideas, knowledge and solutions
- disseminate information on issues
- pressure for results
- agents for change
- confer legitimacy when govs cannot act alone
benefits from partnership with NGOs
- identifying opportunities and risks
- influencing public opinions
- developing possibilities for innovation
- enhancing reputation/trust by the public
- creating expertise with in-depth knowledge of specific issues
- facilitating employee engagement
- building large networks with other stakeholders
Requirements for a business / NGO relationship
1- NGO must be able to threaten the corp
2- The corporation must respond by changing business practice
3- The change must serve to advance the NGO’s goals
3 ways business can respond to NGO demands
1- resistance, because of transaction cost
2- capitulation/agreement (customer goods), because of brand impact
3- Pre-emption (competitive industries), because of their competitive position = satisfy the needs of NGOs before anything arises
How do corporations can build a relationship with NGOs
- proactively engage NGO and expect to interact with them
- not underestimate their influence
- reversing a decision or withdrawing from a project should not be viewed as defeat
- sometimes selective concessions are sufficient to address opposition
- sometimes better to deal with “realist” NGO and ignore “radical” ones
- preemptive strategy may be feasible
Partnership relationship with NGOs
- P brings together business and NGO resources to address and issue, including human, technical, financial, and knowledge interests
4 key ingredients to a successful partnership
1- corp and ngo leaders must show leadership
2- corp must be open to change
3- must be a commitment to being comitted
4- partners must have a shared goal
The Medial Stakeholder
- can influence the views held by the public about business
- most medial operations are owned by a private-sector enterprises (advertising is a main source of revenue)
- divided into 2 categories
- trad media
- social media
influence of trad media
- composed of written and broadcast approaches (newspaper, periodicals, books, television, film)
=> portray business operations and its relationship to society - coverage of business increasingly dominated by live TV
Nature of relation important- print media content is self-regulated by editors and reviewers
- canadian radio-tv and telecommunications commission (CRTC) regulates broadcasting and telecommunications
Business complaints about the Media
- reporters not sufficiently knowledgeable about business and economics
- media is only interested in “bad news” that can be sensationalized
- media unable to place the info into the correct context
- media has an inherent bias against business + is dominated by leftist journalists
- business reporting is not only biased, but also oversimplified and lacking insight
- reporters don’t respect “off-the-record” comments
Media Complaints about Business
- businesspersons confuse issues by waffling on details, stonewalling, attempting to hide negative info or lying
- businesspersons use the excuse that they are accountable only to shareholders, not the media
- businesspersons overreact to the process of reporting events and covering issues
Reasons why businesses try to manage relationship with media
-> press releases
-> Libel chill : a business threatens legal action if a particular article or book is published
-> media spin : corp have access to services of public relations experts who are able to put a particular “spin” / interpretation on corporate events or information
Media ownership and centralization + issues
Business entreprises now own and operate major media outlets
Issues :
1- newspaper monopolies help in cities by large corps.
2- interlocking ownership between print and broadcasting media
3- Licensing process in broadcasting where some corporations are allegedly favoured over other
4- operation of newspaper chains that are concerned more with financial performance than professional journalism
Issue with centralization = may be too few voices
Social media def and uses
def= online technologies and practices that people use to share opinions, insights, experiences and perspectives.
- allow businesses and society stakeholders to share opinions
- exchanges are instant, interactive and cover all topics
- costs are low / non-existent = large number of ppl publish and receive
- can build or destroy a corp’s rep
3 issues in HR in relation to social media
- time employees should spend on socials during work hours
- action to take when employees make negative comments about corp
- scanning social media for info when evaluating potential employees for positions
2 issues in marketing/advertising practices in relation to social media
- corporations may distort endorsements by misrepresenting credentials, affiliations, and expertise or by placing fake stories
- marketers may inappropriately collect data on consumers
Social media issues and ethics
- involvement in socials should be guided by virtues (honesty, trust, respect,..)
Challenges: - rights of privacy for consumers and employees
- ascertaining which information should be banned
- collection of data without paying and its manipulation for profit
Need to regulate social media has arisen (rn regulated by industry + increased demands for gov intervention)
Policy development institutions (think tanks) def
def = organization that researches and analysis important social, economic and political issues confronting business and society
-> attempt to influence society’s and gov’s position on various business and social issues
-> brings fresh thinking
-> funded by gov, corps, individuals, unis, foundations, etc
=> critics claim lack of transparency
religious institutions influence on business
- impact of managerial decision making
- existence of businesses supplying religious goods and services
- spirituality in the workplace
- corporate response to religious activism
=> businesses must be careful in responding to religious activism
