Chapter 13: Civil Society Stakholders Flashcards
Civil Society: Definition
●Civil society is composed of the voluntary, community, and social organizations or institutions that contribute to the functioning of society but are not related to or supported by government.
Non-Governmental Organizations (NGOs)
Any group that holds shared values or attitudes about an issue confronting society and advocates for changes relating to the issue.
●Usually, but not always, non-profit.
NGO Societal Issues Most Relevant to Business
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NGO Societal Issues Most Relevant to Business
●Animal rights
●Technology
●Economic
●Social development
●Workers’/human rights
●Environment
●Religious activism
The Case for NGOs: Benefits from Partnership
Identifying opportunities and risks
●Influence on public opinion
●Innovation possibilities
●Reputation and trust by the public
●Expertise on specific issues
●Employee engagement
NGO tactics
Pressure on governments to change policies
●Damaging publicity
●Disrupt annual meetings
●Develop shareholder social policy resolutions
●Damaging physical property
●Picket managers’ homes
●Sponsor demonstrations or picket corporate locations
●Organize boycotts
●Launch letter-writing campaigns
●Initiate legal proceedings
●Non-violent use of the Internet (i.e., ‘hacktivism’)
●Develop anti-business websites
●Support anti-business documentaries
●Provide support for alternative sources of goods and services
Strategies for Relationships with NGOs
Proactively engage NGO
●Do not underestimate NGO’s influence
●Reversing a decision from a project shouldn’t be viewed as a defeat
●Sometimes selective concessions are sufficient
●Sometimes better to deal with “realist” NGO, not radical ones
●A pre-emptive strategy may be feasible
Partnership Relationships with NGOs
Four key ingredients to a successful partnership:
●Corporate and NGO leaders must show leadership
●The corporation must be open to change
●Must be a commitment to being committed
●Partners must have a shared goal
The media stakeholder
Dealing with the media is part of managers’ responsibilities
●Legitimacy of business is dependent upon public’s knowledge of events and issues
●Information spread through newspapers, periodicals, radio, television, and social media (i.e., online technologies)
Interaction Between Business and the Media
Business complaints:
●Reporters not sufficiently knowledgeable
●Only interested in “bad” news
●Inherent bias
●Do not respect “off-the-record” comments
Media complaints:
●Businesspeople dishonest
●Use excuse that they are only accountable to shareholders
●Overreact to reporting process
LO
Media ownership
Business enterprises now own and operate major media outlets.
●Issues:
●Newspaper monopolies
●Interlocking ownership between print and broadcasting media
●Licensing process favours some corporations over others
●Newspaper chains more focused on profits than professional journalism
The media and csr
Ethical, social, and environmental responsibilities of business of increasing interest to public
●This has led to increased coverage of ethics in business and CSR in the media
●Corporations owning media have also recognized importance of CSR or sustainability
Policy Development Institutions
(Think Tanks)
An organization that researches and analyzes various important social, economic, and political issues confronting society
●Funded by government, corporations, trade unions, wealthy individuals, universities
●Examples: C.D. Howe Institute, Conference Board of Canada, Fraser Institute
Religious institutions
●Influence of religion on business:
●The impact on managerial decision making
●The existence of businesses supplying religious goods and services
●Spirituality in the workplace
●Corporate response to religious activism
Educational institutions
Business now involved in the educational system from kindergarten to university
●Two distinct approaches:
●Mutually beneficial partnership; or
●Educational institutions should be unencumbered from corporate influence