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Management
Ch. 2: Key Learning Objectives
Evaluating public issues and their significance to the modern
corporation
Analyzing the ways business utilizes its boundary-spanning
departments to interact with their various stakeholders
Knowing the duties of a companyʼs public affairs manager or
department both for domestic and international issues
Applying available tools or techniques to scan an organizationʼs
multiple environments
Investigating how competitive intelligence is gathered and used
Describing the steps in the issue management process and
determining how to make the process most effective
Public Issues
Public issue
An issue that is of mutual concern to an
organization and one or more of the organizationʼs
stakeholders. Discrepancy between what
stakeholders expect and what an organization is
actually doing.
It is important for an organization to identify emergent
expectations of stakeholders as early as possible.
Environmental analysis
It provides managers with the information about external
issues and trends that enables an organization to develop a
strategy that minimizes threats and takes advantage of new
opportunities.
Environmental intelligence
The acquisition of information gained from analyzing the
multiple environments affecting organizations
Depends on scanning eight “radar” screens shown on next
slide
Figure 2.3 Eight Strategic Radar Screens
Issues Management Process
Composed of 5 Steps or Stages
1. Issue Identification
Issue identification involves anticipating emerging
concerns, sometimes called “horizon issues” by managers
Sometimes managers become aware of issues by
carefully tracking the media, experts’ views, and
legislative developments to identify issues of concern to
the public.
2. Issue Analysis
Once an issue has been identified, its implications must be
analyzed. Organizations must understand how the issue is
likely to evolve, and how it is likely to affect them. For each
company, the ramifications of the issue will be different.
3. Option Generation, Evaluation and Selection
The next step in the issue management process
involves generating, evaluating, and selecting among
possible options. This requires complex judgments
that incorporate ethical considerations, the
organization’s reputation and good name, and other
non quantifiable factors.
Issues Management Process
4. Program Implementation
Once option is chosen, must design and implement it
5. Assessment of Results and Continuous Improvement
Must assess results of the program and made adjustments
as needed
Week 3/4
2
Corporate Social Responsibility
A corporation should be held accountable for any of its
actions that affect people, their communities, and their
environment. It implies that harm to people and society
should be acknowledged and corrected if at all possible. It
may require a company to forgo some profits if its social
impacts seriously hurt some of its stakeholders or if its funds
can be used to have a positive social impact.
It also requires companies to balance the benefits to be
gained against the costs of achieving those benefits. i.e
MSC = MSB
3
Corporate Social Responsibility (CSR) and
Power
Social responsibility of business is the result of:
Essential function it performs for a variety of
stakeholders
Immense influence it has over the lives of its
stakeholders
The worldʼs largest 200 companies account for more
than 25% of the worldʼs economic activity
4
History of the CSR Concept
Turn of the 20 century corporations came
th
7
The CSR Debate
8
Figure 3.3
The Pros and Cons of Corporate
Social Responsibility
9
Multiple Responsibilities of Business
There are three
Economic responsibilities
Social responsibilities
Legal responsibilities
Challenge is to balance all three
Successful firm is one which finds ways to meet
each of its critical responsibilities and develops
strategies to enable the obligations to help each
other. Having multiple and sometimes
competing responsibilities does not mean that
socially responsible firms cannot be as
profitable as others less responsible. 10
Enlightened Self-Interest
Economic and social goals come together in
companies that practice enlightened self-
interest
Means firm leadership can see it is in the
companyʼs self-interest in the long term to
provide true value to its customers, to help
its employees grow and behave with
responsibility
Studies comparing CSR with firm
performance shows there is a moderately
positive association between the two factors
11
Legal Requirements Versus Corporate
Social Responsibility
A firm must abide by laws and regulations governing
society.
Legal rules set the minimum standard for business
Companies can choose to go beyond the legal
standard and strive for higher levels of social
responsibility
Stockholder Interests Versus other
Stakeholder Interests
Corporate executives and board members are
constantly under pressure to produce value for
owners/investors