1. WELCOME TO TERM 3 2011

3. B UOYANCY – STAY AFLOAT 1. Self belief 2. Control 3. Persistence 4. Composure – don’t let anxiety overwhelm 5. Planning – being able to see risk before it engulfs you! OFFSET RISK We can all be anxious but it is the way that we respond to anxiety that is important: Do we work harder or do we ‘avoid’ Or 5 c’s from previous page

4. TERM 3 2011 Week 1: Hand out Business Plan assignment Finish Management process: ethical business behaviour Start and finish Management and Change Week 2: Start Business planning topic: Small to medium enterprises topic to be completed Week 3: Influences in establishing a small to medium enterprise Start the business planning process Week 4: The business planning process continued Week 5: The business planning process continued Week 6: Critical issues in business success and failure Also – presentations and analysis of assignments which are DUE THIS WEEK Week 7: REVIEW BEFORE EXAMS WHICH ARE WEEK 8-9 Week 8-9 – EXAMS Week 10 – HSC kickstart..

5. E THICAL AND SOCIALLY RESPONSIBLE BUSINESS BEHAVIOUR Do you have syllabus? This fits into “ Business management: management process” final topic see below in RED management process coordinating key business functions and resources operations  goods and/or services  the production process  quality management marketing  identification of the target market  marketing mix finance  cash flow statement  income statement  balance sheet human resources  recruitment  training  employment contracts  separation – voluntary/involuntary ethical business behaviour – CSR: corporate social responsibility

6. DEBATE ‘Businesses should only consider the law when making decisions’

7. ETHICAL AND SOCIALLY RESPONSIBLE BUSINESS BEHAVIOUR The majority of businesses want to be seen as responsible corporate citizens. The triple bottom line refers to the economic, environmental and social performance of a business. Ethics are standards that define what is acceptable and unacceptable behaviour. Business ethics is the application of moral standards to business behaviour such as: – fair and honest business practices – decent workplace relations – conflict of interest situations – accurate financial management – truthful communication. A corporate code of conduct encourages ethical business behaviour.

8. A CONTEMPORARY EXAMPLE... Trust makes the world go around, honestly July 20, 2011 Opinion Read more: http://www.smh.com.au/opinion/politics/trust- makes-the-world-go-around-honestly-20110719- 1hn4y.html#ixzz1Sat3S4r0 http://www.smh.com.au/opinion/politics/trust- makes-the-world-go-around-honestly-20110719- 1hn4y.html#ixzz1Sat3S4r0

9. T HE B ODY S HOP http://www.youtube.com/watch?v=temOt9p9IFY

10. A NITA R ODDICK INTERVIEW http://www.youtube.com/watch?v=KtD6FEbilSs& feature=related

11. ENRON Financial Statements fudged: ABC radio national.

12. S OCIAL RESPONSIBILITY Social responsibility refers to a business’s management of the social, environmental, political and human consequences of its actions. A socially responsible business tries to achieve two goals simultaneously: – expanding the business – providing for the greater good of society Can you think of an example? Social responsibility is good business.

13. TODAY... SOCIAL RESPONSIBILITY Some businesses argue that making a legal profit is all that is required to act responsibly. Do you agree? Today’s society has high expectations of business practices and greater awareness of business’s social responsibility. Why? A sustainability report/social audit is a report that details what a business has done, and is doing, concerning the social issues that affect it.

14. QUESTIONS FROM HANDOUT Page 285 questions: 1, 2, 4 and 7 Page 289 questions 1 and 6 For tomorrow!

15. T ASK Choose a business that you are interested and by researching on their website and news stories about the company decide why or why not you believe this company is ethical in the way it carries out its business

16. ANSWERS TO QUESTIONS ETHICS STATE the benefits of managing a business in an ethical and socially responsible manner. There are a number of benefits to managing a business in an ethical and socially responsible manner. The business would be regarded as a responsible corporate citizen; it would develop a good reputation and, as a result, be rewarded with improved business performance. EXPLAIN whether it is ethical for your school authorities to monitor student email usage o the school’s computer resources Consider the following points: Has the school informed students that they are monitoring their email, and is this outlined in the school’s technology policy? Should the school be allowed to monitor emails that are sent outside of school hours using school resources (e.g. before or after school)? If students feel their privacy is invaded, how will this affect their attitude towards their teachers (i.e. they may not trust them)? In your debates, students should specifically mention ethical issues relating to fairness and honesty, and respect for people. IDENTIFY the three components that make up the triple bottom line – you could obviously go into a lot more detail on this one! The three components that make up the triple bottom line are economic, environmental and social. DISTINGUISH between ethical and unethical behaviour Business ethics are the application of moral standards to business behaviour; these moral standards define what is acceptable and unacceptable behaviour. They involve moral issues and choices, but are not concerned with the legality of these choices. Unethical behaviour is that which is morally wrong. Revision questions 1 and 6 on page 289 IDENTIFY the two goals a socially responsible business tries to achieve The two goals a socially responsible business tries to achieve are: (1) expanding the business and (2) providing for the greater good of society. DEMONSTRATE how to social responsibility stance adopted by a business is a reflection of management attitudes and values. The social responsibility stance adopted by a business is a reflection of management attitudes and values. The way individuals deal with the vast range of ethical issues that confront them in their own personal lives will usually be reflected in how the business operates. An individual who lies to friends will most probably do the same within his or her business dealings.

17. MANAGEMENT AND CHANGE

18. Year 12 slideshow on same topic responding to internal and external influences managing change effectively identifying the need for change business information systems setting achievable goals resistance to change management consultants

20. W HAT IS ORGANISATIONAL CHANGE ? C HANGE IS THE ONE CONSTANT IN THE BUSINESS WORLD. COMPLETE THE FOLLOWING TABLE.... External influences on businesses SocialHistorical (Business)EconomicEnvironmentalPolitical Changing consumer trends Methods of managementGlobal financial crisisTriple bottom line New government and their policies

21. R ESPONDING TO INTERNAL AND EXTERNAL INFLUENCES Organisational change is the adoption of a business’s new idea or behaviour in response to internal or external influences. The ability to embrace, manage and adapt to change will increasingly determine a business’s competitive advantage. Successful managers are the ones who anticipate and adjust to changing circumstances.

22. W HAT TYPES OF CHANGE ARE THERE ? Changes can be major (transformational) or minor (incremental). When a business responds to the forces of change, the result will be a change to its: - organisational structure, including outsourcing, flatter structures and work teams - business culture; for a business to survive in the long term, changes should be reflected in its culture - human resource management practices, including recruitment and selection, training, performance appraisal, and redundancy procedures - operations management, including flexible manufacturing and quality assurance.

23. MANAGING CHANGE EFFECTIVELY To manage change effectively requires the change to be as productive as possible; to make it a process for revitalising and strengthening the business. Managers must develop strategies for managing change effectively. Identifying the need for change and setting achievable goals are two low-risk strategies for managing change. A business’s success or failure to accurately identify what needs to be changed depends on its ability to collect, organise, process and retrieve information quickly. Manipulation and threat are two high-risk strategies for managing change.

25. R ESISTANCE TO CHANGE At the same time as managers are undertaking — driving — change for the best of reasons, there will be restraining forces working against the change, creating resistance. The main reasons for resistance to change include: – management (may make hasty decisions or be indecisive) – fear of job loss (fearful of changes that threaten job security or require new work routines) – disruption to routine (worried that they cannot adapt to the new procedures that threaten established work routines) – time (either poor timing, or lack of time) – fear of the unknown (feelings of lack of control and anxiety) – inertia (prefer to stay with the safe and predictable status quo) – cost (financial cost of implementing major changes can be substantial).

26. D RIVING FORCES FOR CHANGE VS RESISTING FORCES AGAINST CHANGE Driving forces are those forces that initiate, encourage and support the change. Restraining forces are those that work against the change, creating resistance. Resistance to change is common among managers and employees.. Two strategies for overcoming resistance to change include: – creating a culture of change (encouraging teamwork) – providing positive leadership (sharing the vision). The main role of management consultants is to help businesses improve their performance and assist with change management.