1. The Corporation and Public Policy: Expanding Responsibilities
CHAPTER 3
The Corporation and Public Policy: Expanding Responsibilities

2. CHAPTER 3
The Corporation and Public Policy: Expanding Responsibilities and The First Step Towards Succsess

3. CHAPTER 3 ISSUES What is the proper role of business in society?
What criticisms can be raised against the corporate community?
What is corporate social responsibility?

4. QUESTION #1
S hould we “free” business from government intervention to achieve greater productivity and profit?

5. QUESTION #2
Should business play a larger role in politics, education and other public-sector activities?

6. QUESTION #3
Should business assume greater responsibilities in correcting societal ills?

7. CORPORATE POWER
Of the globe’s 100 largest economic entities, 51 are corporations; only 49 are countries.

8. CORPORATE POWER
The 300 largest global corporations hold one-quarter of the entire globe’s productive assets.

9. CORPORATE POWER
Top 5 oil companies revenue is almost equal to the economic output of the entire United States
11 Trillion Dollars!!!

10. CORPORATE POWER
72% of Americans say business has too much power over too many aspects of American life.

11. SO THE QUESTION IS
Who cares?

12. HAS AMERICA COMMITTED ITS SOUL TO CORPORATE VALUES?
Business values Vs
Traditional humanist values

13. CORPORATE WEALTH AND POLITICS: LOBBYING
The business community spent approximately $2.22 billion to influence Congress and the White House in 2005

14. CORPORATE WEALTH ALSO IMPACTS…
Schools
Charitable organizations
Entertainment
Religion
Sports, and

15. YES, EVEN

16. CORPORATE SOCIAL RESPONSIBILITY
The question today is, should good business decisions include consideration not only of the welfare of the firm but of society as a whole?

17. “Corporate Social Responsibility”
AND
Just what is
“Corporate Social Responsibility”

18. CORPORATE SOCIAL RESPONSIBILITY
When business assumes a measure of the burden for the welfare of the total society.

19. CORPORATE SOCIAL RESPONSIBILITY THEORY
Decision makers ( and you are future decision makers) are obligated to take actions which protect and improve the welfare of society as a whole, along with your own interests and the interests of your employer.

20. What about shareholder’s interests?
BUT
What about shareholder’s interests?

21. SOCIAL RESPONSIBILITY CONTINUUM
Long term company interest
Triple bottom
Line/sustainability
Profit maximization

22. SOCIAL RESPONSIBILITY PYRAMID

23. RULES OF SOCIAL RESPONSIBILITY
Follow these, and success is guaranteed for you and your company.

24. PHILANTHROPIC RESPONSIBILITIES
BE A GOOD CORPORATE CITIZEN.
Contribute resources to the community and improve the quality of life.

25. ETHICAL RESPONSIBILITIES
BE ETHICAL
You have an obligation to do what is right, just and fair.
Avoid harm.

26. LEGAL RESPONSIBILITIES
OBEY THE LAW!
Law is society’s codification of right and wrong.
Play by the rules.

27. ECONOMIC RESPONSIBILITIES
BE PROFITABLE
Without profits, none of the above is possible.

28. STAKEHOLDERS
To be successful today, management must take into consideration the needs of all stakeholders.

29. CORPORATE RESPONSIBILITY STANDARDS
Be careful what you read and believe.
Know your source!

30. EXPANDING RESPONSIBILITIES?
So, let us ask the questions again:

31. QUESTION #1
S hould we “free” business from government intervention to achieve greater productivity and profit?

32. QUESTION #2
Should business play a larger role in politics, education and other public-sector activities?

33. QUESTION #3
Should business assume greater responsibilities in correcting societal ills?