Chapter 15-1 Chapter 15 BUSINESS & SOCIETY Ethics and Stakeholder Management Carroll & Buchholtz 6e Business and Society: Ethics and Stakeholder Management, 6e Carroll & Buchholtz Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Prepared by Deborah Baker Texas Christian University  BUSINESS and COMMUNITY STAKEHOLDERS

Chapter 15-2 A Company’s Positive Impact Community Involvement (time & talent) Community Involvement (time & talent) Corporate Philanthropy (money) Corporate Philanthropy (money)

Chapter 15-3 Reasons for Community Involvement 1. Businesspeople are efficient problem solvers 2. Employee satisfaction & morale 3. A positive image facilitates hiring 4. Prestige & greater community acceptance 5. CSR is the alternative to government regulation 6. A co. benefits from helping institutions essential to continuation of business.

Chapter 15-4  What are businesses’ stakes in the community? Self-preservation Direct or indirect benefits Reputation (goodwill)  Developing a Community Action Program 1. Knowing the community 2. Knowing the company’s resources 3. Selecting projects that match SH needs with company resources. Examples. Managing Community Involvement

Chapter 15-5 Resource-Based Giving  Business uses its resources & core competences to provide a service to the community  Examples?

Chapter 15-6 Corporate Philanthropy Reasons to give?  75% of Americans look at corporate philanthropy when deciding whether to do business with that co.  Nonprofit organizations depend on it to survive.

Chapter 15-7 To Whom Do Companies Give? And Why? Who gets the most? Culture & the Arts Civic & Community Activities Health & Human Services Higher Education

Chapter 15-8 Strategic Philanthropy Make as direct a contribution as possible to the financial goals of the firm.  Doesn’t make sense to give “randomly”  need a strategy (well planned)  B. should support social programs that will directly affect their success Examples?

Chapter 15-9 A for-profit business enters into a cooperative agreement with a nonprofit for their mutual advantage Achieves both economic & philanthropic objectives Examples? Public Purpose Partnerships

Chapter Cause-Related Marketing The direct link of a business’sproduct or service to a specifiedcharity. Examples? Cause Branding A longer term commitment to a specificaudience. Examples?

Chapter A Company’s Negative Impact The Loss of Jobs 1.Outsourcing 2.Business & Plant Closings The Loss of Jobs 1.Outsourcing 2.Business & Plant Closings

Chapter Outsourcing Using international resources toaccomplish a task that was once donedomestically. Why?Potential drawbacks?Company’s responsibilities?

Chapter Business & Plant Closings  What responsibilities (moral obligations) does the business have to employees & community?

Chapter Plant Closings Before Deciding to Close  Make sure closing Is the only option! Before Deciding to Close  Make sure closing Is the only option! Consider diversifying (find new revenue streams) Consider diversifying (find new revenue streams) Consider new ownership New owner Employee ownership

Chapter Plant Closings After Deciding to Close  Minimize impact! After Deciding to Close  Minimize impact! Conduct a community impact analysis Provide advance notice  Provide transfer, relocation, & outplacement benefits Provide transfer, relocation, & outplacement benefits Gradual phase-outs Help attract replacement industry

Chapter Advance Notice Worker Adjustment & Retraining Notification Act  Requires firms with 100 or more workers to provide 60 days advance notice (to employees) before shutting down or conducting substantial layoffs Advantages for employees? Disadvantages for businesses? Penalties for violating WARN.

Chapter How much should the B. assist community?  Depends on…  New trend  communities are filing lawsuits against Co. for not being responsible enough.