Chapter 5 Strategic Management and Corporate Public Affairs © 2012 South-Western, a part of Cengage Learning

The Concept of Corporate Public Policy Corporate public policy is a firm’s posture, stance, strategy or position regarding the public, social, global, and ethical aspects of stakeholders and corporate functioning Affirmative Action Sexual harassment Product safety Employee privacy Environmental Sustainability © 2012 South-Western, a part of Cengage Learning

Corporate Public Policy and Strategic Management Refers to the overall management process that focuses on positioning the firm relative to its market environment. Corporate public policy The part of overall strategic management that focuses specifically on the public, ethical, and stakeholder issues the firm faces. © 2012 South-Western, a part of Cengage Learning

Emphasis on Enterprise-Level Strategy For what do we stand? Key Questions: What is the role of our organization in society? How is our organization perceived by our stakeholders? What principles/values does our organization represent? What obligations do we have to society at large, including the world? What are the broad implications for our current mix of businesses and allocation of resources? © 2012 South-Western, a part of Cengage Learning

Manifestations of Enterprise-Level Thinking Codes of ethics Codes of conduct Mission statements Values statements Corporate creeds Vision statements Policy-oriented codes and statements © 2012 South-Western, a part of Cengage Learning

© 2012 South-Western, a part of Cengage Learning Core Values Core Values The deeply ingrained principles that guide all of a company’s actions and decisions. They serve as cultural cornerstones. © 2012 South-Western, a part of Cengage Learning

Importance of Core Values Apple’s Core Values Focus on making great products Innovation Focus on the few projects that are truly meaningful Collaboration Never settle for less than excellence © 2012 South-Western, a part of Cengage Learning

Enterprise-Level Strategic Thinking Establishment of committees Public policy/issues Ethics Governance Social audit Corporate philanthropy Corporate citizenship Ad hoc committees Public affairs office Identification/analysis of social or public issues © 2012 South-Western, a part of Cengage Learning

The Strategic Management Process Goal formulation Strategy formulation Strategy evaluation Strategy implementation Strategic control Environmental analysis © 2012 South-Western, a part of Cengage Learning

Components of Strategy Formulation © 2012 South-Western, a part of Cengage Learning

Strategic Corporate Social Responsibility Responsive CSR Addresses generic social impacts through good corporate citizenship and value chain social impacts by mitigating harm. Strategic CSR Transforms value chain social impacts into activities that benefit society while reinforcing corporate strategy. Advances strategic philanthropy that leverages competitiveness. © 2012 South-Western, a part of Cengage Learning

© 2012 South-Western, a part of Cengage Learning Public Affairs Public Affairs The management processes that focus on the formalization and institutionalization of corporate public policy. Embraces Corporate public policy Issues and crisis management Governmental relations Corporate communications © 2012 South-Western, a part of Cengage Learning

Buffering and Bridging Two types of corporate public affairs activities Activities that buffer the organization from the social and political environment. Activities that bridge the organization with that environment. © 2012 South-Western, a part of Cengage Learning

© 2012 South-Western, a part of Cengage Learning Tools and Techniques Environmental monitoring/scanning Working with the grassroots Constituency building Issue advertising Lobbying Political action committees Corporate social audits Web activism Coalitions and alliances Community investment Stakeholder management © 2012 South-Western, a part of Cengage Learning

Competencies for International Public Affairs Development of intercultural competence Knowing the impact of societal factors on public affairs Understanding local public policy institutions and processes Nation state-specific applications of PA functions Language skills Understanding global business ethics Managing international consultants, alliances, and issue partners © 2012 South-Western, a part of Cengage Learning