Question One
Business and society are separate concepts, but studies indicate that the two are interdependent. On the one hand, businesses cannot operate in isolation. Therefore, they are situated in communities and depend on society to make sales and generate revenue. On the other hand, society cannot function fully without products and services. Hence, it relies on businesses for the provision of these necessities. While this information is theoretical, the activities of this course broadened my understanding of the fact that business and society are interrelated and have varying levels of influence on each other by illustrating the idea using real-life case scenarios.
The activities of this course enhanced my understanding of the interrelationship between business and society by providing empirical evidence from today’s world. For example, in one of the activities in module 1, I explored a case scenario of some of the successful companies and the manner in which they relate with consumers in modern society. Notably, it was evident that the majority of the successful firms, such as jeans and T-shirt manufacturers and sellers, invest significantly in convincing the markets about the legitimacy, quality and affordability of their goods. These practices proved that businesses could not succeed in the absence of communities. This aspect explains why the firms are highly concerned about the community’s perception of the goods and services.
Furthermore, the activities of module 1 enhanced my understanding of the varying level of influence between business and society by providing practical case scenarios. For example, I explored the impact that the community has had on some companies such as McDonald. Notably, this world’s largest restaurant chain recorded a net loss of $344million for the October to December period in 2003 (“McDonald’s posts first-ever loss”, 2003). Some of the reasons for the losses were reduced sales in the United States, which ranks as one of the firm’s largest market. The sales reduction was mainly triggered by the significant pressure and lawsuits filed by communities against the firm’s unhealthy “big mac diet” which most consumers linked to diseases such as obesity (Vulliamy, 2002). This activity enhanced my understanding of the idea that communities may have a powerful influence on companies if they collaborate as was with the case of McDonald. Arguably, a single person protesting the ‘big mac diet’ may have had a weak influence on the firm, unlike the collective efforts of different stakeholders.
In summary, the activities of this course influenced my awareness of the interrelationship and varying level of influence between business and society using empirical evidence from real-life case scenarios. Notably, the journaling activities proved that communities that work collectively could have a powerful effect on businesses. Additionally, it became more evident that firms and society depend on each other for survival.
Question Two
Businesses operate in environments characterized by stakeholder diversity. Each stakeholder has individual needs, wants, expectations and perspective about the firm, which often results in conflicts and confluence of interests. From a business perspective, dealing with conflicts of stakeholders’ expectations can be challenging because of the significant layers of stakeholders involved; and if ignored or addressed improperly, it can result in public issues.
The primary challenge of dealing with a confluence of needs, wants, expectations and perspectives is satisfying the numerous layers of primary and secondary stakeholders surrounding a firm. This view is supported by journaling activities of some of the issues within Amazon. Notably, the company sells products assembled in different manufacturing plants across the globe. Recently, consumers and industry experts highly criticized the firm for its overreliance on temporary workers in China’s factory (Shen, 2018). On the one hand, Amazon is obliged to maximize stakeholders’ returns by minimizing the operational costs, which is likely achieved through the use of dispatch workers in its plants. On the other hand, Amazon is expected to comply with China’s labor laws which prohibit overreliance on temporary workers. This case scenario exemplifies the challenges that firms have to deal with as they serve additional layers on global stakeholders.
Unfortunately, despite the conflicts that may exist, firms cannot ignore or improperly address the stakeholders interests due to the associated ramifications such as stimulation of public issues. Notably, if stakeholder’s expectations are unmet, they may exert pressure on the firm and even compel the government to take action to address their concerns. For example, over the past decades, governments have been pressurized to establish environmental pollution policies due to the public’s outcry of the failure of firms to operate sustainably. Arguably, the set caps on the percentage of greenhouse gas that commercial firms can emit in the environment are a result of pressure exerted on governments by stakeholders to stimulate firms to meet stakeholders’ expectations.
In summary, the diversity of the business environment exposes firms to a confluence of stakeholders’ interest, expectations and needs, which if ignored or addressed improperly can lead to public issues. Notably, the primary challenge of dealing with the confluence is ensuring that all the layers of primary and secondary stakeholders are satisfied. Regardless of this challenge, firms must address the conflicts to avoid stimulating public issues which can be detrimental to a firm’s operations.
Question Three
Among interesting concepts that I learnt in this course is the “circles of reflection”, which is a useful tool of analysis and reflection. When in use, the “circles of reflection” enables individuals and firms to reflect on the impact of various forces influencing governments, other businesses and society. Overall, the circles of reflection can affect my perspective of multiple issues by broadening my view of problems in society, such as typhoons in India, and their impact on various stakeholders.
The “circles of reflection” can affect my view of issues by broadening my perspective on the impact of the problems on stakeholders within the inner and outer circle. Notably, this tool of reflection can help me take a broader look at the direct and indirect implication of an issue to multiple stakeholders. For example, during the course activities, the use of the tool enabled me to establish a broader view of the effect of the most recent cyclone Amphan in India. Reasoning from a narrow perspective, I viewed the cyclone as an issue to only the communities surrounding the Indian Islands and mainland, as the cyclone directly impacted them. Notably, the infrastructures in these communities, such as bridges, phones and electricity, were significantly affected by the cyclone (Gettleman et al., 2020). However, when I used the “circles of reflection”, I realized that the cyclone had numerous implications to not only the communities living in the area but also other stakeholders such the government and other societies. Notably, the cyclone increased government expenditure to finance the evacuation of the affected communities. Also, the damaged infrastructure affected communication and trade, as people could not travel in and out of the areas affected.
Fundamentally, the circle of reflection can affect my view of issues by providing me with a broader perspective of the problem on multiple stakeholders as was with the scenario of the recent cyclone in India. Notably, the tool can affect my view by helping me analyze an issue by considering its implication on stakeholders in the inner and outer circle.
Part B: Forces and Influences
Question One
Ethics and social responsibility are common concepts used in the business environment to describe the individual and societal-related practices of a firm. On the one hand, business ethics are concerned with a firm indulging in practices that in the best interest of all stakeholders and shareholders. On the other hand, social responsibility involves a firm’s impact on the communities and environment in which it operates. An analysis of the course discussions and activities in the modules suggest that ethics, social responsibility, internal and external forces such as technology, media and globalization relate in the sense that they influence each other.
A review of the course readings and activities suggests that technology influences the adoption of ethics and social responsibility among firms. Notably, the global advancement of technology introduces new societal issues that compel businesses to rethink their activities and adopt practices to mitigate the emerging technology problems to enable them to maintain a positive relationship with their stakeholders. For example, one of the areas of focus in module 3 was on companies such as Monsanto which grow genetically modified crops enabled by technological advancement in the agricultural sector. The company has been indulging in corporate social responsibility such as partnering with the University of Florida to develop better models on farming, achieving energy efficiency in farming to offset the environmental impact of its technologically-driven activities (“Monsanto company releases 2011 corporate social responsibility report”, 2012). Arguably, the social responsibility undertaken by Monsanto is influenced by its acknowledgement of the adversities of its activities, and the need to maintain a positive relationship with communities affected by its operations.
The activities of this course also suggest that globalization influences the adoption of ethics and social responsibility. Notably, as firms expand their operations across national boundaries, they are forced to comply with ethics and socially responsible practices advocated for in the host country. However, evidence also suggests that sometimes firms may expand their operations in other countries to circumvent and reduce the costs of environmentally responsible management.
Besides globalization, the course readings suggest that external factors such as media influences firms’ involvement in ethics and social responsibility. For example, the information in module 4 argues that when an issue is captured in the media, it tends to attract the citizens’ attention. Therefore, the existence of a highly responsive media and the widespread reliance of this medium of communication compels firms to adopt ethics and socially responsible management to avoid generating a negative public image among its stakeholders.
Question Two
Workplace ethics and corporate social responsibility (CSR) are an integral part of every successful business. As noted by Lawrence and Weber (2017), the resolution of dilemmas in the workplace is highly dependent on the existence of workplace ethics, values and virtues. Similarly, the success of firms is often enhanced by their involvement in socially and environmentally responsible management. While this information may be common knowledge, the course readings and journaling activities enhanced my view on the suitability of descriptive workplace ethics and the diversity of CSR, which changed my perspective about the exclusive philanthropic nature of CSR and reinforced my view of the importance of CSR in reducing business risks and enhancing firm’s reputation.
The course readings and journaling activities influenced my views on the suitability of descriptive workplace ethics in today’s highly diverse business environment. As noted in module 2, firms constitute a vast pool of individuals that subscribe to varying values and personal ethics. Furthermore, the course readings suggest that the perceptions of what is right and wrong may differ from one firm to another, thus creating a dilemma and what is standardly and morally accepted in business. However, with an integrity strategy in place, ethics in the workplace become descriptive, allowing management and employees to act with integrity rather than merely complying with the established rules (Paine, 1994). This view by Paine influenced the idea that descriptive ethics are more suitable in the workplace as they provide room for employees to apply integrity in determining what is morally right rather than merely complying with the established rules.
Furthermore, the course readings influenced my understanding of the diversity of CSR and changed my perspective of the exclusive philanthropic nature of the practice. Before reviewing the course readings, I perceived CSR as merely a philanthropic or charitable practice that involves firms giving back to the community, either through the provision of resources or financial rewards. However, the readings and journaling activities broadened the view that CSR is diverse, and it varies from one firm to another depending on their interests and commitment to their stakeholders. For example, while Tim Hortons and TD Bank Financial group operate in Canada, they have varying CSR practices. On the one hand, Tim Hortons sponsors minor hockey and other children’s sports teams in Canada as a means of giving back to the community (“The first goal”, n.d.). On the other hand, TD Bank financial group sponsors the Great Canadian Shoreline Cleanup program in fulfilment of its commitment to CSR (“The dirty dozen”, n.d.). Fundamentally, journaling the activities of the two companies and the readings influenced my view of the diversity of CSR activities.
Based on information gathered from the course readings, I consider ethics and CSR to be necessary to business and society because they enable firms to reduce business risks, enhance their reputation and promote societal welfare. As the literature suggests, organizations view CSR as a branch of risk-management for potential stakeholder backlash (“Just good business”, 2008). Arguably, firms may use CSR to prevent stakeholder backlash following the former’s involvement in unethical practices. This aspect is evidenced by the move by Mattel to voluntarily expand its scope of investigation about the issue of lead in some of its toys, issue two recalls on toys with magnets that could potentially hurt children if dislodged and ingested, and publicly name the contractors that had been involved in the production of the toys with lead paint (Hurley, 2012). This move by the company was undeniably a CSR aimed at enhancing its reputation in the industry and preventing the risk of stakeholder backlash that would potentially affect its sales and revenues.
Similarly, I consider ethics and CSR to be vital because they help promote societal welfare. For example, the charitable practices and ethics upheld by firms help ensure that the needs of society are fulfilled. This view is evidenced by the ongoing CSR practices of firms such as Tim Hortons which provides opportunities for children to develop socially through sports.
Question Three
Many, if not all, organizations operate in environments where external forces and internal influences come into play. On the one hand, external forces are uncontrollable factors that affect a firm’s decisions and operations and may include economics, technology and globalization. On the other hand, internal influences are controllable factors that impact a firm’s operations and may include governance and corporate citizenship, workplace diversity and employee rights. Information gathered from the journaling activities, and course readings suggest that there exists an interrelationship between the two concepts, whereby external factors stimulate the adoption of internal influences by businesses.
Synthesis of information gathered from the journaling activities, and course readings suggest that internal influences such as global corporate citizenship and workplace diversity are triggered by external forces such as globalization. Notably, a firm’s decision to operate internationally stimulates it to indulge in private business self-regulation that targets societal goals. This view is also supported by Post et al. (2003), who states that internationalization deems it necessary for firms to assume responsibility to the community’s welfare. Similarly, globalization is a considerable trigger of workplace diversity. As noted by Global Diversity @ Work, globalization is a significant driver of employment diversity in Canada (“About us”, 2008). For example, the organization observes that labor shortages in particular professional sectors encourage firms to expand the diversity of their workforce to tap into previously under-utilized labor supplies locally and globally (“About us”, 2008). Synthesis of this information suggests that the ability of firms to expand their operations globally, which is supported by the emergence and growth of globalization, stimulates workplace diversity.
Furthermore, information from the course readings suggests that external factors such as technology are a trigger for government and business focus on consumer protection. Notably, Lawrence and Weber (2008) note that the emergence of Internet use has been raising ethical and social questions of privacy, security and ownership. Arguably, the concerns related to this technological advancement are the driving forces for the establishment of consumer protection laws and policies. For example, in 2004, the Canadian Code of Practice for Consumer Protection in electronic commerce was established to act as a benchmark for acceptable business practices for merchants conducting trade with consumers online (“The Canadian code of practice”, 2004). The establishment of consumer protection laws in electronic commerce supports the theory that technology triggers consumer protection in businesses.
Besides influencing CSR, consumer protection and workplace diversity, evidence from the course readings and journaling activities also suggest that external forces trigger the need for the establishment of employee rights in business. As noted, globalization enables firms to expand their operations in other countries and employ a diverse workforce. However, the rights of the workforce tend to vary from one country to another, which, sometimes could lead to their inadvertent violation. The existence of this challenge triggers the establishment of national employee rights to help protect the rights of the workers regardless of the country in which they operate.
Question Four
From a management’s perspective, the government is a stakeholder in business and society because its activities affect the decisions and practices of firms and the welfare of communities. However, it is also worth noting that unlike other primary stakeholders such as employees who directly affect the performance of entities, the government is a secondary stakeholder because it does not engage nor hold a direct interest in businesses. As a stakeholder in business and society, the government, directly or through intergovernmental agencies, plays numerous roles such as regulating businesses and consumption through taxation, implementing business laws, regulations and policies, offering financial support and other mechanisms to enhance economic growth, making decisions about business and societal concerns and protecting the health and well-being of its citizens.
Among the most significant roles of the government in today’s society is to impose taxes on businesses. Tax imposition and collection is often done at the national, provisional and local government levels. Among the reasons for tax imposition by governments is to promote healthy competition in industries and discourage or encourage the consumption of certain consumers products.
The government also plays a critical role in implementing laws, regulations and policies to govern business activities. For example, the Canadian government imposes regulatory processes to control various industries, such as the biotechnology sector. While literature suggests that some of the industrial insiders perceive such regulations as hindrances to progress, they are often established to protect each firm against violation of patent rights and ensure healthy competition in the industry.
Besides implementing laws and regulations, government plays a crucial role in protecting the health and well-being of its citizens. This role is often achieved through the establishment of regulatory policies on consumer products. For example, in Canada, several laws and policies are established with regards to the experimentation and screening of pharmaceutical products. The government regulates these processes to ensure that products that enter the market are safe for its consumers.
Furthermore, the government assumes the role of supporting the economic growth of the country. This role is often achieved through the provision of funds to sectors that require financial support. For example, a few years ago, the Canadian federal government allocated $80 million to create eighty new university chairs in biotechnology and issued $43.5 million to the Canada Foundation for Innovation grants for new researchers (Robin, 2003). These two scenarios exemplify the government’s involvement in various industries to support economic development.
Lastly, the government also plays a significant role in making decisions about business and societal concern. For example, over the past few years, the Canadian government, through the Environmental Protection Act, has been working towards preventing environmental pollution. This initiative by the government is an example of the manner in which the government plays a role in making decisions about societal concerns such as environmental pollution.
Part C: Final Reflection
Question One
Throughout this course, I was able to write down my thoughts about the concepts learnt in the course readings and from observation of real-life case scenarios. Among the issues that I had an opportunity to journal about is biases in today’s business and society. Notably, journaling about this issue helped me reflect, assess and understand deeply about the potential impact of individual and stakeholders’ biases in criticizing policies established by governments and fostering gender inequality.
The journaling activities in this course helped me deeply understand that stakeholder and personal biases can lead to negative criticism of national policies established by the administration. Most notably, I arrived at this conclusion after reflecting on some of the policies set in Canada and the personal bias towards them. For example, the Canadian government established a policy that prohibited tobacco smoking in public spaces. Notably, this policy was formulated to help protect communities against passive smoking and helping Canadians to quit tobacco smoking, which is harmful to their health. However, during my journaling activity, I realized that I might argue against the implementation of the policy because I have friends that are addicted to smoking; and they often require tobacco to function optimally in their daily activities. Therefore, prohibiting smoking in public spaces would significantly affect their well-being and even cause unwanted withdrawal symptoms. Reflecting on this journaling activity helped me realize that like others, I have personal biases that can sometimes lead to the criticism of policies set for the best interest of society.
Furthermore, the journaling activities helped me recognize that stakeholder bias can have far-reaching adversities, such as the promotion of gender inequality. Notably, this view was influenced by my reflection of Linda Knight’s case scenario, whereby the latter was required to obtain the support of her husband in co-signing for a line of credit for a business she founded (Oliver, 2003). Reflecting on this case helped me understand that stakeholder bias towards a specific gender can lead to gender inequality in business.
Besides promoting gender inequality and countering national policies, it was evident from the journaling activities that stakeholder biases have a ripple effect on the media, public opinion and subsequent decision-making in businesses and society. Notably, when stakeholders influence the media with biased perspectives, it impacts the views of the public who consume its information, which in turn, influences the decisions made by business and society to match the public’s view. For example, in one of the journaling activities, I reflected on a case scenario of stakeholder bias in media, whereby a media house failed to air a commercial by a not-for-profit firm because it allegedly targeted some advertisers who generated significant revenue for the media houses. Arguably, due to the media bias and lack of media coverage of the environmental issue addressed by the not-for-profit firm, the public may have been influenced to believe that the practices of the targeted firms were ethical. The failure of the public to take action against the firms would, in turn, influence the entities to continue making unethical environmental decisions. Based on this critical analysis, it was evident that stakeholder biases had a ripple effect on media, public opinion and decisions made by business and society.
Question Two
Overall, the readings and journaling activities in this course were informative, and they provided me with both theoretical and practical knowledge of each concept. For example, the course readings introduced me to the theory of the interrelationship between business and society, while the journaling activities enabled me to analyze the interrelation from a practical perspective. Fundamentally, all the learning in this course was informative, but I considered the study of workplace ethics and “circle of reflection” the most significant areas as they broadened my view of the impact of various influences on business and introduced me to a new dimension of ethics that I may require in my profession.
The study of workplace ethics proved significant for me as it introduced me to a new dimension of integrating ethics in a firm that I may need in my profession. Notably, I learnt that unlike the traditional prescriptive ethics that require employees to adhere to a set of established ethics, descriptive ethics enables workers to practice integrity in ethics. This area proved to be essential because as an aspiring organizational manager, I must have adequate knowledge of ethics that are vital at the workplace. I anticipate that in my future profession, there will be employee diversity in the workplace. Notably, the majority of the workers will be individuals from different ethnic, social and religious backgrounds, and their values and ethics may vary significantly. On the one hand, requiring people of such diversity to subscribe to a set of established codes and values may conflict with their ethics and probably affect their work performance. However, with the knowledge acquired in this area, I am confident that descriptive ethics will be more applicable in such an environment, as employees will have the autonomy to apply integrity in choosing what is morally wrong or right.
Besides workplace ethics, the study of the circle of reflection also proved significant as it equipped me with a new strategy of analyzing the impact of specific situations in a broader view. Based on the course readings, it became evident that each situation has a far-reaching implication that may not be acknowledged if analyzed using the inner circle only. This aspect can, notably, be detrimental to a firm, if it fails to examine the impact of each situation rigorously. Fortunately, readings from the course equipped me with a new tool of broadly analyzing the effect of various situations on a business, which I may require in my future profession to propel my firm to success.
References
“About Us” (2008). Global Diversity @ Work. http://web.archive.org/web/20030806065223/http://diversityatwork.com/about_us.html
“Just good business” (2008, January 19). The Economist. https://www.economist.com/special-report/2008/01/19/just-good-business
“McDonald’s posts first-ever loss” (2003, January 23). BBC. http://news.bbc.co.uk/2/hi/business/2688665.stm
“Monsanto company releases 2011 corporate social responsibility report” (2012, June 28). PR NewsWire. https://www.prnewswire.com/news-releases/monsanto-company-releases-2011-corporate-social-responsibility-report-160728475.html
“The Canadian code of practice for consumer protection in electronic commerce” (2004). Consumer Measures Committee. http://cmcweb.ca/eic/site/cmc-cmc.nsf/vwapj/EcommPrinciples2003_e.pdf/$FILE/EcommPrinciples2003_e.pdf
“The dirty dozen: TD great Canadian shoreline cleanup releases list of top shoreline litter” (n.d.). TD. http://td.mediaroom.com/index.php?s=19518&item=35313
“The first goal is having fun” (n.d.). Timhortons. http://company.timhortons.com/us/en/corporate/timbits-minor-sports-program.php
Gettleman, J., Yasir, S., Schultz, K., Fountain, H., Jett, J., Kumar, H., & Peltier, E. (2020, May 20). After cyclone hits India and Bangladesh, the waiting begins. The New York Times. https://www.nytimes.com/2020/05/20/world/asia/cyclone-amphan-india-bangladesh-map.html
Hurley, R. (2012, January 3). How Mattel regained trust. Financial Times. https://www.ft.com/content/61baac6e-2a84-11e1-9bdb-00144feabdc0
Lawrence, A., & Weber, J. (2008). Business and society: Stakeholders, ethics, public policy (12th ed.). McGraw-Hill Higher Education.
Lawrence, A., & Weber, J. (2017). Business and society: Stakeholders, ethics, public policy (15th ed.). McGraw-Hill Higher Education
Oliver, L. (2003). What women want. Profit, 22(5).
Paine, L. (1994, March/April). Managing for organizational integrity. Harvard Business Review, 72(2), 106–117. https://hbr.org/1994/03/managing-for-organizational-integrity
Post, J., Lawrence, A., & Weber, J. (2003). Business and society: Corporate strategy, public policy, ethics (10th ed.). McGraw-Hill Higher Education.
Robin, R. (2003, September 2). Survival of the fittest. Canadian Business
Shen, Q. (2018, June 11). Foxconn says investigating labor conditions at China factory used for Amazon. CNBC. https://www.cnbc.com/2018/06/11/foxconn-investigating-labor-conditions-at-china-factory-used-for-amazon.html
Vulliamy, E. (2002, November 24). ‘Super-sized’ teenagers sue McDonald’s. The Guardian. https://www.theguardian.com/world/2002/nov/24/health.healthandwellbeing
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