Part A:
Question One
Business and society are highly interrelated; each influences the other. Activities undertaken by an entity can either directly or indirectly affect its surrounding communities. Similarly, trends and preferences in society can positively or negatively affect business operations. In this course, I participated in activities that demonstrated the real-life interconnection of the business and community, and the degree of influence that the latter may have on a firm.
The tasks that I undertook in this module influenced my awareness of the interrelationship between business and society by providing real-life scenarios that demonstrate this aspect. For example, an analysis of events in the Canadian fisheries industry illustrated the interdependence between society and the business. Notably, the Canadian government recently announced the closure of fisheries across British Columbia to reverse the decline of Fraser River Chinook populations (Dawson, 2019). The government directive had a direct impact on business, as several commercial fishing industries and recreational spots were closed. Similarly, communities surrounding the west and east coast of the Pacific were significantly affected through job loss, as the fishing industry generated employment for more than 9,000 British Columbians (Dawson, 2019). The ripple effect of the business closure in the Canadian fisheries on the society influenced my understanding that the two aspects are significantly interrelated.
Furthermore, the activities fostered my understanding of the varying degree to which society influences business. Some activities revealed that in some instances, society could have powerful or weak influence on business operations. For example, analysis of McDonald’s situation in 2003 showed that changes in consumer preference within the population have a powerful effect on a firm’s success. Notably, McDonald’s recorded a fourth-quarter loss of $343.8 million in 2001, following changes in consumer tastes (Reuters, 2003). This case scenario revealed that the collective shift in societal trend could significantly influence a business. On the other hand, the activities showed that individual initiatives, such as the decision of a single person to boycott a specific product, would have a weak influence on business. Generally, undertaking these activities influenced my understanding that despite the interrelation between business and society, the degree of impact that the latter has towards firms varies significantly.
In summary, the activities undertaken in this module demonstrated real-life scenarios of business and society as a system and the degree of influence that the latter has on firms, which in turn enhanced my understanding of the interrelationship between the two components. Notably, the tasks revealed that operations at the business level have a positive or negative effect on society. Also, society could either have a powerful or weak influence on business, depending on whether the former harnesses collective power from multiple individuals.
Question Two
The majority of the businesses today face a myriad of challenges in their operations, among the most significant being dealing with stakeholders’ conflicts and managing gaps in consumers’ wants and expectations. Notably, sometimes organizations may experience difficulties in balancing their performance with the expectations of all involved stakeholders, including governments, employees, society, and consumers. While few large organizations can manage to resolve such conflicts through their public affairs officers, some organizations may not solve them due to the diversity of stakeholders and evolution of technology and globalization which introduces a new category of stakeholders whose needs ought to be met.
The challenges of dealing with the confluence of stakeholders’ expectations could arise from the diversity in this category of individuals. Notably, each of the business stakeholders has diverse needs and expectations, which makes it difficult for organizations to handle all the issues effectively. For example, in one of my activities, I identified an event in Canada where Alberta’s United Conservation Party Government introduced a $30-per-tonne carbon tax on large industrial facilities in its plan to curb global warming and climate change (Giovannetti & Graney, 2019). On the one hand, the government had expectations that large industrial emitters would comply with the regulation and pay the levy to the respective states’ authority. On the other hand, communities surrounding these industries expected that implementation of the tax would help lower the amount of carbon emitted by the firms. Also, consumers expected that the tax would not trigger a rise in the prices of goods manufactured in the industries. While corporations could comply with the legislation, it would be challenging to meet the pricing needs of consumers due to the increase in operational costs. This case scenario reveals how diversity among stakeholders creates challenges in dealing with their expectations and wants efficiently.
Furthermore, dealing with a confluence of stakeholder needs and expectations can be challenging due to the evolution of technology and the rapid increase of globalization which introduces a new category of stakeholders whose needs ought to be met. Notably, as a result of technological advances such as the Internet, firms are exposed to another layer of stakeholders who have several expectations about the organization’s performance, and whose needs and perspectives exert pressure on business performance. For example, in one of my activities, I identified a category of stakeholder, ‘the online community’, created by the evolution of technology, who are often on the frontline in criticizing a firm’s image. Like other stakeholders, such as society and government, this category of stakeholders has expectations about the firm, which if unmet can exert pressure on the business.
Besides, globalization has the potential to create an additional layer of stakeholders, making it difficult for firms to efficiently deal with all the needs and expectations of involved individuals. For example, as a result of globalization, firms all over the world are subject to the expectations of the UN Intergovernmental Panel on Climate Change (IPCC) to curb global warming through the transitions in industries that use fossil fuel (“Climate change”, n.d.). This new category of stakeholders has unique needs and expectations which, if unmet can exert pressure on firms to make changes in their operations. Synthesis of information from these two examples reveals that the challenges of dealing with a confluence of stakeholder needs and expectations from a business perspective arise from the diversity in stakeholders and evolution of technology and globalization which give rise to new categories of diverse stakeholders.
Despite the challenges involved, firms should avoid ignoring or improperly addressing stakeholder interest as such decisions can have adverse consequences on business performance, corporate image, and profitability. As emphasized by Florea, Radu, and Bacovia (2013), ignoring a specific category of stakeholders can lead to loss of performing employees, capital withdraws, or retraction of shareholders’ support, which, eventually tarnishes a firm’s corporate image and leads to financial depreciation. For example, if an organization fails to provide a conducive working environment and considerable wages, employees may lack the morale to continue working, which may lead to a high employee turnover rate. The highlighted adversities are just a few of the many ramifications of the failure of firms to address stakeholders’ interests adequately.
In recap, dealing with the confluence of stakeholders’ expectations can be challenging due to the diversity in such groups and the evolution of technology and globalization. Notably, diversity among stakeholders makes it difficult for businesses to meet all the expectations of involved parties effectively. Besides, globalization and technological evolution expose firms to new categories of potential stakeholders with different perspectives and expectations that exert pressure on the latter’s operations.
Question Three
The “circle of reflection” is one of the methods that firms can use to reflect on the impact of issues surrounding its various stakeholders, including direct consumers, employees, other businesses, and governments. For example, the approach can help an entity reflect the effect of its involvement in large scale air pollution on its immediate employees, neighboring communities, and other businesses. While the circle of reflection may mainly be of use in the business context, it can also be utilized in everyday life to help me have a broader perspective of the effect of events occurring in the contemporary society such as floods in Canada.
The use of “circles of reflection” can broaden my perspective about various events occurring in everyday life, such as floods. For example, in one of my past activities, I used the approach to analyze the impact of floods on various stakeholders. Earlier on, I had taken a narrow perspective on the issue, arguing that the floods that occur in Canada during Spring exclusively affect local communities, the national government, and businesses, who suffer from destruction of properties and spend heavily to repair the damages caused. However, the use of the “circles of reflection” broadened my perspective by helping me acknowledge other global stakeholders that are affected by the natural disaster. For example, international manufacturers who rely on production inputs from Canada and global consumers of products from the country are also likely affected by the event. From this past activity, I have come to understand that the use of “circle of reflection” can broaden one’s view on the impact of an event by focusing on both domestic and global stakeholders that may be affected by the issue at hand.
Part B: Forces and Influences
Question One
Ethics and social responsibility are commonly used and widely accepted concepts in the business environment because they guide business operations in contemporary society. On the one hand, ethics is defined as the moral actions of management, organizational leaders, and their employees (Sroka & Lorinczy, 2015). Simply put, business ethics are moral philosophies that govern an organization’s operations. On the other hand, social responsibility is the act of firms taking responsibility for their impact on society (Sroka & Lorinczy, 2015). Despite being different in meaning, both ethics and social responsibility are directly influenced by internal and external forces in business and society such as media, technology, economics, and globalization.
An analysis of this course’s discussions shows that ethics and social responsibility are significantly related to technology, in the sense that the latter influences the two concepts. Notably, technological advancement gives rise to the need for businesses to indulge in social responsibility and evaluate what is morally wrong or right. For example, the case scenario of the industry giant Monsanto and Saskatchewan farmer reveals the role that firms have towards environmental ethics. Through technological advancement, ventures such as Monsanto can grow genetically modified food and animal crops which are paramount for the sustenance of food security. Nonetheless, technological advancement also influences businesses to rethink the environmental ethical issues related to their activities, such as pollution of the environment through chemicals used in growing genetically modified seeds.
Other external forces, such as media, are also strongly related to the participation of individuals and entities in ethics and social responsibility. As noted in module 4, citizens of a given country, such as Canada, pay attention to an event when it generates media interest. For example, in 2003, the music industry brought to the media’s attention about the prosecution of individuals who indulged in illegal downloading of music from the Internet. Due to the interest that the matter gained in the media, people and other business entities may have paid more attention to issues of the virtual community and reconstructed their moral philosophies about acts of downloading music from the Internet. From this example, it is evident that the media influences individuals to indulge in ethical practices such as respecting copyrights, production, and distribution rights in the music industry.
Furthermore, globalization is a strong external force that significantly influences ethics and social responsibility among entities. As noted in module 3, globalization has a powerful force to trigger debates over business ethics and environmental management. For example, as a result of globalization, corporations are held accountable to adhere to international ethical standards that govern labor rights and environmental ethics. Besides, through globalization, firms can launch their operations in different countries, a practice that increases their exposure to varying business ethics. For example, as is evident from one of the activities in module 2, different countries have varying legal ages for children to start working, with Canada setting higher age attainment on such matters. Notably, firms are legally allowed to employ children over the age of 16 years in Canada. Therefore, as a result of globalization, foreign firms that launch their operations in Canada are compelled to rethink their ethics towards children and review their practices to accommodate international moral philosophies that govern labor.
Question Two
Among the concepts that I learned in this course are workplace ethics and corporate social responsibility (CSR), and their application in today’s business environment. Also, I learned the importance of workplace ethics in creating a positive working environment that translates to better employee and organization performance. Most importantly, the readings and journaling activities influenced my view on the two concepts by shifting my perception from the essentialness of a prescriptive to descriptive strategy of workplace ethics; the dynamic nature of CSR; and the importance of CSR in reducing business risks, enhancing the economic performance of firms, boosting the reputation of organizations and enhancing the welfare of societies.
The readings and journaling activities in this course enhanced my understanding of the importance of a descriptive rather than prescriptive strategy in the promotion of workplace ethics. Based on the readings, a prescriptive strategy for workplace ethics is one that encourages employees to simply comply with the established rules that promote the core ethical values. On the other hand, a descriptive or integrity strategy allows employees to act with integrity when incorporating work ethics (Paine, 1994). Synthesis of these readings influenced my perspective that a descriptive strategy is more important as employees can only exhibit consistency of workplace ethics if they have a strong understanding and uncompromising adherence to the core ethical values.
The readings also influenced my perspective on the dynamic nature of CSR. Initially, I held the view that CSR simply incorporates the philanthropic acts of an organization toward communities. However, after the readings, it came to my understanding that CSR keeps changing to incorporate more stakeholder interests such as minimizing environmental pollution and promoting fair labor practices.
Furthermore, the activities in this course fostered the view that CSR is important from a business perspective. Notably, CSR helps organizations minimize operational risks, enhance economic performance, and build on their reputation. For example, in one of the activities, I analyzed Mattel, an organization that had developed a negative public image after lead was detected in toys imported from China. Also, during the same period, the firm experienced a significant drop in its profits from $239 million to $236.8 million (Grant, 2007). To regain its trust among consumers and rebuild its corporate image, Mattel recalled some of its products from the store shelves. This activity enhanced my understanding that CSR, as was exhibited in Mattel’s decision to recall potentially harmful products from the market, is important as it helps businesses enhance their corporate image, minimize risks of losing customers and foster stronger economic performance through increased sales.
Additionally, journaling activities fostered the view that CSR is important from a societal perspective as it helps improve the welfare of communities. For example, from the readings, I discovered that some firms such as Tim Hortons support sports teams in Canada as part of its CSR initiative. Through such support, the welfare of minors and other stakeholders associated with the company’s program is enhanced considerably.
Question Three
An analysis of this course readings suggests that there exists a strong correlation between external forces and internal influences on business and society. External forces constitute macro factors that influence business operations such as globalization and technology while internal influences are elements within a venture that impacts its operations such as corporate citizenship and employee rights. Synthesis of information from the course materials suggests that external forces such as technology and globalization are among the primary factors that influence firms and governments to indulge in consumer protection, global corporate citizenship, and foster workplace diversity.
Findings from the modules suggest that technology is a key driver to government and business involvement in consumer protection practices. Notably, with the evolution of Internet technology, consumer privacy has become an issue of concern, as the majority of firms have access to consumer information. As a result, consumer protection has become a priority among firms as they strive to ensure ethical utilization of the information obtained in e-commerce and protection of information against breaches and damages from hackers. Furthermore, governments have been at the frontline to protect consumer’s privacy against the adversities of the use of Internet technologies in businesses. For example, in Canada, British Columbia established the Personal Information Protection Act (PIPA) that sets how organizations may collect and use personal information (Office of the Information and Privacy Commissioner, 2004). Generally, the negative impact of technology on consumer privacy has been a key driver to the involvement of administrations and organizations in consumer protection practices.
Furthermore, readings from the module suggest that globalization has been a major trigger for firms to indulge in global corporate citizenship. As noted by Post, Lawrence, and Weber (2003), when a corporation is part of a community, the leaders of the business are expected to assume responsibility for the community’s welfare. As such, firms that have an international presence are compelled to participate in global corporate citizenship in all nations in which they operate.
Also, readings from this course suggest that globalization is among the key drivers of workplace diversity in contemporary organizations. As noted by Global Diversity @ Work (2008), globalization has been a major influence on the changes in Canada’s population, labor pool, and employment diversity in recent years. Notably, globalization has made it possible for countries such as Canada to tap the workforce globally, to complement its underutilized labor supplies. As a result, firms today have to deal with a diverse workforce, and implement necessary initiatives to ensure equity among all employees.
Question Four
In a business context, the government falls in the category of secondary stakeholders because it lacks a direct interest in ventures but has considerable influence on their operations. Also, firms only depend partially on the government for survival, such as in the acquisition of operational permits and incentives, thus making the former a secondary stakeholder. Over the years, government roles have broadened to incorporate the changing needs and interests in business and society, which include protection of social welfare, and regulation of business activities through laws, policies, and taxes.
Today, governments play a significant role in protecting the social welfare of societies. As is evident from the activities in module 1, governments have been introducing laws and policies that considerably influence the welfare of families and communities as a whole. For example, in Canada, various policies, such as the Canada Pension Plan, help to promote the social welfare of the elderly by protecting them against poverty ones they retire from their formal employment. Also, the Canadian government promotes the social welfare of its people by regulating business practices in the country. For example, findings from the course readings reveal that the government implements conservative regulatory processes such as patents for research in the biotechnology sector to protect the health and well-being of its citizens. These practices illustrate the multiple ways in which governments fulfill their roles in promoting the social welfare of societies.
Governments also play a significant role in regulating business activities through the implementation of taxes, laws, and policies. Notably, in Canada, the government is highly involved in the regulation of the firm’s activities to ensure that they take into account the well-being of consumers and promote fair competition in the industry. For example, the government controls the activities of the biotechnology sector through regulatory processes to ensure that all products that enter the market are safe for use. The government also implements taxes to regulate business activities. For example, if the government plans to discourage consumption of harmful products such as cigarettes, it imposes higher taxes, which consequently increases the price of the commodity and discourages its consumption. Taxes and regulatory policies are just among the few ways in which governments play their role in regulating businesses.
Part C: Final Reflection
Question One
As part of the primary tasks in this course, I was able to journal various activities surrounding business, society, and its stakeholders. For example, I journaled the stakeholders that are involved in businesses and their influence on the activities and decisions of organizations. Through journaling, I was also able to identify my individual biases and stakeholders’ biases and assess the impact of such biases in constraining the promotion of ethics.
The journaling activities in this course helped me to critically identify the real impact of my biases and that of other stakeholders in constraining the promotion of ethics. Notably, while reflecting on the media industry, I realized that my biasness, as the consumer, and shareholders biasness in the media networks can greatly constrain the dissemination of information that addresses essential environmental ethical issues. For example, from a personal perspective, I may be inclined against advertisements that appear to promote anti-American, regardless of whether such adverts promote positive ethics in society. Similarly, I recognized that other shareholders in the media industry are more inclined to promoting messages that are more appealing to the most profitable stakeholders. As such, this activity fostered my understanding that such forms of biases exhibited by stakeholders can negatively impact the promotion of ethics, as the involved parties are only willing to promote their interests rather than what is right for society.
Furthermore, the journaling activities fostered an understanding that biases have a considerable influence on the media, public opinion, and decision-making in business and society. Notably, as was evident in one of the activities, the biases of stakeholders dictate the nature of information covered by media houses and people’s opinions about such information. For example, after analyzing the case scenario involving the California not-for-profit organization whose television commercial was dismissed by some networks on allegations that its message offended bigger advertisers, it became clearer that the interests of prominent stakeholders’ shapes media coverage. Notably, it was clear that like other firms, the media is a business that is profit and client-oriented. Therefore, any form of biasness among its shareholders can significantly impact its decisions on the type of message that is publicized.
Question Two
In this course, I got the opportunity to explore several concepts in the discipline of marketing including the circle of influence, ethics, and the ethics continuum. Also, the course readings and activities enhanced my understanding of the various ways in which business, government, and society interact as a system. While all the areas covered in this course equipped me with unique knowledge of the business environment, I considered learning about corporate social responsibility (CSR) and media’s relationship with stakeholders as the most significant part of the course as it fostered my understanding of the dynamism of business accountability to society, and media’s influence on firm’s operations; an area in marketing that I require mastery of in preparation for my future career.
The most significant learning for me in this course was on matters regarding the dynamism of CSR, as it equipped me with knowledge about the evolving nature of business accountability on society that I may require in my future career. Notably, this particular topic enhanced my understanding that CSR is no longer the philanthropic act of business. Rather, the practice has evolved to incorporate all other actions that businesses can undertake to satisfy the interests of its various stakeholders such as promoting labor rights, recalling products that may be harmful to consumers, and launching initiatives to minimize environmental damages. Information on this topic fostered my knowledge regarding diverse CSR activities that I can establish in my future profession to help organizations build on their corporate images, strengthen their relationship with surrounding communities, which can eventually translate to higher profits.
Furthermore, the topic of the media’s influence on the decision-making process of business was also significant as it painted a clear picture of the actual relationship between media and the success of contemporary organizations. Notably, information from the course readings revealed that, to a large extent, print and online media has a significant impact on the success and failure of organizations. For example, if the media is biased against information portrayed by a certain venture, it may be unwilling to air the latter’s messages in fear of losing other dominant stakeholders and spiking negative reactions from consumers. Consequently, firms that lack support from media networks may experience challenges in gaining adequate publicity among members of the public and probably fail in the long run.
The information regarding media and business success equipped me with the knowledge required to make rational decisions when dealing with the media. Notably, with the obtained information, I am now aware of the importance of developing a positive relationship with the media as it can easily build on the reputation of a firm. Besides, the learning fostered my understanding that major decisions in media are influenced by multiple stakeholders whose interests can conflict those of an independent organization. Therefore, the most ideal way for an organization to gain positive publicity amidst conflicting stakeholders’ interest in media is to focus on CSR.
References
Florea, R., Radu, F., & Bacovia, G. (2013). Stakeholders interests’ analysis and harmonization- starting point of strategic approach. Economy Transdisciplinarity Cognition, 16(1), 130-135.
“Climate change” (n.d.). United Nations. Retrieved from https://www.un.org/en/sections/issues-depth/climate-change/
Post, J., Lawrence, A., Weber, J. (2003). Business and society: Corporate strategy, public policy, ethics (10th ed.). New York, NY: McGraw-Hill Higher Education.
Paine, L. (1994). Management for organizational integrity. Harvard Business Review, 72(2), 106-117.
Global Diversity @ Work (2008). About us. Retrieved from http://web.archive.org/web/20030806065223/http://diversityatwork.com/about_us.html
Office of the Information and Privacy Commissioner for British Columbia (2004). OIPC. Retrieved from https://www.oipc.bc.ca/
Sroka, W., & Lorinczy, M. (2015). The perception of ethics in business: analysis of research results. Procedia Economics and Finance, 34(2015), 156-163.
Reuters, T. (2003, January 24). McDonald’s posts its first loss and lowers outlook for growth. The New York Times. Retrieved from https://www.nytimes.com/2003/01/24/business/mcdonald-s-posts-its-first-loss-and-lowers-outlook-for-growth.html
Grant, J. (2007, October 15). Mattel posts lower profit on impact of recalls. Reuters. Retrieved from https://www.reuters.com/article/us-mattel-results/mattel-posts-lower-profit-on-impact-of-recalls-idUSWNAS625820071015
Dawson, F. (2019, April 16). Sweeping closures in British Columbia for 2019 fishing season. Sea West News. Retrieved from https://seawestnews.com/sweeping-closures-in-british-columbia-for-2019-fishing-season/
Giovannetti, J., & Graney, E. (2019, October 29). Alberta sets $30-per-tonne carbon tax on large industrial emitters, aligning province with federal law. The Globe and Mail. Retrieved from https://www.theglobeandmail.com/canada/alberta/article-alberta-launches-30-per-tonne-carbon-tax-to-take-effect-in-january/
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