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Lecture Topics

Management & Society:

Business & Pluralistic Society Components of External Environment Description of :

Ecological
Environment Pollution & its Types

Social
Chapter

External Environment, Social Responsibility & Ethics

Corporate Social Responsibility Social Responsiveness

Ethical

Pluralistic Society
A society where many organized groups represent various interests.

Business & Pluralistic Society

Business
The collection of private, commercially oriented organizations A broad group of people and other organizations, interest groups, a community, a nation.

Pluralistic Society

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Business & Pluralistic Society

Components of External Environment

Technological

Community Business Owners O

Economic

Government

Employees E l Consumers

Ecological

Organisation

Ethical

Business and society interrelate in a environment as stakeholders.

Social

Political & Legal

Components of External Environment

Economic Political & Legal Technical Ecological Social Ethical

Technological Environment
Fast moving and changing environment. An environment with far reaching effects on businesses and their products/services. Technological advances affecting: Materials, components and products Manufacturing business processes Marketing & Sales Administration and distribution systems

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Ecological Environment Definition of Ecology The relationship of people and other living things with their environment.

DEFINITION
Environment
Area in which something exists or lives; the totality of surrounding conditions

Pollution
Pollution is harmful change in the natural environment caused by human activities

Environmental Pollution
Human activities causing material or some form of energy to occur in larger quantity than can be tolerated by humans, plants, or animals without suffering some kind of harm

TYPES OF POLLUTION
Air pollution Water pollution Soil pollution p Waste pollution Noise pollution Visual pollution

SOURCES : AIR POLLUTION

Automobiles Burning of fossil fuel Chemicals

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EFFECTS : AIR POLLUTION

Acid rain Global warming Depletion of ozone layer H Human h lth risk health i k

SOURCES : WATER POLLUTION

Garbage Chemicals and fertilizers Human and animal waste Toxic substances

The Ozone layer absorbs harmful UV radiation from the Sun

EFFECTS : WATER POLLUTION

Life Imbalances ecosystems Water borne diseases Scarcity

SOURCES : WASTE POLLUTION

Household waste Municipal waste Agricultural waste Industrial waste

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HAZARDOUS SOURCES : WASTE POLLUTION

Chemical Industries
Oil refineries

EFFECTS : WASTE POLLUTION

Acute and chronic effects

Social : External Environment

Corporate Social Responsibility (CSR)

Corporate Social Responsibility (CSR) Social Responsiveness p

The serious consideration of the impact of a companys company s actions on society.

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Pyramid of CSR

(CSR) For Arguments

Business to address the public needs Better social environment benefits both: Limits future government intervention Social Involvement Image - Telenor Employment opportunities for Addresses issues by using society business resources and Better workforce for business expertise Business Power should Addresses issues by being display responsibility proactive Society being interdependent, have impact of business Problems can become profits Waste utilization

Corporate Social Responsibility (CSR) Against Arguments Restricts the free market goal of profit maximization Business is not equipped to handle social activities Dilutes the primary aim of business Increase business power Limits the ability p to compete in a global marketplace

Social Responsiveness
The ability of a corporation to relate its operations and policies to the social environment in ways that are mutually beneficial to the company and to society.

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Ethical : External Environment

Ethics: The discipline dealing with what is good and bad and with moral duty and obligation Business Ethics: Concerned with truth & justice and has variety of aspects: Expectation of society Fair competition Advertising Public relations Corporate behavior

Ethical : External Environment

Institutionalizing Ethics Responsibility of Top-management Can be done by three ways: B establishing compan polic / Code of By company policy/ Ethics By having formal Ethics Committee By teaching ethics in management development professional courses

Ethical : External Environment

Factors that can raise ethical standards Public disclosure/ publicity Increased concern of well informed public Ed cation to raise le el of professionalism Education level of managers Govt regulations to establish accountability