Business ethics and

business policy
Introduction to the field

 Business,

Society, and
the 21st Century

key

point: success tied to

stakeholders

key point: success

tied to B/G/S
relationships
the

Exxon example (text)

GM example (text and class)
Peregrine example (class)

What is B/G/S
relationship based on?
Market

capitalism model
Dominance model
Dynamic forces model
Stakeholder model

Exxon Valdez
Worlds

biggest company
Companys biggest ship
Who is the Captain Hazelwood???

Business Ethics and Poliicy

WHY DID GM
LOSE GROUND??

neglect of stockholders?
according to this course,
not that simple

neglect of
stakeholders

GM

outside forces GM ignored - eg:

(ask yourself: why important?)
Rosa XXXXX
Sheik XXXXXX
Ralph XXXXX
Eiji XXXXXX
Rachel XXXXXX
Ross XXXXX
John Z. XxXXXXXX

stakeholder concept
A key idea of course.
not just stockholders!

Primary stakeholders???
Employees
(Delorean)

Etc.

GM
Competitors
(Toyota, etc.)

Suppliers
(oil companies?)

Customers
(wine and cheese types
like you and me!)

Secondary stakeholders???
Foreign
Governments
(Yamani..)

Communities
(Flint Michigan)

GM
General public

Social activists
(Ralph, Rosa,
Rachel)

(wine & cheese

types again!)

Media
(TV, including
C-Span)

Shaping B.S. relations

1. Strategic, social challenges
2. Ethical expectations, values
3. Global changes
4. Changing role of government
5. Ecology, resource concerns

1-7

Six major forces shaping business-society relations

Global economic

Changing role of
government and
public policy

change

Ethical expectations
and public values

Ecological and
natural resource concerns

Business and
its
stakeholders

Strategic and social

challenges

Technology and new

knowledge

Who are the stakeholders in

YOUR firm??
Who

are the stakeholders in

INLAND NATIONAL BANK????

Primary stakeholders???
Employees

INB
Competitors

Suppliers

Customers

Secondary stakeholders???
Foreign
Governments

Communities

General
Public

INB
Social
Activists

Media

Note.
distinction

between primary and

secondary not clear, not distinct

Peregrine

Poor Peregrine!
What

is (was) Peregrine?
What went wrong?
Who got hurt?

poor Suharto and

family

employees,
families

general public
(economy suffers)

stockholders,
partners
HKUST students
who are now poorer
banks,
creditors
taxi firms in Indonesia

Asia Inc., and

others on list

Peregrine

worried German
investors
clients,
investors

competitors
government: less
(more business, income,more demand
less confidence)

Peregrine & stakeholder model

Includes

many of typical groups

leaves out only a few:
religious groups
environmentalists
minorities
the poor
labor unions
political parties, groups

Basic BGS models

market

capitalism? OK but a bit simplistic

dominance model: some truth. B&G do run
many things,
especially in Indonesia
and in China
and in USA, and . . .
dynamic forces model: text favorite
stakeholder model: JFH favorite??

todays business
environment:
more

historical factors
China: no respect for business
1949: Mao abolishes business
HK thrives as outlet for China
1978:

Deng OKs rural food sales

todays business
environment (continued):
historical

factors continued
1978: Deng OKs rural food sales
no turning back! every year...
HK thrives as port for China
1997: HK now key Chinese city

the pressure is on:

expectations gap!!!
strategic & social challenges
ethical expectations
global changes
governments changing too
environment

end of Business Environment

Reflect

on stakeholder idea: Peregrine

Investments Holdings Ltd
NEXT:
how

Web Assignments will work

begin term paper planning

WEB ASSIGNMENT 1
COMING SOON
OK

to practice now!
OK to answer now but read
chapters 5 and 6 first

term paper planning

in

teams of two, invent two possible

topics, and two possible TITLES
you are NOT obligated to keep these
titles
you are NOT obligated to keep these
topics

web assignment may look like:

Are corporations GOOD or EVIL? Or, in terms
from text, do corporations follow idea of
corporate social responsibility?
family name begin with A to L: in 150 to 250
words, convince us that corporations DO take
social responsibility seriously, Give a HK (or
Asia) example to help prove your point.
family name begin with M to Z: in 150 to 250
words, convince us that corporations DO Not
take social responsibility seriously, Give a HK
(or Asia) example to help prove your point.

web assignment #1
great

to include NAME of example

great to include SOURCE if
possible
great to include WWW link if you
can do it!
TIME TO DO IT!!! have fun!