Strategic Management and Corporate Public Affairs 1 4 Search the Web For insights into GlaxoSmithKline corporate social policies, visit its web site at:: http://corp.gsk.com/community/workingwith.htm
The chapter provides a broad overview of how social, ethical, and public issues fit into the general strategic management process of corporate public policy and corporate public affairs
The Concept of Corporate Public Policy Corporate public policy is that part of the overall strategic management of the organization that focuses specifically on the firm’s posture, stance, strategy or position regarding the public, social and ethical aspects of stakeholders and corporate functioning AIDS Affirmative action Sexual harassment Product safety Employee privacy
Corporate Public Policy as Part of the Strategic Management Process
Strategic management refers to the overall management process that focuses on positioning the firm relative to its environment
Corporate public policy is the part of the strategic management process that focuses specifically on the public, ethical, and stakeholder issues the firm faces
Corporate Public Policy, Strategic Management, and Ethics
For business ethics to have meaning it must be linked to business strategy because the linkage permits management issues to be addressed in ethical terms.
The concept of corporate public policy and the linkage between strategic management and ethics can be better understood in terms of:
What are the manifestations of enterprise-level thinking?
Codes of ethics Codes of conduct Mission statements Values statements Corporate creeds Vision statements Search the Web For an example of enterprise-level strategy in action, visit Hewlett-Packard’s web site at: http://www.hp.com/hpinfo/community/main.htm
Corporate public affairs is the management process that focuses on the formalization and institutionalization of corporate public policy.
Corporate public affairs also embraces:
Corporate public policy
Public Affairs Management: Relationships Enterprise-Level Management Strategic Management Process Environmental Analysis Corporate Public Policy Issues Management Crisis Management Public Affairs Management Part of which is
Evolution of the Corporate Public Affairs Function Includes
A growing magnitude and impact of government
A changing nature of the political system
An increasing number of stakeholders outflanking business
An expanding recognition that business should be more politically active
Design of the Corporate External Affairs Function and Corporate Social Performance Function
Institution oriented versus economic franchise
Collaborative/problem-solving strategy versus individual/adversarial external affairs strategy
Business Exposure and External Affairs Design Social Environment External Affairs Design: Breadth, Depth, Influence and Integration Consumer Products Company Industrial Products Company
Business Exposure and External Affairs Design 4-35
Public Affairs Thinking Manager Make Public Affairs Truly Relevant — Operating managers should know the way in which their decisions might impact the stakeholder environment. Develop a Sense of Ownership of Success —Operating managers should participate in the planning and goal setting of public affairs endeavors. Make It Easy for Operating Managers —Train them to see the relevance of PA initiatives. Show That Public Affairs Makes a Difference —Keep a “scorecard” of successes so manager’s see the potential of the PA function.