2. Learning Objectives
Introduction to the key themes or decision-making pressures
that will be considered in this module are:
Sustainability and sustainable business practice, including corporate
governance
Ethical and social responsibility, including pressures for ‘green’
decision making
Social and demographic change
Globalisation and the changing world order
We will return to each of these themes later in the module: the
purpose of this lesson is to provide an introduction to these key
themes.
3. Change Drivers
• Morrison (2011) defines a change driver as an aspect of
an organisation that effects a change on another aspect
of an organisation.
• Like Wetherly and Otter (2014): Change drivers can be
both external and internal to the organisation. Change
drivers are often also critical themes that are typically
faced by many organisations across international and
industrial boundaries.
4. Ackerman (1986) Types of change
RECAP - Ackerman’s 3 types of change.
Can you recall what they are?
…………………………..improves what you are currently doing rather than creates
something new.
In ………………………………the organization must dismantle and emotionally let go
of the old way of operating while the new state is being put into place.
In…………………………….the future state is so radically different than the current
state that the people and culture must change to implement it successfully.
5. An Introductionto Emerging Business Themes/Change Drivers
The key themes or decision-making pressures that will be
considered in this module are:
1. Sustainability and sustainable business practice, including
corporate governance
2. Ethical and social responsibility, including pressures for ‘green’
decision making
3. Social and demographic change
4. Globalisation and the changing world order
6. Sustainability:
Sustainability:
“development that meets the needs of the present without compromising the ability
of future generations to meet their own needs.”
-World Commission on Environment and Development
Environmental Sustainability:
Ecological integrity is maintained, all of earth’s environmental systems are kept in
balance while natural resources within them are consumed by humans at a rate
where they are able to replenish themselves.
Economic Sustainability:
Human communities across the globe are able to maintain their independence and
have access to the resources that they require, financial and other, to meet their
needs. Economic systems are intact and activities are available to everyone, such
as secure sources of livelihood.
8. Ethical and social responsibility, includingpressures for ‘green’ decision making
What is corporate social responsibility?
CSR aims to ensure that companies conduct their business
in a way that is ethical. This means taking account of their
social, economic and environmental impact, and
consideration of human rights.
It can involve a range of activities such as:
• Working in partnership with local communities
• Socially responsible investment (SRI)
• Developing relationships with employees and customers
• Environmental protection and sustainability
9. Key Areas of CSR:
Ethical corporate social responsibility programmes focus on ensuring
that all stakeholders in a business receive fair treatment, from employees to
customers.
- LUSH
Environmental CSR tends to focus on a business cutting down its
greenhouse gas emissions and waste. This involves re-evaluation of a
business’s production processes in order to identify wasteful acts and cut
these from the company’s business plan.
- UNILEVER
Philanthropic CSR does not only refer to charity donations. Other common
philanthropic responsibilities include investing in the community or
participating in local projects. The main intention is to support a community
in some way that goes beyond just hiring.
- GOOGLE
11. Social andDemographic Change
Social change refers to significant alterations in patterns of
behaviour and cultural values in a society (Haferkamp and
Smelser, 1992)
Wetherly and Otter (2014) identify two key drivers of social
change:
Affluence: generally rising levels of wealth across many parts of the
world have been accompanied by an increasing widening of relative
wealth distribution
Migration: population movements, both controlled and uncontrolled,
have driven social change in many parts of the world
12. Social change
A considerable amount of research has been conducted recently in
an attempt to link social characteristics with income levels;
This approach is often referred to as the use of social
markers (MacLeod, 2017). If organisations can identify social
characteristics such as the highest level of educational qualification
attained by an individual, they can then use this information to plan
and target product development at particular market segments.
Whether suppliers, employees or customers, the relational
experience with your brand is what influences your brand’s "social
marker".
13. Social Change
• Social markers can be seen as a ‘shorthand’ or ‘quick fix’ for use by
marketers and also by government. Risks can be reduced by the
careful targeting of resources.
• Some social markers are also stable and, once identified, can provide
a data source that can be useful for many years; examples include
gender and ethnicity.
let's discuss
14. Globalisation andthe changing world order
The final theme in contemporary management issues is globalisation
and the changing world order. Arguably, this is the most significant
contemporary issue that faces many modern organisations (Morrison,
2011; Wetherly and Otter, 2014).
Morrison (2011) defines globalisation as a process by which
products, people, organisations, money and information are able
to move quickly around the world.
15. IMPACTOF GLOBALISATION
Globalisation raises a multitude of issues for businesses. It
creates opportunities for businesses to expand their revenues,
drive down their costs, and boost their profits.
While the global economy creates opportunities such as this for
new entrepreneurs and established businesses around the world,
it also gives rise to challenges and threats that yesterday's
business managers did not have to deal with.
17. Reference:
MacLeod, H. (2017) Social objects and social gestures, Online at:
https://www.gapingvoid.com/ . [Accessed: 19 October 2018]
“Our Common Future: Report of the World Commission on Environment and Development”.
UN Documents. n.d. Web. Retriev ed 27 June 2013. < http://www.un-documents. net/ocf-
02.htm>
Stubbs, W. and Cocklin, C. (2008) Conceptualizing a sustainability business model,
Organization Environment, 21, pp. 103 - 127.
Wetherly, P. and Otter, D. (2014) The Business Environment: Themes and Issues, 3rd
edition, Oxford, UK: Oxford University Press