Adam Smith’s ‘Wealth of Nations’ referred to a “commercial society”. Roots in the past when societies throughout the world were agricultural, growing their own food, maintaining livestock, cultivating natural resources and then using the market place to barter for goods not available in their area. The industrial movement changed society so that people obtain satisfaction from work rather than from developing and maintaining natural resources.
Model was prominent during latter part of 19th century, but being seen again. Some similarities with patriarchal societies in Middle East. Arab Spring of 2012. Oil-rich countries – who really owns the wealth?
Primary stakeholders have a deep relationship with a business organisation. Feel effect of change immediately eg customers, employees. Organisations should consider the welfare of all stakeholders in planning and decision-making.Secondary stakeholders – effect of change is less significant and pressing eg activist groups, trade associations
30/08/2012PRESENTATION OBJECTIVES • Define the terms Business, Government & Society • Explore the objectives of business, government and society • Investigate the activities of business, government and society • Analyse the relationships of business, government and societyDiane Evans (firstname.lastname@example.org) 2
30/08/2012BUSINESS • What is the objective of most businesses? • How do businesses meet their objectives? Click for definitionDiane Evans (email@example.com) 3
30/08/2012GOVERNMENT • What is the objective of most governments? • How do governments meet their objectives? Click for definitionDiane Evans (firstname.lastname@example.org) 7
30/08/2012SOCIETY • What is the objective of most societies (cultures/population)? • How do societies meet their objectives? Click for definitionDiane Evans (email@example.com) 8
30/08/2012 Business Society GovernmentDiane Evans (firstname.lastname@example.org) 9
30/08/2012CLASS • Take a coloured card:ACTIVITY – Red – Society – Blue – Business – Green – Government • Step 1: get together with other people with the same colour card • Step 2: discuss the objectives of your particular interest group. • Step 3: feedback main points to whole class • Step 4: change groups – find at least one person from each of the other groups. • Step 5: discuss your objectives. Look for common areas and possible problems. • Step 6: list main points of discussion and be ready to feed back/ • Step 7: outside class – summarise and reflect on your discussions and feedback. Write a paragraph on the discussion board or in a blog.Diane Evans (email@example.com) 10
30/08/2012OBJECTIVESOF SOCIETY • Vary according to culture, religion and natural resources available • People want to have enough to eat and a supply of water • Shelter from the environment and threats • Education and health care are a priority • Improved lifestyle is seen as progressive therefore good • Self-developmentDiane Evans (firstname.lastname@example.org) 12
30/08/2012OBJECTIVES • Manage resources fairly and cost-OF effectivelyGOVERNMENT • Support the population • Provide a regulation framework for business • The Abu Dhabi government states its objectives are: ‘to ensure that public entities’ resources and funds are managed, collected and expended efficiently, effectively and economically, to ensure the accuracy of the financial reports and compliance of the public entities with the relevant laws, rules and regulations and governance guidelines as outlined in this Law, and to promote accountability and transparency principles at the public entities.’Diane Evans (email@example.com) 13
30/08/2012FOUR MODELSOF THE BGSRELATIONSHIP • Market Capitalism • Dominance • Countervailing Forces • Stakeholder Model Diane Evans (firstname.lastname@example.org) 14
30/08/2012 CASE Business, Government & Society Nestlé – case study of good practice Winter 2011 STUDY Creating shared values Nestlé, the world‟s largest food and nutrition company, has been involved inThe Nestle case study is rural development in emerging countries since the 1920s. At that time, the Swiss giant built factories in South Africa and Brazil as it created new milkproduced by Nestle. markets in countries with burgeoning farming sectors. Today, Nestlé has 443 factories around the globe, nearly a third of which are in rural areas in the developing world. With that history and breadth of experience, it is unsurprising that Nestlé is highly skilled at making rurala) Which model is development of mutual benefit to both the company and the community in which it operates. illustrated? In its 2010 Creating Shared Value report, released earlier this year, Nestléb) Give 2 examples from the listed a number of facts about its 144 factories in developing, rural areas: a third have numeracy and literacy programmes, two thirds include a Nestlé-built case study information water treatment plant, and just over half offer formal apprenticeship training. Nestlé public affairs communications manager John Bee said: “This starts from as evidence to support our approach to doing business, the idea that creating shared value for shareholders and the communities that you impact or represent.” your answer to (a). As Nestlé is constantly sourcing raw materials for its products, thosec) If you owned shares in communities are almost always near or in rural areas. As a company specialising in nutrition, Nestlé usually focuses on programmes that improve the Nestle, would you be health of both the people and the livestock. In Pakistan, for example, Nestlé wanted to improve the quality of its dairy supply, partly through adding iron to milk to prevent anaemia, a major public health issue in the country. The key happy about the project was to improve veterinary services to the animals. activities described? The company had to be sensitive to local culture. Many of the herders are women, so Nestlé had to train cadres of female „paravets‟, the animal Explain your reasons. equivalent of community health workers, as it would not have been considered appropriate to have a sudden influx of male workers.d) Carry out research on “In partnership with the Swiss Agency for Development & Co-operation, we provided them with start-up kits that included basic medicines and gave them Nestle – does the training,” explains Bee. “This empowered women and increased the productivity of the animals. History suggests that we build loyalty among our supplier base corporation always by doing this (helping and training the local workforce), especially when we source directly from them.” demonstrate good Source: http://www.ethicalperformance.com/bestpractice/casestudy/107 [accessed 30 August practice? 2012] Diane Evans (email@example.com) 20
30/08/2012SUMMARY • The relationships between Business, Government and Society is co- dependent and changing • There are 4 models of BGS relationship • Difficult to find a balance between right and wrong, greed and compassion, corruption and truth.Diane Evans (firstname.lastname@example.org) 21
30/08/2012KEY • SocietyWORDS • Government • Value • Idea • Ideology • Business • Profit • Social contract • Corruption • Capitalism • PopulismDiane Evans (email@example.com) • 22 Stakeholder