25
law43665_ch02_025-046.indd 25 11/16/18 11:08 AM
C H A P T E R T W O
Managing Public
Issues and Stakeholder
Relationships
Businesses today operate in an ever-changing external environment, where effective management
requires anticipating emerging public issues and engaging positively with a wide range of stake-
holders. Whether the issue is growing concerns about climate change, health care, safety at work
or in our schools, social equality, or consumer safety, managers must respond to the opportunities
and risks it presents. To do so effectively often requires building relationships across organizational
boundaries, learning from external stakeholders, and altering practices in response. Effective man-
agement of public issues and stakeholder relationships builds value for the firm.
This Chapter Focuses on These Key Learning Objectives:
LO 2-1 Identifying public issues and analyzing gaps between corporate performance and stakeholder
expectations.
LO 2-2 Applying available tools or techniques to scan an organization’s multiple environments and assess-
ing stakeholder materiality.
LO 2-3 Describing the steps in the issue management process and determining how to make the process
most effective.
LO 2-4 Identifying the managerial skills required to respond to emerging issues effectively.
LO 2-5 Understanding the various stages through which businesses can engage with stakeholders, what
drives this engagement, and the role social media can play.
LO 2-6 Recognizing the value of creating stakeholder dialogue and networks.
Final PDF to printer
26 Part One Business in Society
law43665_ch02_025-046.indd 26 11/16/18 11:08 AM
A 2016 study from the Public Affairs Council found that many major corporations are
feeling increased pressure to speak out on social issues, ranging from discrimination and
human rights to environmental sustainability and quality education. Among companies
with more than $15 billion in annual revenue, more than three in four said expectations for
engagement had risen. Most of the pressure to engage in social issues, said the companies,
has come from their own employees.1
Legislative battles in North Carolina, Tennessee, Mississippi, and Georgia prompted
business leaders to take a stand favoring rights for transgender individuals. Dow Chemical,
Alcoa, and Northrup Grumman lobbied elected officials and publicly condemned measures
seen as discriminatory. Monsanto lead the fight in Missouri against a bill that would allow
businesses to deny certain services to same-sex couples as a matter of religious freedom. In
response to North Carolina’s state legislature passing a law that blocked antidiscriminatory
protections at the local level, Deutsche Bank, the German financial institution with signifi-
cant business in the United States, said it would freeze its plans to add jobs in North Caro-
lina. PayPal announced it would halt its plans to open a new global operations center there.
While .
24Managing Public Issues and Stakeholder Relationships.docxtamicawaysmith
24
Managing Public Issues
and Stakeholder
Relationships
Businesses today operate in an ever-changing external environment, where effective management
requires anticipating emerging public issues and engaging positively with a wide range of stakehold-
ers. Whether the issue is growing concerns about climate change, water scarcity, child labor, animal
cruelty, or consumer safety, managers must respond to the opportunities and risks it presents. To do
so effectively often requires building relationships across organizational boundaries, learning from
external stakeholders, and altering practices in response. Effective management of public issues and
stakeholder relationships builds value for the firm.
This Chapter Focuses on These Key Learning Objectives:
• Evaluating public issues and their significance to the modern corporation.
• Applying available tools or techniques to scan an organization’s multiple environments.
• Describing the steps in the issue management process and determining how to make the
process most effective.
• Identifying who is responsible for managing public issues and the skills required to do so
effectively.
• Understanding how businesses can build collaborative relationships with stakeholders through
engagement, dialogue, and network building.
• Identifying the benefits of stakeholder engagement to the business firm.
C H A P T E R T W O
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Chapter 2 Managing Public Issues and Stakeholder Relationships 25
IKEA is the Scandinavian home furnishings retailer known for its distinctive yellow and
blue big-box stores and stylish, inexpensive, and environmentally sound products. The
firm’s mission is “to create a better everyday life for the many people.” In the late 1990s,
the company’s managers were startled by a documentary, broadcast on European televi-
sion, showing young children in South Asia working under deplorable conditions making
hand-woven rugs. The program named IKEA as one of several rug importers from that re-
gion. Shortly afterward, activists held protests outside several IKEA stores, demanding that
it halt child labor in its supply chain. As the company’s area manager for carpets later com-
mented, “The use of child labor was not a high-profile public issue at the time. . . . We were
caught completely unaware.”
Rather than ignore the issue, IKEA responded by sending a legal team to Geneva to
consult with the International Labour Organization. It promptly adopted a clause in all sup-
ply contracts stating that any supplier employing children under legal working age would
be immediately terminated. The company also reached out to UNICEF (the United Nations
Children’s Fund) and Save the Children ...
Chapter Introduction
Ditty_about_summer/ Shutterstock.com
Learning Objectives
The five Learning Objectives below are designed to help improve your understanding. After reading this chapter, you should be able to answer the following questions:
1. What are two different views of the role of business in society?
2. How do duty-based ethical standards differ from outcome-based ethical standards?
3. What is short-term profit maximization, and why does it lead to ethical problems?
4. What are the four steps in the IDDR approach to ethical decision making?
5. What ethical issues might arise in the context of global business transactions?
“New occasions teach new duties.”
James Russell Lowell 1819–1891 (American editor, poet, and diplomat)
One of the most complex issues that businesspersons and corporations face is ethics. Ethics is not as clearly defined as the law, and yet it can substantially impact a firm’s finances and reputation, especially when the firm is involved in a well-publicized scandal. Some scandals arise from conduct that is legal but ethically questionable. At other times, the conduct is both illegal and unethical. Business law and legal environment students must be able to think critically about both legal and ethical issues. As noted in the chapter-opening quotation, “New occasions teach new duties.”
Suppose that Finn Clayborn dropped out of Harvard University to start a company in Silicon Valley that developed and sold finger-prick blood-test kits. Clayborn raised millions from investors by claiming that his new technology would revolutionize blood testing by providing a full range of laboratory tests from a few drops of blood. The kits were marketed as a better alternative to traditional, more expensive lab tests ordered by physicians. They were sold at drugstores for a few dollars each and touted as a way for consumers to test their blood type and monitor their cholesterol, iron, and many other conditions. Within six years, Clayborn and his company were making millions. But complaints started rolling in that the test kits didn’t work and the results were not accurate (because more blood was needed). Numerous consumers, drugstores, and government agencies sued the company for fraudulent and misleading marketing practices. Clayborn’s profitable start-up now faces an uncertain future.
The goal of business ethics is not to stifle innovation. There is nothing unethical about a company selling an idea or technology that is still being developed. In fact, that’s exactly what many successful start-ups do—take a promising idea and develop it into a reality. But businesspersons also need to consider what will happen if new technologies do not work. Do they go ahead with production and sales? What are the ethical problems with putting a product on the market that does not function as advertised? To be sure, there is not always one clear answer to an ethical question. What is clear is that rushing to production and not thinking through ...
Discussion 1 week 2 Crimes That Harm Business Versus Crimes Commit.docxcuddietheresa
Discussion 1 week 2 Crimes That Harm Business Versus Crimes Committed by Business
Which do you believe presents the greatest threat to civil society: a corporation that commits crimes (e.g., murder, environmental crimes, or bribery), or persons who commit crimes that harm businesses (e.g., embezzlement, fraud, or larceny)? Defend your response, using at least one example from current events.
Guided Response: Respond to at least two of your fellow students’ posts in a substantive manner. Some ways to do this include the following, though you may choose a different approach, providing your response is substantive:
Review the posts made by your peers. In response to your peers, first identify a non-traditional or creative way in which a corporation might be punished for committing a crime. Then discuss the consequences of implementing that punishment to the example used by your peer.
Respond to Meas Khlaing post
In general, any type of crime being committed will be considered a threat to civil society. In this case, crimes that harm business vs crimes committed by business I would go with the persons who commit crimes that harm businesses is the greatest threat to society today. Not only does this affects the people but the organization structure as well. This can affect the image/reputation of how the consumers do business with that particular organization. Society as a whole, we humans are judgmental creatures and depending on the crime it can affect a lot of things towards that business. However, this all depends on the crime that has been brought up and for society, stakeholder, law regulation to decided what the outcome of the case can be and depending on the case of the crime, paying a simple fine is one option to remedy the situation. For example, Well Fargo sandal with the fraud account being created. According to the NY Times (2018), “Wells Fargo was found by regulators to have systematically created fake customer accounts and misled customers and government officials.” This has caused a lot of problem any many people got away with the scandal and made lots of money from this scheme. Seaquist p. 86, describe fraud are likely to be committed at work and are in one of these six departments: accounting, operations, sales, executive/ upper management, customer service, or purchasing. In the end of this fraud scandal, Well Fargo was fined with a bill as a result of their illegal activities and faced many lawsuits altogether. This also led to the resignation of the CEO at Wells Fargo. Overall, the bank's stable reputation was tarnished by this widespread fraud.
Flitter, E., Appelbaum, B. & Cowley, S. (2018). NY Times. Federal Reserve Shackles Wells Fargo After Fraud Scandal. Retrieved from https://www.nytimes.com/2018/02/02/business/wells-fargo-federal-reserve.html
Seaquist, G. (2012). Business law for managers [Electronic version]. Retrieved from https://content.ashford.edu/
Respond to Mitchell Powell post
When considering corpora ...
‘ICHAPTER TWOChapter Objectives• To define stakeholdLesleyWhitesidefv
‘I
CHAPTER TWO
Chapter Objectives
• To define stakeholders and understand
their importance
• To distinguish between primary and
secondary stakeholders
To discuss the global nature of
stakeholder relationships
To consider the impact of reputation and
crisis situations on social responsibility
performance
To examine the development of
stakeholder relationships
To explore how stakeholder relationships
are integral to social responsibility
Chapter Outline
Stakeholders Defined
Stakeholder Identification and Importance
Performance with Stakeholders
Development of Stakeholder Relationships
Implementing a Stakeholder Perspective in
Social Responsibility
Link between Stakeholder Relationships and
Social Responsibility
Opening Vignette
The Fight against Childhood Obesity
America’s children are growing, not in height or intel
lectual capacity but in weight. Advertising of fast food
and highly processed, corn syrup—laced foods is at the
heart of the controversy. While TV advertising of food
and restaurants has dropped 34 percent from 1977 to
2004, the use of the internet, promotions, school adver
tising and vending machines, and sponsored sports sta
diums is on the rise. Childhood obesity has become such
a concern that First Lady Michelle Obama has created
the movement Let’s Movel to encourage the develop
ment of a healthier generation of children. Regulators,
parents, and our society in general are concerned about
the health of our children, It is estimated that medi
cal costs associated with childhood obesity will total
$19,000 over a person’s lifetime.
Studies conducted by the Kaiser Family Foundation
have found that the average child sees around 40,000
advertisements per year on television—most of these
encourage children to consume candy, cereal, fast food,
and soft drinks. What seems to be particularly prob
lematic is the use of popular licensed children’s cartoon
characters (e.g., SpongeBob SquarePants and Scooby
Doo) to advertise these unhealthy foods. Critics believe
food manufacturers are not being socially responsible
by encouraging children to eat food that is detrimental
to their health. Companies are choosing to do some
thing about this problem.
A study over a five-year period revealed that
16 major food and beverage companies—including
PepsiCo, Coca-Cola, and Bumble Bee Foods—have
reduced calories in foods amounting to an average of
78 calories a day from the American diet. For instance,
Nestlé used new technology to reduce fat by half and
calories by one-third in their “Slow Churned” Edy’s and
Dreyer’s ice cream. What is especially important is that
these 16 companies account for about 36 percent of
calories in packaged foods.
Changes are also being made in advertising. The
Walt Disney Company mandated that the company will
no longer allow sponsorships or advertisements on its
networks for foods that do not meet certain nutritional
criteria. It also pledged to reduce the calories in foods
sold at its theme parks. Coca- ...
Implementing Integrity: The Business Case for Forging an Ethical Company and ...Sean Cumberlege
This presentation advocates the need for extractive companies to commit to operating with integrity and recommends a more data driven and locally specific approach to identifying and mitigating social risk, including supply chain risk. The talk also frames social risk issues for an audience comprised mostly of attorneys.
The Importance of Ethics in Business Essay
Business Ethics Essay
Business Ethics Case Study Essay example
Business Ethics Essay
Ethical Principles Of Business Ethics
Business Ethics Essay
Business Law and Ethics Essay
The Five Myths Of Business Ethics
Business Ethics Essay
Ethics In Business Ethics
Essay about Ethical Issues in Business
The Five Business Ethics Myths Essay
Business Ethics Essay
The Ethics Of Business Ethics Essay
Business Ethics Essay
What Is Business Ethics? Essay
Essay about Ethics in International Business
24Managing Public Issues and Stakeholder Relationships.docxtamicawaysmith
24
Managing Public Issues
and Stakeholder
Relationships
Businesses today operate in an ever-changing external environment, where effective management
requires anticipating emerging public issues and engaging positively with a wide range of stakehold-
ers. Whether the issue is growing concerns about climate change, water scarcity, child labor, animal
cruelty, or consumer safety, managers must respond to the opportunities and risks it presents. To do
so effectively often requires building relationships across organizational boundaries, learning from
external stakeholders, and altering practices in response. Effective management of public issues and
stakeholder relationships builds value for the firm.
This Chapter Focuses on These Key Learning Objectives:
• Evaluating public issues and their significance to the modern corporation.
• Applying available tools or techniques to scan an organization’s multiple environments.
• Describing the steps in the issue management process and determining how to make the
process most effective.
• Identifying who is responsible for managing public issues and the skills required to do so
effectively.
• Understanding how businesses can build collaborative relationships with stakeholders through
engagement, dialogue, and network building.
• Identifying the benefits of stakeholder engagement to the business firm.
C H A P T E R T W O
Law29473_ch02_024-044.indd Page 24 29/11/12 9:13 PM user-TRVT-065Law29473_ch02_024-044.indd Page 24 29/11/12 9:13 PM user-TRVT-065 /Volumes/201/MH01821/Law29473_disk1of1/0078029473/Law29473_pagefiles/Volumes/201/MH01821/Law29473_disk1of1/0078029473/Law29473_pagefiles
Chapter 2 Managing Public Issues and Stakeholder Relationships 25
IKEA is the Scandinavian home furnishings retailer known for its distinctive yellow and
blue big-box stores and stylish, inexpensive, and environmentally sound products. The
firm’s mission is “to create a better everyday life for the many people.” In the late 1990s,
the company’s managers were startled by a documentary, broadcast on European televi-
sion, showing young children in South Asia working under deplorable conditions making
hand-woven rugs. The program named IKEA as one of several rug importers from that re-
gion. Shortly afterward, activists held protests outside several IKEA stores, demanding that
it halt child labor in its supply chain. As the company’s area manager for carpets later com-
mented, “The use of child labor was not a high-profile public issue at the time. . . . We were
caught completely unaware.”
Rather than ignore the issue, IKEA responded by sending a legal team to Geneva to
consult with the International Labour Organization. It promptly adopted a clause in all sup-
ply contracts stating that any supplier employing children under legal working age would
be immediately terminated. The company also reached out to UNICEF (the United Nations
Children’s Fund) and Save the Children ...
Chapter Introduction
Ditty_about_summer/ Shutterstock.com
Learning Objectives
The five Learning Objectives below are designed to help improve your understanding. After reading this chapter, you should be able to answer the following questions:
1. What are two different views of the role of business in society?
2. How do duty-based ethical standards differ from outcome-based ethical standards?
3. What is short-term profit maximization, and why does it lead to ethical problems?
4. What are the four steps in the IDDR approach to ethical decision making?
5. What ethical issues might arise in the context of global business transactions?
“New occasions teach new duties.”
James Russell Lowell 1819–1891 (American editor, poet, and diplomat)
One of the most complex issues that businesspersons and corporations face is ethics. Ethics is not as clearly defined as the law, and yet it can substantially impact a firm’s finances and reputation, especially when the firm is involved in a well-publicized scandal. Some scandals arise from conduct that is legal but ethically questionable. At other times, the conduct is both illegal and unethical. Business law and legal environment students must be able to think critically about both legal and ethical issues. As noted in the chapter-opening quotation, “New occasions teach new duties.”
Suppose that Finn Clayborn dropped out of Harvard University to start a company in Silicon Valley that developed and sold finger-prick blood-test kits. Clayborn raised millions from investors by claiming that his new technology would revolutionize blood testing by providing a full range of laboratory tests from a few drops of blood. The kits were marketed as a better alternative to traditional, more expensive lab tests ordered by physicians. They were sold at drugstores for a few dollars each and touted as a way for consumers to test their blood type and monitor their cholesterol, iron, and many other conditions. Within six years, Clayborn and his company were making millions. But complaints started rolling in that the test kits didn’t work and the results were not accurate (because more blood was needed). Numerous consumers, drugstores, and government agencies sued the company for fraudulent and misleading marketing practices. Clayborn’s profitable start-up now faces an uncertain future.
The goal of business ethics is not to stifle innovation. There is nothing unethical about a company selling an idea or technology that is still being developed. In fact, that’s exactly what many successful start-ups do—take a promising idea and develop it into a reality. But businesspersons also need to consider what will happen if new technologies do not work. Do they go ahead with production and sales? What are the ethical problems with putting a product on the market that does not function as advertised? To be sure, there is not always one clear answer to an ethical question. What is clear is that rushing to production and not thinking through ...
Discussion 1 week 2 Crimes That Harm Business Versus Crimes Commit.docxcuddietheresa
Discussion 1 week 2 Crimes That Harm Business Versus Crimes Committed by Business
Which do you believe presents the greatest threat to civil society: a corporation that commits crimes (e.g., murder, environmental crimes, or bribery), or persons who commit crimes that harm businesses (e.g., embezzlement, fraud, or larceny)? Defend your response, using at least one example from current events.
Guided Response: Respond to at least two of your fellow students’ posts in a substantive manner. Some ways to do this include the following, though you may choose a different approach, providing your response is substantive:
Review the posts made by your peers. In response to your peers, first identify a non-traditional or creative way in which a corporation might be punished for committing a crime. Then discuss the consequences of implementing that punishment to the example used by your peer.
Respond to Meas Khlaing post
In general, any type of crime being committed will be considered a threat to civil society. In this case, crimes that harm business vs crimes committed by business I would go with the persons who commit crimes that harm businesses is the greatest threat to society today. Not only does this affects the people but the organization structure as well. This can affect the image/reputation of how the consumers do business with that particular organization. Society as a whole, we humans are judgmental creatures and depending on the crime it can affect a lot of things towards that business. However, this all depends on the crime that has been brought up and for society, stakeholder, law regulation to decided what the outcome of the case can be and depending on the case of the crime, paying a simple fine is one option to remedy the situation. For example, Well Fargo sandal with the fraud account being created. According to the NY Times (2018), “Wells Fargo was found by regulators to have systematically created fake customer accounts and misled customers and government officials.” This has caused a lot of problem any many people got away with the scandal and made lots of money from this scheme. Seaquist p. 86, describe fraud are likely to be committed at work and are in one of these six departments: accounting, operations, sales, executive/ upper management, customer service, or purchasing. In the end of this fraud scandal, Well Fargo was fined with a bill as a result of their illegal activities and faced many lawsuits altogether. This also led to the resignation of the CEO at Wells Fargo. Overall, the bank's stable reputation was tarnished by this widespread fraud.
Flitter, E., Appelbaum, B. & Cowley, S. (2018). NY Times. Federal Reserve Shackles Wells Fargo After Fraud Scandal. Retrieved from https://www.nytimes.com/2018/02/02/business/wells-fargo-federal-reserve.html
Seaquist, G. (2012). Business law for managers [Electronic version]. Retrieved from https://content.ashford.edu/
Respond to Mitchell Powell post
When considering corpora ...
‘ICHAPTER TWOChapter Objectives• To define stakeholdLesleyWhitesidefv
‘I
CHAPTER TWO
Chapter Objectives
• To define stakeholders and understand
their importance
• To distinguish between primary and
secondary stakeholders
To discuss the global nature of
stakeholder relationships
To consider the impact of reputation and
crisis situations on social responsibility
performance
To examine the development of
stakeholder relationships
To explore how stakeholder relationships
are integral to social responsibility
Chapter Outline
Stakeholders Defined
Stakeholder Identification and Importance
Performance with Stakeholders
Development of Stakeholder Relationships
Implementing a Stakeholder Perspective in
Social Responsibility
Link between Stakeholder Relationships and
Social Responsibility
Opening Vignette
The Fight against Childhood Obesity
America’s children are growing, not in height or intel
lectual capacity but in weight. Advertising of fast food
and highly processed, corn syrup—laced foods is at the
heart of the controversy. While TV advertising of food
and restaurants has dropped 34 percent from 1977 to
2004, the use of the internet, promotions, school adver
tising and vending machines, and sponsored sports sta
diums is on the rise. Childhood obesity has become such
a concern that First Lady Michelle Obama has created
the movement Let’s Movel to encourage the develop
ment of a healthier generation of children. Regulators,
parents, and our society in general are concerned about
the health of our children, It is estimated that medi
cal costs associated with childhood obesity will total
$19,000 over a person’s lifetime.
Studies conducted by the Kaiser Family Foundation
have found that the average child sees around 40,000
advertisements per year on television—most of these
encourage children to consume candy, cereal, fast food,
and soft drinks. What seems to be particularly prob
lematic is the use of popular licensed children’s cartoon
characters (e.g., SpongeBob SquarePants and Scooby
Doo) to advertise these unhealthy foods. Critics believe
food manufacturers are not being socially responsible
by encouraging children to eat food that is detrimental
to their health. Companies are choosing to do some
thing about this problem.
A study over a five-year period revealed that
16 major food and beverage companies—including
PepsiCo, Coca-Cola, and Bumble Bee Foods—have
reduced calories in foods amounting to an average of
78 calories a day from the American diet. For instance,
Nestlé used new technology to reduce fat by half and
calories by one-third in their “Slow Churned” Edy’s and
Dreyer’s ice cream. What is especially important is that
these 16 companies account for about 36 percent of
calories in packaged foods.
Changes are also being made in advertising. The
Walt Disney Company mandated that the company will
no longer allow sponsorships or advertisements on its
networks for foods that do not meet certain nutritional
criteria. It also pledged to reduce the calories in foods
sold at its theme parks. Coca- ...
Implementing Integrity: The Business Case for Forging an Ethical Company and ...Sean Cumberlege
This presentation advocates the need for extractive companies to commit to operating with integrity and recommends a more data driven and locally specific approach to identifying and mitigating social risk, including supply chain risk. The talk also frames social risk issues for an audience comprised mostly of attorneys.
The Importance of Ethics in Business Essay
Business Ethics Essay
Business Ethics Case Study Essay example
Business Ethics Essay
Ethical Principles Of Business Ethics
Business Ethics Essay
Business Law and Ethics Essay
The Five Myths Of Business Ethics
Business Ethics Essay
Ethics In Business Ethics
Essay about Ethical Issues in Business
The Five Business Ethics Myths Essay
Business Ethics Essay
The Ethics Of Business Ethics Essay
Business Ethics Essay
What Is Business Ethics? Essay
Essay about Ethics in International Business
Anthropology 130 Extra Credit - Web Articles on Race 20 poi.docxRAHUL126667
Anthropology 130 Extra Credit - Web Articles on Race
20 points maximum
With the recent news stories showing differences in experience by members of different
races in the United States, new attempts to start the conversation on race and culture
have been published online. This assignment involves carefully exploration of one of the
recent media pieces on the topic and summarizing its main points.
Part One
Choose one of the following links for this assignment.
• Flam, F. (2016, October 3). Concept of race stands as science’s biggest blunder [Web
article]. The Kansas City Star. Retrieved from http://www.kansascity.com/opinion/opn-
columns-blogs/syndicated-columnists/article105647021.html
• Fuentes, A. (2015, June 22). Ignorance about race is killing us [Web article].
Psychology Today. Retrieved from https://www.psychologytoday.com/blog/busting-
myths-about-human-nature/201506/ignorance-about-race-is-killing-us
• Yodel, M., Roberts, D., DeSalle, R. & Tishkoff, S. (2016, February 5). Taking race out
of human genetics. Science. 351(6273), 564-565. Retrieved from http://
science.sciencemag.org/content/351/6273/564.full
Part Two
Answer both parts of the prompt:
a. What is the main point that the writer conveyed?
� of �1 2
http://www.kansascity.com/opinion/opn-columns-blogs/syndicated-columnists/article105647021.html
http://www.kansascity.com/opinion/opn-columns-blogs/syndicated-columnists/article105647021.html
http://www.kansascity.com/opinion/opn-columns-blogs/syndicated-columnists/article105647021.html
https://www.psychologytoday.com/blog/busting-myths-about-human-nature/201506/ignorance-about-race-is-killing-us
https://www.psychologytoday.com/blog/busting-myths-about-human-nature/201506/ignorance-about-race-is-killing-us
https://www.psychologytoday.com/blog/busting-myths-about-human-nature/201506/ignorance-about-race-is-killing-us
http://science.sciencemag.org/content/351/6273/564.full
http://science.sciencemag.org/content/351/6273/564.full
b. What are two quotes from the article that especially caught your attention? Why
were these passages effective in making their points?
Your reflection should be at least 300 words, and written as an organized paragraph.
Turn in your completed assignment on Canvas or in class by the due date.
Grading
A full score will be given to a reflection that addresses all of the required points. The
breakdown of the assigned score are:
• Accurately gives main point of the paper (6 points)
• Presents two quotes and explains why each is effective (8 points)
• College level writing: organized and free from spelling and grammatical problems (3
points)
• Low use of direct text from the article (except for the two quotes) (3 points)
� of �2 2
Business Ethics and
Social Responsibility
http://www.wileybusinessupdates.com
Chapter
2
1
Explain the concern for ethical and societal issues.
Describe the contemporary ethical environment.
Discuss how organizations shape ethical condu.
VERSION 1Question 1 Ethics is a part of decision makingAns.docxdickonsondorris
VERSION 1
Question 1
Ethics is a part of decision making
Answer
at all levels of work and management.
primarily at the upper management levels of an organization.
mostly for policy makers.
that is less important than other decision making processes.
only at that lower levels of organizational management.
Question 2
The ________ focus(es) on firms taking action to prevent and detect business misconduct in cooperation with government regulation.
Answer
United States Sentencing Commission
Defense Industry Initiative on Business Ethics and Conduct
World Trade Organization
United Nations Global Compact
Federal Sentencing Guidelines for Organizations
Question 3
Ethical culture is defined as
Answer
rules, standards, and moral principles regarding what is right or wrong in specific situations.
the establishment and enforcement of ethical codes throughout the organization.
the development of rules and norms that are socially enforced.
the codification of laws to reward organizations for taking action to prevent misconduct.
acceptable behavior as defined by the company and industry.
Question 4
During the 1990s the institutionalization of business ethics was largely driven by which piece of legislation?
Answer
Sarbanes-Oxley Act
Federal Sentencing Guidelines for Organizations
Dodd-Frank Wall Street Reform and Consumer Protection Act
Foreign Corrupt Practices Act
Global Sullivan Principles
Question 5
Which of the following is not something a firm might do to encourage organizational ethics and compliance?
Answer
Employee ethics training
Hiring a compliance officer
Ignoring potential ethical issues
Writing a code of ethics
Conducting an ethics and compliance audit.
Question 6
One of the major ethical issues President Obama’s administration focused on was
Answer
decreasing environmental legislation.
deregulation.
tax decreases.
incentives to oil companies.
health care and consumer protection
Question 7
According to the role of ethical culture in performance, all of these are drivers of profit except
Answer
trust.
investor loyalty.
employee commitment.
customer satisfaction.
opportunity for misconduct.
Question 8
Which represented a far-reaching change to organizational control and accounting systems, making securities fraud a criminal offense?
Answer
Council on Economic Priorities and Social Accountability 8000.
Sarbanes-Oxley Act.
Consumer Protection Act.
Defense Industry Initiative on Business Ethics and Conduct.
Dodd-Frank Wall Street Reform and Consumer Protection Act.
Question 9
In ascending order, Carroll's four levels of social responsibility are
Answer
ethical, legal, economic, philanthropic.
economic, ethical philanthropic, legal.
economic, legal, ethical, philanthropic.
legal, ethical, economic, philanthropic.
ethical, legal, moral, economic.
Question 10
The term used to express how a firm meets its stakeholder expectati ...
With the rapid advancement of technology, the 21st century has brought us a dynamic terrain that has given rise to extremely competitive markets. In addition to spurring innovation, technological developments have also resulted in a deterioration of public confidence in the banking industry, which has been made worse by recent high-profile cases of financial misbehavior. Businesses are under increasing pressure to operate well and sustainably for the good of their clients, shareholders, and the company as a whole. These pressures range from environmental concerns to human rights violations. Organizations must outline plans in order to successfully navigate this complicated terrain and address societal needs while ensuring future success. Companies that want to compete successfully in marketplaces with cutting-edge technology must address ethical issues. Businesses must find a careful balance between financial imperatives, environmental sustainability, and respecting human rights within their strategy frameworks in an era marked by widespread corporate disobedience and non-compliance. Public fear has been exacerbated by recently reported banking scandals, which include employee dishonesty such as opening bogus accounts, market manipulation schemes, and deficiencies in compliance processes. These violations, which go unpunished for long stretches of time, highlight how urgent it is that businesses have strong corporate social responsibility policies. According to this study, businesses that actively participate in corporate social responsibility (CSR) have a higher chance of long-term success, highlighting the importance of morality and social responsibility in overcoming the difficulties presented by modern markets.
Lesson Five Corporate Ethics in the 21st CenturyLesson Four d.docxsmile790243
Lesson Five: Corporate Ethics in the 21st Century
Lesson Four discussed some of the most prominent behavioral theories concerning leadership as well as their ethical implications. Lesson Six will introduce some modern concepts of ethics for businesses, including socially responsible investing, corporate social responsibility, and environmentalism.
With changes in public perception over time, the expectations of businesses operating within American society has changed considerably throughout the history of our nation. The classical view on the ethical role of businesses was predicated on the principle of profit maximization: the idea that the only purpose of a business is to maximize the amount of money generated for its owners. Furthermore, anything that runs counter to or distracts from this prerogative is antithetical to the essence of a business. The obligation to obey the law is implied based on the fact that businesses which violate laws typically suffer losses in the form of fines or even forced closure; so compliance with the law is a behavior that is compatible with, and in fact necessary to, the principle of profit maximization.
However, things have changed. Businesses have grown to sizes and degrees of influence that present substantial threats to the welfare of communities, families, the natural environment, etc. and society no longer sees businesses as being responsible only to shareholders (McWilliams & Siegel, 2001). This lesson will discuss the ways in which changes in public perception have reshaped the ethical obligations of businesses in the 21st century.
Socially Responsible Investing (SRI)
One of the biggest ways in which public perception has changed business and industry is through socially responsible investment (SRI) funds. In the business startup world, some investors with strong ethical compasses have chosen to restrict the types of businesses in which they are willing to invest with their capital (Sparkes & Cowton, 2004). Some of these restricted categories are more or less unanimously seen as immoral industries. Others, however, are more controversial.
· Alcohol: Obviously not all people abuse alcohol, and not all people view producers of alcohol as immoral. However, many SRI funds exclude alcohol companies because of the tragic effects that alcohol has in contexts such as drunk driving, etc.
· Tobacco: Virtually the same arguments that apply to alcohol apply to tobacco, except that tobacco is vilified for its unmistakable role in cancers, emphysema, and early mortality. Thus, SRI funds typically avoid tobacco companies as well.
· Gambling: Like alcohol, not all people have gambling problems or see any ethical issue with the gambling industry. However, we do know that gambling is another addictive behavior, and for this reason casinos are typically excluded from SRI funds.
· Weapons: Firearms are a heated subject with all of the current political debate surrounding Second Amendment rights and the best ways ...
The biggest corporation, like the humblest citizen, must be h.docxmehek4
“The biggest corporation, like the humblest citizen, must be held to strict compliance with the will of the people.”
--Theodore Roosevelt
“A business that makes nothing but money is a poor kind of business.”
Henry Ford, founder of Ford Motor Company
Managing and Prioritizing Stakeholders
Organizational Issues
All organizations are faced with challenges or issues.
An issue is any event, trend, controversy, or public policy development that might affect the corporation.
An issue can also be understood as a gap between stakeholder expectations and the actual performance of a business.
Some important contemporary issues: domestic partner benefits, environmental performance, genetically modified food, affirmative action….the list can go on and on.
Stakeholders
Stakeholder theory argues that organizations need to identify and resolve issues in light of all their various stakeholders.
Stakeholder: Any group that has a vested interest in the operations of the firm
Include: employees, suppliers, stockholders, customers, the government, local communities, and society as a whole
Why Partner with Stakeholders?
Instrumental Perspective (“Do it because it will pay off in the end")
Enhanced ability to predict/control the external environment .
Higher percentage of successful new product/service introductions Higher levels of operating efficiency .
Fewer incidents of damaging moves by stakeholders (i.e., boycotts, strikes, bad press).
Less conflict with stakeholders resulting in fewer legal suits.
More favorable legislation/regulation .
More reasonable contracts .
Higher entry barriers leading to more favorable competitive environment Higher levels of trust.
Higher levels of profitability?
Greater organizational flexibility.
Normative Perspective (“Do it because it is the right thing to do")
Moral and philosophical basis for recognition of stakeholder interests.
Moral Manager
Defines a managers response to stakeholders – three approaches.
Immoral
Not only does not care how his/her decisions impact the stakeholders, but the actions are actively counter to what is the right and ethical thing to do.
Focus only on the goals of the of the company.
Considers laws as constants or barriers that are ignored in the company.
Amoral
Manager who is considered ethically neutral.
Ethical considerations are not contemplated in the decision making process.
Moral
Those managers who understand the relevance of considering ethical issues when they are making decisions.
What moral responsibilities – economic, legal, ethical, and philanthropic – does our firm have to its stakeholders?
Philanthropic Responsibilities
Be a good corporate citizen.
Ethical Responsibilities
Be ethical.
Legal Responsibilities
Obey the law.
Economic Responsibilities
Be profitable.
Copyright 2001 Harcourt, Inc.
Performing a Stakeholder Analysis:
1. Map your stakeholder relationships.
2. Assess ...
201211 IASA theInterpreter: Social Media - Beware the IcebergSteven Callahan
Article discusses the hidden risks of social media and how all companies, even those not consciously participating in social media networks, already face risks that have to be managed.
Seizing the regulatory opportunity: A Deloitte perspective on how financial i...Deloitte Canada
Financial institutions that look for opportunities in compliance rather than resign themselves to it can position themselves ahead of the competition. The energy they put into understanding the impact of new regulations on their businesses, customers and risks can be used to drive operational changes.
Question 2 Discuss working conditions around the world. What chal.docxwraythallchan
Question 2: Discuss working conditions around the world. What challenges face multinational corporations? What approaches are companies using to establish fair labor standards? Which approaches might work better than others? Please use the below lecture note to guide your response. Minimum of 2 academic references and 1 data for appendix, it could be a graph or table or piechart (2 and half pages NOT double spaced).
Working Conditions around the World
Much of this chapter has focused on the employment relationship, and the legal and ethical norms governing it, in the United States. Workplace institutions differ dramatically around the world. Laws and practices that establish fair wages, acceptable working conditions, and employee rights vary greatly from region to region. As illustrated by the opening example of this chapter that described a Nike contract factory in China, these differences pose a challenge to multinational corporations. By whose standards should these companies operate?
Recent headlines have turned the public’s attention to the problem of sweatshops, factories where employees, sometimes including children, are forced to work long hours at low wages, often under unsafe working conditions. Several well-known companies in addition to Nike, including Wal-Mart, Disney, and McDonald’s, have been criticized for tolerating abhorrent working conditions in their overseas factories or those of their contractors. In recent years, student groups have pressured companies by rallying to prevent their colleges and universities from buying school-logo athletic gear, clothing, and other products made under sweatshop conditions.
Fair Labor Standards
The term labor standards refers to the conditions under which a company’s employees—or the employees of its suppliers, subcontractors, or others in its commercial chain—work. Some believe that labor standards should be universal; that is, companies should conform to common norms across all their operations worldwide. Such universal rules are sometimes called fair labor standards. For example, such standards might include a ban on all child labor, establishment of maximum work hours per week, or a commitment to pay a wage above a certain level. Others think that what is fair varies across cultures and economies, and it is often difficult to set standards that are workable in all settings. For example, in some cultures child labor is more acceptable (or economically necessary) than others. A wage that would be utterly inadequate in one economic setting might seem princely in another. In some countries, unions are legal and common; in others, they are illegal or actively discouraged.
In the face of growing concerns over working conditions overseas, a debate has developed over how best to establish fair labor standards for multinational corporations. Several approaches have emerged.
Voluntary corporate codes of conduct, described in detail in Chapters 6 and 7, can include labor standards that co ...
Discuss the evolution of law enforcement in terms of forensic scienc.docxstandfordabbot
Discuss the evolution of law enforcement in terms of forensic science. How has law enforcement benefited from advances in forensic science?
2)
Discuss the CSI effect. Identify the challenges of the CSI effect for investigators and forensic experts. Discuss the importance of maintaining the chain of custody of evidence.
.
Discuss the ethics of medianews reporting matters of national.docxstandfordabbot
***
Discuss the ethics of media/news reporting matters of national security
. ***
* 1 and a half
pages
* APA formatting.
* Cohesive and blended paper
.
Use http://www.dhs.gov/border-security-overview as your topic, keep the thesis in my and keep the topic centered
.
Discuss the ethics of using unconscious nudges to alter peoples beh.docxstandfordabbot
Discuss the ethics of using unconscious nudges to alter people's behavior. Within your answer, consider the argument made by economists Richard Thaler and Cass Sunstein, who favor the use of nudges. Could nudges be avoided? Do all policies contain some unconscious nudges and incentives? Do all nudges influence people? if so, how and why?
.
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Anthropology 130 Extra Credit - Web Articles on Race 20 poi.docxRAHUL126667
Anthropology 130 Extra Credit - Web Articles on Race
20 points maximum
With the recent news stories showing differences in experience by members of different
races in the United States, new attempts to start the conversation on race and culture
have been published online. This assignment involves carefully exploration of one of the
recent media pieces on the topic and summarizing its main points.
Part One
Choose one of the following links for this assignment.
• Flam, F. (2016, October 3). Concept of race stands as science’s biggest blunder [Web
article]. The Kansas City Star. Retrieved from http://www.kansascity.com/opinion/opn-
columns-blogs/syndicated-columnists/article105647021.html
• Fuentes, A. (2015, June 22). Ignorance about race is killing us [Web article].
Psychology Today. Retrieved from https://www.psychologytoday.com/blog/busting-
myths-about-human-nature/201506/ignorance-about-race-is-killing-us
• Yodel, M., Roberts, D., DeSalle, R. & Tishkoff, S. (2016, February 5). Taking race out
of human genetics. Science. 351(6273), 564-565. Retrieved from http://
science.sciencemag.org/content/351/6273/564.full
Part Two
Answer both parts of the prompt:
a. What is the main point that the writer conveyed?
� of �1 2
http://www.kansascity.com/opinion/opn-columns-blogs/syndicated-columnists/article105647021.html
http://www.kansascity.com/opinion/opn-columns-blogs/syndicated-columnists/article105647021.html
http://www.kansascity.com/opinion/opn-columns-blogs/syndicated-columnists/article105647021.html
https://www.psychologytoday.com/blog/busting-myths-about-human-nature/201506/ignorance-about-race-is-killing-us
https://www.psychologytoday.com/blog/busting-myths-about-human-nature/201506/ignorance-about-race-is-killing-us
https://www.psychologytoday.com/blog/busting-myths-about-human-nature/201506/ignorance-about-race-is-killing-us
http://science.sciencemag.org/content/351/6273/564.full
http://science.sciencemag.org/content/351/6273/564.full
b. What are two quotes from the article that especially caught your attention? Why
were these passages effective in making their points?
Your reflection should be at least 300 words, and written as an organized paragraph.
Turn in your completed assignment on Canvas or in class by the due date.
Grading
A full score will be given to a reflection that addresses all of the required points. The
breakdown of the assigned score are:
• Accurately gives main point of the paper (6 points)
• Presents two quotes and explains why each is effective (8 points)
• College level writing: organized and free from spelling and grammatical problems (3
points)
• Low use of direct text from the article (except for the two quotes) (3 points)
� of �2 2
Business Ethics and
Social Responsibility
http://www.wileybusinessupdates.com
Chapter
2
1
Explain the concern for ethical and societal issues.
Describe the contemporary ethical environment.
Discuss how organizations shape ethical condu.
VERSION 1Question 1 Ethics is a part of decision makingAns.docxdickonsondorris
VERSION 1
Question 1
Ethics is a part of decision making
Answer
at all levels of work and management.
primarily at the upper management levels of an organization.
mostly for policy makers.
that is less important than other decision making processes.
only at that lower levels of organizational management.
Question 2
The ________ focus(es) on firms taking action to prevent and detect business misconduct in cooperation with government regulation.
Answer
United States Sentencing Commission
Defense Industry Initiative on Business Ethics and Conduct
World Trade Organization
United Nations Global Compact
Federal Sentencing Guidelines for Organizations
Question 3
Ethical culture is defined as
Answer
rules, standards, and moral principles regarding what is right or wrong in specific situations.
the establishment and enforcement of ethical codes throughout the organization.
the development of rules and norms that are socially enforced.
the codification of laws to reward organizations for taking action to prevent misconduct.
acceptable behavior as defined by the company and industry.
Question 4
During the 1990s the institutionalization of business ethics was largely driven by which piece of legislation?
Answer
Sarbanes-Oxley Act
Federal Sentencing Guidelines for Organizations
Dodd-Frank Wall Street Reform and Consumer Protection Act
Foreign Corrupt Practices Act
Global Sullivan Principles
Question 5
Which of the following is not something a firm might do to encourage organizational ethics and compliance?
Answer
Employee ethics training
Hiring a compliance officer
Ignoring potential ethical issues
Writing a code of ethics
Conducting an ethics and compliance audit.
Question 6
One of the major ethical issues President Obama’s administration focused on was
Answer
decreasing environmental legislation.
deregulation.
tax decreases.
incentives to oil companies.
health care and consumer protection
Question 7
According to the role of ethical culture in performance, all of these are drivers of profit except
Answer
trust.
investor loyalty.
employee commitment.
customer satisfaction.
opportunity for misconduct.
Question 8
Which represented a far-reaching change to organizational control and accounting systems, making securities fraud a criminal offense?
Answer
Council on Economic Priorities and Social Accountability 8000.
Sarbanes-Oxley Act.
Consumer Protection Act.
Defense Industry Initiative on Business Ethics and Conduct.
Dodd-Frank Wall Street Reform and Consumer Protection Act.
Question 9
In ascending order, Carroll's four levels of social responsibility are
Answer
ethical, legal, economic, philanthropic.
economic, ethical philanthropic, legal.
economic, legal, ethical, philanthropic.
legal, ethical, economic, philanthropic.
ethical, legal, moral, economic.
Question 10
The term used to express how a firm meets its stakeholder expectati ...
With the rapid advancement of technology, the 21st century has brought us a dynamic terrain that has given rise to extremely competitive markets. In addition to spurring innovation, technological developments have also resulted in a deterioration of public confidence in the banking industry, which has been made worse by recent high-profile cases of financial misbehavior. Businesses are under increasing pressure to operate well and sustainably for the good of their clients, shareholders, and the company as a whole. These pressures range from environmental concerns to human rights violations. Organizations must outline plans in order to successfully navigate this complicated terrain and address societal needs while ensuring future success. Companies that want to compete successfully in marketplaces with cutting-edge technology must address ethical issues. Businesses must find a careful balance between financial imperatives, environmental sustainability, and respecting human rights within their strategy frameworks in an era marked by widespread corporate disobedience and non-compliance. Public fear has been exacerbated by recently reported banking scandals, which include employee dishonesty such as opening bogus accounts, market manipulation schemes, and deficiencies in compliance processes. These violations, which go unpunished for long stretches of time, highlight how urgent it is that businesses have strong corporate social responsibility policies. According to this study, businesses that actively participate in corporate social responsibility (CSR) have a higher chance of long-term success, highlighting the importance of morality and social responsibility in overcoming the difficulties presented by modern markets.
Lesson Five Corporate Ethics in the 21st CenturyLesson Four d.docxsmile790243
Lesson Five: Corporate Ethics in the 21st Century
Lesson Four discussed some of the most prominent behavioral theories concerning leadership as well as their ethical implications. Lesson Six will introduce some modern concepts of ethics for businesses, including socially responsible investing, corporate social responsibility, and environmentalism.
With changes in public perception over time, the expectations of businesses operating within American society has changed considerably throughout the history of our nation. The classical view on the ethical role of businesses was predicated on the principle of profit maximization: the idea that the only purpose of a business is to maximize the amount of money generated for its owners. Furthermore, anything that runs counter to or distracts from this prerogative is antithetical to the essence of a business. The obligation to obey the law is implied based on the fact that businesses which violate laws typically suffer losses in the form of fines or even forced closure; so compliance with the law is a behavior that is compatible with, and in fact necessary to, the principle of profit maximization.
However, things have changed. Businesses have grown to sizes and degrees of influence that present substantial threats to the welfare of communities, families, the natural environment, etc. and society no longer sees businesses as being responsible only to shareholders (McWilliams & Siegel, 2001). This lesson will discuss the ways in which changes in public perception have reshaped the ethical obligations of businesses in the 21st century.
Socially Responsible Investing (SRI)
One of the biggest ways in which public perception has changed business and industry is through socially responsible investment (SRI) funds. In the business startup world, some investors with strong ethical compasses have chosen to restrict the types of businesses in which they are willing to invest with their capital (Sparkes & Cowton, 2004). Some of these restricted categories are more or less unanimously seen as immoral industries. Others, however, are more controversial.
· Alcohol: Obviously not all people abuse alcohol, and not all people view producers of alcohol as immoral. However, many SRI funds exclude alcohol companies because of the tragic effects that alcohol has in contexts such as drunk driving, etc.
· Tobacco: Virtually the same arguments that apply to alcohol apply to tobacco, except that tobacco is vilified for its unmistakable role in cancers, emphysema, and early mortality. Thus, SRI funds typically avoid tobacco companies as well.
· Gambling: Like alcohol, not all people have gambling problems or see any ethical issue with the gambling industry. However, we do know that gambling is another addictive behavior, and for this reason casinos are typically excluded from SRI funds.
· Weapons: Firearms are a heated subject with all of the current political debate surrounding Second Amendment rights and the best ways ...
The biggest corporation, like the humblest citizen, must be h.docxmehek4
“The biggest corporation, like the humblest citizen, must be held to strict compliance with the will of the people.”
--Theodore Roosevelt
“A business that makes nothing but money is a poor kind of business.”
Henry Ford, founder of Ford Motor Company
Managing and Prioritizing Stakeholders
Organizational Issues
All organizations are faced with challenges or issues.
An issue is any event, trend, controversy, or public policy development that might affect the corporation.
An issue can also be understood as a gap between stakeholder expectations and the actual performance of a business.
Some important contemporary issues: domestic partner benefits, environmental performance, genetically modified food, affirmative action….the list can go on and on.
Stakeholders
Stakeholder theory argues that organizations need to identify and resolve issues in light of all their various stakeholders.
Stakeholder: Any group that has a vested interest in the operations of the firm
Include: employees, suppliers, stockholders, customers, the government, local communities, and society as a whole
Why Partner with Stakeholders?
Instrumental Perspective (“Do it because it will pay off in the end")
Enhanced ability to predict/control the external environment .
Higher percentage of successful new product/service introductions Higher levels of operating efficiency .
Fewer incidents of damaging moves by stakeholders (i.e., boycotts, strikes, bad press).
Less conflict with stakeholders resulting in fewer legal suits.
More favorable legislation/regulation .
More reasonable contracts .
Higher entry barriers leading to more favorable competitive environment Higher levels of trust.
Higher levels of profitability?
Greater organizational flexibility.
Normative Perspective (“Do it because it is the right thing to do")
Moral and philosophical basis for recognition of stakeholder interests.
Moral Manager
Defines a managers response to stakeholders – three approaches.
Immoral
Not only does not care how his/her decisions impact the stakeholders, but the actions are actively counter to what is the right and ethical thing to do.
Focus only on the goals of the of the company.
Considers laws as constants or barriers that are ignored in the company.
Amoral
Manager who is considered ethically neutral.
Ethical considerations are not contemplated in the decision making process.
Moral
Those managers who understand the relevance of considering ethical issues when they are making decisions.
What moral responsibilities – economic, legal, ethical, and philanthropic – does our firm have to its stakeholders?
Philanthropic Responsibilities
Be a good corporate citizen.
Ethical Responsibilities
Be ethical.
Legal Responsibilities
Obey the law.
Economic Responsibilities
Be profitable.
Copyright 2001 Harcourt, Inc.
Performing a Stakeholder Analysis:
1. Map your stakeholder relationships.
2. Assess ...
201211 IASA theInterpreter: Social Media - Beware the IcebergSteven Callahan
Article discusses the hidden risks of social media and how all companies, even those not consciously participating in social media networks, already face risks that have to be managed.
Seizing the regulatory opportunity: A Deloitte perspective on how financial i...Deloitte Canada
Financial institutions that look for opportunities in compliance rather than resign themselves to it can position themselves ahead of the competition. The energy they put into understanding the impact of new regulations on their businesses, customers and risks can be used to drive operational changes.
Question 2 Discuss working conditions around the world. What chal.docxwraythallchan
Question 2: Discuss working conditions around the world. What challenges face multinational corporations? What approaches are companies using to establish fair labor standards? Which approaches might work better than others? Please use the below lecture note to guide your response. Minimum of 2 academic references and 1 data for appendix, it could be a graph or table or piechart (2 and half pages NOT double spaced).
Working Conditions around the World
Much of this chapter has focused on the employment relationship, and the legal and ethical norms governing it, in the United States. Workplace institutions differ dramatically around the world. Laws and practices that establish fair wages, acceptable working conditions, and employee rights vary greatly from region to region. As illustrated by the opening example of this chapter that described a Nike contract factory in China, these differences pose a challenge to multinational corporations. By whose standards should these companies operate?
Recent headlines have turned the public’s attention to the problem of sweatshops, factories where employees, sometimes including children, are forced to work long hours at low wages, often under unsafe working conditions. Several well-known companies in addition to Nike, including Wal-Mart, Disney, and McDonald’s, have been criticized for tolerating abhorrent working conditions in their overseas factories or those of their contractors. In recent years, student groups have pressured companies by rallying to prevent their colleges and universities from buying school-logo athletic gear, clothing, and other products made under sweatshop conditions.
Fair Labor Standards
The term labor standards refers to the conditions under which a company’s employees—or the employees of its suppliers, subcontractors, or others in its commercial chain—work. Some believe that labor standards should be universal; that is, companies should conform to common norms across all their operations worldwide. Such universal rules are sometimes called fair labor standards. For example, such standards might include a ban on all child labor, establishment of maximum work hours per week, or a commitment to pay a wage above a certain level. Others think that what is fair varies across cultures and economies, and it is often difficult to set standards that are workable in all settings. For example, in some cultures child labor is more acceptable (or economically necessary) than others. A wage that would be utterly inadequate in one economic setting might seem princely in another. In some countries, unions are legal and common; in others, they are illegal or actively discouraged.
In the face of growing concerns over working conditions overseas, a debate has developed over how best to establish fair labor standards for multinational corporations. Several approaches have emerged.
Voluntary corporate codes of conduct, described in detail in Chapters 6 and 7, can include labor standards that co ...
Discuss the evolution of law enforcement in terms of forensic scienc.docxstandfordabbot
Discuss the evolution of law enforcement in terms of forensic science. How has law enforcement benefited from advances in forensic science?
2)
Discuss the CSI effect. Identify the challenges of the CSI effect for investigators and forensic experts. Discuss the importance of maintaining the chain of custody of evidence.
.
Discuss the ethics of medianews reporting matters of national.docxstandfordabbot
***
Discuss the ethics of media/news reporting matters of national security
. ***
* 1 and a half
pages
* APA formatting.
* Cohesive and blended paper
.
Use http://www.dhs.gov/border-security-overview as your topic, keep the thesis in my and keep the topic centered
.
Discuss the ethics of using unconscious nudges to alter peoples beh.docxstandfordabbot
Discuss the ethics of using unconscious nudges to alter people's behavior. Within your answer, consider the argument made by economists Richard Thaler and Cass Sunstein, who favor the use of nudges. Could nudges be avoided? Do all policies contain some unconscious nudges and incentives? Do all nudges influence people? if so, how and why?
.
Discuss the ethical implications of a leaders role in the socia.docxstandfordabbot
Discuss the ethical implications of a leader's role in the socialization of new hires into the preexisting culture of an organization. What responsibility does a company have to inform newly hired persons that it wants to shape their values, perceptions, and behavior to conform to the organization's culture? What impact does the leader’s informed values and individual behavior have on organizational effectiveness? Considering the Christian concept of putting others before oneself as well as what you have learned in this course about Servant Leadership and Conscious Capitalism; explain the impact on company culture and organizational effectiveness.
.
discuss the differences between Virtualization and Cloud Computi.docxstandfordabbot
Discuss the differences between Virtualization and Cloud Computing. You are to post directly to the thread. Any discussion posted in an attachment will be disregarded.
Please find
one organization that has recently adopted virtualization
and summarize their reasons for taking this approach. What challenges did they face?
Respond substantively to at least two other students' posts. Were they similar to other organizations? If not, why? If so, how?
Due by Wednesday 9/11/19 and be a minimum of 500 words.
.
Discuss the differences between substantive law, procedural law,.docxstandfordabbot
Discuss
the differences between substantive law, procedural law, criminal law, civil law, common law, and statutory law. Provide examples of each law and discuss what U.S. Constitution amendments were implemented to protect the rights of businesses and organizations. Discuss the topics you are comfortable with, the topics you struggled with, and how the weekly topics relate to application in your field.
100 words
.
Discuss the differences between the three major approaches surroundi.docxstandfordabbot
Discuss the differences between the three major approaches surrounding collection and analysis of data i,e., quantitative, qualitative, and mixed methods. As well as, describe the design of scientific inquiry that may go with each method i.e., survey, narrative, phenomenological, ethnographic, grounded theory, or case study and why it would be selected. Then address which method and design you think you would prefer to use to conduct research and why.
Requires 250-300 words each forum.
#1
For this week’s forum post, We discuss the three major approaches surrounding collection and analysis of data. The first of the three approaches are quantitative. Quantitative, represents the method of utilizing numeric data and statistics in communicating the results. The second of the three approaches are qualitative. Qualitative represents the method of gathering data in the form of words and descriptions, such as interviews and focus groups, to communicate the results. The third, and final approach surrounding collection and analysis of data is mixed methods. Mixed methods incorporate both of what the quantitative and qualitative approach focus on. Using both numeric data and personal communication (Todd, Nerlich, McKeown, Clarke, p.2,3)
Quantitative
The quantitative method, involves numeric data and statistics to communicate findings. It emphasizes data, measured objectively, because it cannot be disputed. Polls, questionnaires, and surveys are three methods used in the collection of statistical, mathematical, or numerical analysis of data. The primary purpose of quantitative research is to explain a particular event. By gathering a specific type of data, and generalizing it across an area small or wide. The goal, is to determine the relationships between variables, in that given area. Typically, this type of research is used to create graphs and tables of raw data. (Todd, Nerlich, McKeown, Clarke, p.2,3). This method would involve survey and ethnographic, because both are products of statistical analysis.
Qualitative
The qualitative method, involves gathering data in the form of words and descriptions. It emphasizes to understand the social reality of a given group and cultures as nearly as possible as its participants feel it or live it. The study is conducted in the person or groups natural setting. The goal of the qualitative approach is to understand the “why” behind a particular phenomenon, or behavior, acts the way it does. (Saul McLeon, p.1,2)
This method would involve narrative and case study, because both of those studies involve personal data. Data that is received in the form of words.
Mixed Method
The mixed method, combines both of the approaches, that the quantitative and qualitative method focus on. It emphasizes the collection, analysis, and integrating quantitative and qualitative research. The issue with both qualitative and quantitative research, is that there are weaknesses to only using one method at a time. Mix.
Discuss the differences between Unitary and confederal systems of go.docxstandfordabbot
Discuss the differences between Unitary and confederal systems of government. Why would we need a strong national government? Why might we want local state governments to control the decision-making? Why were the Articles of Confederation a failure? And lastly, why is federalism a preferable system to either unitary or confederal constructions of government?
.
Discuss the differences between the systems development life c.docxstandfordabbot
Discuss the differences between the systems development life cycle (SDLC) and the security life cycle.
Include in your discussion both management and non-management IT security positions that perform security life cycle steps and briefly describe their role.
.
Discuss the differences between substantive law, procedural law, c.docxstandfordabbot
Discuss
the differences between substantive law, procedural law, criminal law, civil law, common law, and statutory law. Provide examples of each law and discuss what U.S. Constitution amendments were implemented to protect the rights of businesses and organizations. Discuss the topics you are comfortable with, the topics you struggled with, and how the weekly topics relate to application in your field.
120 words
.
Discuss the differences between communism socialism and capitalism.docxstandfordabbot
Discuss the differences between communism socialism and capitalism
make arguments for and against each government system and give country examples for each system
use different countries than the previous response... Make your own examples use the CIa Fact Book if you need assistance
do not use Cuba or the United States your examples
.
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Discuss the differences between civil and criminal courts. Is the line between these two courts absolutely definitive? If not, what types of cases might "blur the line" between both courts? Can you briefly describe a real world example where a case was tried in both courts?
How might you handle this case? I just had a 7 year old to to criminal court after sexual abuse by an adult male. She was my youngest child client to go to criminal court. I was really concerned that the defendant would be found not guilty due to her young age and no forensic evidence. I did address this with her and indicated that sometimes the jury get in wrong (she had been explained jury, judge, etc and visited the court room on 2 occasion). He was found guilty in 2 hours and the jury also eat lunch during that time.
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Discuss the difference between normative economic analysis and positive economic analysis. Is economics concerned mainly with normative or positive analysis? Briefly explain.
Discuss the concept of scarcity. Can you think of anything that is not scarce according to the economic definition? How might governments reduce scarcity?
Discuss the significance of the production possibilities frontier.
How can economies achieve points of production that lie outside the curve? What might cause an economy to produce at points beneath the curve?
.
Discuss the difference between external and internal evidence as it .docxstandfordabbot
Discuss the difference between external and internal evidence as it relates to your PICOT search strategy.
PICOT ; Urinary Tract Infections
Address the strengths and weaknesses of searching in a databank versus a web-based search engine. You must use two databanks mentioned in the text.
Examples of databases include PubMed, Cochrane literature, and CINAHL
.
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Discuss the difference between an income tax expense and an income tax payable, demonstrating an understanding of the difference between GAAP and tax reporting. Identify three temporary differences and discuss how the deferred tax asset or deferred tax liability is recorded and consumed. Identify three permanent differences and discuss the reporting of permanent differences.
.
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Discuss the development of political and social structures that produced a strong sense of community and cultural unity among Greeks during the Archaic Age.
Your response should be at least 200 words in length. You are required to use at least your textbook as source material for your response. All sources used, including the textbook, must be referenced; paraphrased and quoted material must have accompanying citations.
Levack, B., Muir, E., & Veldman, M. (2011).
The west encounters & transformations
. (3rd ed., Vol. 1, pp. 76-84 ). Upper Saddle: Pearson. DOI: www.pearsonhighered.com
(Levack, Muir & Veldman, 2011)
No wiki, dictionary.com or plagarism
.
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Discuss the development of coronary artery disease (CAD) and the links to dyslipidemia, hypertension, cigarette smoking, diabetes mellitus, obesity, and sedentary lifestyle. Review the current scholarly literature, and describe the markers and testing of cardiovascular risk and prevention and treatment recommendations.
Use at least one scholarly source other than your textbook to connect your response to national guidelines and evidence-based research in support of your ideas.
.
Discuss the data visualization in the attached file below (Data Visu.docxstandfordabbot
Discuss the data visualization in the attached file below (Data Visualization Example) and mention what was right and what did not work? How could you make it better? I want you to respond to at least three other posts to receive points. You can use the attached data file below (Example Data File) to create a better visualization.
.
Discuss the data set and the following topics.How effective .docxstandfordabbot
Discuss the data set and the following topics.
How effective is the visualization? Why?
What elements would you modify?
Does the example reveal the tool used ( PowerBI, R, Tableau, Qlikview....?
What problem is the visualization addressing?
.
Discuss the case study of Ciba-Geigy p.docxstandfordabbot
Discuss the case study of Ciba-Geigy presented in Chapter 4 of the text in the context of the Humphreys & Langford’s (2008) article on managing a corporate culture slide. How well did executives at Ciba-Geigy do in anticipating and managing their culture shift with respect to the questions and issues raised by Humphreys and Langford? In your response, reference at least one external source beyond the textbook and the Humphreys & Langford’s (2008) article. Must use a scholarly reference and must be at least 300 words.
Humphreys, J. & Langford, H. (2008). Managing a Corporate Cultural 'Slide'. MIT Sloan Management Review, 49(3), 25-27.
O’Reilly III, C. A., Caldwell, D. F., Chatman, J. A., and Doerr, B. (2014). The Promise and Problems of Organizational Culture: CEO Personality, Culture, and Firm Performance. Group & Organization Management, Vol. 39(6) 595–625
.
How to Make a Field invisible in Odoo 17Celine George
It is possible to hide or invisible some fields in odoo. Commonly using “invisible” attribute in the field definition to invisible the fields. This slide will show how to make a field invisible in odoo 17.
Introduction to AI for Nonprofits with Tapp NetworkTechSoup
Dive into the world of AI! Experts Jon Hill and Tareq Monaur will guide you through AI's role in enhancing nonprofit websites and basic marketing strategies, making it easy to understand and apply.
Operation “Blue Star” is the only event in the history of Independent India where the state went into war with its own people. Even after about 40 years it is not clear if it was culmination of states anger over people of the region, a political game of power or start of dictatorial chapter in the democratic setup.
The people of Punjab felt alienated from main stream due to denial of their just demands during a long democratic struggle since independence. As it happen all over the word, it led to militant struggle with great loss of lives of military, police and civilian personnel. Killing of Indira Gandhi and massacre of innocent Sikhs in Delhi and other India cities was also associated with this movement.
2024.06.01 Introducing a competency framework for languag learning materials ...Sandy Millin
http://sandymillin.wordpress.com/iateflwebinar2024
Published classroom materials form the basis of syllabuses, drive teacher professional development, and have a potentially huge influence on learners, teachers and education systems. All teachers also create their own materials, whether a few sentences on a blackboard, a highly-structured fully-realised online course, or anything in between. Despite this, the knowledge and skills needed to create effective language learning materials are rarely part of teacher training, and are mostly learnt by trial and error.
Knowledge and skills frameworks, generally called competency frameworks, for ELT teachers, trainers and managers have existed for a few years now. However, until I created one for my MA dissertation, there wasn’t one drawing together what we need to know and do to be able to effectively produce language learning materials.
This webinar will introduce you to my framework, highlighting the key competencies I identified from my research. It will also show how anybody involved in language teaching (any language, not just English!), teacher training, managing schools or developing language learning materials can benefit from using the framework.
Model Attribute Check Company Auto PropertyCeline George
In Odoo, the multi-company feature allows you to manage multiple companies within a single Odoo database instance. Each company can have its own configurations while still sharing common resources such as products, customers, and suppliers.
TESDA TM1 REVIEWER FOR NATIONAL ASSESSMENT WRITTEN AND ORAL QUESTIONS WITH A...
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1. 25
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C H A P T E R T W O
Managing Public
Issues and Stakeholder
Relationships
Businesses today operate in an ever-changing external
environment, where effective management
requires anticipating emerging public issues and engaging
positively with a wide range of stake-
holders. Whether the issue is growing concerns about climate
change, health care, safety at work
or in our schools, social equality, or consumer safety, managers
must respond to the opportunities
and risks it presents. To do so effectively often requires
building relationships across organizational
boundaries, learning from external stakeholders, and altering
practices in response. Effective man-
agement of public issues and stakeholder relationships builds
value for the firm.
This Chapter Focuses on These Key Learning Objectives:
LO 2-1 Identifying public issues and analyzing gaps between
corporate performance and stakeholder
expectations.
LO 2-2 Applying available tools or techniques to scan an
organization’s multiple environments and assess-
2. ing stakeholder materiality.
LO 2-3 Describing the steps in the issue management process
and determining how to make the process
most effective.
LO 2-4 Identifying the managerial skills required to respond to
emerging issues effectively.
LO 2-5 Understanding the various stages through which
businesses can engage with stakeholders, what
drives this engagement, and the role social media can play.
LO 2-6 Recognizing the value of creating stakeholder dialogue
and networks.
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26 Part One Business in Society
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A 2016 study from the Public Affairs Council found that many
major corporations are
feeling increased pressure to speak out on social issues, ranging
from discrimination and
human rights to environmental sustainability and quality
education. Among companies
with more than $15 billion in annual revenue, more than three
in four said expectations for
engagement had risen. Most of the pressure to engage in social
issues, said the companies,
has come from their own employees.1
3. Legislative battles in North Carolina, Tennessee, Mississippi,
and Georgia prompted
business leaders to take a stand favoring rights for transgender
individuals. Dow Chemical,
Alcoa, and Northrup Grumman lobbied elected officials and
publicly condemned measures
seen as discriminatory. Monsanto lead the fight in Missouri
against a bill that would allow
businesses to deny certain services to same-sex couples as a
matter of religious freedom. In
response to North Carolina’s state legislature passing a law that
blocked antidiscriminatory
protections at the local level, Deutsche Bank, the German
financial institution with signifi-
cant business in the United States, said it would freeze its plans
to add jobs in North Caro-
lina. PayPal announced it would halt its plans to open a new
global operations center there.
While some thought these issues had little to do with business,
executives pointed out
these discriminatory state laws could harm local economies and
hamper business’s ability
to recruit and retain bright young workers. In the past few
years, businesses have employed
a number of measures to voice their views. These have ranged
from joining coalitions, to
issuing press releases, to engaging in lobbying at the state or
local governmental levels.
Experts believe that these efforts had some impact, such as in
North Carolina where com-
pany protests contributed to the state legislature’s repeal of a
law that discriminated against
gays and lesbians. Public reaction has been generally positive to
these business actions.
A Global Strategy Group poll found that 78 percent of
4. Americans supported corporate
engagement in social issues such as discrimination, human
rights, and equality.2
In this case, emerging social issues focused on individual rights
prompting various busi-
nesses and their executives to become engaged and take action.
This will likely improve
the communities where these firms hire employees, operate, and
sell their products. Yet,
as this chapter will show, companies sometimes also ignore or
mismanage public issues.
Public Issues
A public issue is any issue that is of mutual concern to an
organization and one or more
of its stakeholders. (Public issues are sometimes also called
social issues or sociopolitical
issues.) They are typically broad issues, often impacting many
companies and groups, and
of concern to a significant number of people. Public issues are
often contentious—different
groups may have different opinions about what should be done
about them. They often, but
not always, have public policy or legislative implications.
The emergence of a new public issue often indicates there is a
gap between what the
firm wants to do or is doing and what stakeholders expect.
Scholars have called this the
performance–expectations gap. Stakeholder expectations are a
mixture of people’s opin-
ions, attitudes, and beliefs about what constitutes reasonable
business behavior. Managers
and organizations have good reason to identify emergent
5. expectations as early as possible.
Failure to understand stakeholder concerns and to respond
appropriately will permit the
1 “Taking a Stand: How Corporations Speak Out on Social
Issues,” Public Affairs Council, 2016.
2 “Why Companies Are Getting More Engaged on Social
Issues,” Public Affairs Council, August 30, 2016, pac.org; “Big
Busi-
ness Speaks Up on Social Issues,” The Wall Street Journal,
April 17, 2016, www.wsj.com; and “Seeking End to Boycott,
North
Carolina Rescinds Transgender Bathroom Law,” Reuters, March
30, 2017, www.reuters.com.
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Chapter 2 Managing Public Issues and Stakeholder
Relationships 27
law43665_ch02_025-046.indd 27 11/16/18 11:08 AM
performance–expectations gap to grow: the larger the gap, the
greater the risk of stake-
holder backlash or of missing a major business opportunity. The
performance–expectations
gap is pictured in Figure 2.1.
Emerging public issues are both an opportunity and a risk. On
one hand, correctly
anticipating the emergence of a public issue can confer a
competitive advantage. However,
they also are a risk because issues that firms do not anticipate
and plan for effectively can
6. seriously hurt a company, as the following example shows.
The Italian–U.S. automobile maker, Fiat Chrysler, became
aware of a serious prob-
lem involving more than 11 million vehicles, including older
Jeeps with rear gas-
oline tanks that were linked to numerous fatal fires. Yet, Fiat
Chrysler was slow to
respond to the increasing expectations of its customers and
regulators, the National
Highway Traffic Safety Administration (NHTSA). The NHTSA
accused the firm
of misleading and obstructing regulators tasked with overseeing
the resolution of
many consumer complaints, inadequate and lagging repairs
authorized through
their dealerships, and failing to notify car owners of the recalls
in a timely manner.
The firm agreed to a consent agreement that included a fine of
$105 million and an
unprecedented buyback option covering hundreds of thousands
of vehicles, whose
owners can receive a trade-in or a financial incentive to get
their vehicles repaired.
Fiat Chrysler also agreed to submit to an independent monitor’s
audit of its recall
performance over the following three-year period.3
Understanding and responding to changing stakeholder
expectations is a business neces-
sity. As Mark Moody-Stuart, former managing director of Royal
Dutch/Shell, put it in an
interview, “Communication with society. . . is a commercial
matter, because society is your
customers. It is not a soft and wooly thing, because society is
what we depend on for our
7. living. So we had better be in line with its wishes, its desires,
its aspirations, its dreams.4
3 “U.S. Auto Safety Regulators Fine Fiat Chrysler Record $105
million,” Reuters, July 26, 2015, www.reuters.com.
4 Interview conducted by Anne T. Lawrence, “Shell Oil in
Nigeria,” interactive online case published by www.icase.co.
FIGURE 2.1
The Performance–
Expectations Gap
Time
Expected
Corporate
Performance
(What stakeholders
expect)
Actual
Corporate
Performance
(What actually
happens)
Performance–
Expectations
Gap
High
Low
Pe
rf
8. or
m
an
ce
(S
oc
ia
l a
nd
E
co
no
m
ic
)
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28 Part One Business in Society
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Every company faces many public issues. Some emerge over a
long period of time;
others emerge suddenly. Some are predictable; others are
completely unexpected. Some
9. companies respond effectively; others do not. Consider the
following recent examples of
public issues and companies’ responses:
∙ Sexual harassment: An often well-kept secret vaulted into the
public spotlight in 2017:
accusations of sexual harassment in the corporate boardroom,
executive suite, and
workplace. Numerous high-profile business leaders were
accused, including Fox News
host Bill O’Reilly, film producer Harvey Weinstein, television
show host Matt Lauer,
Fox News CEO Roger Ailes, Ford Motor Company president for
North America Raj
Nair, CEO of the Humane Society of the United States Wayne
Pacelle, and billionaire
and casino executive Steve Wynn, along with many others.
These executives resigned or
were fired amidst sexual harassment accusations.
∙ Consumer safety: The Centers for Disease Control and
Prevention declared separate
E. coli outbreaks that sickened hundreds of customers at two
different Chipotle Mexican
Grill restaurants in the Pacific Northwest in 2015. These
incidents followed other occur-
rences where customers became ill from a salmonella outbreak
involving tomatoes in
Minnesota, as well as an outbreak of norovirus in California and
Massachusetts. Chipotle
tried to counter the negative publicity by pledging $10 million
to help local growers
meet new food safety standards and invited its 50,000
employees nationwide to tune in
to a broadcasted meeting with executives at their Denver
headquarters.
10. ∙ Protection of personal information: Instances of the illegal
acquisition, or hacking, of
individuals’ personal identification and financial information
have become common
occurrences. Yahoo, Equifax, Delta Airlines, FedEx, England’s
National Health Ser-
vices, Merck Pharmaceuticals, Forever 21, Target, and many
more organizations expe-
rienced data breaches that compromised and exposed personal
data of its customers or
employees. These breaches may have reflected managers’
failure to keep abreast of the
latest techniques used by sophisticated cybercriminals.
Whether the focus is sexual harassment in the workplace,
consumer safety, or the pro-
tection of personal information, society has increased its
demands that businesses take on
important public issues and become more involved in addressing
them. Another critical
public issue that caught the attention of many business
organizations after a school shoot-
ing in Florida—gun violence and school safety in America—is
discussed in the case at the
end of this chapter.
A survey of Millennials (people born between 1977 and 1994)
was conducted in 2014
and found that four out of five Millennials “need (not just want)
business to get involved in
addressing social issues and believe business can make a greater
impact.” One Millennial
from China explained: “Compared to governments, businesses
have the potential and the
possibility to make real change in society happen faster and
11. more efficiently. Businesses
have the resources—from financial means, collective
intelligence to technology—to con-
tribute and make a difference.”5
Environmental Analysis
As new public issues arise, businesses must respond.
Organizations need a systematic way
of identifying, monitoring, and selecting public issues that
warrant organizational action
because of the risks or opportunities they present. Organizations
rarely have full control of
5 The Future of Business Citizenship, People’s Insights
Magazine, www.scribd.com.
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Chapter 2 Managing Public Issues and Stakeholder
Relationships 29
law43665_ch02_025-046.indd 29 11/16/18 11:08 AM
a public issue because of the many factors involved. But it is
possible for the organization
to create a management system that identifies and monitors
issues as they emerge.
To identify those public issues that require attention and action,
a firm needs a frame-
work for seeking out and evaluating environmental information.
(In this context, environ-
mental means outside the organization; in Chapters 9 and 10,
12. the term refers to the natural
environment.) Environmental analysis is a method managers use
to gather information
about external issues and trends, so they can develop an
organizational strategy that mini-
mizes threats and takes advantage of new opportunities.
Environmental intelligence is the acquisition of information
gained from analyzing the
multiple environments affecting organizations. Acquiring this
information may be done
informally or as a formal management process. If done well,
this environmental intelli-
gence can help an organization avoid crises and spot
opportunities.
According to management scholar Karl Albrecht, scanning to
acquire environmental
intelligence should focus on eight strategic radar screens.6
Radar is an instrument that uses
microwave radiation to detect and locate distant objects, which
are often displayed on a
screen; law enforcement authorities use radar, for example, to
track the speed of passing
cars. Albrecht uses the analogy of radar to suggest that
companies must have a way of
tracking important developments that are outside of their
immediate view. He identifies
eight different environments that managers must systematically
follow. These are shown in
Figure 2.2 and described next.
∙ Customer environment includes the demographic factors, such
as gender, age, marital
status, and other factors, of the organization’s customers as well
as their social values
13. or preferences, buying preferences, and technology usage. For
example, the explosion
of social media has created opportunities for creating new
marketing approaches that
provide potential consumers with coupons or sales information
on their smartphones as
they leave their car and walk toward the retail store.
∙ Competitor environment includes information on the number
and strength of the orga-
nization’s competitors, whether they are potential or actual
allies, patterns of aggres-
sive growth versus static maintenance of market share, and the
potential for customers
to become competitors if they “insource” products or services
previously purchased
from the organization. (This environment is discussed further in
the next section of this
chapter.)
∙ Economic environment includes information about costs,
prices, international trade,
and any other features of the economic environment. The severe
recession that hit the
world’s economy in the late 2000s greatly shifted the behavior
of customers, suppli-
ers, creditors, and other stakeholders, dramatically impacting
decision making in many
firms.
∙ Technological environment includes the development of new
technologies and their
applications affecting the organization, its customers, and other
stakeholder groups.
Faster access to information through cell phones, tablets, and
other handheld electronic
14. devices changed how people around the world were alerted to
the devastation of natural
disasters or terrorist actions and how they could be contacted
regarding new job open-
ings or the launching of innovative consumer products.
∙ Social environment includes cultural patterns, values, beliefs,
trends, and conflicts
among the people in the societies where the organization
conducts business or might
6 Adapted from Karl Albrecht, Corporate Radar: Tracking the
Forces That Are Shaping Your Business (New York: American
Management Association, 2000).
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30 Part One Business in Society
law43665_ch02_025-046.indd 30 11/16/18 11:08 AM
conduct business. Issues of civil or human rights, family values,
and the roles of spe-
cial interest groups are important elements in acquiring
intelligence from the social
environment.
∙ Political environment includes the structure, processes, and
actions of all levels of
government—local, state, national, and international.
Awareness of the stability or insta-
bility of governments and their inclination or disinclination to
pass laws and regulations
is essential environmental intelligence for the organization. The
15. emergence of strict
environmental laws in Europe—including requirements to limit
waste and provide for
recycling at the end of a product’s life—have caused firms all
over the world that sell to
Europeans to rethink how they design and package their
products.
∙ Legal environment includes patents, copyrights, trademarks,
and considerations of intel-
lectual property, as well as antitrust considerations and trade
protectionism and organi-
zational liability issues. China’s commitment to triple its patent
filings from nearly one
million in 2013 to three million by 2020 sent shock waves
through the global business
community.
∙ Geophysical environment relates to awareness of the physical
surroundings of the orga-
nization’s facilities and operations, whether it is the
organization’s headquarters or its
field offices and distribution centers, and the organization’s
dependency and impact on
natural resources such as minerals, water, land, or air. Growing
concerns about global
warming and climate change, for example, have caused many
firms to seek to improve
their energy efficiency.
FIGURE 2.2 Eight
Strategic Radar
Screens
Source: Adapted from Karl A.
Albrecht, Corporate Radar:
16. Tracking the Forces That Are
Shaping Your Business (New
York: American Management
Association, 2000).
Customer
Environment
Seeking
Environmental
Intelligence
Social
Environment
Geophysical
Environment
Legal
Environment
Political
Environment
Technological
Environment
Economic
Environment
Competitor
Environment
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17. Chapter 2 Managing Public Issues and Stakeholder
Relationships 31
law43665_ch02_025-046.indd 31 11/16/18 11:08 AM
The eight strategic radar screens represent a system of
interrelated segments, each one
connected to and influencing the others.
Companies do not become experts in acquiring environmental
intelligence overnight.
New attitudes have to be developed, new routines learned, and
new policies and action pro-
grams designed. Many obstacles must be overcome in
developing and implementing the
effective scanning of the business environments. Some are
structural, such as the report-
ing relationships between groups of managers; others are
cultural, such as changing tradi-
tional ways of doing things. In addition, the dynamic nature of
the business environments
requires organizations to continually evaluate their
environmental scanning procedures.
Competitive Intelligence
One of the eight environments discussed by Albrecht is the
competitor environment. The
term competitive intelligence refers to the systematic and
continuous process of gathering,
analyzing, and managing external information about the
organization’s competitors that
can affect the organization’s plans, decisions, and operations.
(As discussed in Chapter 1,
competitors may be considered a nonmarket stakeholder of
18. business.) The acquisition of
this information benefits an organization by helping it better
understand what other compa-
nies in its industry are doing. Competitive intelligence enables
managers in companies of
all sizes to make informed decisions ranging from marketing,
research and development,
and investing tactics to long-term business strategies. “During
difficult times, excellent
competitive intelligence can be the differentiating factor in the
marketplace,” explained
Paul Meade, vice president of the research and consulting firm
Best Practices. “Companies
that can successfully gather and analyze competitive
information, then implement strategic
decisions based on that analysis, position themselves to be
ahead of the pack.”7
However, the quest for competitors’ information can also raise
numerous ethical issues.
Businesses may overstep ethical and legal boundaries when
attempting to learn as much as
they can about their competitors, as the following example
shows.
Today, Deloitte is one of the world’s largest accounting firms,
employing
245,000 people in 150 countries and providing various
accounting and consulting
services. But, in the mid-2000s, the firm wanted to dramatically
grow its federal
security consulting services from a $300 million to more than a
billion dollars in
annual revenues. Deloitte formed a competitive intelligence unit
(CIU). “Our job
was to spy on Ernst & Young, PriceWaterhouseCoopers, KPMG,
19. and some of the
consulting competitors,” said a CIU employee. “We were trying
to steal their
pricing models, how they determined discounts, and especially
new product lines
or service lines.”
One example of how the CIU conducted its business occurred in
2007 when they
learned that BearingPoint, a consulting firm, was struggling
financially and had
called an emergency meeting to determine its fate. Deloitte’s
CIU agents traveled to
the meeting location and spent several days stationing
themselves at a bar, picking
up scraps of conversation from distraught BearingPoint
partners. Others spent time
in bathrooms. “You can’t believe what people will say while
they’re in there,” said
a CIU agent. The best source for information was a Bearing
Point meeting room
the agents discovered. They entered the meeting room, found
notes and other docu-
ments left behind, and brought this information back to
Deloitte’s CIU. According
to one Deloitte CIU employee, “There were accounts that would
have taken years
7 See Best Practices report at
www.benchmarkingreports.com/competitiveintelligence.
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32 Part One Business in Society
20. law43665_ch02_025-046.indd 32 11/16/18 11:08 AM
for Deloitte to develop relationships at the Department of
Defense, the Department
of Homeland Security, and other institutions. It was a huge
opportunity.”
A few years later, Deloitte was able to take advantage of an
opportunity to buy
BearingPoint’s North American public services unit for $350
million as Bearing-
Point worked through a bankruptcy.
As the example above indicates, the perceived value of
intellectual property or other
information may be so great that businesses or their employees
may be tempted to use
unethical or illegal means to obtain such information. Although
questionable, Deloitte
employees did nothing illegal. Competitive intelligence
acquired ethically remains one of
the most valued assets sought by businesses. A business must
balance the importance of
acquiring information about its competitors’ practices with the
need to comply with all
applicable laws, domestic and international, and to follow the
professional standards of
fairness and honesty. Disclosure of all relevant information
prior to conducting an inter-
view and avoidance of conflicts of interest are just a few of the
ethical guidelines promoted
by the Strategic and Competitive Intelligence Professional’s
code of ethics.8
Stakeholder Materiality
After the many environments are scanned, a company needs to
21. evaluate and prioritize the
impact that its stakeholders and their issues may have on the
company. The importance
attributed to a stakeholder is often referred to as materiality.
Stakeholder materiality is an
adaptation of an accounting term that focuses on the importance
or significance of some-
thing. In this case, it describes a method used to prioritize the
relevance of the stakeholders
and their issues to the company.
Sonoco, a global provider of packaging products and services,
completed its first
stakeholder materiality assessment of economic, environmental,
and social issues in
2014. The company began by identifying potential stakeholders
and created a list of
nine stakeholders: customers, suppliers, peers, shareholders,
non-governmental
organizations, community leaders, government regulators,
employees, and lead-
ership. The company then searched various sources for
information on each
stakeholder, such as websites, corporate social responsibility
reports, mission
statements, and 10-K filings to create a list of issues. They used
a four-point scale
to rate each stakeholder from low to high based on the
significance of the issue to
the stakeholder. This scoring system enabled Sonoco to identify
highly influential
stakeholder groups as having the greatest potential impact on
the company’s strategic
objectives or those stakeholders most influenced by the
company’s operations.9
22. After the information is collected, it needs to be analyzed and
placed on a matrix that
shows the importance of the issue for the stakeholder and the
importance of the issue
assigned by the company. This evaluation allows the company
to prioritize their attention
on issues in the quadrant showing issues of importance to
stakeholders AND the company.
An example of such a matrix representing stakeholder
materiality at Nestlé is shown in
Figure 2.3. Nestlé assessed the degree of stakeholder
importance for an issue, as well as
the potential impact of the issue on Nestlé. This combination
enabled the company to place
a higher, or lower, priority on many public issues.
8 For information about the professional association focusing
on competitive intelligence, particularly with attention to
ethical
considerations, see the Strategic and Competitive Intelligence
Professionals’ website at www.scip.org.
9 Information from Nestlé’s website,
www.nestleusa.com/csv/what-is-csv/materiality-and-
stakeholder-engagement.
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Chapter 2 Managing Public Issues and Stakeholder
Relationships 33
law43665_ch02_025-046.indd 33 11/16/18 11:08 AM
The Issue Management Process
23. Once a company has identified a public issue and detects a gap
between society’s expec-
tations and its own practices, what are its next steps? Proactive
companies do not wait for
something to happen; they actively manage issues as they arise.
The process of doing so
is called issue management. The issue management process,
illustrated in Figure 2.4, has
five steps or stages. Each of these steps is explained below,
using the example of the poul-
try industry’s response to concerns over antibiotics in chickens.
Identify Issue
Issue identification involves anticipating emerging concerns,
sometimes called “horizon
issues” because they seem to be just coming up over the horizon
like the first morning sun.
Sometimes managers become aware of issues by carefully
tracking the media, experts’
views, activist opinion, and legislative developments to identify
issues of concern to the pub-
lic. Normally, this requires attention to all eight of the
environments described in Figure 2.2.
Organizations often use techniques of data searching, media
analysis, and public surveys
to track ideas, themes, and issues that may be relevant to their
interests all over the world.
They also rely on ongoing conversations with key stakeholders.
Sometimes firms are com-
pletely unaware of the issue before it emerges and must attempt
to respond to mounting
public pressure by activists or government regulators.
Consumer-health groups and the U.S. Food and Drug
Administration (FDA) called
on animal-breeding farms in the United States to reduce the use
24. of antibiotics in
FIGURE 2.3 The Stakeholder Materiality Matrix
Source: Nestlé
Over- and
under-nutritionHuman
rights
Water
stewardship
Food and
product
safety
Climate
change
Food and
nutrition security
Women’s
empowerment
Water, sanitation
and hygiene
Responsible sourcing
and traceability
Fair employment
and youth
employability
25. Employee safety,
health, and wellness
Moderate
Lo
w
S
ta
ke
ho
ld
er
In
te
re
st
H
ig
h
Significant
Environmental sustainability Our people, human rights, and
complianceWaterRural developmentNutrition
Impact on Nestlé
26. Major
Natural resource
stewardship
Rural development and
poverty alleviation
Animal
welfare
Business ethics
Responsible
marketing
and influence
Resource e�ciency, (food)
waste, and circular economy
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34 Part One Business in Society
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their feed for cattle, hogs and chickens. Many poultry
producers, for example, used
antibiotics in their chickens’ feed since it increased their weight
and prevented out-
breaks of illnesses. But the consumer groups and the FDA
charged that overuse of
antibiotics also increased the development of potentially deadly
27. bacteria that antibi-
otics could not kill. These antibiotic-resistance bacteria could
be transferred to peo-
ple who ate the meat (or consumed the milk or eggs) of treated
animals. Although
the health risks were small, public outcry increased
dramatically, and consumers
called for action by the animal producers.10
The concern over increased health risk from antibiotics caught
poultry producers by
surprise, and many firms began an immediate investigation into
the issue.
Analyze Issue
Once an issue has been identified, its implications must be
analyzed. Organizations must
understand how the issue is likely to evolve, and how it is likely
to affect them. For each
company, the ramifications of the issue will be different.
Understanding how the use of antibiotics could affect the health
of humans con-
suming chickens was complex. On one hand, the company was
concerned about
the public’s safety, and did not want customers to become ill if
they consumed
chickens raised with antibiotics. On the other hand, antibiotics
were a mainstay
for most poultry producers in the United States. Bigger,
healthier chickens trans-
lated into greater profits. Poultry producers were unsure of the
consequences of
removing antibiotics for their companies, both in terms of their
chickens’ health
but also the firms’ profitability. One outbreak of illness could
28. quickly spread
throughout their entire flock of chickens, resulting in
devastating costs for the
10 “Tyson Seeks Lead in No-Antibiotics Poultry,” The Wall
Street Journal, February 21, 2017, www.wsj.com.
FIGURE 2.4
The Issue
Management Process IDENTIFY
ISSUE
ANALYZE
ISSUE
GENERATE
OPTIONS
TAKE
ACTION
EVALUATE
RESULTS
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Chapter 2 Managing Public Issues and Stakeholder
Relationships 35
law43665_ch02_025-046.indd 35 11/16/18 11:08 AM
firm. Yet, they could not ignore the rising outrage over the use
of antibiotics in the
29. raising of chickens.11
Generate Options
An issue’s public profile indicates to managers how significant
an issue is for the organi-
zation, but it does not tell them what to do. The next step in the
issue management process
involves generating, evaluating, and selecting among possible
options. This requires com-
plex judgments that incorporate ethical considerations, the
organization’s reputation and
good name, and other nonquantifiable factors.
Many of the poultry producers started to investigate if there
were alternatives avail-
able to them to replace the use of antibiotics. Firms explored
the use of organic
and antibiotics-free production practices that could keep the
flocks healthy and
robust, while also keeping pace with the changing consumer
demands. The use of
probiotics—beneficial, plant-based bacteria that can strengthen
immune systems—
appeared to be a viable alternative.
Selecting an appropriate response often involves a creative
process of considering vari-
ous alternatives and rigorously evaluating them to see how they
work in practice.
Take Action
Once an option has been chosen, the organization must design
and implement a plan of
action. Sometimes there may be unintended consequences from
the actions undertaken by
the company.
30. Purdue Farms, the third-largest U.S. poultry producer,
addressed emerging con-
sumer concerns about antibiotics by announcing its “no
antibiotics ever” policy.
The firm stated it would eliminate, by June 2016, antibiotics in
all chicken products
sold in supermarkets across the United States. Other poultry
producers quickly
followed. Tyson Foods, the country’s largest poultry producer,
announced in
February 2017 that it would eliminate antibiotics used in its
chicken products,
including breasts, wings, and nuggets. “We believe our
responsibility is to grow and
grow responsibly,” said Tyson’s CEO Tom Hayes.12
Evaluate Results
Once an organization has implemented the issue management
program, it must continue
to assess the results and make adjustments if necessary. Many
managers see issue manage-
ment as a continuous process, rather than one that comes to a
clear conclusion.
Although specific results from the switch to chickens raised
without antibiotics had
not yet been fully studied, experts made some predictions. Some
argued that the
likelihood of serious illness, even death, caused by ingesting
antibiotic-resistant
bacteria would be reduced. Others argued that more medical
research jobs would
be created to study probiotics and other alternative treatments to
keep poultry and
livestock healthy and growing.
31. 11 Ibid., The Wall Street Journal, February 21, 2017, and
“Perdue to Eliminate Antibiotics in Some Chicken Products,”
The
Wall Street Journal, February 26, 2016, www.wsj.com.
12 Ibid., The Wall Street Journal, February 21, 2017, and
“Adjuncts and Alternatives in the Time of Antibiotic Resistance
and
in Feed Antibiotic Bans,” Microbial Biotechnology, June 22,
2017, onlinelibrary.wiley.com.
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36 Part One Business in Society
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This example illustrates the complexity of the issue
management process. Figure 2.4
is deliberately drawn in the form of a loop. When working well,
the issue management
process continuously cycles back to the beginning and repeats,
pulling in more informa-
tion, generating more options, and improving programmatic
response. Such was the case
with the concern over the use of antibiotics in animals. Poultry
producers stated they were
committed to addressing the issue and knew that they needed to
monitor the progress being
made with the development of technologies and new medicines
to fully address an emerg-
ing public issue.
Contemporary issue management is truly an interactive process,
32. as forward-thinking
companies must continually engage in a dialogue with their
stakeholders about issues that
matter, as Purdue Farms, Tyson Foods, and other firms have
learned. New challenges may
emerge from anywhere in the world and at any time. Managers
must not only implement
programs, but continue to reassess their actions to be consistent
with both ethical practices
and long-term survival.
Organizing for Effective Issue Management
Who manages public issues? What departments and people are
involved? There is no sim-
ple answer to this question. Figure 1.5, presented in Chapter 1,
showed that the modern
corporation has many boundary-spanning departments. Which
part of the organization is
mobilized to address a particular emerging issue often depends
on the nature of the issue
itself. For example, if the issue has implications for public
policy or government regula-
tions, the public affairs or government relations department may
take a leadership role.
(The public affairs department is further discussed in Chapter
8.) If the issue is an environ-
mental one, the department of sustainability or environment,
health, and safety may take
on this role. Some companies combine multiple issue
management functions in an office
of external relations or corporate affairs. The following example
illustrates how one com-
pany has organized to manage emerging public issues.
At Publix, the largest employee-owned grocery chain in the
33. United States with
revenues of over $34.6 billion in 2017, the coordination of
public issues is handled
by six different, yet related, teams: corporate communications,
customer care,
government relations, media and community relations, social
media, and special
projects. The corporate communications team handles a wide
array of internal
communications, including an eight-page monthly newsletter,
Publix News. When
customers contact the company with a potential public issue, the
customer care
team responds to resolve customer concerns and answer
customer questions. If the
public issue has a governmental element, then the government
relations team is
organized to communicate with federal, state, and local officials
regarding matters
affecting the company’s ability to effectively compete in the
marketplace. Each
division within the company has a media and community
relations team who
interacts with the news media and the communities served by
the company to
address any public issue. A social media team at Publix uses
Facebook, Twitter,
and other channels to monitor and handle any emerging public
issues. And, finally,
the special projects team preserves and promotes the company’s
history as an
important part of the Publix culture. The company relies on its
tradition to guide
responses to public issues as they arise.13
13 See the Publix Company website at corporate.publix.com.
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37
law43665_ch02_025-046.indd 37 11/16/18 11:08 AM
Public affairs professionals help companies and nonprofits
manage their operations by
anticipating governmental concerns and actions, understanding
how stakeholders influence
a firm’s license to operate, and helping their organization deal
with emerging threats and
opportunities. The Foundation for Public Affairs (FPA) reported
in 2017 that “when politi-
cal risk and economic uncertainty are high, . . . the public
affairs function becomes even
more indispensable.”14 FPA survey data showed that 56 percent
of companies had increased
their public affairs budgets in the previous three years and only
26 percent had experienced
a decrease. And CEOs are increasingly getting involved in
public affairs, with 57 percent
engaged moderately or extensively and only 9 percent not
engaged at all. One example of
an exemplary corporate response to an important public issue is
described in Exhibit 2.A.
What kinds of managers are best able to anticipate and respond
effectively to emerging
public issues? What skill sets are required? The European
Academy of Business in Society
(EABIS) undertook a major study of leaders in companies
participating in the United
35. Nations Global Compact. (This initiative is a set of basic
principles covering labor, human
rights, and environmental standards, to which companies can
voluntarily commit.) The
researchers were interested in the knowledge and skills required
of what they called the
“global leader of tomorrow.”
They found that effective global leadership on these public
issues required three basic
capabilities. The first was an understanding of the changing
business context: emerging
environmental and social trends affecting the firm. The second
was an ability to lead in
the face of complexity. Many emerging issues, the researchers
found, were surrounded by
ambiguity; to deal with them, leaders needed to be flexible,
creative, and willing to learn
from their mistakes. The final capability was connectedness: the
ability to engage with
external stakeholders in dialogue and partnership. More than
three-fourths of executives
polled said that these skills were important.15
14 Quotation from “The State of Corporate Public Affairs,”
Foundation for Public Affairs, 2017.
15 European Academy of Business in Society, Developing the
Global Leader of Tomorrow (United Kingdom: Ashridge,
December 2008). Based on a global survey of 194 CEOs and
senior executives in September–October 2008.
Coca-Cola Sets Recycling Goals
For many years, Coca-Cola was the target of environmental
activists because the firm produced billions of
plastic bottles that often ended up in landfills and oceans. In
36. January 2018, the company announced an
ambitious sustainability goal: it would collect and recycle the
equivalent of all the packaging it put out into
the world by 2030. The program was called “A World Without
Waste” and included investing in more efficient
packaging, local recycling programs, and consumer education.
The program was announced shortly after Greenpeace, an
environmental advocacy group, identified
Coca-Cola, PepsiCo, and Nestlé as some of the world’s worst
polluters. Greenpeace was also critical of
Coca-Cola’s new sustainability initiative. “The plan failed to
include any reduction of the company’s rapidly
increasing use of single-use plastic bottles globally, which now
stands at well over 110 billion annually,”
according to a Greenpeace press release.
Coca-Cola CEO James Quincey disagreed. “If we recollect all
the bottles, there is no such thing a single
use bottle. Every bottle comes back and every bottle has another
life.” Rather than tackle the difficult task of
collecting every bottle it produced, Coca-Cola aimed to collect
an equivalent number of bottles. But, Quincey
admitted that the biggest challenge for his company’s plan
would be in developing countries that did not
have modern systems of waste collection. “That’s clearly going
to be a lot of groundwork with a lot of other
organizations and the governments to start building that
infrastructure.”
Source: “Coca-Cola, Criticized for Plastic Bottles, Sets
Recycling Goals,” The Wall Street Journal, January 19, 2018,
www.wsj.com.
Exhibit 2.A
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Stakeholder Engagement
One of the key themes of this book is that companies that
actively engage with stake-
holders do a better job of managing a wide range of issues than
companies that do not.
The term stakeholder engagement is used to refer to this process
of ongoing relationship
building between a business and its stakeholders. In the animal-
breeding farms example
presented earlier in this chapter, the companies’ challenge was
to engage with its various
stakeholder groups, consumers, the media, government
agencies, suppliers and others, in
addressing an emerging issue of food product safety. This
section will further explore the
various forms the business–stakeholder relationship takes, when
stakeholder engagement
is likely to occur, what drives this engagement, and the
expanding role assumed by social
media in stakeholder engagement.
Stages in the Business–Stakeholder Relationship
Over time, the nature of business’s relationship with its
stakeholders often evolves through
a series of stages. Scholars have characterized these stages as
inactive, reactive, proactive,
and interactive, with each stage representing a deepening of the
relationship. Sometimes,
companies progress through this sequence from one stage to the
38. next; other companies
remain at one stage or another, or move backward in the
sequence.16
∙ Inactive companies simply ignore stakeholder concerns. These
firms may believe—
often incorrectly—that they can make decisions unilaterally,
without taking into con-
sideration their impact on others. Executives at Home Depot
failed to listen to their
employees’ concerns about potential breaches of the company’s
data security systems
and later experienced the theft of detailed consumer information
from 56 million credit
and debit cards. Their inactive response was costly: according
to some estimates, the
information from the stolen cards could be used to make $3
billion in illegal purchases.
∙ Companies that adopt a reactive posture generally act only
when forced to do so, and
then in a defensive manner. For example, in the film A Civil
Action, based on a true
story, W. R. Grace (a company that was later bought by Beatrice
Foods) allegedly
dumped toxic chemicals that leaked into underground wells used
for drinking water,
causing illness and death in the community of Woburn,
Massachusetts. The company
paid no attention to the problem until forced to defend itself in
a lawsuit brought by a
crusading lawyer on behalf of members of the community.
∙ Proactive companies try to anticipate stakeholder concerns.
These firms use environ-
mental scanning practices to identify emerging public issues.
39. They often have special-
ized departments, such as those at Publix, described earlier in
the chapter. These firms
are much less likely to be blindsided by crises and negative
surprises. Stakeholders and
their concerns are still, however, considered a problem to be
managed, rather than a
source of competitive advantage.
∙ Finally, an interactive stance means that companies actively
engage with stakeholders
in an ongoing relationship of mutual respect, openness, and
trust. For example, in an
effort to address continuing high unemployment rates, Starbucks
teamed with Opportu-
nity Finance Network, a group of community development
financial institutions, to
launch “Create Jobs for USA.” Donations from Starbucks
customers, employees, and
others were pooled into a nationwide fund to promote
community business lending. The
16 This typology was first introduced in Lee Preston and James
E. Post, Private Management and Public Policy (Englewood
Cliffs, NJ: Prentice Hall, 1975). For a more recent discussion,
see Sandra Waddock and Andreas Rasche, Building the
Responsible Enterprise: Where Vision and Values Meet Value
(Palo Alto: Stanford University Press, 2012).
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Chapter 2 Managing Public Issues and Stakeholder
Relationships 39
40. law43665_ch02_025-046.indd 39 11/16/18 11:08 AM
focus of this program later expanded to include veterans with a
goal of employing
10,000 veterans and active duty spouses by 2018.17
Firms with this approach recognize that positive stakeholder
relationships are a source
of value and competitive advantage for the company. They
know that these relationships
must be nurtured over time.
Drivers of Stakeholder Engagement
When are companies most likely to engage with stakeholders,
that is, to be at the interac-
tive stage? What drives companies to go beyond an inactive or
reactive stage to a proactive
or interactive stage of stakeholder engagement?
Stakeholder engagement is, at its core, a relationship. The
participation of a business orga-
nization and at least one stakeholder organization is necessary,
by definition, to constitute
engagement. In one scholar’s view, engagement is most likely
when the company and its stake-
holders both have an urgent and important goal, the motivation
to participate, and the organi-
zational capacity to engage with one another. These three
elements are presented in Figure 2.5.
Goals
For stakeholder engagement to occur, both the business and the
stakeholder must have
a problem that they want solved. The problem must be both
important and urgent (the
41. concept of stakeholder materiality was discussed earlier in this
chapter). Business is often
spurred to act when it recognizes a gap between its actions and
public expectations, as
discussed earlier. The company may perceive this gap as a
reputational crisis or a threat to
its license to operate in society. For their part, stakeholders are
typically concerned about
an issue important to them—whether child labor, animal cruelty,
environmental harm, or
something else—that they want to see addressed.
Motivation
Both sides must also be motivated to work with one another to
solve the problem. For
example, the company may realize that the stakeholder group
has technical expertise to
help it address an issue. Or, it needs the stakeholder’s approval,
because the stakeholder is
in a position to influence policymakers, damage a company’s
reputation, or bring a law-
suit. Stakeholders may realize that the best way actually to
bring about change is to help a
17 These programs are profiled in Starbucks’ Global
Responsibility Report at globalassets.starbucks.com/assets/.
FIGURE 2.5
Drivers of
Stakeholder
Engagement
Source: Adapted from
Anne T. Lawrence, “The
Drivers of Stakeholder
42. Engagement: Reflections
on the Case of Royal Dutch/
Shell,” Journal of Corporate
Citizenship, Summer 2002,
pp. 71–85.
Company Stakeholders(s)
Goal To improve corporate reputation;
to earn a license to operate;
to win approval of society
To change corporate behavior
on an issue of concern
Motivation Needs stakeholder involvement
because of their expertise or
control of critical resources
Governmental campaigns,
protest perceived as
inadequate to change
corporate behavior
Organizational capacity Top leaders committed to
engagement; well-funded
department of external
(stakeholder) affairs
Experienced staff; core group
of activists committed to
dialogue with business
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43. 40 Part One Business in Society
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company alter its behavior. In other words, both sides depend
on each other to accomplish
their goals; they cannot accomplish their objectives on their
own. (Theorists sometimes
refer to this as interdependence.)
Organizational Capacity
Each side must have the organizational capacity to engage the
other in a productive dia-
logue. For the business, this may include support from top
leadership and an adequately
funded external affairs or comparable department with a
reporting relationship to top exec-
utives. It may also include an issue management process that
provides an opportunity for
leaders to identify and respond quickly to shifts in the external
environment. For the stake-
holder, this means a leadership or a significant faction that
supports dialogue and individu-
als or organizational units with expertise in working with the
business community.
In short, engagement is most likely to occur where both
companies and stakeholders
perceive an important and urgent problem, see each other as
essential to a solution, and
have the organizational capacity to interact with one another.
The Role of Social Media in Stakeholder Engagement
Social media plays an increasingly important role in businesses’
44. effort to address public
issues and engage stakeholders. Beyond the common use of
social media as an advertising
tool, many companies now use social networks to identify and
solve problems faster, share
information better among their employees and partners, and
bring customers’ ideas for
new product designs to market earlier.
Experts argue that corporate social networking has its
advantages and its disasdvan-
tages. Some studies show that many employees enjoy creating a
corporate social
networking page that is separate from their public social
networking profile. While
adding work colleagues and supervisors to a public social
networking group is pos-
sible, many people prefer to keep their social lives separate
from their work lives.
In addition, creating internal blog posts, commenting on
projects, and keeping up
with work-related news is advantageous to some workers,
supporting the building
of social network pages at work.
Yet, experts also point out that a corporate social network can
cost thousands of dollars
to build. In order to erect an internal networking platform to
house the employees’
social network pages, numerous specialists must be hired. Once
a platform is con-
structed, employees must spend the time to create profiles,
maintain updates, and net-
work within a corporate social networking group, generally all
occurring on company
time. Many employees do not want to spend the time or effort
45. building a corporate net-
working page. Since employees cannot access an internal social
networking group after
leaving a job, many employees feel as though spending time
working on a networking
page is futile. In addition, any information posted to a corporate
social networking page
remains the property of a company. Thus, most employees
looking to gain recognition
with new customers and new employers will not spend time
building an internal social
networking page.18
Despite some of the reservations voiced by employees,
businesses and their public
affairs managers have increasingly turned to social media
platforms to engage with mul-
tiple stakeholders, resulting in communication that has become
faster and more effective.
18 Adapted from “What Is Social Networking?” Wisegeek, n.d.,
www.wisegeek.com.
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Stakeholder Dialogue
The process of engaging with stakeholders can take many forms,
but it often eventually
involves dialogue with stakeholders. One management theorist
46. has defined dialogue as “the
art of thinking together.”19 In stakeholder dialogue, a business
and its stakeholders come
together for face-to-face conversations about issues of common
concern. There, they
attempt to describe their core interests and concerns, define a
common definition of the
problem, invent innovative solutions for mutual gain, and
establish procedures for imple-
menting solutions. To be successful, the process requires that
participants express their own
views fully, listen carefully and respectfully to others, and open
themselves to creative
thinking and new ways of looking at and solving a problem. The
promise of dialogue is
that, together, they can draw on the understandings and
concerns of all parties to develop
solutions that none of them, acting alone, could have envisioned
or implemented. A power-
ful, global example of stakeholder dialogue leading to action is
described in Exhibit 2.B.20
Stakeholder Networks
Dialogue between a single firm and its stakeholders is
sometimes insufficient to address
an issue effectively. Corporations sometimes encounter public
issues that they can address
effectively only by working collaboratively with other
businesses and concerned persons
and organizations in stakeholder networks. One such issue that
confronted Nike, Inc., was
19 William Isaacs, Dialogue and the Art of Thinking Together
(New York: Doubleday, 1999).
20 This section draws on the discussion in Anne T. Lawrence
and Ann Svendsen, The Clayoquot Controversy: A Stakeholder
47. Dialogue Simulation (Vancouver: Centre for Innovation in
Management, 2002). The argument for the benefits of
stakeholder
engagement is fully developed in Ann Svendsen, The
Stakeholder Strategy: Profiting from Collaborative Business
Relation-
ships (San Francisco: Berrett-Koehler, 1998).
Merck and Access Accelerated
Around the world, approximately 400 million people lack access
to effective and affordable health care.
According to the World Health Organization, low- and middle-
income countries bear about 90 percent of
the world’s disease burden. Merck, a German-based
multinational chemical, pharmaceutical, and life sci-
ences company, began a global partnership program, Access
Accelerated, to tackle this complex challenge
by researching innovative solutions, developing new
approaches, and improving existing programs to help
people at the point of care.
At the 2017 World Economic Forum, Merck convened with 21
other leading pharmaceutical companies
and dozens of multilateral organizations, government agencies,
and NGOs, as well as academic institutions,
health industry associations, and experts from the private
sector. They began a dialogue to explore accessing
information on the world’s most pressing health issues and to
design how to best launch global initiatives to
focus on improving both treatment and prevention of
noncommunicable diseases in low- and middle-income
countries.
By 2018, Merck and its business partners had joined the Kenya
Ministry of Health, the World Bank Group,
and AMPATH, a Kenyan hospital, to launch the first
noncommunicable disease (NCD) county pilots. The pilots
48. integrated NCD services into primary health care in two Kenyan
counties: Busia and Trans Nzoia. In another
effort, Celgene Corporation, a business partner in Access
Accelerated, announced the launch of Celgene
Cancer Care Links, a new grant program designed to support
and enhance patient cancer care in
resource-constrained countries.
Source: See Merck’s Corporate Responsibility Report at
reports.emdgroup.com/2016/cr-report/products/access-to-
health.html
and the Access Accelerated website, accessaccelerated.org
Exhibit 2.B
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42 Part One Business in Society
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a growing demand by environmentally aware consumers for
apparel and shoes made from
organic cotton.
Cotton, traditionally cultivated with large quantities of
synthetic fertilizers, pesti-
cides, and herbicides, is one of the world’s most
environmentally destructive crops.
In the late 1990s, in response both to consumer pressure and to
its own internal
commitments, Nike began for the first time to incorporate
organic cotton into its
sports apparel products. Its intention was to ramp up slowly,
49. achieving 5 percent
organic content by 2010. However, the company soon
encountered barriers to
achieving even these limited objectives. Farmers were reluctant
to transition to
organic methods without a sure market, processors found it
inefficient to shut down
production lines to clean them for organic runs, and banks were
unwilling to loan
money for unproven technologies. The solution, it turned out,
involved extensive
collaboration with groups throughout the supply chain—
farmers, cooperatives,
merchants, processors, and financial institutions—as well as
other companies that
were buyers of cotton, to facilitate the emergence of a global
market for organic cot-
ton. By 2015, 88 to 90 percent of Nike’s cotton-containing
apparel used at least
5 percent organic cotton. Nike reported in its 2014–2015
sustainable business
report that they are committed to their goal of “100% of our
cotton more
sustainably (certified organic, licensed to the Better Cotton
Standard System
for recycled cotton) across NIKE, Inc. by the end of calendar
year 2020.”21
In this instance, Nike realized that in order to reach its
objective, it would be necessary
to become involved in building a multi-party, international
network of organizations with a
shared interest in the issue of organic cotton.
The Benefits of Engagement
Engaging interactively with stakeholders—whether through
50. dialogue, network building,
or some other process—carries a number of potential benefits.
Managers increasingly rec-
ognize the critical nature of this corporate strategy as the
number of stakeholders and the
complexity of the issues involving stakeholders are increasing
significantly, as one busi-
ness consulting organization reports.22
In an era of hyper-transparency and intensifying political and
social disruptions,
companies are re-evaluating their purpose in society and the
benefits of engaging
with multiple stakeholders. There are growing calls from
government and civil
society for corporations to become partners in supporting a
more inclusive econ-
omy and sustainable environment and these expectations will
only increase. More
than ever before, companies face competitive pressure to
integrate new ideas and
voices into their work. These changes are adding significant
value to the business
and the communities in which they operate.23
Companies deeply engaging in stakeholder partnerships bring a
number of dis-
tinct strengths. Stakeholder groups are often aware of shifts in
popular sentiment before
21 Nike’s description of its sustainability targets and measures
are provided in Nike’s Sustainable Business Report,
2014–2015 found at about.nike.com.
22 For an overview of stakeholder engagement, see Michael
Yaziji and Jonathan Doh, NGOs and Corporations: Conflict and
Collaboration: (Cambridge, UK: Cambridge University Press,
51. 2009), ch. 7, “Corporate-NGO Engagements: From Conflict to
Collaboration,” pp. 123–45.
23 “The Future of Stakeholder Engagement,” BSR, October
2016, p. 3.
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Chapter 2 Managing Public Issues and Stakeholder
Relationships 43
law43665_ch02_025-046.indd 43 11/16/18 11:08 AM
companies are, and are thus able to alert companies to emerging
issues. For example,
as described earlier in this chapter, Purdue Farms’ and Tyson
Foods’ engagements with
consumer-activist groups and government agencies helped raise
its awareness of concerns
about their antibiotic use in animals. Stakeholders often operate
in networks of organi-
zations very different from the company’s; interacting with
them gives a firm access to
information in these networks. As introduced at the beginning
of this chapter, businesses
took action against various social issues, joining social activist
and community groups in
protest of the government’s actions. Community groups raised
important issues about gun
violence and gun control after a school shooting in Florida,
causing businesses to re-think
their positions on these social issues, as discussed at the end of
this chapter.
Firms are learning that their engagement with stakeholders is of
52. critical importance to
the organization and need to address multiple levels of
engagement. This engagement
should include both internal, as well as external, stakeholders
and emphasize issues that
directly affect corporate strategy. As the BSR report on
stakeholder engagement points out,
there are five drivers fueling a change in stakeholder
engagement: communication, indi-
vidual empowerment, automation of work, climate change and
other sustainability issues,
and supply chain impact.24
Companies are learning that it is important to take a strategic
approach to the manage-
ment of public issues, both domestically and globally. This
requires thinking ahead, under-
standing what is important to stakeholders, scanning the
environment, and formulating
action plans to anticipate changes in the external environment.
Effective issue management
requires involvement both by professional staff and leaders at
top levels of the organiza-
tion. It entails communicating across organizational boundaries,
engaging with the public,
and working creatively with stakeholders to solve complex
problems.
24 Each of these drivers of stakeholder engagement are
discussed in detail in “The Future of Stakeholder Engagement,
Ibid.
∙ A public issue is an issue that is of mutual concern to an
organization and one or more
of the organization’s stakeholders. Stakeholders expect a level
of performance by busi-
53. nesses, and if it is not met a gap between performance and
expectation emerges. The
larger the gap, the greater risk of stakeholder backlash or
missed business opportunity.
∙ The eight strategic radar screens (the customer, competitor,
economic, technological,
social, political, legal, and geophysical environments) enable
public affairs manag-
ers to assess and acquire information regarding their business
environments. Manag-
ers must also assess the importance or materiality of public
issues to the firm and its
stakeholders.
∙ The issue management process includes identification and
analysis of issues, the gener-
ation of options, action, and evaluation of the results.
∙ In the modern corporation, the issue management process takes
place in many boundary-
spanning departments. Some firms have a department of
external affairs or corporate
relations to coordinate these activities and top management
support is essential for
effective issue management.
∙ Stakeholder engagement involves building relationships
between a business firm and
its stakeholders around issues of common concern and is
enhanced by understanding
the goals, motivations, and organizational capacities relevant to
the engagement. Social
media is playing a more expansive role in stakeholder
engagement.
54. ∙ Stakeholder dialogue is central to good stakeholder
engagement, supported by network
building or partnerships.
Summary
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44 Part One Business in Society
law43665_ch02_025-046.indd 44 11/16/18 11:08 AM
Discussion Case: Businesses Respond to the Movement
for School Safety
The quiet community of Parkland, Florida, was rocked in 2018
when a 19-year-old former
student entered Marjory Stoneman Douglas High School with a
duffel bag containing an
AR-15-style rifle, a vest with additional magazines for the
weapon, and a semi-automatic
version of the M16 rifle used by the U.S. military. Within
minutes, he had shot and killed
17 people, and the nation mourned another tragic school
shooting.
In response, Parkland students launched the #NeverAgain
movement and protested con-
tinuing gun violence, especially in schools; the lack of gun
control measures; and a mental
health system that had allowed someone with a troubled history
to purchase an assault
rifle. A month later hundreds of thousands of people—children,
parents, politicians, and
55. celebrities—gathered for “The March For Our Lives” in
Washington, DC, jamming onto
Pennsylvania Avenue from the White House to the U.S. Capitol
in what may have been the
biggest rally for tighter gun control in American history. Other
similar marches and pro-
tests were held that day in nearly every major U.S. city. Many
called on Congress to take
action and pass strict gun control legislation, as had also
occurred after prior mass shooting
incidents in Las Vegas, Newtown, Orlando, and other cities and
towns.
Some protesters simply called for a ban on assault rifles and
more thorough back-
ground checks for gun purchasers. Others specifically targeted
the National Rifle Asso-
ciation (NRA), an advocacy organization that had vigorously
opposed any restrictions
on gun ownership. In response to the Parkland students, NRA’s
CEO Wayne LaPierre
told an audience at the Conservative Political Action
Conference that “as usual the
opportunists wasted not one second to exploit tragedy for gain,”
adding that gun control
Internet
Resources
www.wn.com/publicissues World News, Public Issues
www.nifi.org National Issues Forum
www.un.org/en/globalissues United Nations, Global Issues
www.issuemanagement.org Issue Management Council
www.scip.org Strategic and Competitive Intelligence
Professionals
www.wfs.org World Future Society
56. www.globalissues.org Global Issues
millennium-project.org The Millennium Project
www.cfr.org Council on Foreign Relations
pac.org/fpa Foundation for Public Affairs, Public Affairs
Council
Key Terms stakeholder
engagement, 38
stakeholder dialogue, 41
stakeholder materiality, 32
stakeholder network, 41
competitive intelligence, 31
environmental analysis, 29
environmental
intelligence, 29
issue management, 33
issue management
process, 33
performance–expectations
gap, 26
public issue, 26
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Chapter 2 Managing Public Issues and Stakeholder
Relationships 45
law43665_ch02_025-046.indd 45 11/16/18 11:08 AM
advocates and the media “hate the NRA, they hate the Second
Amendment [to the U.S.
Constitution, which states the right of the people to keep and
57. bear arms], [and] they hate
individual freedom.”
In the wake of the Parkland shootings and subsequent protests,
several companies broke
their relationship with the NRA and its members. MetLife, a
large insurance company,
announced it would stop providing discounts for auto and home
insurance for NRA mem-
bers. “We value all our customers but have decided to end our
discount program with
the NRA,” the company announced in a press statement. The
cybersecurity firm Syman-
tec stopped its discount program for NRA members who
purchased its LifeLock identity
theft protection service and Norton antivirus software.
SimpliSafe, a home security ser-
vices company, ended its NRA promotions. Numerous rental car
companies, including
Hertz, Enterprise (which also operates Alamo and National),
and Avis Budget, ended their
NRA-membership discount programs.
The First National Bank of Omaha was among the first banks to
end a Visa credit
card with NRA branding that offered cardholders 5 percent
cashback on gas and sporting
goods purchases. Bank of America said they would no longer
lend money to manufactur-
ers of military-inspired firearms that civilians could use, such
as AR-15-style rifles. Delta
and United Airlines, two of America’s largest passenger airline
carriers, cut ties with the
NRA after a call to boycott the NRA became a top trend on
Twitter. Both airline compa-
nies ended discount programs for NRA members through their
58. group travel programs,
including United’s program to offer discounts to NRA members
traveling to the NRA’s
annual meeting. “Bank and other companies are sensitive to
being on the wrong side of
a social media campaign, which can spread pretty quickly these
days,” said University of
Michigan marketing professor Erik Gordon. “They don’t want to
risk having people march
or boycott.”
The NRA was quick to fire back. In an official statement, the
organization said, “Some
corporations have decided to punish NRA membership in a
shameful display of political
and civic cowardice. In time, these brands will be replaced.”
Some businesses experienced a backlash to their actions.
Senator Michael Crapo, the
head of the Senate banking committee, sent blistering letters to
top executives at some
major banks accusing them of using their market power to
manage social policy. He
warned them against developing ways to monitor gun
transactions through their payments
systems. The Georgia state legislature removed a provision in a
tax bill which would have
given Delta Airlines a $40 million airline fuel tax exemption.
Analysts calculated that only
13 NRA members actually had used Delta’s group travel
discount, resulting in a cost to
Delta of more than $3 million per NRA passenger served.
Delta’s CEO responded, “The
decision [to cancel the NRA discount] was not made for
economic gain and our values are
not for sale.” Others argued that the so-called liberal reaction
59. by businesses to join the gun
protesters galvanized conservative groups, deepening their
support of the NRA and their
resolve to protect their right to bear arms.
Sources: “NRA-Affiliated Businesses Shed Ties after Parkland,
Florida, School Shooting,” USA Today, February 23, 2018,
www.usatoday.com; “Firms Reassess Involvement in Gun
Industry in Wake of Florida Shooting,” The Wall Street Journal,
February 25, 2018, www.wsj.com; “Banks Tried to Curb Gun
Sales; Now Republicans Are Trying to Stop Them,” The New
York
Times, May 25, 2018, www.nytimes.com; and, “Only 13 NRA
Members Used Delta’s Discount, It Cost the Airline a $40
Million
Tax Break,” Washington Post, March 3, 2018,
www.washingtonpost.com.
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46 Part One Business in Society
law43665_ch02_025-046.indd 46 11/16/18 11:08 AM
Discussion
Questions
1. What was the public issue facing the companies in this case?
2. Describe the “performance–expectations gap” found in the
case. What were the stake-
holders’ (community and school students) expectations, and
how did they differ from
businesses’ performance?
60. 3. If you applied the strategic radar screens model to this case,
which of the eight environ-
ments would be most significant, and why?
4. Apply the issue management life cycle process model to this
case. Which stages of the
process can you identify?
5. In your opinion, did businesses respond appropriately to this
issue? Why or why not?
6. If you had been a manager of one of the airlines or banks
discussed in the case, what
would you have decided to do (or not do) in the face of
emerging public concern about
gun violence in schools?
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Assignment: Therapy for Clients With Personality Disorders
Individuals with personality disorders often find it difficult to
overcome the enduring patterns of thought and behavior that
they have thus far experienced and functioned with in daily life.
Even when patients are aware that personality-related issues are
causing significant distress and functional impairment and are
open to counseling, treatment can be challenging for both the
patient and the therapist. For this Assignment, you examine
specific personality disorders and consider therapeutic
approaches you might use with clients.
Photo Credit: Getty Images/Blend Images
To prepare:
· Review this week’s Learning Resources and reflect on the
61. insights they provide about treating clients with personality
disorders.
· Select one of the personality disorders from the
DSM-5-TR (e.g., paranoid, antisocial, narcissistic).
Then, select a therapy modality (individual, family, or group)
that you might use to treat a client with the disorder you
selected.
·
The Assignment:
Succinctly, in 1–2 pages, address the following:
· Briefly describe the personality disorder you selected,
including the
DSM-5-TR diagnostic criteria.
· Explain a therapeutic approach and a modality you might use
to treat a client presenting with this disorder. Explain why you
selected the approach and modality, justifying their
appropriateness.
· Next, briefly explain what a therapeutic relationship is in
psychiatry. Explain how you would share your diagnosis of this
disorder with the client in order to avoid damaging the
therapeutic relationship. Compare the differences in how you
would share your diagnosis with an individual, a family, and in
a group session.
Support your response with specific examples from this week’s
Learning Resources and at least three peer-reviewed, evidence-
based sources. Explain why each of your supporting sources is
considered scholarly. Attach the PDFs of your sources.
https://www.youtube.com/watch?v=ewBFri65Quw
https://www.youtube.com/watch?v=GJVRGofeV-w
62. https://www.youtube.com/watch?v=knfVjj3P9es
119
10
Psychotherapies
Psychotherapy for personality disorders (PDs), like any other
form of
treatment, should be evidence based. For many years, if you
wanted to
read about treatment, the only choices you had were to read
books describ-
ing the clinical experience of an “expert.” You could also go to
workshops
to learn about these ideas. Recommendations were not based on
empirical
evidence, however, because there wasn’t any.
Almost all research on the treatment of PDs has studied patients
meeting criteria for borderline PD (BPD), which is also the
condition
that most interests clinicians. Starting with the seminal work of
65. A CONCISE GUIDE TO PERSONALITY DISORDERS
120
Three caveats should be considered. First, even if one follows a
tested
method of psychotherapy, many decisions still need to be made
that
derive from experience and skill. Second, research on the
therapy of BPD
does not have the heft of literature on other mental disorders,
such as
depression or anxiety. Third, there is no evidence that any one
method
that has been tested is better than any other. Any therapy that is
well
planned will be better than unstructured treatment as usual
(TAU)
because it provides patients with external structures that make
up for their
inner chaos.
A further limitation, one that applies to any psychotherapy, is
that not
66. every patient can be expected to benefit from treatment. Even in
the most
seriously ill, however, rehabilitation can have partial effects.
Yet some are
sicker than others, and those who do best usually have “ego
strengths”—
a job, an intimate relationship, or both. These areas of positive
function-
ing provide patients with a base on which to build skills in other
areas.
Although there are always surprises and some patients who are
seriously
ill may recover, the observation that better functioning is
predictive of
outcome in psychotherapy is a well-known and consistent
finding in
research (Bohart & Greaves-Wade, 2013). If you are treating
patients
who have no job, no relationship, and no life to speak of, what
is there to
work on? If, on the other hand, patients have a life, then therapy
benefits
from a laboratory setting in which people can practice what they
learn
67. in treatment sessions.
Although specialized therapies may not be different from each
other,
not all psychotherapies applied in practice are equal. What
researchers
call TAU tends to be a mess in which patients talk about their
problems
to a sympathetic professional but are not given specific
guidance in over-
coming dysfunctional emotions, thoughts, and behaviors. This is
why
clinical trials always find that specific methods do better than
TAU: It
is not hard to do better. Yet when comparisons are made
between two
well-structured approaches, differences usually disappear
(McMain et al.,
2009; Zanarini, 2009). Patients need planned and structured
forms of
therapy, but the brand name may make no difference.
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SPECIFIC METHODS OF PSYCHOTHERAPY FOR BPD
Dialectical Behavior Therapy
Dialectical behavior therapy (DBT) was the first evidence-based
treatment
for BPD. Developed by Marsha Linehan (1993), this was the
first psycho-
therapy for BPD to undergo successful clinical trials (Linehan,
Armstrong,
Suarez, Allmon, & Heard, 1991; Linehan et al., 2006). The
introduction of
DBT was a turning point in the treatment of the disorder, and its
principles
70. lie at the core of all successful therapy in this population. Here,
at last, was
a practical approach that targeted the key traits and symptoms
of BPD.
Today, DBT remains the leading evidence-based method of
therapy
for patients with BPD. It is an adaptation of cognitive
behavioral therapy
(CBT), combined with interventions common to other
approaches, but
specifically designed to target the emotion dysregulation that
characterizes
BPD, and to reduce impulsive behaviors. It applies chain
analysis to inci-
dents leading to self-injury and overdoses—that is, showing
patients what
emotions lead up to impulsive behaviors and teaching them
alternative
ways of handling dysphoric emotions. DBT also emphasizes
empathic
responses to distress that provide validation for the inner
experience
of patients. The program consists of weekly individual therapy,
group
71. psychoeducation, telephone availability for coaching, as well as
support
through consultation for therapists undertaking these
procedures. The
method is an eclectic mix of behavior therapy, CBT,
mindfulness based
on Zen Buddhism, and original ideas such as radical acceptance
(Linehan,
1993). These techniques have been described in some detail
(Linehan,
2014; Linehan & Koerner, 2012).
The first published trial (Linehan et al., 1991) compared 1 year
of DBT
with TAU and found DBT to be superior, especially in regard to
reductions
in self-harm, overdose, and hospitalization. The question was
whether it
was too easy to do better than TAU. For this reason, Linehan et
al. (2006)
conducted a second clinical trial in which the comparison group
was
“treatment by community experts”—therapists who identified
themselves
as interested in BPD and experienced in its treatment. The
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A CONCISE GUIDE TO PERSONALITY DISORDERS
122
favored DBT, with reductions in overdoses and subsequent
hospitaliza-
tions within a year, although this time there were no differences
between
the groups in the frequency of self-harm. Replication studies in
other cen-
ters produced similar results, albeit with higher rates of attrition
(Linehan
74. & Koerner, 2012). A meta-analysis (Kliem, Kröger, &
Kosfelder, 2010) sup-
ported the conclusion that DBT is an effective and specific
method that is
superior to traditional ways of treating BPD patients.
Although several specific methods of therapy designed for BPD
symptoms have been supported by randomized controlled trials
(Paris,
2010b), the strongest evidence supports DBT. The method is a
clinical
application of psychological research on emotion regulation
(Gross, 2013).
The dysregulation in BPD leads to unstable emotions that are
abnormal
responses to interpersonal conflict (Koenigsberg, 2010). That
conclusion
has been confirmed by studies of BPD patients using ecological
momen-
tary assessment, a technology that allows researchers to track
emotional
instability more closely by immediate recording of affective and
behav-
ioral responses to life events (Russell et al., 2007; Trull et al.,
2008). In
75. DBT, patients are taught better ways of calming down, during
and after
emotional storms, which then reduces the frequency of self-
harm and
overdoses.
There are some important unanswered questions about DBT.
Although
the original cohort received therapy 20 years ago, it has never
been fol-
lowed up, so we do not know whether treated samples maintain
their
gains and continue to improve beyond a 1-year posttreatment
follow-up.
Also, given the resources required to conduct DBT, it needs to
be deter-
mined whether this complex program can be dismantled or
streamlined
for greater clinical impact. One report found that a 6-month
version of
the therapy can also be effective (Stanley, Brodsky, Nelson, &
Dulit,
2007). A treatment lasting for a year (and often more) becomes
quickly
76. inaccessible as waiting lists grow and most patients and their
families
cannot afford the expense.
Finally, there is the question of whether DBT is a uniquely
effica-
cious treatment for BPD or whether other well-structured
approaches
can produce the same results. To address this issue, McMain et
al. (2009)
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78. administered DBT for 1 year, with random assignment to a
comparison
condition called general psychiatric management, a manualized
version of
the American Psychiatric Association (2001) guidelines for the
treatment
of BPD. The results of this comparative trial found no
differences between
the groups in overdoses, hospitalization, or self-harm. This
negative find-
ing had important clinical implications. It suggests that
although DBT is
better than most treatments, it can be matched by other
therapies that are
designed for this population and that are equally well-
structured. Further,
because results were good in both groups, the treatment package
used for
the comparison has now been studied on its own, under the
name of good
psychiatric management (Gunderson & Links, 2014).
A key question about DBT is whether the results of the
treatment are
specific to the method or to the structure. By and large,
79. psychotherapy
research supports a common factors model in which all well-
structured
treatments yield similar outcomes (Wampold, 2001). The
positive results
of DBT could be due to its high level of structure rather than to
its specific
interventions. This supposition was supported by the study by
McMain
et al. (2009). So although DBT is clearly better than TAU and
somewhat
better than treatment by therapists with experience in treating
BPD,
it is not necessarily better than a well-thought-out program of
clinical
management.
The popularity of DBT depends on its comprehensiveness, as
well as
on its commitment to conducting research to demonstrate its
efficacy.
DBT is not the only evidence-based therapy on the market, but
it is the
only method that has been tested in multiple clinical trials
outside the cen-
80. ter where it was developed, showing that its efficacy cannot be
accounted
for by allegiance effects. The ideas behind DBT are
fundamental for any
therapist seeing patients with BPD. It is not a narrowly focused
form of
treatment that only deals with cognitive schemata; it also
provides vali-
dating responses to current emotional upsets and offers
education about
emotion regulation.
However, there is a serious problem with DBT: Its expense
makes it
inaccessible. This is mainly because of the length of therapy.
DBT has been
tested for a year, but even that length of time is beyond most
insurance
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policies or the financial resources of most families. Of even
more concern,
Linehan (1993) suggested that even this lengthy period may be
only the
first phase of a treatment that could go on for several years. I
am reminded
of the story of psychoanalysis in which inevitably incomplete
results led to
an interminable course of therapy. DBT is effective but is
accessible only
to those who can pay for it. Even if it were properly insured, its
length
would still make access a problem: Clinics offering the
treatment, even for
12 months, often have extensive waiting lists. It is important to
shorten
83. DBT or to make it intermittent (or do both). This is the only
way to provide
service to more patients.
We all owe a debt to Marsha Linehan. I have learned an
enormous
amount from her and have applied her principles in all the
clinics I lead
that treat BPD. Moreover, Linehan’s recent public statements,
acknowl-
edging that she herself once suffered from BPD but recovered,
were coura-
geous and have done a great deal to reduce the stigma
associated with this
disorder. Nonetheless, treatment for BPD suffers from the
perception that
DBT is the only brand that works. Therapists should not feel
badly if they
are not in a position to provide DBT in a formal way or to refer
patients to
a DBT clinic. In the next chapter, I show that its principles can
be incor-
porated into normal clinical practice. In my view, brand names
are bad for
84. therapy. As cognitive theory evolves, it has become a more
general term for
what might be called simply psychotherapy (Beck & Haigh,
2014). Livesley
(2012) recommended that DBT give up its brand name and
incorporate
its best ideas into a general model of treatment for BPD.
Other Evidence-Based Psychotherapies for BPD
Although other methods have been devised, they do not differ
from DBT in
any essential way (Paris, in press). We now examine those that
have under-
gone clinical trials.
Mentalization-based treatment (MBT; Bateman & Fonagy, 2006)
is
rooted in attachment theory, but the method also has a strong
cognitive
component. Its assumption is that BPD patients have trouble
recognizing
emotions (their own and those of other people), that is,
mentalization.
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PSYCHOTHERAPIES
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MBT teaches patients how to do that better. Like most effective
programs,
it uses a combination of group and individual therapy. Although
devel-
oped by psychoanalysts, it uses a number of cognitive methods
similar to
DBT in that patients are taught to recognize their emotions,
learn how to
tolerate them, and manage them in more adaptive ways.
MBT was first tested in a randomized controlled trial (RCT) in
a day
87. program lasting 18 months (Bateman & Fonagy, 2001) and
found to be
superior to TAU. A second study in a larger sample of
outpatients given
18 months of treatment found a decline of both self-reported
symptoms
and clinically significant problems, including suicide attempts
and hospi-
talization (Bateman & Fonagy, 2009). This is the only method
for which
researchers have followed up a cohort for 8 years to determine
if the effects
of treatment remain stable, which turned out to be the case
(Bateman &
Fonagy, 2004).
MBT needs successful clinical trials in centers outside the
hospital where
it originated. Thus far, the only attempt at replication outside
the United
Kingdom reported few differences from standard therapy
(Jørgensen et al.,
2013). However, Bateman and Fonagy (2008) do not consider
MBT as a
“one-and-only” approach but encourage mental health workers
88. to learn
its principles and then apply them in their own clinical settings,
without
necessarily following a strict protocol. One can only applaud
such open-
mindedness and flexibility. Finally, Bateman and Fonagy (2008)
have stated
that the results of their research are not specific to their method
but sup-
port any structured approach to psychotherapy. This may be the
most con-
sistent finding in this literature (Choi-Kain & Gunderson,
2008).
Transference-focused psychotherapy (TFP; Clarkin, Levy,
Lenzenweger,
& Kernberg, 2007) is based on the theories of the psychoanalyst
Otto
Kernberg. It differs from other methods in that its focus is on
distortions
between therapist and patient in the session, used to illustrate
inter-
personal problems elsewhere in the patient’s life. It has thus far
under-
gone two clinical trials, one comparing it with DBT, with only
89. minimal
differences (Clarkin, Levy, Lenzenweger, & Kernberg, 2007),
and one
comparing it with TAU, to which it was superior (Doering et
al., 2010).
TFP aims to generalize what happens in therapy to outside
relationships.
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91. might consider this approach with caution. Nonetheless, at this
point TFP
has about as much support as MBT. It shares the advantage of
being struc-
tured and well thought out.
Cognitive analytic therapy is based on similar concepts and can
be
considered as another psychodynamic–cognitive hybrid. It
applies object
relations theory to establish a firmer sense of self in patients. It
has been
tested in a population of adolescents (Chanen & McCutcheon,
2013),
where it was effective, albeit not superior, to a manualized
version of
“good clinical care.”
Schema-focused therapy (SFT; Young, Klosko, & Weishaar,
2003) is
another mixture of cognitive and psychodynamic approaches
that aims
to modify how patients think about their world (i.e., cognitive
schemata),
but it also focuses on the distorting effects of negative
childhood experiences.
92. It has undergone one clinical trial comparing it with
transference-focused
psychotherapy (Giesen-Bloo et al., 2006), with only minor
differences in
outcome and one trial in which it was superior to TAU
(Bamelis, Evers,
Spinhoven, & Arntz, 2014). The problem with schema-focused
therapy
is that it is designed to last for 3 years, making it even more
inaccessible
than DBT.
Standard CBT has been tested in a study conducted in the
United
Kingdom (Davidson, Tyrer, Norrie, Palmer, & Tyrer, 2010).
After an aver-
age of 26 sessions, BPD patients did better with cognitive
therapy than
with TAU. It also seems likely that CBT for BPD is now being
conducted
on broader, more flexible principles. When a Cochrane review
(Stoffers,
Völlm, et al., 2012) concluded that the data for cognitive
therapy were
93. “promising,” they were not thinking of standard CBT. Linehan
had devel-
oped DBT because of her impression that standard CBT was not
effective
for BPD. Yet a large RCT (Davidson et al., 2010) found
manualized CBT,
modified to target PD symptoms, was superior to TAU for the
treatment
of recurrent deliberate self-harm.
It is important to know that therapy lasting for a few months
can
be effective. The evidence for this conclusion was recently
reviewed by
Davidson and Tran (2014). What was most striking about these
findings
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PSYCHOTHERAPIES
127
was that the mean length of treatment was 16 sessions. This
suggests that
BPD might be treated more rapidly, and less expensively, than
by treat-
ments designed to continue for a year or two. Perhaps the most
chronic
and severe patients with BPD require several years of therapy,
but it makes
no sense to make a long duration the standard of care.
Systems training for emotional predictability and problem
solving (STEPPS;
Blum et al., 2008) is a brief and practical program that closely
resembles
DBT in its focus on emotion regulation skills. It is designed to
supple-
ment TAU, particularly in settings where specialized individual
therapies
are not available. STEPPS, based on psychoeducation in groups,
96. has been
supported by clinical trials, with a 1-year follow-up (Blum et
al., 2008).
STEPPS is a short-term intervention with psychoeducation
conducted
in groups, designed to supplement standard psychotherapy or
manage-
ment conducted elsewhere. It is particularly suitable for
populations living
in regions where specialized treatment is not available. It is
inexpensive
and offers ready accessibility. STEPPS has been subjected to a
successful
clinical trial in BPD (Blum et al., 2008), with one replication
(Bos, van
der Wel, Appelo, & Verbraak, 2010). It has also undergone one
test in
the treatment of antisocial PD (Black, Gunter, Loveless, Allen,
& Sieleni,
2010), although one cannot conclude that this makes antisocial
PD as
treatable as BPD.
COMMON FACTORS IN THE TREATMENT OF BPD
97. Although these individual approaches each have useful ideas
and tech-
niques, they work through common mechanisms (Paris, in
press). A vast
literature shows that the effective factors for outcome in any
form of psy-
chotherapy are common rather than specific (Wampold, 2001).
Nor is it
necessarily true that patients with BPD can only be seen in
specialized
clinics; most benefit from what Gunderson and Links (2014)
termed good
psychiatric management. The ideas behind effective therapy are
spread-
ing to the wider therapeutic community, and interventions (e.g.,
teaching
emotion regulation) are becoming part of the armamentarium of
thera-
pists of all persuasions.
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A CONCISE GUIDE TO PERSONALITY DISORDERS
128
It is unfortunate that psychotherapy as a field continues to be
defined
by competing methods, many of which use a three-letter
acronym. It is
even more unfortunate that clinicians define themselves as
practitioners
of any single method. Research can help us get beyond these
unnecessary
divisions.
Thus, I agree with Livesley (2012), who suggests that
psychotherapy
should be evidence based, not acronym based. Even if some
interventions
are partly specific to BPD, we need a single model of therapy to
100. make use
of the best ideas for all sources. To have multiple methods
competing for
market share may be good for book sales, but it is not the way
to develop
evidence-based practice.
We do not need so many forms of psychotherapy, most of which
resemble each other more in practice than in theory. If therapies
based on
so many different ideas and using many different techniques can
produce
the same results, they must have a lot in common. One of the
main ingre-
dients is structure. Traditional therapies for PD failed because
they rely on
unstructured techniques that leave patients adrift. These are not
patients
who get better just by being heard and supported. People with
BPD also
need specific instruction about emotion regulation, control of
impulsiv-
ity, and life skills that can be used to find a job and build a
social network.
101. Although different methods seem to target different aspects of
PD, the
failure of comparative trials to find large differences in outcome
also sug-
gests that common factors are of crucial importance. Again,
consider the
large body of research supporting the view that common factors
(also called
nonspecific factors) are the best predictors of results in all
forms of psycho-
therapy (Wampold, 2001). By and large, when different forms
of therapy are
compared head to head, researchers almost always find
equivalent results.
The most important common factors are a strong working
alliance, empa-
thy, and a practical problem-solving approach to life problems
(Baldwin &
Imel, 2013; Crits-Christoph, Gibbons, & Mukherjee, 2013).
With a complex and challenging disorder like BPD,
psychotherapy
needs to maximize these mechanisms and find ways to make
them more
specific. The best-validated methods offer a defined structure,
102. focus on
the regulation of emotions, and encourage the solution of
interpersonal
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104. 1970; Linehan, 1993). In other words, these are patients who
can easily feel
that their emotions are being dismissed. They will not listen to
anything
else you have to say unless they perceive that their feelings are
accepted.
Self-observation is a skill that therapists need to teach all their
patients.
When one learns to know feelings better (and not be derailed by
them),
one can stand aside from emotional crises or even begin to think
about
alternative solutions to problems. Clinicians who provide
treatment fol-
lowing these principles do not necessarily need to refer patients
to special-
ized programs.
IMPORTANCE OF STRUCTURE IN PSYCHOTHERAPY
Psychotherapy is the backbone of treatment in BPD, but
clinicians in the
past were not trained to apply structure to treatment sessions.
That is prob-
ably why open-ended therapies have been associated with large
dropout