Business, Society, and Stakeholders

Business, Society, and Stakeholders

1. Identify and explain the major factors in the social environment that create an atmosphere in which business criticism takes place and prospers. How are the factors related to one another? Has the revolution of rising expectations run its course. Or is it a vital reality?

There are major factors in any social environment that create an atmosphere in which business criticism takes place and prosper. The major factors that often clash and collide with one another include the economy, social programs, the environment, and the changing workforce (Vernon-Wortzel, 2004). In a capitalist, market-oriented economy like the United States, the rising expectations of people have always been a big issue. People want more and more in terms of bigger houses, nicer cars, greater comforts, and better living conditions. This revolution of rising expectations has not run its course at all but is a vital reality. Today, the doctors, lawyers, and many other professionals live in mansions and try to earn huge money to address their family's rising expectations. Corporate businesses are also pursuing rising expectations in their own ways. The profit motive makes people try to expand their material lives. As a result, the environment suffers greatly as more businesses cut costs through illegal polluting. In the 1960s and 1970s, social programs were launched to redistribute the income of the country (Vernon-Wortzel, 2004). The lower class people began to also have rising expectations to have greater comforts and rising living standards. With rising expectations among different people at different levels of society, the pressure was increasing to sustain a higher standard of living for more and more people.

2. Give an example of each of the four levels of power discussed in this chapter. Also, give an example of each of the spheres of power.

There are four levels of power discussed in this chapter. We have government power and corporate power. We also have people power and social power. The government is a level of power that features local, state, and federal government agencies that have authority to regulate and tax corporations when appropriate and necessary to try to control their negative behaviors, like excessive, illegal polluting of the environment (Vernon-Wortzel, 2004). The corporations are another level of power that feature them operating to make profits and be successful. Corporations employ strategies that seek to maximize their interests and profits. Often, corporations will neglect their social responsibilities in order to maximize this profit. The people power and social power levels are usually responsive to the corporate power plays through their activities that bring criticism and awareness to what these corporations are doing. The different spheres of power overlap and interact (Vernon-Wortzel, 2004).

3. Differentiate between corporate social responsibility and corporate social responsiveness. Give an example of each. How does corporate social performance relate to these terms. Where does corporate citizenship fit in?

Corporate social responsibility is when a firm recognizes society's demands, needs, and wants from it and takes responsibility for meeting them. Corporate social responsiveness, on the other hand, is when a corporation responds to a particular problem or issue that represents a crisis (Vernon-Wortzel, 2004).Corporate social responsibility and corporate social responsiveness can be illustrated by examples. Ford Motor Company installing the most advanced anti-pollution devices is an example of corporate social responsiveness to regulate and reduce pollution output. On the other hand, IBM is showing corporate social responsibility by investing in the local community's environmental preservation efforts. In recent years, managers have begun to think of corporate social responsibility as a basic functional area of management (Vernon-Wortzel, 2004). One important reason are new elements in the business and society dialog. Social norms and expectations continue to change rapidly. Obeying the law is necessary for socially responsible executive, but probably is not sufficient in the eyes of most observers of corporate policy and practice. People and society are expecting corporations to be more socially responsive to the issues that affect society overall, such as environmental degradation due to corporate pollution. The corporate citizenship factor fits in by having the modern corporation viewed as part of the social fabric rather than outside of it.

4. Explain in your own words the differences between the production, managerial, and stakeholder views of the firm.

The production team of a firm is responsible for making sure the production efforts are sustained and maintained to turn a profit for the firm and keep job