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Ethics – Ch 2

Public Issue (social issues/sociopolitical issues)
Any issue what is of mutual concern to an organization and one or more of its stakeholders
Stakeholder expectations
a mixture of people’s opinions, attitudes, and beliefs about what constitutes reasonable business behavior
Important to identify emergent expectations as early as possible….
doing so can gain the company competitive advantages
Failure to understand stakeholder concert and to respond appropriately will:
*Cause the performance/expectations gap to grow
*The larger the gap, the greater the risk of stakeholder backlash or missing a major business opportunity
Performance Expectation Gap
Performance Expectation Gap
Discrepancy between what stakeholders expect and what an organization is actually doing
Environmental analysis
a method managers use to gather information about external issues and trends, so they can develop an organizational strategy that minimizes threats and takes advantage of new opportunities
Environmental intelligence
the acquisition of information gained from analyzing the multiple environments affecting organizations – Demographic factors
issues become “ripe” for company attention when…
1. society’s expectations are high
2. the issue is highly relevant to the business
Strategic Radar Screens
Strategic Radar Screens
Customer Environment
Competitor Environment
Economic Environment
Technological Environment
Social Environment
Political Environment
Legal Environment
Geophysical Environment
Customer Enviornment
demographic factors, such as gender, age, marital status and other factors, of the organization’s customers as well as their social values or preferences. the “graying” of the population.
Competitor Environment
information on the number and strength of the organizations competitors, whether they are potential or actual allies, patterns of aggressive growth versus static maintenance of market share, and the potential for customers from the organization.
Economic Environment
information about costs, prices, international trade and any other features of the economic environment.
Technological Environment
the development of new tech ologies and their applications affecting the organization, its customer, and other stakeholders groups.
Social Environment
cultural patterns, values, beliefs, trends, and conflicts among the people in the societies
Political Environment
the structure, processes, and actions of all levels of government local, state, national, and international.
Legal Environment
parents, copyrights, trademarks, and considerations of intellectual property, as well as antitrust considerations and trade protectionism and organizations liabilities issues.
Geophysical Environment
relates to awareness of physical surrounding of the organization’s facilities and operations, whether it is the organization’s headquarters or its field offices and distributions centers, and the organizations dependency and impact on natural resources such as minerals, water, land, or air.
Competitive intelligence
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
Numerous ethical issues arise in acquisition and use of information gathered through competitive intelligence…..
public affairs managers must be keenly aware of these ethical issues
Issue Management Process
Issue Management Process
1. Identify Issue
2. Analyze Issue
3. Generate Options
4. Take Action
5. Evaluate Results
Identify Issue
Anticipating emerging concerns, on “horizon” issues
Analyze Issues:
Evaluating the issue; coming to an understanding of how it will evolve and how it will affect the organization
Generate Options:
Evaluating action options involves complex judgments that take into account “non-quantifiable” factors like the company’s reputation
Take Action:
Once option is chosen, must design and implement a plan of action
Evaluate Results:
Must assess results of the program and make adjustments as needed
Which part of the organization is mobilized to address a particular emerging issue often depends on the nature of the issue itself
A corporation’s issue management activities are usually linked to both the board of directors and to top management levels
Effective global leadership on public issues requires three basic capabilities:
Context: Understanding of the changing business context, emerging enviro and social trends affecting the firm
Complexity: Ability to lead in the face of complexities
Connectedness: The ability to engage with external stakeholders in dialogue and partnership
Over time, the nature of business’s relationship with its stakeholders often evolves through a series of stages
1. Inactive
2. Reactive
3. Proactive
4. Interactive
Companies ignore stakeholder concerns
companies act only when forced to do so, and then in a defensive manner
Companies try to anticipate stakeholder concerns
Companies actively engage stakeholders in an ongoing relationship of mutual respect, openness, and trust
Stakeholder engagement
the process of ongoing relationship building between a business and its stakeholders.
Stakeholder engagement is….
at its core, a relationship
The perticipation of a business organization and at least…..
one stakeholder organization is necessary, by definition to constitute engagement
Engagement is most likely when…..
both the company and its stakeholders both have an urgent and important goal, the motivation to participate and the organizational capacity to engage with one another
stakeholder dialogue
a business and its stakeholders come together for face-to-face conversations about issues of common concern
When working well, the issues management process…
continuously cycles back to the beginning and repeats.
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