GSB 02, Introduction
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Transcript of GSB 02, Introduction
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7/29/2019 GSB 02, Introduction
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Islam, M.T. http://sites.google.com/site/kjatbd/
Government, Society, and Business
Md. Tarikul IslamJahangirnagar University, Bangladesh
Islam, M.T. http://sites.google.com/site/kjatbd/
Recapping
qRecapping In the last class we have seen
What to study? How to study? Evaluation method (s) etc.
Any question so far?
Islam, M.T. http://sites.google.com/site/kjatbd/
The Course: TopicsNo Topics
01 Govt., Society, and Business
02 Business Environment
03 Business Power
04 Critics of Business
05 Corporate Social Responsibility and Ethics
06 Globalization and media
07 Race, ethnicity, and migration
08 Religion
09 Politics, govt., and terrorism
10 Multinational corporations
11 Sustainability, pollution, and environment
12 Consumerism
Conte
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subjec
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Islam, M.T. http://sites.google.com/site/kjatbd/
Topics Details
qGovernment, Society, and Businesso Government, Society, and Business-GSB
Introducing the concept of GSB Business environment Business power Critics of business
A group assignment would be the evaluation criteria
Islam, M.T. http://sites.google.com/site/kjatbd/
your opinion?
o What is Government? Business? Society?
Islam, M.T. http://sites.google.com/site/kjatbd/
Government Defined
qGovernment Definedo Government
Government refers to the structures and processesthrough which public policies, rules, and programs are
authoritatively made for society. It also includes a widerange of institutions at various levels either to design or to
implement policies on be half of government
Therefore government is a system without anypersonificationand personalization
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Islam, M.T. http://sites.google.com/site/kjatbd/
Business Defined
qBusiness Definedo Business
Business is a broad term encompassing a range of actionsand institutions which includes but not limited to
manufacturing, finance, trade, service etc.
Common feature of business After processing input one gets output, quality of
which depends on quality of inputs and proper
functioning and management of process
So key issues are inputs, outputs, and process What is process?
Islam, M.T. http://sites.google.com/site/kjatbd/
Business Process
Remember GIGO: Garbage In Garbage Out!!
Islam, M.T. http://sites.google.com/site/kjatbd/
How to do business?
qHow to do business?o There are many ways of doing business; but mainly through
organizations
What is an organization?
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Islam, M.T. http://sites.google.com/site/kjatbd/
.organization
o Organizations? An organization is a social arrangement which pursues
collective goals, which controls its own performance, and
which has a boundary separating it from its environment
Dont people do business without any organization?
Islam, M.T. http://sites.google.com/site/kjatbd/
Society Defined
qSociety Definedo Society
Society is a network of human relations with three parts-ideas, institutions, and material things
Ideas are intangible objects comprising of values,beliefs, and ideologies
Institutions are formal pattern of relations that linkpeople together to accomplish a goal
Material things include natural resources, land, andmanufactured products
Islam, M.T. http://sites.google.com/site/kjatbd/
Any question on these three?
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Islam, M.T. http://sites.google.com/site/kjatbd/
Main Theme of the Course!
o Main theme Study of the relationship in between three, but mostly of
business with the other two
o Because To survive in the market a business must be responsive to
these elements
These elements both affect and be affected by business Most importantly consumers come from society and
government is also a part of the total social system.
Therefore, business needs to be successful in relating theseelements at an appropriate ratio
Islam, M.T. http://sites.google.com/site/kjatbd/
Models: BGS Relationship
qModels: BGS Relationshipo Models
There are four models The market capitalism model The dominance model The dynamic forces model The stakeholder model
Islam, M.T. http://sites.google.com/site/kjatbd/
The market capitalism model: 1/2
With the following assumptions in place Economy would be laissez-faire; no/zero intervention from
government
Every individual would have maximum freedom wherewith the reasoning and motivation they will maximize theirown interest
Individuals can own private property and are free to riskbusiness investment. It has an impact on competition andquality of products in the market
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Islam, M.T. http://sites.google.com/site/kjatbd/
The market capitalism model: 2/2
The market capitalism model says Business exists within a market environment and market is
a buffer in between business units and non market factors
It is influenced by economic and business activities ratherthan political factors and other non market forces
Competition and competitive forces can settle themarket and market price
Social welfare should be in the agenda of governmentrather than business, and if government performs inlinemarket performance would be the social performance
eventually
Islam, M.T. http://sites.google.com/site/kjatbd/
The Dominance Model
qThe Dominance Modelo The model says that
Business and government dominate the great mass ofpeople
Through business and with the help of government, asmall elite group develops a system which increase thewealth of them at the expense of many
Government regulations and market forces are notadequate to make the proper ethical judgment
o This is the source of common critics of business that businesstake care of wealthy people only
Islam, M.T. http://sites.google.com/site/kjatbd/
The Dynamic Forces Model
qThe Dynamic Forces Modelo Model
The model says that business exists within an environmentwhere there are public and government and all theentities are affected by each other
o Model features Business remains in an open society where it has to be
responsible for many economic and noneconomic
factors
In the open system the business is neither isolated not itsdominant
Business is the major initiator of changes in society throughits innovation or adaptation with innovation with the useof technology and interaction with varied parts of the
society
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Islam, M.T. http://sites.google.com/site/kjatbd/
The Dynamic Forces Model: Features
o Model features contd Public support for business is a function of the business s
adjustment to multiple social, political, and economicforces. Failure to adjustment leads to total failure
The relationship evolves/develops gradually because ofthe changes in ideas, institutions, and processes of society
over time
Islam, M.T. http://sites.google.com/site/kjatbd/
The Stakeholder Model
qThe Stakeholder Model Putting the business in center the model portrays a mutual
or both way relationship of business with its stakeholders
It says both entities are affected by each other
What is stakeholder?
Islam, M.T. http://sites.google.com/site/kjatbd/
Stakeholders: 1/2
o Stakeholders Stakeholders are those factors that affect or beingaffected by the operations of a business; mainly of two
types-primary and secondary
Primary stakeholders are those who have animmediate, continuous, and powerful impact on firm.For example, owners and employees of the firm
Secondary stakeholders are those who have lesspower to affect or influence the firms activities. Butthey affect or are affected by firms operations.
Example includes media, environmentalists,universities, trade associations etc.
o Having stake is the key!
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Islam, M.T. http://sites.google.com/site/kjatbd/
Stakeholders: 2/2
o In an organization there are two types of people normally-internal and external
Internal People inside the organization like board of directors,
managers, employees etc.
External people People outside of the organization like consumers,
pressure groups, others from PEST
What is PEST? PESTE?
Islam, M.T. http://sites.google.com/site/kjatbd/
Stakeholders: List
qStakeholders: Listo A common list that does not include all stakeholders is
Board of Directors, management, owners Business partners Current and retired employees, and their families Suppliers Lenders Customers Government Communities where business operates and sells
Regions, Nations, Cities The Globe (Some environmental issues are global)
Islam, M.T. http://sites.google.com/site/kjatbd/
Ethics in the Stakeholder Model
qEthics takes placeo Unlike market capitalism model in this model business is owned
by varied investors and business is dependent on lots of other
like suppliers
o As the model focuses more on stakeholders and relationshipwith stakeholders, the issues of ethics pop up
What is ethics?
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Islam, M.T. http://sites.google.com/site/kjatbd/
Ethics
o There are various definitions. However one common way tomeasure whether your action is ethical or not Touch your soul
and ask yourself
o By the way, how the model might look like?
Islam, M.T. http://sites.google.com/site/kjatbd/
Stakeholders View
Islam, M.T. http://sites.google.com/site/kjatbd/
Stakeholders View
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Islam, M.T. http://sites.google.com/site/kjatbd/
Stakeholders View
Islam, M.T. http://sites.google.com/site/kjatbd/
Assignment
qAssignmento Think about a university in Seattle in USA. The university has
undergraduate, graduate, and post graduate programs. In
total there are 12000 students, 600 teachers, and 700 staffs.
Discuss the primary and secondary stakeholders of thisuniversity
Are you a stakeholder for the university? What kind ofstakeholder are you? How? Explain
o Consider the same questions in respect to JahangirnagarUniversity and explain your position?
o Submit before the next class-within 12 PM. Late delivery isnever honored!
o This is a group assignment
Islam, M.T. http://sites.google.com/site/kjatbd/
Managing stakeholders
o Given the pictures, dont you think that its very difficult for afirm to handle all the stakeholders?
How many will you satisfy? How will you do that?
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Islam, M.T. http://sites.google.com/site/kjatbd/
Polonskys Suggestions: 1/2
o Polonsky said that Identify the relevant stakeholder groups
Developing a stakeholders map with their relevance Why they are relevant and how?
Determine the stake and importance of each stakeholdergroup
Very difficult task because stakeholders have stake inbetween themselves too!
Can be done with the direct communication with thestakeholders
With time stakeholder and their relevant importancemight change
Islam, M.T. http://sites.google.com/site/kjatbd/
Polonskys Suggestions: 2/2
Determine how effectively the needs or expectationsof each group is being met
How the current organizational policy meet thestakeholders interest right now?
Where is the deviations, if any? Modify corporate policies and priorities to take into
consideration stakeholder interests
New policy if required is designed to meet theexpectations along with the contingency plan
The major aim is the reduction of deviations Which stakeholders to attain first?
Islam, M.T. http://sites.google.com/site/kjatbd/
Stakeholders Mapping
Stakeholders mapping is a process of creating a pictureof the stakeholders of an organization in terms of theirpower possessions, interests, supporting or constrainingbehavior etc.
There are varied methods of stakeholders mapping like Internal/external stakeholders analysis primary/secondary stakeholders analysis Forced field analysis SWOT analysis Actor influence diagram etc.
You shall study almost all in course of time in the program However lets see some other methods
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Islam, M.T. http://sites.google.com/site/kjatbd/
Power/Dynamism Matrix: 1/3 This stakeholder map classifies stakeholders in relation to
the power they hold and the dynamism of their stance
This map can be used to determine where political effortsshould be focused during the development of the newstrategies
Islam, M.T. http://sites.google.com/site/kjatbd/
Power/Dynamism Matrix: 2/3
The stakeholders in group Aand B are the easiest to
deal with
The stakeholders in group Care important, because
they are powerful. But astheir dynamism is low their
behavior can be predicted
and their expectations canoften be met in an easymanner
Islam, M.T. http://sites.google.com/site/kjatbd/
Power/Dynamism Matrix: 3/3
qStakeholders in group Drequires the most management
attention, because they arepowerful and their stance is
difficult to predict. They cansometimes be dealt with by
testing out the new strategies
with them before the finaldecisions are made
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Islam, M.T. http://sites.google.com/site/kjatbd/
Power/interest matrix: 1/3
o This stakeholder map classifies stakeholders in relation to thepower they hold and the extent to which they are likely to
show interest in the strategies of an organization
o This matrix helps in determining the relationship that a firmshould have with a group of stakeholder
Islam, M.T. http://sites.google.com/site/kjatbd/
Power/interest matrix: 2/3
The stakeholders in group Arequire only minimal efforts
and monitoring
The stakeholders in group Bcan be important to
i n f l u e n c e t h e m o r epowerful stakeholders and
therefore they should be
kept informed
Islam, M.T. http://sites.google.com/site/kjatbd/
Power/interest matrix: 3/3
Stakeholders in group C arepowerful, but keep less
interest in the organizationalpolicies. However they
might emerge as ro leplayers in certain events;
keep satisfied
Stakeholders in group D isb o t h p o w e r f u l a n dinterested in organizational
policies. Their acceptancematter in the new policy
acceptance in a firm
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Islam, M.T. http://sites.google.com/site/kjatbd/
Power, legitimacy, and urgency Model
o A more recent stakeholder mapping model maps stakeholderbehavior into seven types, depending on the combination of
three characteristics
power of the stakeholder to influence the organization Legitimacy of the relationship and actions of the
stakeholder with the organization in terms of desirability,properness or appropriateness
Urgency of the requirements being set for theorganization by a stakeholder in terms of critically and
time-sensitivity for the stakeholder
Islam, M.T. http://sites.google.com/site/kjatbd/
Power, legitimacy, and urgency Model
Islam, M.T. http://sites.google.com/site/kjatbd/
Power, legitimacy, and urgency Model
The stakeholders who showo n l y o n e o f t h e t h r e echaracteristics (1, 2, and 3) aredefined as latent stakeholders.They are sub-classified further
as dormant, discretionary ordemanding stakeholder
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Islam, M.T. http://sites.google.com/site/kjatbd/
Power, legitimacy, and urgency Model
q The stakeholder who show two ofthree characteristics (4, 5, and 6)a re de f ine d a s e x p e c t a n tstakeholders. They are sub-classified further as dominant,
d a n g e r o u s o r d e p e n d e n tstakeholders
q The stakeholders showing all threecharacteristics are called definitivestakeholders
Islam, M.T. http://sites.google.com/site/kjatbd/
Assignment
o Select any company in Bangladesh Identify the key stakeholders of the company Describe the key demands of the stakeholders Are there any conflict of the company strategy and the
demands of stakeholders? Please describe
Islam, M.T. http://sites.google.com/site/kjatbd/
qThank You!
q