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MNGT 482 - Quiz #4 Study Guide

by: Gilmarys Bernal

MNGT 482 - Quiz #4 Study Guide mngt 482

Marketplace > Towson University > mngt 482 > MNGT 482 Quiz 4 Study Guide
Gilmarys Bernal
GPA 3.9

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These notes cover the material for quiz 4
Business Ethics/Sustainability
Manoj Basuray
Study Guide
midterm, business, ethics, towson
50 ?




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This 4 page Study Guide was uploaded by Gilmarys Bernal on Sunday October 2, 2016. The Study Guide belongs to mngt 482 at Towson University taught by Manoj Basuray in Fall 2016. Since its upload, it has received 29 views.


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Date Created: 10/02/16
Chapter 2 – Managing Public Issues and Stakeholder Relationships Public Issues is any issue that is of mutual concern to an organization and one or more of its stakeholders. Also called social issues or sociopolitical issues.  Characteristics:  They are often broad issues, often impacting many companies and  groups, and of concern to a significant number of people.   They 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 legislation implications A public issue often indicates there is a gap between what the firm wants to do or is  doing and what stakeholders expect.  Performance­expectations gap a mixture of people’s opinions, attitudes, and  belief about what constitutes reasonable business behavior. Failure to understand stakeholder concerns and to respond appropriately  will permit the performance­expectations gap to grow.  Emerging public issue are both a risk and an opportunity. They are a risk because  issues that firms do not anticipate and plan for effectively can seriously hurt a company.  On the other hand, correctly anticipating the emergence of an issue can confer a  competitive advantage.  Environmental Analysis  Organizations need a systematic way of identifying, monitoring, and selecting pubic  issues that warrant organizational action. To identify those issues that require attention  and action, a firm needs a framework for seeking out and evaluating environmental  information.  Environmental analysis is 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 is the acquisition of information gained from  analyzing the multiple environments affecting organizations. Should focus on  eight strategic radar screens.   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 or preferences.  Competitor environment includes information on the number and  strength of the organization’s competitors, whether they are  potential or actual allies, patterns of aggressive growth versus static maintenance of market share, etc.   Economic environment includes information about costs, prices,  international trade, and any other features of the economic  environment.  Technological environment includes the development of new  technologies and their application affecting the organization, its  customers, and other stakeholder’s groups.   Social environment includes cultural patterns, values, beliefs,  trends, and conflicts among the people in the societies where the  organization conducts business.  Political environment includes the structure, processes, and  actions of all levels of government – local, state, national, and  international.   Legal environment includes patents, copyrights, trademarks, and  considerations of intellectual property, as well as antitrust  considerations and trade protectionism and organizational liability  issues.  Geophysical environment relates to awareness of the physical  surroundings of the organization’s facilities and operations, whether it is the organization’s headquarters or its field offices and  distributions centers, and the organization’s dependency and  impact on natural resources such as minerals, water, land, or air.  Competitor 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.  The Issue Management Process  1. Identify issue involves anticipating emerging concerns, sometimes called  “horizon issues” because they seem to be just coming up over the horizon like  the first morning sun. You can do this by tracking the media, experts’ views,  activist opinion, and legislative developments.  2. Analyze issue understanding how the issue is likely to evolve and how it is likely to affect them.  3. Generate options involves generating, evaluating, and selecting among possible options. This requires complex judgements that incorporate ethical  considerations, the organization’s reputation and good name, and other  nonquantifiable factors. 4. Take action once an option has been chosen, the organization must design and  implement a plan of actions.  5. Evaluate Results assess the results and make adjustments as necessary.  Managers see issue management as a continuous process, rather than one that  comes to a clear conclusion.  Organizing for Effective Issue Management  A corporation’s issue management activities are usually linked to both the board of  directors and to top management levels, because of their increasing importance. The European Academy of Business in Society  (EABIS) undertook a study and  found that effective global leadership on these public issues required three basic  capabilities. 1. Understanding of the changing business context 2. Ability to lead in the face of complexity  3. Connectedness the ability to engage with external stakeholders in dialogue and  partnership. Stakeholder Engagement  1. Stages in the Business ­ Stakeholder relationship Scholars have characterized these stages as:  Inactive companies simply ignore stakeholder concerns. These firms  believe that they can make decisions unilaterally.  Reactive companies generally act only when forced to do so, and then in  a defensive manner.   Proactive companies try to anticipate stakeholder concerns. These firms  use the environmental scanning practices to identify emerging public  issues. They often have specialized departments to manage stakeholder  relationships. These firms are much less likely to be blindsided by crises  and negative surprises.  Interactive means that companies actively engage with stakeholders in  an ongoing relationship of mutual respect, openness, and trust. Firms with this approach recognize that positive stakeholder relationships are a  source of value and competitive advantage for the company. Stakeholder engagement is used to refer to this process of ongoing relationship  building between business and stakeholders.  2. Drives of Stakeholder Engagement  Goals for stakeholder engagement to occur both the business and the  stakeholder must have a problem they want solved. The problem must be  important and urgent. Its objective could be to improve corporate  reputation; earn a license to operate, to win approval of society.  Motivation both sides should be motivated to work together to solve the  problem. Both sides depend on each other to accomplish their goals.   Organizational capacity each side must have the organizational capacity to engage the other in a productive dialogue. This may include support  from top leadership and an adequately funded external affairs or  comparable department. It may also include an issue management  process to provide an opportunity.  3. Making Engagement Work Effectively The process of engagement can take many forms, but it often involves dialogue  (“the art of thinking together”) with the stakeholders. In stakeholder dialogue a  business and its stakeholders come together for face­to­face conversations  about issues of common concern.  4. 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. 5. The Benefits of Engagement Stakeholder organizations bring a number of distinct strengths. They often  become aware of shifts in popular sentiments before companies do and thus are  able to alert companies to emerging issues. 


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