Transcript Business and Society

Canadian Business and Society:
Ethics & Responsibilities
Chapter
Thirteen
Civil Society Stakeholders
Prepared by Mark Schwartz, York University
Copyright © 2008 McGraw-Hill Ryerson Ltd.
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Chapter Outline
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Civil Society: Definition
Non-Governmental Organizations (NGOs)
The Case for NGOs
NGO Tactics
Strategies for Relationships with NGOs
Partnership Relationships with NGOs
The Media Stakeholder
Policy Development, Educational, and Religious
Institutions
Chapter 13
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Civil Society: Definition
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Civil society is composed of the voluntary,
community, and social organizations or
institutions that contribute to the functioning
of society but are not related to or supported
by government.
Chapter 13
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Civil Society
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Civil society is usually regarded to be a counterbalance to the state
(and more recently also to business) guarding against the abuse of
power and ensuring that the people’s best interests are served.
Market
Sector
State
Sector
Civil
Society
Sector
Chapter 13
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Non-Governmental Organizations
(NGOs): Definition
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Any group that holds shared values or
attitudes about an issue confronting society
and advocates for changes relating to the
issue.
Usually, but not always, non-profit.
Chapter 13
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NGO Societal Issues Most Relevant to
Business
Animal rights
 Technology
 Economic
 Social
development
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Chapter 13
Workers’/human
rights
 Environment
 Religious
activism
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Civil Society
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1995 UN report suggested that nearly 29,000
international NGOs exist
Different in terms of the issues they focus on
Scope of their operations
Different forms and structures
Varied mixture of activities
Chapter 13
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Type
Community group
Campaign group
Research organization
Business association
Religious group
Trade union
Technical body
Scope
Individual
Grass-roots
Local
Regional
National
Transnational
Global
Activities
Academic research
Market research
Protests and Demos
Boycott co-ordination
Policy research
Information provision
Campaigning
Chapter 13
CSOs
Structure
Informal
Formal
Co-operative
Professional
Entrepreneurial
Network
Focus
Natural environment
Social issues
Development
Poverty alleviation
Human rights
Animal
welfare
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The Case for NGOs
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Identifying opportunities and risks
Influence on public opinion
Innovation possibilities
Reputation and trust by the public
Expertise on specific issues
Employee engagement
Chapter 13
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NGO Tactics
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Pressure on governments to
change policies
Damaging publicity
Disrupt annual meetings
Develop shareholder social
policy resolutions
Damaging physical property
Picket managers’ homes
Sponsor demonstrations or
picket corporate locations
Chapter 13
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Organize boycotts
Launch letter-writing
campaigns
Initiate legal proceedings
Develop anti-business
websites
Support anti-business
documentaries
Provide support for
alternative sources of
goods and services (e.g.,
fair-trade products)
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Strategies for Relationships
with NGOs
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Proactively engage NGO
Do not underestimate NGO’s influence
Reversing a decision from a project shouldn’t
be viewed as a defeat
Sometimes selective concessions are
sufficient
Sometimes better to deal with “realist” NGO,
not radical ones
A preemptive strategy may be feasible
Chapter 13
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Partnership Relationships
with NGOs
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Four key ingredients to a successful
partnership:
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Corporate and NGO leaders must show
leadership
The corporation must be open to change
Must be a commitment to being committed
Partners must have a shared goal
Source: Canadian Business for Social Responsibility, 2005
Chapter 13
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Drivers towards business – CSO
partnerships
Drivers for business engagement with CSOs
Drivers for CSO engagement with business
Consumer expectations
Growing interest in markets
NGO credibility with public
Disenchantment with government as provider of
solutions
Need for an external challenge
Need for more resources
Cross-fertilization of thinking
Cross-fertilization of thinking
Greater efficiency in resource allocation
Credibility of business with government
Desire to head off negative public confrontation and
protect image
Access to supply chains
Desire to engage stakeholders
Greater leverage
Chapter 13
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Civil Society Organizations as
Stakeholders
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The stake held by CSOs is quite different from
that held by other stakeholder groups
CSOs very rarely contribute any resources directly
to corporations
The stake held by CSOs is largely one of
representing the interests of individual
stakeholders (including non-human stakeholders)
The stake of CSOs is indirect and representative
Chapter 13
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Civil Society Organizations as
Stakeholders
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Two types
 Sectional Groups – include trade unions, professional associations,
student bodies etc.
 Promotional Groups – promoting specific causes or issues
Section groups
Promotional groups
Membership
Closed
Open
Represent
Specific section of society Issues or causes
Aims
Self-interest
Social goals
Traditional Status
Insider
Outsider
Main approach
Consultation
Argument
Pressure exerted through
Threat of withdrawl
Mass media publicity
Chapter 13
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Civil Society Organizations as
Stakeholders
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Sectional groups have been said to enjoy insider
status whilst promotional groups have largely been
outsiders
Promotional groups have tended to have less easy
access to governmental or corporate policy-making
Since they do not represent a readily identifiable
constituency, it is not obvious whom exactly they are
speaking for
Promotional groups have tended to need to mobilize
mass public opinion before they are heard or involved
in any kind of decision making
Chapter 13
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CSO Tactics
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Indirect action – research and communication
(issue around provision of misleading information)
Violent direct action – is often illegal but it often
generates the most publicity
Chapter 13
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CSO Accountability
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CSO accountability being questioned is not
surprising when one considers that they have
often been the parties most vociferously
questioning the accountability of corporations
Questions about CSO accountability have largely
mirrored the same questions that have been
raised in relation to corporations
Accountability of CSOs to their supposed
beneficiaries that tends to raise the most debate.
Chapter 13
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Globalization and civil society
organizations
Three main areas where globalization is
reshaping the relations between corporations
and CSOs:
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Engagement with overseas CSOs
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Global issues and causes
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Globalization of CSOs
Chapter 13
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The Media Stakeholder
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Dealing with the media is part of managers’
responsibilities
Legitimacy of business is dependent upon
public’s knowledge of events and issues
Information spread through newspapers,
periodicals, radio, television, and social
media (i.e., online technologies)
Chapter 13
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The Interaction Between
Business and the Media
Business complaints:
 Reporters not
sufficiently
knowledgeable
 Only interested in “bad”
news
 Inherent bias
 Do not respect “off-therecord” comments
Chapter 13
Media complaints:
 Businesspeople
dishonest
 Use excuse that they
are only accountable to
shareholders
 Overreact to reporting
process
Copyright © 2008 McGraw-Hill Ryerson Ltd.
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Ownership and the Media
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Business enterprises now own and operate major
media outlets.
Issues:
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Newspaper monopolies
Interlocking ownership between print and broadcasting
media
Licensing process favours some corporations over others
Newspaper chains more focused on profits than
professional journalism
Chapter 13
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Changes in Media Attitudes Toward
Business
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Now increased coverage of business and
CSR in the media
Now more favourable approach to business
coverage
Business more prepared to work with the
media
The media as a stakeholder influences
business, but business can also influence the
media
Chapter 13
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Policy Development Institutions
(Think Tanks)
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An organization that researches and analyzes
various important social, economic, and political
issues confronting society
Funded by government, corporations, trade unions,
wealthy individuals, universities
Examples: C.D. Howe Institute, Conference Board
of Canada, Fraser Institute
Chapter 13
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Religious Institutions
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Influence of religion on business:
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The impact on managerial decision making
The existence of businesses supplying religious
goods and services
Spirituality in the workplace
Corporate response to religious activism
Chapter 13
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Educational Institutions
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Business now involved in the educational
system from kindergarten to university
Two distinct approaches:
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Mutually beneficial partnership; or
Educational institutions should be unencumbered
from corporate influence
Chapter 13
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Civil Regulation
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Civil society can be a source of regulation of
corporations
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Increasingly important role in forming codes of
practice and even other more formal elements of
rule setting and regulation
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Civil society can act as a conduit through which
individual citizens can exert some kind of leverage
on, or gain a form of participation in corporate
decision making and action
Chapter 13
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