Management Chapter 1 Homework Provide Examples How Are The Factors Related

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Ch 1, Instructor’s Manual, Business & Society, Carroll 10e

Chapter 1 The Business and Society Relationship

LEARNING OUTCOMES

After studying this chapter, you should be able to:

1. Describe and explain business and society as foundational concepts. Describe how society

is viewed as the macroenvironment.

3. Define a special-interest society and describe how it evolves.

4. Identify, discuss, and illustrate the factors leading up to business criticism and corporate

response. What is the general criticism of business? How may the balance of power and

responsibility be resolved? What is the changing social contract?

TEACHING SUGGESTIONS

INTRODUCTION – This chapter introduces some important basic concepts in the business and

society discussion, including pluralism, special-interest societies, business criticism, corporate

power, corporate social responsibility to stakeholders, and sustainability.

KEY TALKING POINTS – The instructor is likely to find that students have given little or no

thought to the role that business plays in our society. Most undergraduates (most people for that

matter) have never really considered the influence of business in their lives, and so fall victim to

the “is/ought” fallacy. They assume that just because something “is” a certain way, then it

“ought” to be that way. Thus, they assume that because business is the dominant social

institution in our society, it should be. One of the main challenges that the instructor faces in this

chapter is simply getting students to reflect on the power that business holds in our society. Most

don’t realize the influence that corporations hold over them because they have never given the

idea any thought. The second, and even greater challenge, will be getting students to realize and

Ch 1, Instructor’s Manual, Business & Society, Carroll 10e

PEDAGOGICAL DEVICES – In this chapter, instructors may utilize a combination of:

Cases:

1-Wal-Mart- The Main Street Merchant of Doom

2-The Body Shop (A) – Pursuing Social and Environmental Change

3-The Body Shop (B) – Reputation is Tarnished

4-The Body Shop (C) – Into the New Millennium

7-Using Ex-Cons to Teach Business Ethics

12-Banned if You Do, Banned if You Don’t

19-Should Directors Shine Light on Dark Money?

23-McDonald’s Coffee Spill

Ethics in Practice Cases:

Working for My Cup or the House?

Is Business Power Too Great?

Spotlight on Sustainability:

Sustainability—What Does It Mean?

Power Point slides:

LECTURE OUTLINE

I. BUSINESS AND SOCIETY

A. Business: Defined

B. Society: Defined

II. SOCIETY AS THE MACROENVIRONMENT

III. A PLURALISTIC SOCIETY

A. Pluralism Has Strengths and Weaknesses

B. Multiple Publics, Systems, and Stakeholders

IV. A SPECIAL-INTEREST SOCIETY

V. BUSINESS CRITICISM AND CORPORATE RESPONSE

Ch 1, Instructor’s Manual, Business & Society, Carroll 10e

A. Factors in the Social Environment

1. Affluence and Education

2. Awareness through Television, Movies, the Internet, and Social Media

a. 24/7 News and Investigative Programs

3. Revolution of Rising Expectations

5. Rights Movement

6. Victimization Philosophy

B. A General Criticism of Business: Use and Abuse of Power

1. Levels of Power

C. Balancing Power with Responsibility

1. Iron Law of Responsibility

D. Business’s Response: Concern and a Changing Social Contract

1. Social Contract

VI. FOCUS OF THE BOOK

A. Managerial Approach

1. Urgent versus Enduring Issues

VII. STRUCTURE OF THE BOOK

VIII. SUMMARY

SUGGESTED ANSWERS TO DISCUSSION QUESTIONS

Students should recognize that their answers to these discussion questions should be well

reasoned and supported with evidence. Although some answers will be more correct than others,

students should be aware that simplistic answers to complex questions, problems, or issues such

as these will never be “good” answers.

1. Question: In discussion of business and society, why is there a tendency to focus on large-

sized rather than small- or medium-sized firms? Have the corporate ethics scandals of the

past decade affected small- and medium-sized firms? If so, in what ways have these firms

been affected?

Answer: We tend to focus on large firms when discussing business and society for a

number of reasons. Large firms are more visible, their products and services are more

Ch 1, Instructor’s Manual, Business & Society, Carroll 10e

2. Question: What is the one greatest strength of a pluralistic society? What is the one

greatest weakness? Do these characteristics work for or against business?

Answer: The textbook lists several strengths (prevents power from being concentrated,

maximizes freedom of expression, allegiance of individuals to groups is dispersed, creates

3. Question: Identify and explain the major factors in the social environment that create an

atmosphere in which business criticism takes place and prospers. Provide examples. How

are the factors related to one another? Has the revolution of rising expectations run its

course? Or is it still a reality among young people today?

Answer: Many factors contribute to an atmosphere conducive to criticism of business.

Affluence, or the level of wealth, allows people the luxury of being critical of social

4. Question: 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 business power.

Answer: Dr. Epstein identified four levels of corporate power—macro, intermediate,

micro, and individual. The macro level encompasses the entire corporate system. This can

be seen in business’s ability to effectively lobby Congress to pass laws that enhance

corporations’ ability to operate profitably, the fact that nearly half of the largest economies

5. Question: Explain in your own words the Iron Law of Responsibility and the social

contract. Give an example of a shared understanding between you as a consumer or an

employee and a firm with which you do business or for which you work.

Answer: The iron law of responsibility basically says that there is a balance required

between power and responsibility to others. The more power an organization has, the

Ch 1, Instructor’s Manual, Business & Society, Carroll 10e

GROUP ACTIVITY

This group activity focuses on business criticism and the corporate response. Divide students

into groups of four to five students. Distribute the latest edition of national, regional and local

newspapers among different groups in the class. Have the group identify the number of articles

that criticize business or an employer-related decision. Have the group identify the number of

articles that paint business in a favorable light. Ask students to pick a negative article and a

positive article for a more in depth analysis. Students should consider the following questions

for each article:

• Is the business practice or decision accurately portrayed?

• What is the intended audience of the newspaper? Do you think the affluence, education,

expectations and mentality of the intended audience impacts the newspaper’s portrayal of

the business decision? If so, how?

• How should the business in question respond to this situation?

Once students have had an opportunity to discuss the review questions in their group, ask each

group to report the number of negative versus positive articles and to summarize their answers to

INDIVIDUAL ASSIGNMENT

Distribute the following instructions to each student:

Select a company and research recent news items that have been released regarding the

company. In a written response, note whether the articles were positive or negative for the

company. Describe how the company’s actions may impact an individual’s perception of

Ch 1, Instructor’s Manual, Business & Society, Carroll 10e