Ch 16, Instructor’s Manual, Business & Society, Carroll 10e
Chapter 16
Business and Community Stakeholders
LEARNING OUTCOMES
After studying this chapter, you should be able to:
1. Discuss reasons for community involvement, various types of community projects, and
management of community stakeholders.
3. Differentiate between strategic philanthropy, cause-related marketing, and cause branding.
4. Characterize the loss of jobs in the contexts of offshoring, reshoring, and plant closings
TEACHING SUGGESTIONS
INTRODUCTION – This chapter examines the relationship between business and its
surrounding community. This relationship can have both positive and negative effects. Within
the positive realm, the authors focus on community involvement and corporate philanthropy.
Companies also can do damage to their communities, especially by outsourcing jobs and/or
closing facilities. In both instances, the authors focus on ways to manage the process and
interact ethically with the community.
KEY TALKING POINTS – As good corporate citizens, companies try to maximize the benefits
of their resources for themselves and their communities. In broad terms, their resources consist
of (wo)manpower and money. Sharing these resources with the community thus fall into the
categories of community involvement (i.e., sharing time and effort resources with the
Because current economic conditions are bleak for many workers in the United States, the
negative side of the business/community relationship may be of more immediate concern to
students. Offshore outsourcing and facilities closings have become important facts of life for
many blue and white collar workers. This situation is due to two other trends—globalization and
advances in technology. Globalization provides easy access to cheap labor, vastly reducing
expenses. Technology provides the means to substitute machines for human labor.
Ch 16, 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
12-Banned if You Do, Banned if You Don’t
14-Something’s Rotten in Hondo
16-Coke & Pepsi in India
18-Dole’s DBCP Legacy
Ethics in Practice Cases:
Matters of Good Intentions
Competition in the Nonprofit Workplace
Spotlight on Sustainability:
Corporate Philanthropy through Greening the Workforce
Power Point slides:
LECTURE OUTLINE
I. COMMUNITY INVOLVEMENT
A. Volunteer Programs
B. Managing Community Involvement
2. Developing a Community Action Program
II. CORPORATE PHILANTHROPY OR BUSINESS GIVING
A. A Brief History of Corporate Philanthropy
B. A Call for Transparency in Corporate Philanthropy
C. Giving to the “Third Sector”: The Nonprofits
1. Why Do Companies Give?
2. To Whom Do Companies Give?
Ch 16, Instructor’s Manual, Business & Society, Carroll 10e
b. Education
D. Managing Corporate Philanthropy
1. Community Partnerships
2. Strategic Philanthropy
a. Factor (Supply) Conditions
3. Cause-Related Marketing
4. Global Philanthropy
III. DETRIMENTAL IMPACTS ON COMMUNITIES
A. Offshoring and Reshoring
B. Business and Plant Closings
1. Before the Decision to Close Is Made
2. After the Decision to Close Is Made
a. Community-Impact Analysis
3. Survivors: The Forgotten Stakeholders
IV. 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: Have you participated in community involvement at work? What type of
program did the company endorse? Outline what you experienced to be the benefits of
employee volunteerism.
Answer:
Answers will vary depending on community involvement opportunities at workplaces.
Many workplaces offer paid time off to participate in volunteer work. Some companies
2. Question: Explain the pros and cons of corporate philanthropy, provide a brief history of
corporate philanthropy, and explain why and to whom companies give.
Answer: Arguments for community involvement and philanthropy center on the fact that
business has the resources and expertise to help meet social needs. Many also note that
business should be responsible for the problems that it creates. In addition to these factors,
3. Question: Differentiate among strategic philanthropy, cause-related marketing, and cause
branding. Provide an example of each not discussed in the text.
Answer: Strategic philanthropy is the process of tailoring a firm’s giving to best fit with its
own mission and goals, by making contributions that hold the promise of helping the
4. Question: Identify and discuss briefly what you think are the major trade-offs that firms
face as they think about offshoring and reshoring. When substantial layoffs are involved,
what are firms’ responsibilities to their employees and their communities?
Answer: The major tradeoff that most managers never address is the decision to increase
profits, which primarily benefit shareholders and senior managers, at the expense of
5. Question: In your opinion, why does a business have a responsibility to employees and
community stakeholders in a business- or plant-closing decision?
Answer: Businesses have a clear responsibility to workers and the community in the case
GROUP ACTIVITIES
Group Activity 1 – Community Action Programs
Divide students into groups of four to five students. Assign each group a well-known company.
Ask each group to develop a community action program for the assigned company. Students
should assume that the assigned company operates in the community where your school is
located and should develop the community action program based on that community. Students
should present the community action program to the entire class. Groups should be prepared to
answer questions about potential problems and/or issues with their respective plans.
Group Activity 2 – Outsourcing Movie Night
(Note: This Activity also may be used in conjunction with Chapter 10.)
Invite groups of students to watch the Outsourcing episode of the FX reality series 30 Days
(Season 2, Episode 2). In this episode, Christopher (Chris) Jopin, an unemployed computer
INDIVIDUAL ASSIGNMENT
(Note: This Assignment also may be used in conjunction with Chapter 2)
Distribute the following instructions to each student:
Ch 16, Instructor’s Manual, Business & Society, Carroll 10e
In 2010, Pepsi spent much time and money on its “Pepsi Refresh” project, which donated
funding to several worthy causes. But recently, the program was abandoned.