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J404 Business and Society
Module 1
Dr. Eric Coulter DISCUSSION QUESTIONS
Give a concise but thorough answer to the following chapter discussion
questions.
Chapter 1:
1. Define social responsibility. How does this view of the role of business differ from your previous
perceptions? How is it consistent with your attitudes and beliefs about business?
With the research I have discovered; social responsibility is based on numerous of things. Which
these “things” include: how a company may perceive themselves when it comes to ethics, legal
obligations, economics, and social skills depending on how the company’s stakeholders expect, as
well as its community. My personal perception on social responsibility is all about giving back to the
community. But, not only that, but taking the time to build long-lasting and trusting relationships. I
feel that most, if not all, businesses should act with such mannerisms.
2. If a company is named to one of the “best in social responsibility” lists, what positive effects can it
potentially reap? What are the possible costs or negative outcomes that may be associated with
being named to one of these lists?
If a company is named to be one of the “best in social responsibility,” some of the positive effects
could include: loyalty, respect, and trust within its employees, consumers, shareholders, its
community, as well as, other companies. A possible cost or negative outcome that can arise from
being on one of these lists is sustaining that type of status. It will be tougher keeping up than it was
achieving it because if you do not keep up with your status, it could cause disappointment and loss of
loyalty and respect. Also, being on such a high list causes more publicity whether it is a positive or
negative situation. 3. What historical trends have affected the social responsibilities of business? In light of current trends
and issues, what changes in these responsibilities and expectations do you predict over the next five
years?
In our textbooks, companies who were expected of high standards, have respectively raised
awareness by those who were involved with the business have given themselves a goal of reaching a
higher standard and implementing strongly on social responsibility. By doing this, it benefits everyone
whether they are direct and indirect by making great improvements over the course of time.
(environment and life-quality). In previous situations, if a company were to fall below their expectations
it more than likely damaged its reputation. It could also lead to closing its doors. Social responsibility is
the “golden egg” for a business to exceed nowadays.
Chapter 2:
1. Define crisis management. What should a company facing a crisis do to satisfy its stakeholders and
protect its reputation?
Crisis management is the way a company plans and executes a high-impact event that is identified
by uncertainty and the need for immediate intervening. One of the first things that a company should
do is express their concerns in regards to the problem. Second, the company should come up with a
reasonable plan to act quickly upon with its stakeholders to eliminate more “drama” to the situation. J404 Business and Society
Module 1
Dr. Eric Coulter
Finally, a company needs to give details and deadlines in regards to giving back or reimbursements
to those who have suffered losses during the crisis. A company also needs to make sure to respond
quickly and responsibly during such times to prevent rumors.
2. Describe the process of developing stakeholder relationships. What parts of the process seem most
important? What parts seem most difficult?
In the textbook, the process of developing stakeholder relationships includes six steps. One,
assessing the corporate culture, two, identifying stakeholder groups, three, identifying stakeholder
issues, four, assessing the organization’s commitment to social responsibility, five, identifying
resources and determining urgency, and six, gaining stakeholder feedback. The most important part
of these steps or process, is the trust that is developed amongst the company’s stakeholders.
Building and maintaining a great, trusting relationship with its stakeholder’s builds loyalty which
gives a company a lead way when it comes to dealing with competition. Trust is not only a huge
importance to a company, but it is also one of the most difficult aspects as well. Companies need to
make sure that when they are giving out information that is easy and understandable to perceive
without giving out too much information such as: pay. This could lead to a loss of trust and loyalty.
3. What are the differences between the reactive, defensive, accommodative, and proactive approaches
to stakeholder relationships?
In a reactive approach, a company’s strategy is to deny all responsibility and do nothing to fix the
issue. In a defensive approach, a company will admit responsibility but do very little except what is
required to fix the issue. In an accommodative approach, a company will take responsibility and go
to great matters, and above that to ensure that the problem is fixed. In a proactive approach, a
company demonstrates to its stakeholders that they can trust a company’s intentions with a
concentration on stakeholder’s interests.
Chapter 3:
1. What is corporate governance? Why is corporate governance an important concern for companies
that are pursuing the social responsibility approach? How does it improve or change the nature of
executive and managerial decision making?
Corporate governance is: the formal system of oversight which relates to a system of checks and
balances, preventing the likelihood that employees’ and managers’ will diverge from the policies and
codes of conduct set in place; accountability which refers to how a company’s decisions align with
their stated strategic directions and control over processes such as audits and improvements in
regards to decisions and actions. Corporate governance is an important concern for companies that
are pursuing the companies that are pursuing the social responsibility approach as it relates to the
core beliefs that legal and ethical standards are met with the stakeholders’ best interests carefully
considered. Some people believe that a company is fulfilling its biggest responsibility by maximizing
shareholder wealth and profitability, it must do so in accordance with legal and ethical standards
with a focus on the economic aspect of social responsibility. This view is affected by both internal
and external factors which must consider financial, social, and ethical viewpoints. Upper
management decision making is improved because it encourages open communication,
acknowledgement and accountability, and improved organization of all decisions and actions made. J404 Business and Society
Module 1
Dr. Eric Coulter
1. Compare the shareholder and stakeholder models of corporate governance. Which one seems to
predominate today? What implications does this have for businesses in today’s complex
environment?
The shareholder model focuses on maximizing revenues for its investors and owners while
decisions are made according to the best interest of its investors. The stakeholder model on the
other hand focuses on the development of long-term relationships with identified primary
stakeholders such as stockholders, suppliers, customers, employees, government, and its
community. Today many companies are implementing the stakeholder model concluding
government initiatives, consumer involvement, and commerce activity along with other external
influences. Because so many businesses are leaning toward an approach that adheres to CSR
expectations, those businesses that operate with the interest of profit for its shareholders may lose
the loyalty of their customers and ultimately their business to their competition. With so many
companies taking a stand on creating a greener environment, those that don’t may suffer because
they are not meeting expectations. 2. How have economic circumstances contributed to the growing trend toward increasing corporate
governance? Why are accountability and control so important in the twenty-first century?
Many companies have increased their corporate governance because shareholders claimed they
would pay more for share if more information was available to them. However, companies did not
want to disclosure certain information in fear that it would not meet the shareholders expectations
and damage their reputation. As a result organizations were formed that state minimum standards
of fairness, transparency, accountability, disclosure, and responsibility while conducting business.
Accountability and control are important in all business practices in order to build strong long-lasting
relationships with stakeholders that evolve through trust. Without these two components CRS
would not meet expectations which could damage reputations and develop into a crisis.
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