Chapter 5- 1 Chapter 5
19
Chapter 5- 1 Chapter 5 BUSINESS & SOCIETY Ethics and Stakeholder Management Carroll & Buchholtz 6e Business and Society: Ethics and Stakeholder Management, 6e • Carroll & Buchholtz Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Prepared by Deborah Baker Texas Christian University ISSUES MANAGEMENT and CRISIS MANAGEMENT
description
Transcript of Chapter 5- 1 Chapter 5
Chapter 5-1
Chapter 5
BUSINESS & SOCIETYEthics and Stakeholder Management
Carroll & Buchholtz 6e
Business and Society: Ethics and Stakeholder Management, 6e • Carroll & BuchholtzCopyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved
Prepared by Deborah BakerTexas Christian University
ISSUES MANAGEMENT and CRISIS MANAGEMENT
Chapter 5-2
Corporate public policy
The firm’s position, stance,
or strategy regarding the
public, social, & ethical issues of
SH.•How do we know?•Handled by … ?
The firm’s position, stance,
or strategy regarding the
public, social, & ethical issues of
SH.•How do we know?•Handled by … ?
AIDS inWorkplac
e
Affirmative Action
Sexual harassment
Product safety
Employee privacy
Chapter 5-3
Issues Management
Conventional Approach
Issues handled by Public Affairs Department as they arise (reactive)
Chapter 5-4
Strategic Management Approach Issues handled by strategic management staff (ethical decisions
incorporated into strategy)- proactive
More emphasis on anticipation of threats/opportunities & issue identification
Newer way of thinking.
What is an ISSUE?
Chapter 5-5
Issue
A dispute between parties that evokes public debate, controversy, or differences of opinion.
High visibility, media exposure, special interest SH involved.
-Requires the Co. make a decision-
Example: ATV safety
Chapter 5-6
Issues ManagementBenefits of Early Anticipation of Issues?
More options (prevent crisis!)
Clear understanding of the issues
Can develop a positive attitude
Faster & better identification of SH
Opportunity to supply information to public & media.
Chapter 5-7
First Step of SH Mgmt—
Identification of Issues
Scan the environmentHow?
Scan the environmentHow?
Identify emerging issues& trends
“Trend spotting services”
Identify emerging issues& trends
“Trend spotting services”
Chapter 5-8
Identification of Issues
Predictors of Social Change
Triggering events
Authorities/ advocates
New literature
Special interest groups (Websites)
Political jurisdictions
Chapter 5-9
• WhichWhich SH are affected?
• WhoWho is in a position to exert influence?
• WhoWho has expressed opinions?
• WhoWho started the ball rolling?
• WhoWho is now involved?
• WhoWho is likely to get involved?
Analyzing cases, paper…
Analysis of Issues
Chapter 5-10
Prioritize Issues
Consider SH legitimacy, urgency, power
Assign top priorities to an issues management team (part of Public Affairs Department)
Begin to mobilize resources to deal with issue
Chapter 5-11
Response To Issues
Create Strategy
Take Action
Things to consider… Have resources needed? Top mgmt support? How to deal with media? Ready for government scrutiny? Can we turn threat into opportunity?
Chapter 5-12
Evaluation
Constant evaluation of SH responses, activities, opinions to the issues
Is our strategy on track?
SH audit
Chapter 5-13
Issue Development Life Cycle (Page 146)
Chapter 5-14
Benefits of Issues Management
Better reputation & financial performance• Johnson & Johnson vs. Dow Corning
Provides a bridge to crisis management • And maybe even prevention!
Avoid governmental action.
Example: McDonalds & Bird-Flu
What is CRISIS?
Chapter 5-15
What is a Crisis?
•Abrupt
•Unpredictable
•Involves a major SH
(hurt, killed, “unfair” treatment)
•High visibility (media)
•Usually involves ethical issue
•“A turning point for better or worse”
•Potential threat to organization- What kind?
Chapter 5-16
Types of Crises
EconomicEconomic
Personnel (HR) Personnel (HR)
Physical Physical
Criminal Criminal
InformationInformation
ReputationalReputational
Natural disastersNatural disasters
Chapter 5-17
Outcomes of Major Crises
Escalate in intensity
Subject to media & government scrutiny
Interfere with normal business operations
Damage the company’s bottom line
Result in major power shifts.
Chapter 5-18
Business Week’s Five Steps in Managing Crises
1. Identify areas of vulnerability
2.Develop a plan for dealing with threats
3.Form crisis teams
4.Simulate crisis drills
5. Learn from experience.
Skip the others
Chapter 5-19
Crisis Communication
Most important step in managing a crisis communicate effectively with SH
Which SH first?
Why?
Communicate with all media at the same time
Use trained spokespersons (consistency)
Tell the truth!
