Canadian Business and Society Ethics Responsibilities Chapter Thirteen
Canadian Business and Society: Ethics & Responsibilities Chapter Thirteen Civil Society Stakeholders Prepared by Mark Schwartz, York University Copyright © 2008 Mc. Graw-Hill Ryerson Ltd. 1
Chapter Outline n n n n 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 Copyright © 2008 Mc. Graw-Hill Ryerson Ltd. 2
Civil Society: Definition n 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 Copyright © 2008 Mc. Graw-Hill Ryerson Ltd. 3
Civil Society n 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 Copyright © 2008 Mc. Graw-Hill Ryerson Ltd. 4
Non-Governmental Organizations (NGOs): Definition n n 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 Copyright © 2008 Mc. Graw-Hill Ryerson Ltd. 5
NGO Societal Issues Most Relevant to Business Animal rights n Technology n Economic n Social development n Chapter 13 Workers’/human rights n Environment n Religious activism n Copyright © 2008 Mc. Graw-Hill Ryerson Ltd. 6
Civil Society q q q 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 Copyright © 2008 Mc. Graw-Hill Ryerson Ltd. 7
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 Focus Natural environment Social issues Development Poverty alleviation Human rights Animal welfare Structure Informal Formal Co-operative Professional Entrepreneurial Network Copyright © 2008 Mc. Graw-Hill Ryerson Ltd. 8
The Case for NGOs n n n Identifying opportunities and risks Influence on public opinion Innovation possibilities Reputation and trust by the public Expertise on specific issues Employee engagement Chapter 13 Copyright © 2008 Mc. Graw-Hill Ryerson Ltd. 9
NGO Tactics n n n n 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 n n n 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) Copyright © 2008 Mc. Graw-Hill Ryerson Ltd. 10
Strategies for Relationships with NGOs n n n 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 Copyright © 2008 Mc. Graw-Hill Ryerson Ltd. 11
Partnership Relationships with NGOs n Four key ingredients to a successful partnership: q q 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 Copyright © 2008 Mc. Graw-Hill Ryerson Ltd. 12
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 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 Copyright © 2008 Mc. Graw-Hill Ryerson Ltd. 13
Civil Society Organizations as Stakeholders q q 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 Copyright © 2008 Mc. Graw-Hill Ryerson Ltd. 14
Civil Society Organizations as Stakeholders n Two types q Sectional Groups – include trade unions, professional associations, student bodies etc. q 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 Copyright © 2008 Mc. Graw-Hill Ryerson Ltd. 15
Civil Society Organizations as Stakeholders q q 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 Copyright © 2008 Mc. Graw-Hill Ryerson Ltd. 16
CSO Tactics q q 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 Copyright © 2008 Mc. Graw-Hill Ryerson Ltd. 17
CSO Accountability q q q 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 Copyright © 2008 Mc. Graw-Hill Ryerson Ltd. 18
Globalization and civil society organizations Three main areas where globalization is reshaping the relations between corporations and CSOs: n q Engagement with overseas CSOs q Global issues and causes q Globalization of CSOs Chapter 13 Copyright © 2008 Mc. Graw-Hill Ryerson Ltd. 19
The Media Stakeholder n n n 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 Copyright © 2008 Mc. Graw-Hill Ryerson Ltd. 20
The Interaction Between Business and the Media Business complaints: n Reporters not sufficiently knowledgeable n Only interested in “bad” news n Inherent bias n Do not respect “off-therecord” comments Chapter 13 Media complaints: n Businesspeople dishonest n Use excuse that they are only accountable to shareholders n Overreact to reporting process Copyright © 2008 Mc. Graw-Hill Ryerson Ltd. 21
Ownership and the Media n n Business enterprises now own and operate major media outlets. Issues: q q 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 Copyright © 2008 Mc. Graw-Hill Ryerson Ltd. 22
Changes in Media Attitudes Toward Business n n 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 Copyright © 2008 Mc. Graw-Hill Ryerson Ltd. 23
Policy Development Institutions (Think Tanks) n n n 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 Copyright © 2008 Mc. Graw-Hill Ryerson Ltd. 24
Religious Institutions n Influence of religion on business: q q 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 Copyright © 2008 Mc. Graw-Hill Ryerson Ltd. 25
Educational Institutions n n Business now involved in the educational system from kindergarten to university Two distinct approaches: q q Mutually beneficial partnership; or Educational institutions should be unencumbered from corporate influence Chapter 13 Copyright © 2008 Mc. Graw-Hill Ryerson Ltd. 26
Civil Regulation q q q Civil society can be a source of regulation of corporations Increasingly important role in forming codes of practice and even other more formal elements of rule setting and regulation 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 Copyright © 2008 Mc. Graw-Hill Ryerson Ltd. 27
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