Contemporary Issues for Business And Society

1: What effect if any will committing to the principles of the United Nations Global Compact have on the conduct of businesses or other members, such as universities and business schools?
550 words
introduction
main body
conclusion
4 references
2: Does responsible management lead to reduced efficiency and lower profits ? provide examples which illustrate your viewpoint .

550 words
introduction
main body
conclusion
4 references

Contemporary Issues for Business and Society
Lecture #1: Introduction
Content and Structure
• Administrative Issues
• Discussion Exercise #1
• Why Study ‘Responsible’ Management?
• Discussion Exercise #2
• The UN Global Compact and Principles for Responsible Management Education
• Conclusion
Discussion Exercise #1
Identify three examples of recent corporate scandals or controversies.
Examples:
 Rana Plaza: 1,134 textile workers killed in Dhaka in April 2013
Nike: employment of child labourStarbucks, Amazon, etc. tax avoidance
Google, Facebook ‘collaborating’ with US security agencies
 Shell accused of involvement in human rights abuses in Niger Delta
 Horse meat in some UK food products

• Why Study ‘Responsible’ Management? • Were these incidents avoidable?
Challenges for effective management and businesses : increased complexity of globalised networks
• speed, volume and flow of information
• ethical issues and responsibilities of business
• Old models of business and management no longer fit for purpose?
• Module aim: encourage consideration of challenges facing business managers, and provide concepts to assist analysis
• ‘Education is an admirable thing, but it is well to remember from time to time that nothing that is worth knowing can be taught’
Nature of Social Science
Some things cannot be taught but they can be learned Professor Steven Pinker:
‘I once went to an interdisciplinary conference with scientists and humanities professors. At the end of a talk exploring a painting, the speaker said: “Well, I hope to have complicated the subject matter in several ways”. I thought, that’s the difference between a scientist and a critic – the scientist would say: “I hope to have simplified the matter in several ways”.’
‘Proper’ sciences provide answers, Social Sciences just complicate issues …?

Nature of Social Science

Nature of Social Science
• ‘Structural’ constraints and free ‘Agency’
• Marx (1852): The Eighteenth Brumaire of Louis Bonaparte –  ‘Men [sic] make their own history, but they do not make it as they please; they do not make it under circumstances of their own choosing, but under circumstances already existing, given and transmitted from the past’
• Max Weber: verstehen – interpretative understanding; i.e. how someone thought and felt about something and why they responded to it as they did
• Complex issues rarely have simple solutions
• Reflexivity: ‘the capacity to think critically about why we think what we do and then to think and act differently’ (Raskin, 2008: 469)
Discussion Exercise #2:
Milton Friedman, 1970
‘There is one and only one social responsibility of business – to use its resources and engage in activities designed to increase its profits so long as it stays within the rules of the game, which is to say, engages in open and free competition without deception or fraud.’
Discuss this position:
•  Do you agree or disagree with Friedman?
•  Should corporations and business mangers be responsible to groups other than shareholders?
•  If so, who and why?

UN Global Compact and PRME
UN Global Compact: 10 Principles under four themes –  Human Rights  Labour  Environment
 Anti-corruption
• Principles for Responsible Management Education (PRME),  2007
• GCU committed to PRME in January 2012
• GCU is a PRME Champion and Award winner at 2013 Global Summit  http://www.unprme.org/

•
Conclusion
Accenture, Marks & Spencer and Business in the Community (2013) Fortune Favours The Brave :
‘productivity gains worth an estimated £100 billion each year in the UK and access to rapidly growing markets already worth almost £200 billion annually in the UK alone for companies that align their core purpose and vision with the delivery of positive societal and environmental outcomes’

References
Business in the Community (2014) Taking it Personally: BITC Leadership Task Force report on Responsible Business Leadership. http://www.bitc.org.uk/our-resources/report/taking-it-personally-bitc- leadership-task-force-report-responsible-business
Friedman, M. (1970) ‘The Social Responsibility of Business is to Increase its Profits’, New York Times Magazine, 13thSeptember.
Global Forum on Responsible Management Education / PRME (2012) The Rio Declaration on the Contribution of Higher Education Institutions and Management Schools to ‘The Future We Want’: A Roadmap for Management Education to 2020 (14 June) – http://www.unprme.org/resource-docs/3rdPRMEGFRioDeclaration.pdf
Raskin, P. (2008) ‘World Lines: A Framework for Exploring Global Pathways’, Ecological Economics, 66 (3).
Contemporary Issues for Business and Society
Lecture #2: Questioning Business Leadership and
Management

Content and Structure
• Introduction
• Discussion Exercise #1: Communities, Corporations and Citizenship
• UN Global Compact and PRME
• The Impact of Business
• Discussion Exercise #2: Ethical Businesses

Introduction
• Milton Friedman: principle responsibility of managers is to maximise shareholder profit.
• Implications –
Ø individuals and organisations should act in their own self interest
Ø people are motivated primarily by economic factors
Ø management is about manipulating rewards to influence behaviour
Ø growth is desirable
Ø competition is positive
Ø market forces produce optimal outcomes
Ø the public sector deals with ‘externalities’
Ø natural resources can be exploited

Discussion Exercise
• Havas Worldwide (2013) Prosumer Report: Communities and Citizenship: Redesigned for a New World.
• Do you Agree or Disagree with the following-
Ø ‘The more powerful corporations become, the more obliged they are to behave ethically and with the public interest in mind’
Ø ‘Businesses bear as much responsibility as governmentsfor driving positive social change’
Ø ‘Corporations are better positioned than governments to combat climate change’
Ø ‘I would like my favourite brands to play a bigger role in my local community’
Ø ‘Individuals have more influence on society as consumers than they do as voters’

Communities, Corporations and Citizenship
• Prosumer Report results:
Ø 73% say that the more powerful corporations become, the more obliged they are to behave ethically
Ø 68% say that businesses bear as much responsibility as governmentsfor driving positive social change
Ø 55% say corporations are better positioned than governments to combat climate change
Ø 57% would like their favourite brands to play a bigger role in their local communities
Ø 48% believe they have more influence on society as consumers than as voters; only 14% disagree
• David Jones, Global CEO of Havas: ‘social media has empowered people to hold businesses accountable’
• Business in the Community: ‘Social brand’ is as important as ‘financial brand’

UN Global Compact and PRME
• Sir Ian Cheshire, CEO Kingfisher Group: ‘We need a different model of capitalism, one that enables new ways of consumption, and a new approach to value creation that actively maintains and restores natural and social capital’
• Global Forum on Responsible Management Education: ‘We need to redefine the purpose of the firm and adapt our core assumptions, like … maximization of shareholder value, so that they are fit for purpose in a society that works beyond the short-term to the medium and long-term.’
• United Nations UN Global Compact, 2000:
‘to promote responsible corporate citizenship and ensure that business is part of the solution to the challenges of globalisation… and help realise a more sustainable and inclusive global economy’
http://www.unglobalcompact.org/
UN Global Compact and PRME
• UN Global Compact: 10 Principles under four themes –
Ø Human Rights
Ø Labour
Ø Environment
Ø Anti-corruption
• Principles for Responsible Management Education (PRME), 2007
• Universities and Business Schools should encourage future managers and business leaders to rethink their roles and to develop a new philosophy of business practice
• GCU committed to PRME in January 2012
• GCU is a PRME Champion and Award winner at 2013 Global Summit
Impact of Business
• Top 400 consumer goods companies have combined sales of €2.5 trillion, employ 10 million people directly and 90 million others indirectly
• Ten largest food companies emit more Greenhouse gas than Finland, Sweden, Denmark and Norway combined
• Deutsche Bank Senior Economist: cost of environmental damage of world’s 3,000 largest corporations = $2.2 trillion per year
• Current economic system requires endless stimulation of consumer demand
• Jackson, 2009: ‘a host of canny advertisers, marketers, investors and politicians is on hand to remind and persuade us to spend money we don’t have, on things we don’t need to create impressions that wont last on people we don’t care about’
What changes does a new business model imply?
Old model

• Influence governmental regulation pro company interests
• Avoid taxation as much as possible
• Get subsidies (also if for harmful activities)
• Supreme value: maximize the return for shareholders

New model
• Keep market position with innovation
• Resources conservation
• Multi-stakeholder demands

Impact of Business
• Nancy McGaw, Deputy Director Aspen Institute ‘Beyond Grey Pinstripes’ ranking: ‘It’s still possible to go through an MBA course and never look at the purpose of business or challenge the metrics of success’
• Etzioni, 2002: Aspen Institute study of the top 13 American Business Schools – conventional Business education weakenedstudents’ moral character: 68% believed that maximizing shareholder value was the prime responsibility of a corporation when they started;82% thought so by the end of their first year
Impact of Business
• Etzioni, 2002:
‘A member of the Marketing Department mused that if a policy [of compulsory Ethics teaching] were adopted, his Department would have to close because much of what it was teaching constituted a form of dissembling: selling small items in large boxes, putting hot colours on packages
• Rio+20 summit Sustainability Conference: ‘it is time for business schools to hit the reset button’
Discussion Exercise #2: Ethical Businesses
• What (if any) are the limits of ‘ethical’ business…?
• Could there be such a thing as an ethical:
Ø tobacco company?
Ø landmine manufacturer?
Ø lap dancing club?
• What might be the conflicting interests of different ‘stakeholders’ in each of these potentially profitable businesses?
Work in groups to discuss who are the different stakeholders

References
Bartlett, C.A. and Beamish, P.W. (2008) ‘The Future of the Transnational: An Evolving Global Role’ in Bartlett, C.A. et al (eds), Transnational Management (5th edition). London: McGraw-Hill.
Business in the Community (2014) Taking it Personally: BITC Leadership Task Force report on Responsible Business Leadership – http://www.bitc.org.uk/our-resources/report/taking-it-personally-bitc-leadership-task-force-report-responsible-business
Emmot, S. (2013). ‘Humans: The Real Threat to Life on Earth’, The Observer, 30th June.
Etzioni, A. (2002). ‘Profit Without Honor – When it Comes to Ethics, B-Schools Get an F’ Washington Post, August 4th.
Havas Worldwide (2013). Prosumer Report: Communities and Citizenship: Redesigned for a New World. http://www.prosumer-report.com/blog/wp-content/uploads/downloads/2013/01/prosumer-communities-and-citizenship.pdf
Jackson, T. (2013). ‘New Economic Model Needed Not Relentless Consumer Demand’ The Guardian, 17th January. http://www.guardian.co.uk/sustainable
Murray, S. (2012). ‘On A Mission To Transform Global Leaders.’ Financial Times, 11th June.
Siegle, L. (2014) ‘Perhaps Food Giants can be Ethical after all’, The Observer, 22nd June.
Smith, J. and Rayment, J. (2008) ‘Developing school strategy: Developing globally fit leaders’ International Journal of Management Education,7 (3).
Contemporary Issues for Business and Society
Lecture #2: Questioning Business Leadership and
Management
Dr Simone Baglioni
Content and Structure
• Introduction
• Discussion Exercise #1: Communities, Corporations and Citizenship
• UN Global Compact and PRME
• The Impact of Business
• Discussion Exercise #2: Ethical Businesses
Introduction
• Milton Friedman: principle responsibility of managers is to maximise shareholder profit.
• Implications –
Ø individuals and organisations should act in their own self interest
Ø people are motivated primarily by economic factors
Ø management is about manipulating rewards to influence behaviour
Ø growth is desirable
Ø competition is positive
Ø market forces produce optimal outcomes
Ø the public sector deals with ‘externalities’
Ø natural resources can be exploited
Discussion Exercise
• Havas Worldwide (2013) Prosumer Report: Communities and Citizenship: Redesigned for a New World.
• Do you Agree or Disagree with the following-
Ø ‘The more powerful corporations become, the more obliged they are to behave ethically and with the public interest in mind’
Ø ‘Businesses bear as much responsibility as governmentsfor driving positive social change’
Ø ‘Corporations are better positioned than governments to combat climate change’
Ø ‘I would like my favourite brands to play a bigger role in my local community’
Ø ‘Individuals have more influence on society as consumers than they do as voters’
Communities, Corporations and Citizenship
• Prosumer Report results:
Ø 73% say that the more powerful corporations become, the more obliged they are to behave ethically
Ø 68% say that businesses bear as much responsibility as governmentsfor driving positive social change
Ø 55% say corporations are better positioned than governments to combat climate change
Ø 57% would like their favourite brands to play a bigger role in their local communities
Ø 48% believe they have more influence on society as consumers than as voters; only 14% disagree
• David Jones, Global CEO of Havas: ‘social media has empowered people to hold businesses accountable’
• Business in the Community: ‘Social brand’ is as important as ‘financial brand’
UN Global Compact and PRME
• Sir Ian Cheshire, CEO Kingfisher Group: ‘We need a different model of capitalism, one that enables new ways of consumption, and a new approach to value creation that actively maintains and restores natural and social capital’
• Global Forum on Responsible Management Education: ‘We need to redefine the purpose of the firm and adapt our core assumptions, like … maximization of shareholder value, so that they are fit for purpose in a society that works beyond the short-term to the medium and long-term.’
• United Nations UN Global Compact, 2000:
‘to promote responsible corporate citizenship and ensure that business is part of the solution to the challenges of globalisation… and help realise a more sustainable and inclusive global economy’
http://www.unglobalcompact.org/
UN Global Compact and PRME
• UN Global Compact: 10 Principles under four themes –
Ø Human Rights
Ø Labour
Ø Environment
Ø Anti-corruption
• Principles for Responsible Management Education (PRME), 2007
• Universities and Business Schools should encourage future managers and business leaders to rethink their roles and to develop a new philosophy of business practice
• GCU committed to PRME in January 2012
• GCU is a PRME Champion and Award winner at 2013 Global Summit
Impact of Business
• Top 400 consumer goods companies have combined sales of €2.5 trillion, employ 10 million people directly and 90 million others indirectly
• Ten largest food companies emit more Greenhouse gas than Finland, Sweden, Denmark and Norway combined
• Deutsche Bank Senior Economist: cost of environmental damage of world’s 3,000 largest corporations = $2.2 trillion per year
• Current economic system requires endless stimulation of consumer demand
• Jackson, 2009: ‘a host of canny advertisers, marketers, investors and politicians is on hand to remind and persuade us to spend money we don’t have, on things we don’t need to create impressions that wont last on people we don’t care about’
What changes does a new business model imply?
Impact of Business
• Nancy McGaw, Deputy Director Aspen Institute ‘Beyond Grey Pinstripes’ ranking: ‘It’s still possible to go through an MBA course and never look at the purpose of business or challenge the metrics of success’
• Etzioni, 2002: Aspen Institute study of the top 13 American Business Schools – conventional Business education weakenedstudents’ moral character: 68% believed that maximizing shareholder value was the prime responsibility of a corporation when they started;82% thought so by the end of their first year
Impact of Business
• Etzioni, 2002:
‘A member of the Marketing Department mused that if a policy [of compulsory Ethics teaching] were adopted, his Department would have to close because much of what it was teaching constituted a form of dissembling: selling small items in large boxes, putting hot colours on packages
• Rio+20 summit Sustainability Conference: ‘it is time for business schools to hit the reset button’
Discussion Exercise #2: Ethical Businesses
• What (if any) are the limits of ‘ethical’ business…?
• Could there be such a thing as an ethical:
Ø tobacco company?
Ø landmine manufacturer?
Ø lap dancing club?
• What might be the conflicting interests of different ‘stakeholders’ in each of these potentially profitable businesses?
Work in groups to discuss who are the different stakeholders

References
Bartlett, C.A. and Beamish, P.W. (2008) ‘The Future of the Transnational: An Evolving Global Role’ in Bartlett, C.A. et al (eds), Transnational Management (5th edition). London: McGraw-Hill.
Business in the Community (2014) Taking it Personally: BITC Leadership Task Force report on Responsible Business Leadership – http://www.bitc.org.uk/our-resources/report/taking-it-personally-bitc-leadership-task-force-report-responsible-business
Emmot, S. (2013). ‘Humans: The Real Threat to Life on Earth’, The Observer, 30th June.
Etzioni, A. (2002). ‘Profit Without Honor – When it Comes to Ethics, B-Schools Get an F’ Washington Post, August 4th.
Havas Worldwide (2013). Prosumer Report: Communities and Citizenship: Redesigned for a New World. http://www.prosumer-report.com/blog/wp-content/uploads/downloads/2013/01/prosumer-communities-and-citizenship.pdf
Jackson, T. (2013). ‘New Economic Model Needed Not Relentless Consumer Demand’ The Guardian, 17th January. http://www.guardian.co.uk/sustainable
Murray, S. (2012). ‘On A Mission To Transform Global Leaders.’ Financial Times, 11th June.
Siegle, L. (2014) ‘Perhaps Food Giants can be Ethical after all’, The Observer, 22nd June.
Smith, J. and Rayment, J. (2008) ‘Developing school strategy: Developing globally fit leaders’ International Journal of Management Education,7 (3).
Contemporary Issues for Business and Society
Lecture #2: Questioning Business Leadership and
Management
Dr Simone Baglioni
Content and Structure
• Introduction
• Discussion Exercise #1: Communities, Corporations and Citizenship
• UN Global Compact and PRME
• The Impact of Business
• Discussion Exercise #2: Ethical Businesses
Introduction
• Milton Friedman: principle responsibility of managers is to maximise shareholder profit.
• Implications –
Ø individuals and organisations should act in their own self interest
Ø people are motivated primarily by economic factors
Ø management is about manipulating rewards to influence behaviour
Ø growth is desirable
Ø competition is positive
Ø market forces produce optimal outcomes
Ø the public sector deals with ‘externalities’
Ø natural resources can be exploited
Discussion Exercise
• Havas Worldwide (2013)Prosumer Report: Communities and Citizenship: Redesigned for a New World.
• Do you Agree or Disagree with the following-
Ø ‘The more powerful corporations become, the more obliged they are to behave ethically and with the public interest in mind’
Ø ‘Businesses bear as much responsibility as governmentsfor driving positive social change’
Ø ‘Corporations are better positioned than governments to combat climate change’
Ø ‘I would like my favourite brands to play a bigger role in my local community’
Ø ‘Individuals have more influence on society as consumers than they do as voters’
Communities, Corporations and Citizenship
• Prosumer Report results:
Ø 73% say that the more powerful corporations become, the more obliged they are to behave ethically
Ø 68% say that businesses bear as much responsibility as governmentsfor driving positive social change
Ø 55% say corporations are better positioned than governments to combat climate change
Ø 57% would like their favourite brands to play a bigger role in their local communities
Ø 48% believe they have more influence on society as consumers than as voters; only 14% disagree
• David Jones, Global CEO of Havas: ‘social media has empowered people to hold businesses accountable’
• Business in the Community: ‘Social brand’ is as important as ‘financial brand’
UN Global Compact and PRME
• Sir Ian Cheshire, CEO Kingfisher Group: ‘We need a different model of capitalism, one that enables new ways of consumption, and a new approach to value creation that actively maintains and restores natural and social capital’
• Global Forum on Responsible Management Education: ‘We need to redefine the purpose of the firm and adapt our core assumptions, like … maximization of shareholder value, so that they are fit for purpose in a society that works beyond the short-term to the medium and long-term.’
• United Nations UN Global Compact, 2000:
‘to promote responsible corporate citizenship and ensure that business is part of the solution to the challenges of globalisation… and help realise a more sustainable and inclusive global economy’
http://www.unglobalcompact.org/
UN Global Compact and PRME
• UN Global Compact: 10 Principles under four themes –
Ø Human Rights
Ø Labour
Ø Environment
Ø Anti-corruption
• Principles for Responsible Management Education (PRME), 2007
• Universities and Business Schools should encourage future managers and business leaders to rethink their roles and to develop a new philosophy of business practice
• GCU committed to PRME in January 2012
• GCU is a PRME Champion and Award winner at 2013 Global Summit
Impact of Business
• Top 400 consumer goods companies have combined sales of €2.5 trillion, employ 10 million people directly and 90 million others indirectly
• Ten largest food companies emit more Greenhouse gas than Finland, Sweden, Denmark and Norway combined
• Deutsche Bank Senior Economist: cost of environmental damage of world’s 3,000 largest corporations = $2.2 trillion per year
• Current economic system requires endless stimulation of consumer demand
• Jackson, 2009: ‘a host of canny advertisers, marketers, investors and politicians is on hand to remind and persuade us to spend money we don’t have, on things we don’t need to create impressions that wont last on people we don’t care about’
What changes does a new business model imply?
Impact of Business
• Nancy McGaw, Deputy Director Aspen Institute ‘Beyond Grey Pinstripes’ ranking: ‘It’s still possible to go through an MBA course and never look at the purpose of business or challenge the metrics of success’
• Etzioni, 2002: Aspen Institute study of the top 13 American Business Schools – conventional Business education weakenedstudents’ moral character: 68% believed that maximizing shareholder value was the prime responsibility of a corporation when they started;82% thought so by the end of their first year
Impact of Business
• Etzioni, 2002:
‘A member of the Marketing Department mused that if a policy [of compulsory Ethics teaching] were adopted, his Department would have to close because much of what it was teaching constituted a form of dissembling: selling small items in large boxes, putting hot colours on packages
• Rio+20 summit Sustainability Conference: ‘it is time for business schools to hit the reset button’
Discussion Exercise #2: Ethical Businesses
• What (if any) are the limits of ‘ethical’ business…?
• Could there be such a thing as an ethical:
Ø tobacco company?
Ø landmine manufacturer?
Ø lap dancing club?
• What might be the conflicting interests of different ‘stakeholders’ in each of these potentially profitable businesses?
Work in groups to discuss who are the different stakeholders

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