Lecture Notes, Lectures 1-13 - Business and Society Full Course Notes PDF

Preview

Summary

Full summary of lectures taken from attending the lecture....

Description

Business and Society Full Course Notes Topic 1: history of work Describe the way in which the corporate form of business has developed through time; Identify the main elements of the relationships between business and society; Analyse how the development of these relationships is affected by time and place; Distinguish the three major institutional sectors in society; business, government and notfor-profit enterprises History of business •

Business, trade, commerce – tools, prehistoric examples – barter, medium of exchange, money – governments in business

Forms of business •

• •

Corporations • limited liability • legal person Government Not for Profit... etc

Government enterprises Government activity Public goods Corporatised: Operate as a business, but 100% government owned or part-owned, eg by Temasek Contracted out: Contractor can profit Privatised: No longer owned by government may be regulated

Army, schools, fire service Australia Post SIA, SingTel SA Water

QANTAS

Not government, not business either? NGOs, the non-profit sector Advocacy: Arguing for good causes Greenpeace, Aboriginal Legal Rights Services: For those who cannot afford, left out Salvos Emergency aid Red Cross, United Nations Education Private schools, universities Social and religious: Services for members Bowling club, churches Mixed: Commercial activity by a church Sanitarium Health Foods

Topic 2: meaning of work Describe the relationship between the elements which make up societies and how these relationships affect the nature of work; Describe the elements which contribute to the definition of work and recognise the ambiguity which attaches to it; Understand the role of status in shaping our conceptions of the value of work . Meaning or work    

No simple definition Relation between work and society o is work essential for a sustainable society? Relation between work and business Does business make work harder, less fulfilling

Does our work define us? Has definition of work changed? Internal goods versus external goods? At what point does work become work? o Money o Pleasure o Slaving away, without money? Svendsen (2008)“some see work as meaningless curse while others see it as meaningful vocation” (p13)    

Possible criteria:  Paid/ unpaid  Mandatory / voluntary  difficult, involves effort / easy  boring, not much fun/ joyful  contributes to society, productive, purposeful , generates wealth, personal growth, necessity Working is held in high esteem in some societies and in low esteem in others

“The current ideology is that work should be meaningful and entertaining” (Svendsen 2008, p.1) Has this changed radically from previous generations?

Topic 3: work and leisure Apply ethical reasoning to examine the way in which society distributes work; Describe the elements of work/life balance and its impact on individuals and society •

In contemporary society there is a strong focus on work

•

Provides us with money, it defines us, shapes our self-concept and influences our satisfaction with life. – After all, why are you here?



Does too much work create problems...



Where does the focus on work come from?



The work ethic o Originates in both Protestant and Confucian philosophies...



The ‘Work-leisure’ duality o Industrial Revolution o The artificial divide of our lives into two spheres 

Work and non-work...

Work life balance 

Maintaining a balance between the responsibilities of work and the responsibilities at home o

Typically has been focussed on issues such as: 

Child rearing



Care duties (particularly child care)

Work-life interaction: process of mutual influence between work and life domains

Three components to WLB:   

Time balance: the amount of time given to work and non-work roles. Involvement balance : level of psychological involvement in, or commitment to, work and non-work roles. Satisfaction balance: level of satisfaction with work and non-work roles.

Intrinsic outputs :happiness, personal growth, development Extrinsic, practical, visible outputs : goods and services, office, working conditions…

Is it the level of pleasure, intrinsic value, we see in our lives that is the key to balance? Positive spillover (work benefits life outside work) o Skill development and transfer (E.g. time management, organisation skills, planning skills, negotiation skills) o Enhanced wellbeing (mood enhancement, confidence, satisfaction) o Role enhancement  Negative spillover (work harms life outside work) o Time strain o Fatigue/exhaustion o Emotional/psychological strain o Role strain Outcomes of work-life conflict/ interference 

•

•

Mental health –

Higher burnout rates (Kossek & Ozeki 1999)

–

Increased psychological strain (Allen et al 2000)

–

Increased depression (Allen et al 2000)

–

Greater work stress (Allen et al 2000)

Physical health –

•

•

Increased general somatic symptoms (Allen et al 2000)

Quality of life –

Less life satisfaction (Allen et al 2000)

–

Increased family-related stress (Allen et al 2000)

Organisational outcomes –

Higher turnover intention (Kossek & Ozeki 1999; Allen et al 2000)

–

Lower job satisfaction (Allen et al 2000)

•

Widespread dissatisfaction with current work-life balance

Figure 1 Benefits to Business of providing work-life balance

Work/life balance: Summary •

Many elements in the mix

•

But concept of ‘proper’ balance is value laden, heavily concentrated on carer responsibilities and largely ignores leisure

•

Intrinsic value, happiness, may be found in both work and leisure

•

But only leisure has a freedom of choice component to it...

•

Business has a responsibility to employees as stakeholders

Topic 4 What is ethics Define ethics, moral principles and values, describe the links amongst them, and distinguish ethical issues from some others; Explain why many organisations in business and government believe that ethics is an important facet of business; Identify ethical issues in business, government, not-for-profits and society; Ethics: consists of the standards of behaviour our society accepts -

practical decisions with consequences about the way we live acting properly, living well, trying to work out how one should live

Figure 2 conception of good

-

putting our values into practice

Topic 5 Ethical Decision Making , Practical ethics Describe the stakeholder theory of the firm and use it to identify ethical issues; Describe the stages in Rest’s model of ethical decision making and apply the model in consideration of ethical issues; Distinguish the three major ethical perspectives: outcomes, rules and character. Distinguish the individual, enterprise and society levels of analysis and apply this to ethics.

Mangament

Local community

Owners

Crportation

Suppliers

Customers

Employees

Figure 3 Stakeholders in a corporation

Government, Employees, Customers, Suppliers, Local Community

Owners, Financiers, Shareholders, Investors

Firm

Managers

Figure 4 Who do the managers respond to?

Figure 5 Three approaches: help make an ethical choice

Figure 6 Ethical decision making: 4-steps

Topic 6 Introduction to sustainability Defining sustainability; Understanding the sustainability challenges; Being able to understand the ethical underpinnings of sustainability; Mapping sustainability (how does sustainability fit in with other business disciplines (such as accounting, marketing, economics etc); Understanding a sustainable enterprise Sustainability: mean the suitable use of planet ( recourse, environmental) people (social ) and profits (economic) Challenges: -

-

Social: o (in)equity o Human rights o Child labour Environmental: o Tragedy of the commons o Loss of ecosystem services o Global warming o Climate change

Sustainable enterprise: For a business to be sustainable it needs to focus on social, environmental, and economic responsibilities

Sustainable development: is development that seeks to meet the needs and aspirations of the present without compromising the ability to meet those of the future.

Figure 7 Business and sustainability

Sustainability implications -

Economic results are no longer the only focus of attention. Emerging concept of license to operate. Reluctance to act in sustainable directions can expose organisations to new kinds of sustainability risks.

Topic 7 Environmental sustainability Understanding environmental sustainability; What is the business case for sustainability? Learning about the risk management approach to environmental sustainability; How can businesses deal with environmental risks? Environmentally sustainable enterprise: -

Its rate of use of renewable resources should not exceed their rate of regeneration. Its rate of use of non renewable resources should not exceed the rate at which sustainable renewable substitutes are developed. Its rate of pollution emission should not exceed the assimilative capacity of the environment

Businesses deal with environmental risks -

-

Managing environmental risks through supply chain initiatives: o Supply chain – movement of goods as they flow from the source to end consumer. o Supply chains include activities such as extraction, manufacturing, warehousing, transportation, packaging Reduction in hazardous wastes: Waste management & re-design o life cycle analysis aiming at cradle to cradle o closed loop production designs

Environmental sustainability: Together these strategies help businesses achieve sustainable use and consumption of (renewable and non-renewable) resources.

Topic 8 Social sustainability Understanding social sustainability; Why have social sustainability issues become more potent in a globalized world? Who are the social stakeholders and where do they get their power from? Learning about social risk entry points; What are human rights and how are they related to social sustainability? Are labour rights human rights? Understanding the scope of business involvement with human risk; Corporate social responsibility and social sustainability; Framework for managing social sustainability. Social Sustainability: is about people both within and outside organisations. For a business to understand the importance of Social Sustainability it needs to understand Social Risks Risks posed to: -

people inside the workplace o employees

-

people outside the workplace o suppliers, practices by suppliers that could include child labour, forced labour or oppressive working conditions o indigenous people o

local communities

Why should businesses be concerned about social sustainability? 1. Labor rights are a human rights a. Everyone, without any discrimination, has the right to equal pay for equal work 2. Human right a. Compllicity: A company is complicit in human rights abuses if it: authorises, tolerates, or knowingly ignores human rights abuses committed by an entity associated with it, OR If the company knowingly provides practical assistance or encouragement that has a substantial effect on the perpetration of human rights abuse.

Figure 8 Framework for managing social sustainability.

Summary -

-

Social sustainability is about People (within and outside the workplace)... It includes attention to risks such as o Human rights o Child labour In summary, it is about stakeholder engagement (versus just shareholders)

Topic 9 Being Professional 1 , reflection Describe the distinguishing aspects of professional work and professional practice; Explain the importance of reflection in professional practice; Explain how the concept of a profession and the nature of professional work is affected by time and place and time; Profession: ‘the pursuit of a learned art in the spirit of public service’ -

Medicine, law, church, accountant

Features of being professional:

- distinct identifiable group - social contract - special area of knowledge - balanced decisions, code of ethics - disciplinary procedures - continuing competence - membership can be a source of status Being professional without being in a profession: • • • • •

acting with integrity of a high standard recognising wider situation responding to real need, not contractual minimum learning from colleagues, practice

Topic 10 Professional 2 , career planning Explain how aspects of professional behaviour can be developed in a community of practice; Identify the features of your intended profession; Relate the importance and relevant features of UniSA graduate qualities in preparing for professional life in the community. These are the qualities of every UniSA graduate: 1. Operates effectively with and upon a body of knowledge of sufficient depth to begin professional practice 2. Is prepared for life-long learning in pursuit of personal development and excellence in professional practice 3. Is an effective problem solver, capable of applying logical, critical, and creative thinking to a range of problems 4. Can work both autonomously and collaboratively as a professional 5. Is committed to ethical action and social responsibility as a professional and citizen 6. Communicates effectively in professional practice and as a member of the community 7. Demonstrates international perspectives as a professional and as a citizen. Developing as a professional: At an individual level: -

-

Developing intellectual, practical and moral virtues o wisdom or prudence o justice o courage or fortitude o temperance or restraint reflection, turning a subject over in the mind o a means of personal growth o enhancing the integrity of our life and work

At an organisational level: Organisations can provide an environment that encourages professional behaviour -

organisational culture training and development programs job design job crafting corporate philosophy industry or nation-wide programs: o employers of choice, investor in people At an industry or discipline level: Professional organisations ensure that - study is relevant, accrediting courses - experience can be gained without harming society - lessons are learnt from the practice Professional organisations in business - Chartered Accountants, Certified Practicing Accountants - Australian Human Resources Institute - Australian Property Institute - Institute of Company Directors - Law Society At a national and society level: The relationship between professions and society -

Legal arrangements o members given privileges,  barrier to entry, exclusive right to some jobs or functions o members have obligations  qualification, ongoing professional development, good character  sometimes a legal obligation to put client first o professional body is usually required and involved  discipline procedures - Social expectations o putting client before self Careers: What makes up a job? Descriptive, extrinsic elements: - skills, money, location - match with capabilities Normative, ethical, intrinsic elements: - How should one live? - Integrity, contribution to society, sustainability

Topic 11 Professional 3 , global professionals Describe how different perceptions of good underlie different cultures; Identify the impact of culture on business; Identify the affect of culture on the nature of professional work. Impact of beliefs and culture on being professional Theory Rokeach on values: comparisons of values across different societies and groups ‘core ideas or cognitions present in every society about desirable end-states’ suggested four different types of values: o moral: about interpersonal behaviour o competence: about one’s own behaviour o personal: one’s aims in life, for oneself o social: one’s aims for society Empirical evidence - Inglehart World Values Survey - Henrich fairness studies: Fairness is linked to extent of market integration, and to participation in a world religion - Transparency International - Spirituality at work:Manifestation of a desire to find ultimate purpose in life, & activity consistent with that desire Practical examples - Islamic banking o Work is a religious duty o Qur’an talks of honesty and justice in trade o Charging interest is clearly forbidden - Guanxi - Jugaad: Forced to be innovative due to lack of abundant resources - Toyota Production System: Lean production: o a way to organise mass production o low stocks, continuous improvement (kaizen), zero defects o production lines - Christianity and the West Professionals around the world Cultural impact: Summary o o

-

-

there are significant ethical differences amongst cultures o either because of principle or situation o these have been the subject of various studies some important cultural differences reflect different religious traditions cultural & religious differences are also reflected in differences in professional practice

Topic 12 Professional 4 , leading a fulfilling life Explain how professional work contributes to a sustainable society; Recognise the variety of opportunities for individuals to contribute to society through work in business, government and not-for-profit organisations; Describe the relationship between a fulfilling life, work and a sustainable society. Work: curse or calling? Pleasures and sorrows Essential for realising our humanity Contributing to society; As a professional, business, government, non-profit, external and internal goods Part of a sustainable society; individual, enterprise, national role of business, government, NGOs Growing as a professional; Contributing to society, helping to establish character, being part of a community...