State as accurately as possible the video’s purpose for presenting this information.

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watch and answer this video and answer the questions

Title of the movie: “zero tolerance” available on PBS frontline

link:   https://www.pbs.org/wgbh/frontline/film/zero-tolerance/

1.State as accurately as possible the video’s purpose for presenting this information. Explain your analysis/answer in five or more sentences.

2. What is the video attempting to convey and from what perspective is it presenting the information? Provide your analysis/answer in five or more sentences.

3. What key question can you develop from the content presented in the article? Provide your question and then your analysis/answer in five or more sentences.

4. What are the most important ideas you would have to understand in order to understand the video’s line of reasoning? Provide your analysis/answer in five or more sentences.

5. What is the video failing to address (what might be questioned)? provide your analysis/answer in five or more sentences.

6. What consequences are likely to follow if people take the video’s line of reasoning seriously> Provide your analysis/answer in five or more sentences.

7. What consequences are likely to follow if people ignore the video’s reasoning? Provide your analysis/answer in five or more sentences.

8. IDentify the key conclusions the video comes to and presents? provide your analysis/answer in five or more sentences.

9. What facts, experiences or data is the video using to support its conclusions? Provide your analysis/answer in five or more sentences.

The format should be in Q and A format.

Analyze the connection between businesses and society.

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DBA 7035, Business, Government and Society 1

Course Learning Outcomes for Unit II Upon completion of this unit, students should be able to:

1. Distinguish between the market and nonmarket environment of business by explaining the four Is of the nonmarket environment. 1.1 Analyze the connections between business and society. 1.2 Detail how the connections to society affect a specific organization.

8. Portray how business utilitarianism and ethical values apply to corporate social responsibility.

8.1 Examine the future of corporate governance globally.

Reading Assignment Chapter 3: Corporate Governance

Unit Lesson Corporate Governance Corporate governance is the formal system of accountability, control, and oversight for the decisions and resources of an organization. The concept of governance refers to a system of checks and balances that places restrictions on practices of employees and managers who are not complying with policies established by the board. Examples of such policies include strategic planning, compensation, financial planning and reporting, ethical and legal issues, and stakeholder interest. Corporations can be controlled both internally and externally by customers, employees, and communities who expect responsible behavior. Internally, upper management and the board of directors are responsible for the accuracy of financial reporting and financial decision-making. Externally, lawmakers and legislation also provide incentives for organizations to balance stakeholder interest. When companies act responsibly and take actions to prevent misconduct, they avoid the possibility of violation penalties. Historically, companies have been driven by the profit imperative as their sole area of interest. Increasingly, these market-driven interests have been balanced with more nonmarket interests of importance including environmental and community interests. As a context to this unit, it is important to have some understanding of the concept of business utilitarianism and ethical values. Initially, these concepts were developed by Jeremy Bentham (1748–1832). Essentially, Bentham viewed humans as simply being self-interested individuals. In fact, he believed that concepts such as community and social relations were useful social conventions, but fundamentally meaningless. The individual is the only unit of society, and no one individual is more or less important/valuable than another. In his view, individuals (and corporations) acted in their own self-interests (Driver, 2014). Clearly, the concept of utilitarianism is important as we explore models of corporate governance. Components of Social Governance First, let us examine internal governance. To understand the concept of corporate governance, one must recognize the four major groups that set the stage for compliance. These internal groups include shareholders, the board of directors, managers, and, finally, employees. A state charter is typically issued; this gives the corporation the right to exist and indicates the basic terms of existence. Shareholders are the owners of the corporation and maintain ultimate control over the corporation as authorized in corporate law. Owners are responsible for selecting the company’s board of directors. The

UNIT II STUDY GUIDE

Corporate Governance

 

 

 

DBA 7035, Business, Government and Society 2

number of stock shares owned is important for determining the number of votes each shareholder can exercise. Because many organizations, especially larger ones, have many shareholders, the board of directors is elected to govern and oversee the management of business issues. One of the primary responsibilities of the board is to ensure that mangers put the interests of the owners first. The board of directors hires management to run the company on a daily basis. Upper-level management in conjunction with the board is responsible for overall strategic planning and policy development. Middle- and lower-level management are responsible for tactical planning to carry out the strategic plan and supervision of employees at the operational level. Members of management are considered as employees of an organization, and those who are not in management positions are referred to as non-managerial employees. Corporations are primarily managed under the guidance and direction of the appointed board of directors. These elected members have a fiduciary responsibility to both shareholders and society. A fiduciary responsibility, also known as duty of loyalty or duty of care, is a legal duty to act in another party’s interest. In situations regarding conflicts of interest, the duty of loyalty requires directors to act in the best interest of the corporation and shareholders. Evolution of Corporate Governance and the Classical Stakeholder Model The classical stakeholder model contends that publically traded firms should seek to maximize wealth for investors and owners. In this model, corporate governance will focus on improved performance between shareholders and the firm’s top-level management. When ownership and control of a business are separate, management decisions should be made in the best interest of the investors. As separate entities, managers and owners have unique values and goals with respect to a business. Ideally, these goals and values should be congruent; however, potential differences exist and influence the manner in which decisions are made. The concept of legitimacy is often associated with the term corporate governance. The word can be applied to organizations and corporate governance in the sense that organizations are legitimate as long as their activities are congruent with the values and goals within the system that they function. In essence, these activities must align with societal expectations and the corporate system. Over the years, social and ethical issues have raised attention to discrepancies between intended and actual rights, accountability, and roles and responsibilities among shareholders, board of directors, managers, and employees. For example, managers may have distinct motivations beyond shareholder value such as increased market share, compensation and bonuses, personal kickbacks, or affinity to particular products. In such cases, corporate governance is necessary to ensure that management and investor interests are closely aligned. Historically, owners were managers of corporations themselves and controlled all aspects of the business. In some instances, owners continued to control their businesses even when firms grew larger and managers were hired. In such cases, the owners were readily visible and on the scene to hold managers accountable for actions that were not congruent with values and goals of the organization. However, widely dispersed stock ownership held in a public corporation made it difficult for all owners to have such control. Hence, a separation of ownership from control became an important condition, and the board of directors was established to oversee management on behalf of the shareholders. The board’s independence from management is an important aspect of corporate governance. Best Practices for Good Governance In light of recent scandals, it is essential to define some important principles of an effective corporate governance program. A few key features of effective boards include a few broad practices. First, board of directors should be selected outside of the organization itself. While current managers may often fill board positions, outside member selection should be independent of the corporation. Second, shareholders should exercise more control over the selection of directors by holding open elections for board members either by placing their own candidates on the ballot, requiring 50% of votes to be elected, having members stand for election annually, or serving staggered terms. Appointing a leading director (board chairman) and holding regular meetings without the presence of the CEO (management) is also suggested. In other words, the independent chairman can hold elections without the presence of management that will allow the board to have candid discussions about business matters. Additionally, aligning director compensation with corporate performance is ideal to ensure that board members are paid according to how well the company performs.

 

 

 

DBA 7035, Business, Government and Society 3

Finally, the performance of the board should be evaluated on a regular basis to ascertain the diligent performance of duties. In summary, there has been increasing attention paid to the operation of business. This represents a change from previous periods in which businesses were largely left to their own devices. Corporate governance is now an important concern for business. It is important that businesses understand how to make transparent decisions that meet the legal, regulatory, and political context within which they operate.

Reference Driver, J. (2014). The history of utilitarianism. Retrieved from https://plato.stanford.edu/entries/utilitarianism-

history/

Distinguish the pros and cons of social media in successful business strategy.

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DBA 7035, Business, Government and Society 1

Course Learning Outcomes for Unit VI Upon completion of this unit, students should be able to:

2. Critique nonmarket issues affecting successful business strategies including the role of the news media. 2.1 Distinguish the pros and cons of social media in successful business strategy. 2.2 Explain how business strategy is affected by the news media. 2.3 Discuss ways that businesses implement strategies to interact with the news media.

 

Reading Assignment Chapter 8: Consumer Relations Additional Reading Assignment: In order to access the following resource, click the link below: Roy, J. (2015). Role of media in our society. Retrieved from

http://www.globalethicsnetwork.org/profiles/blogs/role-of-media-in-our-society

Unit Lesson Introduction: The Media’s Role in Society For centuries, the media has maintained an exciting role as an informant in society. In the early 1800s, this excitement was portrayed by the popular cry of newsboys saying, “Extra! Extra! Read all about it!” while delivering a special edition of a newspaper. Newspapers published “extra special” or “extra” editions after a big news event, such as a presidential election, a war, an assassination, or a trial verdict. The media’s role as an informant has become increasingly important over time. Manifestations of the news media’s role are observed in the market and nonmarket environments in many significant ways. First, the news provides information to the general public about issues that affect people’s lives and the society in which people live. Activists, the government, interest groups, and the public at large are alerted based on information received in the news media. Second, the media identifies nonmarket issues and stimulates the necessary action that affects the progression of the issues. It is responsible for raising concerns about the policies and practices of firms. In recent years, the expansion of media sources, including the most well-known social media sites, has enhanced the strength of the media’s ability to share more information to an expanded audience. Issue Coverage and Forms of Treatment Despite efforts to disclose information among stakeholders, the news media protects its independence from issues and carefully avoids being used as a part of a nonmarket strategy. Its main objective is to cover an issue of interest to viewers. The intrinsic audience theory suggests that coverage increases with the interest of an audience. For example, there is a tendency for the media to dwell on stories that appeal to the audience’s sensation or that elicit an emotional response from the audience. Examples of these issues include automobile accidents, kidnappings, riots, demise of industry leaders, natural disasters, and other related stories. Other important factors related to coverage depend upon whether an issue is newsworthy, the cost of coverage, and balance and fairness. These factors are discussed below.

UNIT VI STUDY GUIDE

The Role of the Media and the Importance of Consumer Relations

 

http://www.globalethicsnetwork.org/profiles/blogs/role-of-media-in-our-society

 

 

DBA 7035, Business, Government and Society 2

 Newsworthiness: An issue is more newsworthy and will receive greater attention if it involves a degree of immediacy or urgency (natural disaster), involves a celebrity, or has a human interest element with which the audience identifies. The type of coverage depends on the cost of obtaining information and producing a story.

 Cost of coverage: Media organizations rely on low-cost sources of information. Often, this information comes from citizens. With the rise of Internet usage, citizen journalism has become an important phenomenon because of blog and social media capabilities. Many citizens use the Internet to voice their opinions on nonmarket issues that affect business developments. The Internet also presents an opportunity for the news media to gain increased exposure by creating their own social media and blogging sites for citizens to comment on various issues regarding business developments.

 Balance and fairness: Most nonmarket issues involving businesses are quite complex. Presenting high-level, complex issues with accuracy, fairness, and balance will vary considerably among media organizations. Regardless of the source, journalism standards and editorial controls mandate that stories are accurate with balanced and fair treatment. These standards are enforced by news media organizations and professional associations.

Media forms of treatment include straightforward presentation of facts, straightforward description of events, interpretation of facts and events, exploration of the potential significance and ramifications, and advocacy of a course of action. News Media and Business Interactions Because the media provides a safe haven for citizens to voice their opinions, business interactions with the news media are essential to minimize public scrutiny. Since the media desires to strike a balance and ignite controversy, it also exercises control over the editing process and carefully selects interview parts that make an interesting story. Many times, these stories are not the ones firms desire for the general public to know. In fact, many firms wish to avoid media coverage and will provide minimal comments to satisfy the media to avoid full-blown stories from appearing. To protect its public face, most businesses implement strategies to interact with the media. For example, research the Hewlett-Packard (HP) media guidelines. In particular, HP encourages all employees to consider the front-page test that requires employees think about what the decision would look like on the front page of the local paper (HP, n.d.). Most companies that grant interviews to the media often designate a public relations specialist or company figurehead to speak with journalists. When media coverage of an issue is anticipated, firms should prepare to speak to the media to curtail any negative publicity that might arise. Even firms that are well prepared often encounter unanticipated events for which they must give a response. An increasingly important component of this issue relates to social media. For more information on the importance of social media, see an example in the Ciccatelli article in the suggested reading section of this unit. Another way that businesses can manage their public relations is to be proactive. Indeed, many businesses today develop corporate social responsibility (CSR) annual reports. These are designed to articulate specific CSR initiatives and report annually on the organizational achievement of those goals. A good example of this type of report is the case of Dell. Dell has developed socially responsible goals, and it takes achieving these goals very seriously (Dell, 2016). Many other companies follow this voluntary example of compliance. In some respects, these types of reports follow the guidance in the Sarbanes-Oxley Act that requires firms to be more transparent. Also, these types of reports are helpful in addressing media-related issues. Consumer Relations and Strategic Philanthropy Another element that is important in our understanding of business, government, and society is related to the importance of consumers and consumer relations. Consumers have a series of basic rights including the right to choose, the right to safety, the right to be informed, the right to be heard, the right to redress, and the right to privacy (see Table 8.5 on p. 275 of the textbook). These rights are protected by a series of key consumer laws (see Table 8.3 on p. 267 of the textbook). This legal framework has developed over time, and reflects a fundamental shift in the framework of business, government, and society in general. Specifically, the change reflects the fact that the system is holistic and that all three elements (business, government, and society) are interrelated and mutually supportive. This framework reflects a shift from the previous period in which businesses were viewed as more independent and looking simply to generate profits to support their own business interests.

 

 

 

DBA 7035, Business, Government and Society 3

Another aspect of this more holistic perspective of business is being a partner with government and society; many businesses have developed strategic philanthropic interests. The benefits of these interests include consumer trust, stakeholder loyalty, employee engagement, reputation, enhanced brand image, increased shareholder value, and positive publicity. Summary This unit outlines the fact that businesses are increasingly viewed by others as a part of the communities in which they operate. Businesses are subjected to increasing scrutiny by the media and by consumers. To retain a competitive advantage, firms must be aware of this new reality and act accordingly.

References Dell. (2016). An annual update on our 2020 Legacy of Good plan. Retrieved from

http://i.dell.com/sites/doccontent/corporate/corp-comm/en/Documents/fy16-cr-report.pdf Hewlett-Packard. (n.d.). Our standards of business conduct: Building trust together. Retrieved from

http://www.hp.com/hpinfo/globalcitizenship/csr/sbcbrochure.pdf

Suggested Reading Social media can be a great tool for businesses to use; however, it does have its drawbacks and risks. This article examines the risks of social media and how to navigate them. Ciccatelli, A. (2014). The reality of managing social media risk in business. Retrieved from

http://www.insidecounsel.com/2014/04/24/the-reality-of-managing-social-media-risk-in- busin?slreturn=1480269872

Using Technology to Improve the Future

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Using Technology to Improve the Future

As addressed in the readings, technology has the potential to both solve global social problems and make them worse. For example, technological devices that can interact with the environment have the potential to reduce world hunger by helping to increase food production in developing countries. However, some technological advancements—such as weapons of war and automated assembly lines—can threaten life through armed conflict, and pollution of the environment can increase poverty by eliminating jobs.

Do advancements in technology pose any direct and/or indirect threats to the global environment? Choose one advancement and provide two examples of direct or indirect threats in your explanation.