Social Context of Business Chapter 1

Topics: Capitalism, Civil society, Economics Pages: 6 (1160 words) Published: December 5, 2012
LESSON/CHAPTER 1:

Business and Society- Its Relationship

Significance of Business in Social Context:
-Business affects and is affected by the society in which it operates. -For managers to operate effectively, an understanding of business’ domestic macro-environment is essential.

What exactly is business’ “domestic Macro environment”? -It is intuitive that business can affect and be affected by other businesses -But business can affect, also be affected by:
–Government
–Civil society

Understanding “The Modified Boulding Triangle”
-There is an interrelationship/interdependence between the three sectors of the triangle (business, civil society and government) -Each part is affected by each of the other parts

BUSINESS

GOVERNMENT

CIVIL SOCIETY

Canada’ Domestic Macro environment (The Boulding Triangle continued) -Depicts the three segments of the domestic macro environment- Business (B) Government (G) and Civil Society (S) -The corners of the triangle represent B, G and S at their purest forms:

-Pure reciprocity (civil society)
-Pure exchange (Business)
-Pure coercion (government)
-All the inner territory represents organizations embodying different mixes of the three parts. -Rules/ arrangements for each segment are based on different principles:
-Business -supply and demand forces
-Government -redistribution and coercion
-Civil society –cooperation and solidarity
-The new Canadian domestic macro environment requires:
-The need to collectively mobilize the intelligence, imagination and knowledge of all stakeholders to innovate -The tapping of the intelligence, imagination and knowledge of all the stakeholders to compete effectively -Individuals from any one of the three sectors (of the triangle) to develop at least a working knowledge of the other two

Drivers of Change in Canada’s Social Context
1.Population demographics (aging, more diverse and multicultural population with more complex issues) -Aging Population- the baby boomers (Born late 1940s-1960s)
Affects on Business:
-This group is the highest earners and the largest cohort and represents enormous demand -Aging…therefore different products
-Who will replace this cohort in the workforce?
Affect on government
-Largest single voting cohort
-Demand certain things of importance to an aging group
-Tax breaks
-Pension management
-Personal services
-Can influence who gets elected
Affect on civil society
-Can strongly influence the agenda of civil society organizations
-Largest group of potential volunteers
-Largest group of charitable supporters
-Most are well Connected and experienced
2.Continuing advances in information communication technologies
Affect on Business:
-Instant communications
-Increased expectations of stakeholders
-Greater visibility of business activities
-Greater competition
Affect on Government:
-Instant communications
-Increased expectations of stakeholders
-Greater visibility of government policy issues and greater public scrutiny on actions of government Affect on social society:
-Increased ability to influence government and business
-Increased capacity to garner public support to play on business and government agendas -Increased demands on its services
3.Globalization
Affect on Business:
-Pressure to innovate
-Unpredictable competition from everywhere
-Multicultural workforce at home and related management issues -Manufacturing activities in foreign countries
-More security and safety issues
Affect on Government:
-Need to work with different governments in different cultures and different political systems to effect economic growth -Must recognize developing nations’ issues
-Less protection for domestic industries
Affect on social society:
-Increasing knowledge of other civil societies
-Increasing complexity if civil society issues
-Opportunity to work more collaboratively with government and business

Factors Influencing Attitudes Towards Business...
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • business in context Essay
  • Intro to Business Chapter 1 Essay
  • Essay on Intro to Business Chapter 1
  • Essay on Chapter 1 6 Review
  • Business Risks in the Context of Social Responsibility Essay
  • Social Business Essay
  • Contexts for Contemporary Business Paper
  • Essay on Business Ethics Chapter 1 Saq

Become a StudyMode Member

Sign Up - It's Free