Social Context of Business Chapter 1
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)
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)