Next, read the following article on Stakeholder Analysis: http://www.mindtools.com/pages/article/newPPM_07.htmThe other two reading are in the attached file.part 1Explain the concepts of stake and sta

Business & Society: An Overview • Business is the collection of private, profit - oriented organizations. • Society is a broad group of people and other organizations, interest groups, a community, a nation. • Business and society interrelate in a macroenvironment as stakeholders . Business Community Consumers Owners Government Employees • The macroenvironment is the total societal context in which the business or corporation exists and is made up of four parts: Social Political Technological Economic SOCIETY: THE MACROENVIRONMENT Four Parts of the Macroenvironment 1) Social environment focuses on demographics, lifestyles and social values 2) Economic environment focuses on the economy (local, as well as global) 3) Political environment focuses on the legislative process, election process and the interaction between firms, politics and government 4) Technological environment focuses on the changes in technological advancement Pluralistic Society Strengths • Prevents concentration of power • Disperses individual allegiances, creating diversified sets of loyalties and support • Provides systems of checks and balances Weaknesses • Multiplies the numbers of organizations and groups with overlapping goals, which may promote inefficiency Power is shared among many groups, or “Stakeholders”, each with special interests Special - Interest Society • Special interests make life more complex for business • Thousands of special interest groups exist • Special interest groups each pursue their own limited agenda • Special interest groups attract a lot of supporters, which increases their revenue and power Visit the following link for an example of some special interest groups and their work: http://www.leg.state.mn.us/lrl/links/links.aspx?links=special Business and Selected Stakeholder Relationships Busines s Community Consumers Owners Government Employees General Public Environmental Groups Local State Federal Corporate Raiders Private Citizens Institutional Investors Consumer Activists Product Liability Threats Unions Older Employees Women Minorities Civil Liberties Activists Stakeholder Main Interests Power and influence Shareholders Profit growth, Share price growth, dividends Election of directors Banks & other Lenders Interest and principal to be repaid, maintain credit rating Can enforce loan covenants; Can withdraw banking facilities Directors and managers Salary ,share options, job satisfaction, status Make decisions, have detailed information Employees Salaries & wages, job security, job satisfaction & motivation Staff turnover, industrial action, service quality Suppliers Long term contracts, prompt payment, growth of purchasing Pricing, quality, product availability Customers Reliable quality, value for money, product availability, customer service Revenue / repeat business Word of mouth recommendation Community Environment, local jobs, local impact Indirect via local planning and opinion leaders Government Operate legally, tax Regulation, subsidies, 9 Elements in the Social Contract Laws or Regulations Two -Way Shared Understandings of Each Other Society or Societal Stakeholder Groups Business Business Criticism • Affluence and education • Awareness through television • Revolution of rising expectations • Entitlement mentality • Rights movement • Victimization philosophy Factors in the Social Environment Social Environment, Criticism, and Corporate Response A Changed Social Contract Increased Concern for Society and Impacts Business Criticism Affluence Education Awareness Factors in the Social Environment Rising Expectations Entitlement Mentality Victimization Philosophy Rights Movement Examples of Business Criticisms Payscale Lack of ethics Accounting Scandals Lazy CEOs Bailouts CEO Payouts Glass Ceiling Job Security Discrimination/ Intolerance for Diversity Outsourcing Traffic congestion Public safety Heath insurance benefits Illegal workers Pollution Bad working conditions Bad customer service Increased Concern for Society Stemming from Business Criticisms Leads to New Outcomes Criticisms of business based upon special interests groups regarding: changes in technology, human rights movements, environmental concerns, economic impacts, etc. has pushed business leaders to:

• reconsider the basis of their social contracts • invest in concepts of corporate social responsibility and sustainability Sources Cited: Retrieved from: http://blog4biz101.com/blog/business/major - social -and -behavioral -criticisms -of -business/ Carroll, Archie B., Buchholtz , Ann K. Business & Society: Ethics and Stakeholder Management. 2008. Cengage Learning, Inc. Sample retrieved from:

http://books.google.com/books?hl=en&lr=&id=B9diOWV8X_UC &oi=fnd&pg=PR3&dq=business+and+society&ots=0IeAqMKFL7& sig=yYJFAbT -- S0ycSeTLRxr6kpJcLw#v=onepage&q&f=true