Social Responsibility and Good Governance

TOPIC TITLE: POLITICAL AND ECOLOGICAL CHALLENGES

SPECIFIC OBJECTIVES:

At the end of the topic session, the students are expected to:

Cognitive:

1. Identify the types of corporate political strategies, and the

influences on an organizations development of a particular
strategy.
2. Assess the tactics businesses can use to be involved in the
political process use.
3. Recognize the challenges facing business in managing
businessgovernment relations in different countries.
4. Define an ecologically sustainable organization and the
stages through which firms progress.
5. Analyze how effective environmental management makes
firms more competitive.

Affective:

1. Listen attentively to the class discussion.

2. Participate actively in the class discussion.
3. Show eagerness in working with a group.

Psychomotor:

1. Evaluate a companys political and ecological challenges

and their solutions to address it.

MATERIALS/EQUIPMENT:

o Topic slides
o OHP

TOPIC PREPARATION:

o Read books, articles and journals about Corporations

Political and Ecological Challenges

o Prepare a 15 item short quiz. This will be Quiz 6.

o Visit website:
http://www.huayinet.org/biography/biography_luciotan.htm

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 Social Responsibility and Good Governance

TOPIC PRESENTATION:

The topic will revolve around Political and Ecological Challenges.

Discussion will include the corporate political strategy, political action
tactics, levels of political involvement, stages of corporate
environmental responsibility, and environmental management in
practice.

This will be the suggested flow of discussion for Political and

Ecological Challenges:

1. Motivational Activity: Ask the students to share with the class

their group assignment 5: Evaluate A Companys Political &
Ecological Challenges. Each group is given 5-8 minutes to
do the oral presentation of group assignment 5.

2. After each presentation, let the group pass their written

group assignment 5.

3. Give a short biography of Lucio Tan. You may refer to this

website:

http://www.huayinet.org/biography/biography_luciotan.htm

4. Ask the class: How did Mr Tan conduct himself in business?

What is your perception regarding his relationship with well
known presidents?

5. Describe the different corporate political strategies and its

influences on the corporations development.

6. Randomly call on students to identify the political action

tactics. Let them give a brief discussion of their answers.

7. Evaluate the levels of political involvement. Be able to

explain well the different stages in the political involvement.

8. Explain the stages of corporate environmental responsibility.

Some organizations like SIFE, if you did the readings
regarding this organization, you may be able to provide lots
of examples. It is also possible for students to conceptualize
a business with a corporate environmental responsibility.

9. Discuss the ecological sustainable organization. This also is

one of the missions of SIFE, to build a business and help a
community sustain itself.

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 Social Responsibility and Good Governance

10. List in the blackboard the environmental management in

practice. Call students who are usually quiet in the
classroom. Let them give a brief explanation to the different
environmental practice.

11. Give Group Assignment 6: Examine Technological

Challenges.

12. Ask the students to go to their previous group from Group

Assignment 5. Have the class examine the technological
challenges of the companies that they have selected to
study in the previous topic sessions. The following is a
guide to the analysis:

o What are the companys technological challenges in

doing their business operations?

o What are the companys solutions to these technological

challenges?

o Do you agree with their solutions? If not, what are your

recommendations?

13. Prepare a computerized summary of the assignment. Font

Arial, Font Size 12, Single space. Also, include additional
information that the members of the group find important.

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Three Strategic Types of
Corporate Political Strategy
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Social Responsibility and Good Governance
Three Strategic Types of Corporate Political
Strategy
o Information Strategy
Businesses seek to provide government
policymakers with
influence their actions.
information to
o Financial-incentives Strategy
Businesses provide incentives to
influence government policymakers to
act in a certain way.
o Constituency-building Strategy
Businesses seek to gain from other
affected organizations to better
influence government policymakers to
act in a way that helps them.
Political & Ecological Challenges
Political & Ecological Challenges
Social Responsibility and Good Governance
POLITICAL AND ECOLOGICAL CHALLENGES
Businesses face complicated issues in managing their relationships
with politicians and government regulators. Managers must
understand the political environment and be active and effective
participants in the public policy process. They need to ensure that
their company is seen as a relevant stakeholder when government
officials make public policy decisions and must be familiar with the
many ways that business can influence these decisions. The
opportunities afforded businesses to participate in the public policy
process differ from nation to nation. Sound business strategies
depend on an understanding of these differences, enabling
businesses to manage worldwide businessgovernment relations
effectively.
Growing public interest in protecting the environment has prompted
political and corporate leaders to become increasingly responsive to
environmental issues. Government policy makers have moved
toward greater reliance on market-based mechanisms, rather than
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command and control regulations, to achieve environmental goals.
At the same time, many businesses have become increasingly
proactive and have pioneered new approaches to effective
environmental management, often conferring a competitive
advantage.
Corporate Political Strategy
Business leaders and scholars agree that firms must participate in
the political process.
o Stakes are too high for business not to be involved.
o Government acts on issues that affect basic operations of
companies.
Companies therefore must formulate their Corporate Political
Strategy.
o Involves the activities taken by organizations to acquire,
develop, and use power to obtain an advantage.
Three Strategic Types of Corporate Political Strategy
o Information Strategy
Businesses seek to provide government policymakers with
information to influence their actions.
Examples are lobbying, direct communication, and expert
witness testimony.
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 Social Responsibility and Good Governance

o Financial-incentives Strategy

Businesses provide incentives to influence government

policymakers to act in a certain way.

Examples are political contributions, economic leverage,

political consulting aid, and office personnel.

o Constituency-building Strategy

Businesses seek to gain from other affected organizations

to better influence government policymakers to act in a
way that helps them.

Examples are stakeholder coalitions, advocacy

advertising, public relations, and legal challenges.

[See Three Strategic Types of Corporate Political Strategy, Page

1 of 7]

Political Action Tactics

Promoting an Information Promoting an Information Strategy

Strategy
Page 2 of 7 o Lobbying

Lobbyists communicate with and try to persuade others to support

Social Responsibility and Good Governance
an organizations interest or stake as they consider a particular law,
Promoting an Information Strategy policy, or regulation
o Lobbying

o Direct Communications with Policymakers

o Direct Communications with Policymakers
Expert Witness Testimony
o
Businesses invite officials to participate in activities that will improve
government officials understanding of management and employee
The Business Roundtable
concerns
o One of the most effective organizations for
promoting direct communication between
business and policymakers.
o Expert Witness Testimony
o Organization of CEOs of leading corporations.

o Studies various public policy issues and

Businesses provide facts, anecdotes, or data to educate or influence
advocates for laws it believes foster vigorous
economic growth and a dynamic global government leaders at public forums like congressional hearings
economy.

o Considers issues like corporate governance,

education, health care, and civil justice
reform.
The Business Roundtable
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o One of the most effective organizations for promoting direct

communication between business and policymakers.

o Organization of CEOs of leading corporations.

o Studies various public policy issues and advocates for laws it

believes foster vigorous economic growth and a dynamic global
economy.

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 Social Responsibility and Good Governance

o Considers issues like corporate governance, education, health

care, and civil justice reform.

[See Promoting an Information Strategy, Page 2 of 7]

Promoting a Financial Incentive Promoting a Financial Incentive Strategy

Strategy
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o Political Action Committees

Social Responsibility and Good Governance

Independently incorporated organizations that can solicit
Promoting a Financial Incentive Strategy contributions and then channel those funds to candidates seeking
political office
o Political Action Committees

o Economic Leverage o Economic Leverage

Promoting a Constituency Building Strategy Occurs when a business uses its economic power to threaten to
o Stakeholder Coalitions
leave a city, state, or country unless a desired political action is
taken
o Advocacy Advertising

o Public Relations

o Trade Associations
Promoting a Constituency Building Strategy
o Legal Challenges

o Stakeholder Coalitions
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Businesses try to influence politics by mobilizing various

organizational stakeholders to support its political agenda

o Advocacy Advertising

Advertisements that focus on a companys views on controversial

political issues

o Public Relations

Could be politically charged comment in a speech by senior

executive or a public relations campaign

o Trade Associations

Coalitions of companies in the same or related industriesto

coordinate their grassroots mobilization campaigns

o Legal Challenges

Business seeks to overturn a law after it has been passed

[See Promoting a Financial Incentive Strategy, Page 3 of 7]

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 Social Responsibility and Good Governance

Levels of Political Involvement

o Level 1 : Limited Organizational Involvement indirect and

impersonal

Contribution to political action committee.

Levels of Political Involvement
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o Level 2: Moderate Organizational Involvement indirect yet
personal
Levels of Political Involvement

Level 1 Organizational lobbyist

Limited Organizational
Involvement
Employee grassroots involvement

Stockholders and customers encouraged to become

Level 2 involved
Moderate Organizational
Involvement

o Level 3: Aggressive Organizational Involvement direct and

Level 3 personal
Aggressive Organizational
Involvement
Executive participation
Involvement with industry working groups and task forces
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Public policy development

[See Levels of Political Involvement, Page 4 of 7]

Stages of Corporate Environment Stages of Corporate Environmental Responsibility

Responsibility
Page 5 of 7 o Pollution Prevention

Focuses on minimizing or eliminating waste before it is created

Social Responsibility and Good Governance

o Product Stewardship
Stages of Corporate Environmental Responsibility

Managers focus on all environmental impacts associated with the full

life-cycle of a product

o Clean Technology
Pollution Product
Prevention Stewardship
Businesses develop innovative, new technologies that support
sustainability

Clean [See Stages of Corporate Environmental Responsibility, Page 5

Technology
of 7]

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 Social Responsibility and Good Governance

Ecologically Sustainable Organization

The need for balance between economic and environmental

considerations is captured in the concept of Sustainable
Development. This term refers to development that meets the
needs of the present without compromising the ability of future
generations to meet their own needs.
The concept includes two core ideas:

o Protecting the environment will require economic development.

Poverty is an underlying cause of environmental degradation.
People who lack food, shelter, and basic amenities misuse
resources just to survive. For this reason, environmental
protection will require providing a decent standard of living for all
the worlds citizens.

o But economic development must be accomplished sustain ably

that is, in a way that conserves the earths resources for future
generations. Growth cannot occur at the expense of degrading
the forests, farmland, water and air that must continue to support
life on this planet. We must leave the earth in as good shape
or better shape that we found it.

Organizational elements of many An Ecologically Sustainable Organization (ESO) is a business

proactive green companies that operates consistently with principles of sustainable
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o An ESO could continue its activities indefinitely, without altering

Social Responsibility and Good Governance
the carrying capacity of the earths ecosystem.
Organizational elements of many proactive
green companies
o Such businesses would not use up natural resources any faster
Top management involvement in
that they could be replenished or substitutes found.
sustainability

Line manager involvement o They would make and transport products efficiently, with minimal
Codes of environmental conduct
use of energy.
Cross-functional teams

o They would design products that would last a long time and that,
Rewards and incentives when worn out, could be disassembled and recycled.
Track performance through environmental
audits
o They would not produce waste any faster than natural systems
Publish combined sustainability reports could absorb and disperse it.
integrating social, economic and
environmental performance

o They would work with other businesses, governments, and

organizations to meet these goals.
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The concept is what social scientists call an ideal type, that is a

kind of absolute standard against which real organizations can be
measured.

ESO needs supportive government policies and widespread

movement among many businesses and other social institutions.

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 Social Responsibility and Good Governance

Environmental Management as a Environmental Management in Practice

Competitive Advantage
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Organizational elements of many proactive green companies

Social Responsibility and Good Governance

o Top management involvement in sustainability
Environmental Management as a
Competitive Advantage o Line manager involvement

o Cost Savings
o Codes of environmental conduct
Product Differentiation
o
o Cross-functional teams
o Technological Innovation
o Rewards and incentives
o Strategic Planning

o Track performance through environmental audits

o Publish combined sustainability reports integrating social,

economic and environmental performance

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[See Organizational elements of many proactive green
companies, Page 6 of 7]

Environmental Management as a Competitive Advantage

o Cost Savings

Companies that reduce pollution and hazardous waste, reuse or

recycle materials, and operate with greater energy efficiency can
reap significant cost savings

o Product Differentiation

Companies that develop a reputation for environmental excellence

and that produce and deliver products and services with concern for
their sustainability can attract environmentally aware customers

o Technological Innovation

Technological innovation can lead to imaginative new methods for

reducing pollution and increasing efficiency

o Strategic Planning

Companies that cultivate a vision of sustainability must adopt

sophisticated strategic planning techniques

[See Environmental Management as a Competitive Advantage,

Page 7 of 7]

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 Social Responsibility and Good Governance

EVALUATION/GENERALIZATION

Group Assignment 6: Examine Technological Challenges

Ask the students to go to their previous group from Group

Assignment 5. Have the class examine the technological challenges
of the companies that they have selected to study in the previous
topic sessions. The following is a guide to your analysis:

o What are the companys technological challenges in

doing their business operations?
o What are the companys solutions to these technological
challenges?
o Do you agree with their solutions? If not, what are your
recommendations?

REFERENCES

o Anne T. Lawrence and James Weber. Business and Society

th
12 edition. McGraw-Hill, Inc. USA.

o Himmelstein, J.L. (1997). Looking good and doing good:

corporate philanthropy and corporate power. Bloomington:
Indiana University Press.

o Kotler, P. and Lee, N. (2005). Corporate social responsibility:

doing the most good for your company and your cause.
Hoboken, New Jersey: Wiley.

o Siddiqui, T.A. (2001). Towards good governance. Oxford:

Oxford University Press.

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