Business Ethics P13601
Exam Structure
Core Topics
Core Topics
Core Topics
Applied Topics
Recurring Themes
Seminar Topics
Course Objectives
Question Format
Question Format
Question Format
Question Format
A Quality Response
What is Business Ethics?
An Ethical Hierarchy
Key Readings
Other Ethical Theories
Utilitarianism
Act vs. Rule Utilitarianism
Ethics of Duty (Deontology)
Kant’s Three Maxims
Confucian Ethics
Confucian Ethics
Confucian Ethics
Question Example
Key Readings
Definitions
The Debate over CSR Today
Carroll’s Four-Part Model: The Pyramid of CSR
Why should firms engage in CSR?
Moral Arguments for CSR
Friedman’s Critique
Instrumental Arguments for CSR
Critiques of Instrumental Arguments
Stakeholder Relations
Types of Stakeholders
Processes of Stakeholder Management
Stakeholder Prioritization
Stakeholder Analysis
Exam Question
Key Readings
Behavioral Ethics
The New Perspective
Rest’s Model of Ethical Decision Making
Rational Decision Making or Not?
An Interactive Model
Nested Systems
Human Nature According to Social Psychology
Moral Recognition
Moral Muteness & Myopia
Moral Intensity
Rationalization Tactics
Rationalization Tactics
Exam Question
Key Readings
What is business ethics management?
Typical Components
Codes of Ethics
Codes of Ethics
Ethical Climate & Culture
Leadership
Types of Factors
Exam Question
Your Beliefs and Values
Integrity
Moral Imagination
Conclusions
Corporate Governance
Corporate Governance Reforms
Ethical Issues in Marketing
Consumer Sovereignty Test
Social Issues in Marketing
Greenwashing
Ethics and Supply Chains
Ethical Sourcing
Supply Loops
Civil Society
Ethical Challenges for CSOs
The Nonmarket Environment
Business-NGO Partnerships
Key differences between social enterprise, CSOs & corporations
Final Notes
4.32M
Категория: ОбразованиеОбразование

Revision. Exam Structure

1. Business Ethics P13601

DR. ‘ALIM J. BEVERIDGE
REVISION

2.

Revision

3. Exam Structure

Exam will have one section with 5 essay questions
You are required to answer 2 out of the 5 questions
Each question is worth 50%
Both are long essay question: around 1-2 pages
Make sure to answer all parts of the question!
90 minutes available

4. Core Topics

What is Business Ethics? (Lecture 1)
Why has it become more important in recent year?
Ethical theories (prescriptive) (Lecture 2)
How can we know right from wrong?
Utilitarianism, Deontology (Kantian duty ethics),
Confucianism

5. Core Topics

Corporate social responsibility (CSR) (Lecture 3)
What are the responsibilities of the firm?
Moral vs. instrumental arguments for CSR
Arguments against CSR
Stakeholder analysis & engagement (Lecture 6)
Who are the stakeholders of the firm?
Which stakeholders should a firm’s managers pay attention to?
Stakeholder analysis
Stakeholder management/engagement

6. Core Topics

Behavioral ethics (descriptive) (Lecture 9)
Why do people and organizations engage in wrongdoing?
New vs. traditional perspective
Business ethics management (Lecture 10)
How can organizations prevent unethical behavior and
encourage ethical behavior?
Fostering moral virtue (Lecture 10)
Why do some individuals (and companies) avoid wrongdoing
and/or engage in doing good?
How can we strengthen the impulse to do good in individuals
and organizations?

7. Applied Topics

Business ethics as applied to each of the following
stakeholder groups:
1. Shareholders (Lecture 4)
2. Consumers (Lecture 5)
3. Suppliers and Competitors (Lecture 7)
4. Civil Society (Lecture 8)

8. Recurring Themes

Doing good vs. doing no harm
Moral and instrumental (pragmatic, strategic)
considerations
Changing values and attitudes =
changing societal demands on companies +
new opportunities for companies

9. Seminar Topics

Seminar 1:
Cross-cultural ethics
Ethical theories
Ethics of gift-giving/bribery
Seminar 2:
Issue and stakeholder analysis
Labor issues and Global supply chains
Group presentation:
Issue and stakeholder analysis

10. Course Objectives

Bloom’s Taxonomy (updated)

11. Question Format

Some questions ask you to apply a core topic to a
specific case
In 2015 German car manufacturer Volkswagen (VW)
was forced to admit to installing devices in millions of
its cars during the previous seven years that allowed
them to pass emissions tests despite releasing amounts
of harmful polluting gases that far surpassed legal
limits.
If the board of directors of VW asks you to recommend
company policies and practices that would ensure that
such misconduct is prevented in the future, what
recommendations would you give? Justify your
recommendations.

12. Question Format

Some questions are directly about one of the applied
topics
Discuss the advantages and drawbacks of using a
standardized CSR reporting format, such as the one
provided by the United Nations Global Compact,
from the point of view of the adopting company.
Support your key arguments by providing relevant
examples.

13. Question Format

Some questions require a comparison between
several perspectives or an analysis from several
different perspectives
Imagine a company buys the only medicine
available to fight a serious disease and raises its
price from RMB 200 a bottle to RMB 15,000 a
bottle. In the world’s poorest countries many people
die of this disease every year. Discuss whether this
is ethical from the view point of three ethical
theories: Kantian deontology, utilitarianism and
Confucianism. Justify your answers.

14. Question Format

Many questions have more than one part
Many foreign banks in China, such as JP Morgan Chase,
operate a “Sons and Daughters” program which gives
preference in hiring decisions to the sons and daughters
of government officials and the managers of stateowned enterprises (SOEs). The program’s purpose is to
gain favourable treatment from government agencies
and lucrative deals from SOEs.
Critically discuss at least three rationalizations HR
managers in these banks may have used to make their
actions ethically acceptable to themselves.
Critique each rationalization and provide a counterargument for each.

15. A Quality Response

Covers the question without including irrelevant
content
Shows clear understanding and use of pertinent
concepts
All parts of the question are answered
Arguments are supported with examples or relevant
references
Incorporates appropriate materials from lectures,
seminars and readings

16.

Lecture 1:
Business Ethics

17. What is Business Ethics?

According to the textbook:
“Business ethics is the study of business
situations, activities, and decisions where issues of
right and wrong are addressed.”
Our module deals with the ethics of the actions and
decision of:
Companies
Individuals
within
companies
Corporate Social
Responsibility

18. An Ethical Hierarchy

Desirable but
Discretionary
Minimum
Obligatory
Do
Good
Do no
Harm
Obey
the Law

19.

Chapter 2:
Ethical Theories and
Business Ethics

20. Key Readings

Arnold & Bowie, 2003. Sweatshops and respect
for persons
Chan, 2007. The relevance and value of
Confucianism in contemporary business ethics

21. Other Ethical Theories

Consequences
Act / Motivation Actor
Utilitarianism
Deontology
Virtue Ethics
Mill
Kant
Confucius

22. Utilitarianism

Is concerned with consequences
The General Principle:
‘An action is morally right if it results in the greatest
amount of good for the greatest amount of people
affected by the action.’
The simple and easy way to understand
utilitarianism is as a cost-benefit approach to ethics
Utilitarianism is not egoism!
Rule utilitarianism and act utilitarianism often lead
to different conclusions (but not always)

23. Act vs. Rule Utilitarianism

Act utilitarianism considers only the
consequences of a single act
Rule utilitarianism looks at a class of actions and
asks whether in principle it produces the greatest
amount of good for the greatest amount of people

24. Ethics of Duty (Deontology)

Focuses on defining the
Categorical Imperative: An
ethical theory or law our acts
must conform to under all
conditions
Consequences don’t matter; but
intentions do
Intrinsic worth or dignity of all
persons; therefore should be
respected
Immanuel Kant (1724-1804)

25. Kant’s Three Maxims

Consistency – Apply the same standard to your
action that you would to others’. Don’t make an
exception for yourself.
Respect for human dignity – Don’t use others. Treat
them as an end not as a means.
Universal acceptability – Act only as you would if
your actions were known to all.
These are different formulations of one categorical
imperative, according to Kant.
BUT still may lead to different conclusions.

26. Confucian Ethics

Strong focus on cultivating self and being virtuous –
Ultimate goal is to become a jūnzǐ (君子)
Core Confucian virtues (dé 德):
Rén (仁): compassion, benevolence,
humaneness
Yì (義): Sense of rightness, righteousness
Following Lǐ (禮
): norms, protocols,
etiquette, propriety
and also wisdom, reciprocity,
trustworthiness and filial piety
Confucius (孔子)

27. Confucian Ethics

Essence of rén = “Golden Rule”
(1) weak form: “What you do not wish for
yourself, do not do to others.”
(2) strong form: “A man of benevolence, wishing
to establish his own character, also establishes the
character of others, and wishing to be prominent
himself, also helps others to be prominent.”
One must help others to develop morally to achieve
one’s own moral development

28. Confucian Ethics

How and why matter: Motives and the manner
something is done is more important than what is
done
Profit-making is not bad unless done for selfish
reasons
Woods & Lamond, 2011

29. Question Example

Imagine a company buys the only medicine
available to fight a serious disease and raises its
price from RMB 200 a bottle to RMB 15,000 a
bottle. In the world’s poorest countries many people
die of this disease every year. Discuss whether this
is ethical from the view point of three ethical
theories: Kantian deontology, utilitarianism and
Confucianism. Justify your answers.

30.

Lecture 3:
Corporate Social
Responsibility

31. Key Readings

Friedman, 1970. The social responsibility of
business is to increase its profits
Economist articles
Porter & Kramer, 2011. Creating shared value
Smith, 2003. Corporate social responsibility:
Whether or how?

32. Definitions

Corporate social responsibility:
“The firm’s consideration of, and response to, issues
beyond the narrow economic, technical, and legal
requirements of the firm.” (Davis, 1973)
“Actions that appear to further some social good,
beyond the interests of the firm and that which is
required by law.” (McWilliam & Siegel, 2001)

33. The Debate over CSR Today

What is the corporation’s purpose and what are its
responsibilities?
Maximize
Shareholder
Value
(Exclusively)
Serve the
Broader
Interests of
Society
(Beyond Profits)
From a dichotomy to a continuum.
The question now is not “Whether” but “How?” (or
“How much?”) (Smith, 2003)

34. Carroll’s Four-Part Model: The Pyramid of CSR

Do
Good
Do No
Harm
Philanthropic
Responsibilities
Desired by society
Ethical
Responsibilities
Expected by society
Legal
Responsibilities
Required by
society
Economic
Responsibilities
Required by
society

35. Why should firms engage in CSR?

1. Moral arguments: pro-CSR arguments based on
the view that corporations have moral obligations
(“It’s the right thing to do”)
Normative view
2. Instrumental arguments: based on claims that
CSR leads to desirable outcomes, specifically
increased profits, for firms
“The business case for CSR”, pragmatic view, strategic
CSR, “profit-maximizing” CSR

36. Moral Arguments for CSR

Typically focus on accountability, reciprocity,
obligation, and social contract
Driven by growing concern over dwindling natural
resources and environmental degradation:
Pollution, water contamination, over-population,
deforestation, climate change, etc.
And concern over social issues:
Poverty, inequality, slavery, forced labor, starvation,
health, human rights

37. Friedman’s Critique

“There is one and only one
social responsibility of
business–to use it resources and
engage in activities designed to
increase its profits so long as it
stays within the rules of the
game, which is to say, engages
in open and free competition
without deception or fraud."
Three arguments against
CSR (especially against
moral arguments for CSR)

38. Instrumental Arguments for CSR

CSR “is good for business” (or it’s bad to ignore it)
Changing expectations & radical transparency
Growing “conscious consumer” & LOHAS (Lifestyles
of Health and Sustainability) segments
Reputation
More attractive to employees and investors
Better relations with government
Cost reduction, risk management
New business opportunities

39. Critiques of Instrumental Arguments

Continues to prioritize profits above all
Can lead to superficial CSR initiatives (“Window-
dressing”) or deception (“Greenwashing”)
What if there is no “Market for Virtue”? What
happens when there is a real conflict between profits
and the broader interests of society?

40.

Lecture 6:
Stakeholder
Analysis &
Engagement

41. Stakeholder Relations

Interdependence
Shareholders: increase
value of the firm &
make profits
Employees: Create
good products or
services &
receive income
Governments: Don’t
regulate extensively &
and receive taxes
The Firm and
its Managers
Suppliers: Supply high
quality inputs &
receive payment
Civil society (NGOs):
Don’t criticize or boycott
& achieve their goals
Customers: Purchase
products or services &
obtain value

42. Types of Stakeholders

Primary
Secondary
Which of all of these stakeholders should managers
pay attention to? And how should the company
engage with each?
Werther & Chandler (2010)

43. Processes of Stakeholder Management

Stakeholder
assessment is the
process of
understanding
stakeholders and their
relationship to a specific
activity; it can be
subdivided into two
steps, stakeholder
identification and
stakeholder
prioritization.
Stakeholder
engagement is the
process of interaction
with stakeholders and
can be subdivided into
stakeholder
communication and the
co-creation of joint
activities.

44. Stakeholder Prioritization

Laasch & Conaway, 2015

45. Stakeholder Analysis

Based on Eden & Ackermann, 1998

46. Exam Question

Senior managers at an IT company in the United States
discover through a newspaper report that several of
their suppliers in Country X employ forced labour. Now
a group of human rights NGOs are gathering signatures
for a shareholder resolution which would demand that
the company cease all sourcing from Country X because
of its oppressive government and terrible labour rights
record.
Identify the key stakeholder groups in this issue and
discuss the most likely position of each on the issue,
justifying your arguments.
From an instrumental view of CSR which stakeholders
should senior managers pay attention to and why?

47.

Lecture 9:
Making Decisions in
Business Ethics:
Descriptive Ethics

48. Key Readings

Palmer, 2013. The new perspective on
organizational wrongdoing
Gioia, 1992. Pinto fires and personal ethics: A
script analysis.pdf
Also: Drumwright & Murphy, 2004
Also see videos (Concepts Unwrapped and In it to
Win by UT Austin) on Moodle

49. Behavioral Ethics

Why do people and organizations engage in
wrongdoing?
How people make ethical decisions
Factors that influence ethical decision making

50. The New Perspective

Typical View
New View
Frequency
Rare
Prevalent
Misconduct (Act)
Clearly wrong
The line between right
and wrong can be blurry
Perpetrator
(Actor)
Malevolent or
immoral person
Ordinary person, even
morally upstanding
Organizational
Factors
A few, clearly flawed
structures, systems or
processes
Any number of structures,
systems and processes
that are generally healthy
and functioning well
Palmer, 2013

51. Rest’s Model of Ethical Decision Making

Individual factors
Recognise
Moral
Issue
Make
Moral
Judgement
Establish
Moral
Intent
Contextual factors
Engage
in Moral
Behaviour
Rest, 1986

52. Rational Decision Making or Not?

An emerging view holds that ethical decision making
is often automatic, impulsive and unconscious
(ethical impulse perspective) rather than rational
(ethical calculus perspective)
This view is also known as bounded ethicality

53. An Interactive Model

Individuals
Situation
National Culture
System

54. Nested Systems

National/regional culture, religion,
legal system: values, beliefs
Professional culture, education
Organizational culture, rewards
systems, formal and informal
structures of relationships and
power
Situational cues can activate
“mental programming” and
programmed behavior associated
with certain systems (or not)
Situation

55. Human Nature According to Social Psychology

“Man is by nature a social animal” – Aristotle
Social psychology: human beings have evolved to
harmoniously live in groups
We are therefore good at cooperating, following
rules, observing others, conforming to group
behavior, expectations and norms
Power & authority (Milgram’s experiments)
Social influence processes
Group & organizational factors

56. Moral Recognition

One key issue is whether the person realizes he or
she is faced with an ethical decision
Also known as Moral awareness
Recognise
Moral
Issue
Make
Moral
Judgement
Establish
Moral
Intent
Social & Cognitive Factors
Engage
in Moral
Behaviour
Rest, 1986

57. Moral Muteness & Myopia

Moral Muteness & Myopia
Moral muteness: When someone recognizes an
issue has an ethical dimension but remains silent
and avoids confronting the ethics of the issue
Moral myopia: Distortion of moral vision, leading
to difficulty of recognizing ethical issues or seeing
them clearly
Moral muteness can lead to moral myopia
Moral myopia can also occur due to
rationalization
There are many cognitive biases and situational
factors that can lead to moral myopia

58. Moral Intensity

Issue-specific factors that can influence moral
awareness:
1. Magnitude of consequences
2. Social consensus
3. Probability of effect
4. Temporal immediacy
5. Proximity (social, cultural, psychological or
physical) and
6. Concentration of effect
Jones, 1991

59. Rationalization Tactics

Rationalizations serve to convince the actor that
their actions are not unethical through excuses or
justifications.
Denial of responsibility
“I didn’t do it”, “I had no choice”, “None of my business”
Denial of injury
“No one was really harmed”, “It could have been worse”
Denial of victim
“They deserved it”, “They chose to participate”
Social weighting
“You have no right to judge us”, “Others are worse than we
are”
Anand, Ashforth & Joshi, 2004

60. Rationalization Tactics

Appeal to higher loyalties
“We answer to a higher cause”
Moral equilibrium (or Moral licensing , aka
“Metaphor of the ledger”)
Good deeds excuse wrongdoing
“Start small” (Zimbardo)
Rationalizations can be used before the act
(prospective) or after (retrospective)
Prospective rationalization can lead to moral myopia
Retrospective rationalization helps reduce
misgivings and feelings of guilt Anand, Ashforth & Joshi, 2004

61. Exam Question

Many foreign banks in China, such as JP Morgan Chase,
operate a “Sons and Daughters” program which gives
preference in hiring decisions to the sons and daughters
of government officials and the managers of stateowned enterprises (SOEs). The program’s purpose is to
gain favourable treatment from government agencies
and lucrative deals from SOEs.
Critically discuss at least three rationalizations HR
managers in these banks may have used to make their
actions ethically acceptable to themselves.
Critique each rationalization and provide a counterargument for each.

62.

Lecture 10:
Business Ethics
Management

63. Key Readings

Zhang, Gino & Bazerman, 2014. Morality
rebooted: Exploring simple fixes to our moral
bugs

64. What is business ethics management?

Business ethics management is the direct
attempt to formally or informally manage ethical
issues or problems through specific policies,
practices and programmes
64
Dr. Ulf Henning Richter

65. Typical Components

Mission or values statements
Codes of ethics
Reporting/advice channels
Risk analysis and management
Ethics managers, officers and committees
Ethics consultants
Ethics education and training
Stakeholder consultation, dialogue and
partnership programs
Auditing, accounting and reporting

66. Codes of Ethics

A Code of Ethics is only effective if properly
implemented and enforced, e.g. through:
Communication and training
Disciplinary actions
Whistleblowing mechanism
HR practices and policies (e.g., hiring, performance
assessment)
Ethics committee or officer
Monitoring, auditing and reporting

67.

Meta-analytic
results from
Kish-Gephert,
Harrison &
Trevino, 2010

68. Codes of Ethics

Source: KPMG 2008

69. Ethical Climate & Culture

Ethical Climate & Culture
Ethical climate consists of shared beliefs about
“what constitutes right behavior” in an organization
Ethical culture refers to the organization’s formal
and informal “systems, procedures, and practices for
guiding and supporting ethical behavior” especially
through the communication of “behavioral and
accountability expectations” (Kish-Gephert et al
2010).
Emerges from rules and procedures, reward
structures, among other things
Also leadership behaviors

70. Leadership

Leaders set the ethical tone in organizations
Being an ethical leader involves being a moral
person and a moral manager
A moral person is someone who possesses a good
character and displays virtues (honesty,
trustworthiness, concern for others, etc.)
A moral manager sets ethical standards,
communicates expectations and holds others in the
organization accountable to those standards and
expectations (Trevino & Brown, 2004)

71. Types of Factors

Formal vs. informal
Structure-oriented (extrinsic) vs. values-oriented
(intrinsic)
Many approaches focus on one only
Problem: lack of alignment, inconsistencies,
contradictions
An integrative approach tends to be more effective

72. Exam Question

In 2015 German car manufacturer Volkswagen
(VW) was forced to admit to installing devices in
millions of its cars during the previous seven years
that allowed them to pass emissions tests despite
releasing amounts of harmful polluting gases that
far surpassed legal limits.
If the board of directors of VW asks you to
recommend company policies and practices that
would ensure that such misconduct is prevented in
the future, what recommendations would you give?
Justify your recommendations.

73.

Fostering Individual
Moral Virtue

74.

Meta-analytic
results from
Kish-Gephert,
Harrison &
Trevino, 2010

75. Your Beliefs and Values

What you believe matters
Locus of control
Idealist vs. relativist moral philosophy
Idealist moral philosophy: Individual’s belief
that a “right” choice, especially one that avoids harm
to others, exists in every situation
Principled vs. expedient ethical ideology

76. Integrity

Integrity is a “steadfast commitment” to one’s
values or principle and to acting in ways that are
consistent with these
Associated with a principled ethical ideology
Reduces propensity to morally disengage and
rationalize
Leads to more helping behavior (like volunteering)
and less unethical behavior (like lying, cheating, etc.)
Linked to more self-esteem, meaning in life, and
empathy toward other, and less materialism

77. Moral Imagination

Definition:
“Articulating and examining alternatives, weighing
them and their probable implications, considering
their effects on one’s other plans and interests, and
considering their possible effects on the interests and
feelings of others’’ (Jacobs, 1991: pp. 25)
The ability to think “outside the box”, get beyond
seeing only two choices, and generate creative ethical
alternatives or solutions
Also linked to principled ethical ideology

78. Conclusions

Commitment to moral self-improvement
Have strong values, know what you believe in or
stand for
Have others you can talk to about your values
Talk to others about ethical issues or problems
Mind the company you keep (the influence of peers,
friends and colleagues, and organizational culture)
Work on your self-control and empathy
Try a creative problem solving approach

79.

Other Topics

80. Corporate Governance

How can shareholders be victims of unethical
behavior?
What is the purpose of corporate governance?
Reasons why corporate governance arrangements
fail too work

81. Corporate Governance Reforms

In the wake of alarming corporate scandals, CG
reforms have been introduced in the US and most
European countries. These tend to focus on:
Separation of CEO and Chairman positions (often
recommended but not required)
Number or proportion of independent outside
directors
Independence of audit committee
Independence of compensation committee
Disclosure of compensation
But CG problems persist. Why?

82. Ethical Issues in Marketing

Area of marketing
Product policy
Marketing
management
Some common ethical
problems
Main rights involved
Product safety
Fitness for purpose
Right to safety
Marketing
Deception
communications Misleading claims
Intrusiveness
Promotion of materialism
Creation of artificial wants
Perpetuating dissatisfaction
Reinforcing stereotypes
Right to information
Right to privacy
Pricing
Excessive pricing
Price fixing
Predatory pricing
Deceptive pricing
Right to fair prices
Distribution
Buyer-seller relationships
Gifts and bribes
Slotting fees
Right of access
Right to choose

83. Consumer Sovereignty Test

Dimension
Definition & Key Questions
Sample criteria for
establishing adequacy
Consumer
capability
Freedom from limitations
in rational decision making
Is the target market vulnerable in
ways that limit consumer decision
making?
Vulnerability factors, e.g.
age,
education, health
Information
Availability and quality of
Quantity, comparability and
relevant data
complexity of information;
Are consumer expectations at
degree of bias or deception
purchase likely to be realized? Do
consumers have sufficient information
to judge?
Choice
Opportunity to switch
Number of competitors and
Can consumers go elsewhere? Would level of competition;
they incur substantial costs or
switching costs
inconveniences in transferring their
loyalty?

84. Social Issues in Marketing

Concerns that marketing communications:
Are intrusive and unavoidable
Create artificial wants
Reinforce consumerism and materialism
Create insecurity and perpetual dissatisfaction
Perpetuate social stereotypes
Cause-related marketing

85. Greenwashing

Source (text and pictures): Futerra (2008) The Greenwash Guide”,
www.futerra.co.uk

86. Ethics and Supply Chains

87. Ethical Sourcing

Often involves collective action and multi
stakeholder collaboration
Government-led initiatives: Kimberley Process
Industry-led initiatives: Accord on Fire and Building
Safety in Bangladesh
Company-led initiatives: Intel and conflict minerals
Business-NGO (CSO) partnerships: Marine
Stewardship Council
CSO-led initiatives: Fairtrade

88. Supply Loops

(a) Linear flow of resources
Extraction
Manufacture
(b) Circular flow of
resources
Distribution
Extraction
Consumption
Manufacture
Product
recapture
Distribution
Consumption
Disposal
Disposal

89. Civil Society

What is the role of the civil society sector?
Types of CSOs
CSO Tactics:
Indirect action
Violent direct action
Non-violent direct action

90. Ethical Challenges for CSOs

CSO accountability
Do CSOs truly listen to their beneficiaries and
represent their concerns?
Do CSOs disseminate accurate and complete
information? Or do they engage in deception?
Do CSOs use their funds responsibly? (Issues:
embezzlement and corruption, CEO pay, etc.)
Do CSOs really try to solve the problems they claim
to solve?
“Who watches the Watchmen?”

91. The Nonmarket Environment

What is the nonmarket environment? How does
it differ from the market environment?
Why is it important?
(Baron, 1995)

92.

Integrating Market and Nonmarket
Strategy
Market
(competitive)
Analysis
Market
Nonmarket
Analysis
Management
Strategy
Integrated Strategy
Nonmarket
Strategy
Implementation
Positioning
Market
Environment
Nonmarket
Environment
(Baron, 1995)

93. Business-NGO Partnerships

Traditionally the relationship between promotional
CSOs (NGOs) and firms has been an antagonistic
one
In recent years, firms and NGOs have tried
partnering instead
Oxfam and Marks & Spencer
Unilever and Oxfam
Coca-Cola and WWF
UNICEF & P&G (Pampers)

94.

What is Social Entrepreneurship?
“Social entrepreneurship is the process of
recognizing and relentlessly pursuing
opportunities to create social value.”
(Center for the Advancement of Social Entrepreneurship,
Duke University)

95. Key differences between social enterprise, CSOs & corporations

Key differences between social
enterprise, CSOs & corporations
Social Enterprise
Civil society
organization
Corporation
Aims
Social and economic
value creation
Social value creation
Economic value creation
Role of profit
Profit earning; limits on
profit distribution
Nonprofit making
Profit maximising
Activities
Production and trade of
social goods and
services
Production of social
goods and services,
campaigning, advocacy,
research, grant-giving,
etc
Production and trade of
goods and services
Funding
Self-funding (at least
partially)
Grants, donations, or
membership dues
Self-funding
Governance
Based on participation
and democracy amongst
stakeholders
Based on participation
and democracy amongst
stakeholders
Based on accountability
to providers of capital
Sources: Dees (1998); Defourny and Nyssens (2006); Nicholls (2006)

96.

Conclusion

97. Final Notes

Make sure you write clearly – always good if the
marker is able to read your answer
Make sure you answer the question – think
carefully what the essence of the question is
Pay attention to details. Some questions have
sub-parts. Address them all.
Good luck with the preparations and the exam

98.

THANK YOU
and
GOOD LUCK!
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