siness ethics week 7 lec 1

8/12/2019 siness Ethics Week 7 Lec 1

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Business Ethics

Week 7 Lecture 1


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Stakeholder

and

Issues Management Approach


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Stakeholder Analysis

Map the stakeholder relationships ,

coalitions, interest, power, moral

responsibilities, strategies and tactics,

shifting coalitions


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Moral responsibilities of cross- functional area

professional

The concept of internal stakeholders

The functional departments

Balancing operational profit goals with corporate

moral obligations , considered as part of the job


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Issues management, stakeholder approach:

What is an issue?

Addressing the gap

Primary strategies - Public education, community

dialogue, and changing expectations throughcommunication e.g. drunk driving and insurancecompanies, obesity and health etc


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First Approach

Six Step Issue Management


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Six Step Issue Management Process

Env. Scanning/

issue identificationIssue Evaluation Issues Analysis

Issues Response Issue Prioritizing

Issues Resolution Strategy

6 steps


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Second Step

Seven Phase Issue Development Process


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Seven Phase Issue Development Process

Business Lobby if it affects them Litigation

Legislation

& Regulation

Federal Govt. Attention

Stages No actionAdopting policies at smaller level

Interest Group Dev.

Media converge

Felt need (events, books, advocacy groups)

Time Line


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Crisis Management


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The concept

turning point for better or worse, decisive

moment or crucial time


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Four Crisis Management Stages

Stage 4Stage 3

Stage 2

Stage 1

Pre- crisis

Prodromal

Stage

Warning

Symptoms

Crisis Occurs

Acute Stage

Point of

no return

Lingering

Chronic Stage

Self Analysis

Health Restored

Conflict

Resolution

Return to

normalcy


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Corporate Response Phases

Insight

RangeReaction Defense Accommodation Agency


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The Body Shop


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The Background:

Defying industry traditions of expensive packaging,massive advertising, and retailing throughdepartmental stores, a company that rejects all

these principles and many more

profit with principle

The need for change for US market

The succession issues


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How many of you have

shopped at bodyshop?


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What attracts you as customer to such stores ?


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Products

Retail Stores

Staff

Valuesmaybe???


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The world of business has taught me

nothing

Stepping out of our normal roles and

mindsets


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How has The Body Shop become such an

outstanding success while defying proven industrynorms and strategies? What are important sourcesof its success?

How do you evaluate Annitas Management

philosophy and style?

What are the lessons to be learnt from this corporatemodel? To what extent this is a unique approach?

How sustainable is The body shops success? Whatabout emerging problems in the US?


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How the body shop has been able to break the

rules in this traditional industry?


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Question 1


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Question 1 :

Baby boomers to new generation of 1990s theattitudes and values of young consumers

Cynicism towards media saturated promises andmore open to honest approach

Conservative approach of the dept. stores and

unhelpful environment

Selling hope and un fulfilling promises


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Question 2


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Question 2:

Anita as hub of products, shops, employees linking them all

tightly together with her own personal charisma, energy andvalues

Genuine attitude and values as key to companys success vsopportunistic and exploitative

What are consequences of each?

The criticism for not living up to standards it espouses or foroverstating its contributions in social and env. Areasand thecompany response to act in good faith though they are not

perfect

To what extent these values are reason for success andsufficient to hold together this fast growing network of franchises,suppliers, employees, customers? What else?


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I have never been able to separate the body shop

values from my own personal values

The reaction of franchises to Anita's use of stores to

support social and political causes and her punitive

attitude towards those who didnt meet her standards

Friedman view and The smokes screen?

Fall somewhat in betweencommitment and genuineconcern yet recognizing their great commercial value

and exploiting it to the fullest


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Question 3Do values only and always matter?


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Question 3 :

Value oriented practices and charismatic styles ofAnita

What about Gordons role:

Training for employees and franchises Control systems to track sales and inventory

Support services from store out to shelf stocking

Location of franchises and the customer traffic

Direct ownership of 10% for purpose of being ableto do front line market research, testing of newproducts, keeping an eye on customer trends

The monitoring of regional managers


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Question 4

Should company change to cater for differentmarket ?


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Personal values enough?

Aggressive advertising is the solution? Will that be a beginning of Body Shop becoming an

ordinary cosmetic retailer?

Designing smaller compact counters in larger mallswhat about damage to the vital element of itsproducts i.e. open, relaxed, fun stores

What about commitment to refill service and animaltesting ?

Which layers of policies, practices and people

should be changed? Control driven vs value driven approach?change

in management style


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Closing Remark !!!


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Continuing personal hand on management

style or time to step back and bring in more

professional management to institutionalizethe values and practices that they have put in

place?

siness ethics week 7 lec 1

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