Business and Society Essay

1877 Words Oct 10th, 2014 8 Pages
1. Explain the relationship between business and society and the ways in which they are part of the interactive system.

A business is any organization that is engaged in making a product or providing a service for a profit. A society is human beings and the social structure they collectively create. Both business and society are highly interdependent. We borrow “General Systems Theory” from biology to explain this relationship between business and society, which was first introduced in the 1940s. The theory posits that organisms cannot be understood in isolation, even though they have clear boundaries, they can only be understood in relationship to their surroundings. Adapted to management theory means that business firms are
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It is important to identify emergent expectations as early as possible. Doing so, can gain the company competitive advantage. Failure to understand stakeholder concerns and to respond appropriately will: 1. Cause the performance-expectations gap to grow. 2. The larger the gap, the greater the risk of stakeholder backlash or missing a major business opportunity.

6. Identify the organization’s multiple environments.

Environmental analysis is a method managers use to gather information about external issues and trends, so they can develop an organizational strategy that minimizes threats and takes advantage of new opportunities. Environmental intelligence is the acquisition of information gained from analyzing the multiple environments affecting organizations. The organizations multiple environments are: 1. Customer Environment, 2. Competitor Environment, 3. Economic Environment, 4. Technological Environment, 5. Social Environment, 6. Political Environment, 7. Legal Environment, and 8. Geophysical Environment.

7. Describe the steps the issue management process.

The issue management process is: 1. Identify Issue: Anticipating emerging concerns, or “horizon” issues 2. Analyze Issue: Evaluating the issue; coming to an understanding of how it will evolve and how it will affect the organization 3. Generate Options: Evaluating action options, involves complex judgments that take into account “non-quantifiable” factors like the

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