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Chapter 1: The Business and Society Relationship
Business may be defined as the collection of private, commercially oriented
[profit-oriented] organizations, ranging from one-family proprietorships to
corporate giants. [spotlight tends to be on big businesses and controversial
sectors which deals with sensitive resources]
Society may be thought of as a community, a nation, or a broad grouping of
people with common traditions, values, institutions, and collective activities
and interests. [This includes cities, countries, global, or even stakeholders;
consumers, employees, environmentalists, etc.]
Macroenvironment is the total environment outside of the firm, the
comprehensive societal context in which the organization resides.
Segments of the Macroenvironment [PEST]
SocialDemographics, lifestyles, social values
Economic Nature and direction of the economy in which the business
operates
PoliticalProcesses for passing of laws and election of officials.
Interactions between firms, politics, and government
TechnologicalChanges in technological advancements taking place in
society
A Pluralistic Society is one in which there is wide decentralization and diversity
of power concentration.
Pros:
1.Prevents power from being concentrated in the hands of a few.
2.Maximized freedom of expression and action and strikes a balance
between monism and anarchy
3.Allegiance of individuals to groups is dispersed.
4.Widely diversified set of loyalties to many organizations, minimizes the
danger that a leader of any one organization will be left uncontrolled.