Contents: The Concept of Corporate Public Policy, Four Key Strategy Levels The Strategic Management Process, Public Affairs as a Part of Strategic Management, The Corporate Public Affairs Function Today.
used toCengage characterize the largest and The Benefit Corporation• • • • Unlike the traditional corporation, the Benefit Corporation has a broader mission that includes having a positive impact on society The societal mission does not take a backseat to shareholder wealth maximization The Benefit Corporation offers managers, investors and customers the opportunity to participate in or patronize businesses that promise to make social responsibility an important goal 2015 Cengage Learning 13 12 states©now have laws permitting The Importance of Core Values Core Values - •Are the deeply ingrained principles that guide all of a company’s actions and decisions •Serve as cultural cornerstones •Having a set of core values that are not followed will no good •To be effective, firms need to weave core values into everything they •If a firm’s core values are not upheld, they become hollow, and more harm than © 2015 Cengage Learning 14 good Other Manifestations of Enterprise-Level Thinking Establishment of public-policy committees •Sustainability •Ethics •Corporate philanthropy, etc Establishment of a Public affairs Office •Included in strategic decision-making Identification of social or public issues Integrated into strategic management processes â 2015 Cengage Learning 15 The Strategic Management Process1 Goal formulation Strategy formulation Strategy evaluation Strategy implementation Strategic control Environmental analysis © 2015 Cengage Learning 16 Strategic Management Process and Corporate Public Policy © 2015 Cengage Learning 17 Components of Strategy Formulation © 2015 Cengage Learning 18 Strategic Corporate Social Responsibility (1 of 2) CSR & Competitive Advantage •3 ways corporations intersect with society: • • • Generic social issues (firm’s operations not affect society and issue is not material to firm’s long-term competitiveness) Value chain social impacts (a firm’s normal operations significantly affect society) Social dimensions of competitive context (social issues affect the underlying drivers of a firm’s competitiveness) •These categories divide into modes of corporate involvement: © 2015 Cengage Learning 19 Strategic Corporate Social Responsibility (2 of 2) Responsive CSR •Addresses generic social impacts through good corporate citizenship and value chain social impacts by mitigating harm Strategic CSR •Transforms value chain social impacts into activities that benefit society while reinforcing corporate strategy •Advances strategic philanthropy that © 2015 Cengage Learning 20 leverages competitiveness Measuring Sustainable Corporate Performance • Achieving sustainability requires performance accountability • When firms measure only financial performance, environmental and social considerations become side issues • To achieve sustainability, the triple bottom line must be reflected in every aspect of the firm’s operation • Sustainability reports (integrated reports – IR) reflect the extent to which the firm is creating value in the triple bottom line • Social Audits, Social Responsibility Reports and Environmental Impact Reports focus on 21 © 2015 Cengage Learning specific areas Public Affairs Defined The Public Affairs Council (PAC), the leading organization of executives who the PA work of companies, defines PA as: •“Public affairs represents an organization's efforts to monitor and manage its business environment It combines government relations, communications, issues management and corporate citizenship strategies to influence public policy, build a strong reputation and find common ground with stakeholders.” © 2015 Cengage Learning 24 Public Affairs Activities & Functions • Public Affairs (PA) began from isolated company initiatives designed to handle diverse activities, but was sometimes managed by Public Relations staffers, but they are not the same • Public relations focuses on selling a product, while public affairs is designed to influence public policy • PA activities may include lobbying, global public affairs, social media, corporate responsibility, campaign finance, grassroots advocacy, crisis © 2015 Cengageand Learning more 25 communication, Future of Corporate PA • If the PA function is to be effective, it must have influence at the top management level • Because of corporate ethical crises, PA specialists have an ideal opportunity to help transform business and society relationships There are primary opportunities: • Help develop value-based enterprises; and work cooperatively with them on social issues • PA executives can be thought leaders in their firms, and collaborate with those outside the firm on current issues • Be mindful of global issues, including those which begin as domestic issues and migrate.26 â 2015 Cengage Learning Key Terms • • • • • • • • • public affairs benefit corporation departments bottom of the pyramid business-level strategy • public affairs management corporate-level • public affairs strategy strategy • shared value corporate public affairs • social audit corporate public policy • social entrepreneurship enterprise-level • social responsibility report strategy • strategic management functional-level strategic management strategy processes Global Reporting • sustainability report Initiative • value shift issues and crisis management 27 © 2015 Cengage Learning public affairs (PA) ... Enterprise-Level Strategy Corporate Public Policy Part of which is Environmental Analysis Issues Management © 2015 Cengage Learning Crisis Management 22 The Corporate Public Affairs Function Today Public. .. affairs management corporate- level • public affairs strategy strategy • shared value corporate public affairs • social audit corporate public policy • social entrepreneurship enterprise-level • social... Reports and Environmental Impact Reports focus on 21 © 2015 Cengage Learning specific areas Public Affairs As a Part of Strategic Management Strategic Management Process Public Affairs Management