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Organizational and Natural Environment

The Organizational Environment


Internal: All elements inside an organization that are relevant to its operations. External: All elements outside an organization that are relevant to its operations.
Direct Action Environment In-direct Action Environment

Organization as a System
Inputs from the External Environment:
Raw Material Human Resources Capital/Investment Energy Land

Output: Back to the External Environment

Stakeholders
Those groups or individuals who are directly or indirectly affected by an organizations pursuit of its goals.
External Stakeholders Internal Stakeholders

External Stakeholders
Groups or individuals in an organizations external environment that affect the activities of the organization:
Customers Suppliers Government Special Interest Groups The Media Labor Unions Financial Institutions Competition

Internal Stakeholders
Groups or individuals such as employees, that are not strictly part of an organizations environment but for whom an individual manager remains responsible:
Employees Board of Directors Shareholders

Managing Multiple Stakeholder Relationships

Networks and Coalitions Multiple role The Special role of Management

In-direct Action Environment


Political-Legal Economic Socio-Cultural Technological Demographic Global Ecological/Natural

Natural Environment
The Rise of the Environmental Movement Current Environmental Concerns:
Pollution Climate Change Ozone Depletion Other Global Concerns

Frameworks for thinking about the Natural Environment:


The Cost Benefit Framework The Sustainable Development Framework

The Greening Of Organizations


The Legal Posture The Market Posture The Stakeholders Posture The Dark Green Posture

Thank You

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