Whistle-Blowing
When an employee in an organization uncovers wrongdoing,
attempts to get it resolved within the organization and are
unable to( either because mechanisms are not in place or
there is no response), they then choose to report the situation
outside of the organization (e.g. media or government agency)
to achieve resolution. Becoming a whistle-blower is challenging
and potentially hazardous to ones career. Examples of
government protection for whistleblowers around the world are
the following:
Stigmas Against Whistle-blowers.
Divided Loyalties - In some Asian countries, members of the
company are treated as family members and it is considered
wrong to report on family members.
History - The country may have a tragic history of reporting on
others.
Logistics - Employees of global companies may be faced with
numerous time zones and language differences that could
prevent whistle-blowing or make it more difficult.
Fear of Retribution - Despite government laws to protect
whistle-blowers, many employees of global businesses fear
retaliation.
Political & Ecological Challenges
Businesses face complicated issues in managing their
relationships with politicians and government regulators.
Managers must understand the political environment and be
active and effective participants in the public policy process.
They need to ensure that their company is seen as a relevant
stakeholder when government officials make public policy
decisions and must be familiar with the many ways that
business can influence these decisions. The opportunities
afforded businesses to participate in the public policy process
differ from nation to nation. Sound business strategies depend
on an understanding of these differences, enabling businesses
to manage worldwide businessgovernment relations
effectively.
Constituency-building Strategy
Businesses seek to gain from other. Affected organizations to
better influence government policymakers to act in a way that
helps them.
Growing public interest in protecting the environment has
prompted political and corporate leaders to become
increasingly responsive to environmental issues. Government
policy makers have moved toward greater reliance on market-
based mechanisms, rather than command and control
regulations, to achieve environmental goals. At the same time,
many businesses have become increasingly proactive and
have pioneered new approaches to effective environmental
management, often conferring a competitive advantage.
Corporate Political Strategy
Business leaders and scholars agree that firms must
participate in the political process.
Stakes are too high for business not to be involved.
Government acts on issues that affect basic operations of
companies.
Companies therefore must formulate their Corporate Political
Strategy.
Involves the activities taken by organizations to acquire,
develop, and use power to obtain an advantage.
Three Strategic Types of Corporate Political Strategy
1. Information Strategy
Businesses seek to provide government policymakers with
information to influence their actions.
Examples are lobbying, direct communication, and expert
witness testimony
2. Financial-incentives Strategy
Businesses provide incentives to influence government
policymakers to act in a certain way.
Examples are political contributions, economic leverage,
political consulting aid, and office personnel.
3. Constituency-building Strategy
Businesses seek to gain from other affected organizations to
better influence government policymakers to act in a way that
helps them. Examples are stakeholder coalitions, advocacy
advertising, public relations, and legal challenges.
Political Action Tactics
a. Lobbying - Lobbyists communicate with and try to
persuade others to support an organizations interest
or stake as they consider a particular law, policy, or
regulation
b. Direct Communications with Policymakers -
Businesses invite officials to participate in activities
that will improve government officials understanding
of management and employee concerns.
c. Expert Witness Testimony Businesses provide
facts, anecdotes, or data to educate or influence
government leaders at public forums like
congressional hearings
The Business Roundtable
One of the most effective organizations for promoting
direct communication between business and policy
makers.
Organization of CEOs of leading corporations.
Studies various public policy issues and advocates for
laws it believes foster vigorous economic growth and a
dynamic global economy.
Promoting a Financial Incentive Strategy
1. Political Action Committees - Independently
incorporated organizations that can solicit contributions
and then channel those funds to candidates seeking
political office
2. Economic Leverage Occurs when a business uses its
economic power to threaten to leave a city, state, or
country unless a desired political action is taken Advocacy
Advertising
Promoting a Constituency Building Strategy
1. Stakeholder Coalitions - Businesses try to influence
politics by mobilizing organizational stakeholders to
support its political agenda.
2. Advocacy Advertising - Advertisements that focus on a
companys views on controversial political issues
3. Public Relations - Could be politically charged comment
in a speech by senior executive or a public relations
campaign.
4. Trade Associations - Coalitions of companies in the
same or related industries to coordinate their grassroots
mobilization campaigns
5. Legal Challenges - Business seeks to overturn a law
after it has been passed.
Levels of Political Involvement
Level 1 : Limited Organizational Involvement indirect and
impersonal .
Contribution to political action committee.
Support of a trade association or industry activities.
Level 2: Moderate Organizational Involvement indirect
yet personal
Organizational lobbyist
Employee grassroots involvement
Stockholders and customers encouraged to become
involved
Level 3 :Aggressive Organizational Involvement
Ecologically Sustainable Organization
The need for balance between economic and environmental
considerations is captured in the concept of Sustainable
Development. This term refers to development that meets
the needs of the present without compromising the ability of
future generations to meet their own needs.
The concept includes two core ideas:
Protecting the environment will require economic development.
Poverty is an underlying cause of environmental degradation.
People who lack food, shelter, and basic amenities misuse
resources just to survive. For this reason, environmental
protection will require providing a decent standard of living for
all the worlds citizens. But economic development must be
accomplished sustainably that is, in a way that conserves the
earths resources for future generations. Growth cannot occur
at the expense of degrading the forests, farmland, water and
air that must continue to support life on this planet. We must
leave the earth in as good shape or better shape that we
found it.
An Ecologically Sustainable Organization (ESO) is a
business that operates consistently with principles of
sustainable development.
An ESO could continue its activities indefinitely, without
altering the carrying capacity of the earths ecosystem. Such
businesses would not use up natural resources any faster that
they could be replenished or substitutes found. They would
make and transport products efficiently, with minimal use of
energy. They would design products that would last a long time
and that, when worn out, could be disassembled and recycled.
They would not produce waste any faster than natural systems
could absorb and disperse it. They would work with other
businesses, governments, and organizations to meet these
goals.
Organizational elements of many proactive green
companies
Line manager involvement
The concept is what social scientists call an ideal type, that
is a kind of absolute standard against which real organizations
can be measured.
ESO needs supportive government policies and widespread
movement among many businesses and other social
institutions.
Environmental Management in Practice
Top management involvement in sustainability
Line manager involvement
Codes of environmental conduct
Cross-functional teams
Rewards and incentives
Track performance through environmental audits
Publish combined sustainability reports integrating social,
economic and environmental performance
Environmental Management as a Competitive Advantage
Cost Savings
Companies that reduce pollution and hazardous waste, reuse
or recycle materials, and operate with greater energy efficiency
can reap significant cost savings
Product Differentiation
Companies that develop a reputation for environmental
excellence and that produce and deliver products and services
with concern for their sustainability can attract environmentally
aware customers
Technological innovation it can lead to imaginative new
methods for reducing pollution and increasing efficiency
Strategic Planning - Companies that cultivate a vision of
sustainability must adopt sophisticated strategic planning
technique
TECHNOLOGICAL CHALLENGES
Technology fosters changes. Technological change has raised
ethical and social questions of privacy, security, ownership,
health, and safety. What are the implications of this fast-paced
change on our society and those who live in it? Moreover, who
is responsible for determining how much technological change
should occur or how fast things should change? Should
technology be controlled, and if so, who should be in charge of
managing technology and the challenges it poses for humans
and cultures in our global community?
Employees have access to new technologies at work and
companies may be monitoring usage, raising employee
concerns about invasions of privacy.
Businesses have adopted privacy policies to explain what use
of the companys technology is permissible and how it will
monitor employee activities
Privacy Issues in the Business-Consumer Relationship
Debate over protection of privacy vs. government access to
personal data began in earnest with 9/11 and still goes on.
New technological advances, like Radio Frequency I
dentification (RFID) have increased ways privacy violations
can occur. Industry and Government Efforts to Manage Privacy
Web sites with a privacy policy do not necessarily mean that
the consumers personal information and online activities are
not being sold to others. New technological advances, like
Radio Frequency
Identification (RFID) have increased ways privacy violations
can occur. Increased use of cameras on cell phones has
raised privacy objections.
Platform for Privacy Preference Project (P3P) provides users
with software that enables them to define what information they
are willing to divulge on the Internet.
Technological Challenges
Industry and Government Efforts to Manage Privacy
Platform for Privacy Preference Project (P3P) provides users
with software that enables them to define what information they
are willing to divulge on the Internet. Is available free now on
some browsers
Some businesses have banded together to support industry
self- regulation efforts.
Nineteen Companies, including AT&T, Cisco Systems, IBM,
Hewlett-Packard, Microsoft, and Oracle, launched the
Information Technology-Information Sharing and Analysis
Center; through the Center companies share sensitive
information about cyber attacks.
Despite industry efforts, some believe government regulation is
necessary.
International management of technology is difficult to achieve.
Management of Information Security Businesses now acutely
aware of maintaining information security.
Some corporate security lapses have occurred due to human
error. May also be the result of criminal activity.
Businesses Protecting Privacy
Chief Information Officer
Is responsible for managing technology, including its many
security issues, for companies.
Position has been elevated in recent years, 42% currently
report directly to the CEO. More troubling phenomenon is
decreasing amount of time information technology managers
have to patch their software before the worm hits
Computer hackers are those responsible for these viruses and
breaching business information security systems.
Part of job is enabling or driving business innovation through
use of technology.
Businesses Responses to Invasions of Information Security
Businesses have invested more resources in protecting their
information. By 2006, aggressive company measures seemed
to be having positive effect.
In 2005, 2 out of 3 computer hacker attacks were intercepted.
Less than 3% of emails contained a virus in 2005, down from
6% in 2006. Companies now using honeypots, system used
by security professionals to lure hackers to a fabricated
website that can track all their movements
Chief Information Officer (CIO)
Is responsible for managing technology, including its many
security issues, for companies.
Position has been elevated in recent years, 42% currently
report directly to the CEO
Internet Pornography
Is one of the most active and lucrative areas of e-commerce. In
2006 4.2M web sites, 35% of downloads, $57B in worldwide
revenues
Some countries monitor sites for objectionable material.
Enforcing underage use is problematic; some blockers or
parental tracking devices have emerged. U.S. passed Child
Online Privacy Protection Act in 1998 Congressional legislation
requires libraries to have Internet filters
The ideas, concepts, and other symbolic creations of the
human mind. Protected in U.S. by copyright, patent and
trademark laws

Software Piracy
The illegal copying of copyrighted software. In U.S., Digital
Millennium Copyright Act (1998) makes it a crime to
circumvent antipiracy measures built into most commercial
software agreements.
In China, taking active steps to reduce piracy. Business
Software Alliance, since 1988, has represented leading
software companies internationally. In the Philippines, the
Optical Media Board is the government arm responsible to stop
software, video, and audio piracy.

Pirating Copyrighted Music is growing and widespread

epidemic. Recent estimate that one out of every 3 musical
discs sold was pirated, $4.6B in sales.

Recording Industry Association of America (RIAA) launched

series of lawsuits to cut down on this trend.
Trade Associations in other countries are also taking action.
Use of streaming has also cut down on piracy.

Piracy of movies on CDs and DVDs

Study by Motion Picture Association of America found
Hollywood studios lost $6.1B in 2005
FCC ruled U.S.-made digital television receivers have
technology installed to block illegal distribution of copyrighted
material. Hong Kong court ruling severely punished pirates, yet
spread in Asia is still very problematic. U.S. Justice
Department has aggressively pursued illegal activity, in
cooperation with numerous other countries.

Managing Scientific Breakthroughs

Dramatic advances in the biological sciences have propelled
the impact of technology on our lives and business practices.
Biotechnology refers to a technological application that uses
biological systems or living organisms to make or modify
products or processes for specific use. Recent unprecedented
applications of biological science to industry have made
possible new, improved methods of health care and
agriculture, but they have also posed numerous ethical
challenges regarding safety and the quality of life.

Human Genome
In 2000, the Celera Genomics Group announced that it
completed the first sequencing of human DNA makeup.

Biotechnology and Stem Cell Research

Tissue engineering is the growth of tissue in a laboratory dish
for experimental research.

Technological Challenges
Stem-cell research is research on non-specialized cells that
have the capacity to self-renew and to differentiate into more
mature cells.

Cloning
In 1986, a Danish scientist announced the first successful
cloning of a sheep from fetal cells.
In 2002, the U.S. Senate began debates on a bill to ban human
cloning.
In 2003, U.N. General Assembly started considering cloning
with no consensus.

Bioterrorism
Terrorist groups see the use of deadly bioengineered diseases
and poisons, such as smallpox, anthrax, and bubonic plague,
as effective tools

Genetically Engineered Foods

Genetic engineering is altering the natural makeup of a living
organism, allowing scientists to insert any gene in to a plant.
Genetically modified foods are food processed from genetically
engineered crops.
Early on was backlash against genetically modified foods in
Europe, opposition weakened around 2004.
Adoption on other countries has been mixed