BUSINESS, GOVERNMENT

& SOCIETY

Definitions
Relationships
Models
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PRESENTATION OBJECTIVES

• Define the terms Business,

Government & Society
• Explore the objectives of
business, government and
society
• Investigate the activities of
business, government and
society
• Analyse the relationships of
business, government and
society

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BUSINESS
• What is the objective of most
businesses?
• How do businesses meet their
objectives?

Click for
definition

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GOVERNMENT

• What is the objective of most

governments?
• How do governments meet
their objectives?

Click for
definition

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SOCIETY
• What is the objective of most
societies (cultures/population)?
• How do societies meet their
objectives?

Click for
definition

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Business

Society Government

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CLASS • Take a coloured card:

ACTIVITY
– Red – Society
– Blue – Business
– Green – Government

• Step 1: get together with other people with the

same colour card
• Step 2: discuss the objectives of your particular
interest group.
• Step 3: feedback main points to whole class
• Step 4: change groups – find at least one person
from each of the other groups.
• Step 5: discuss your objectives. Look for common
areas and possible problems.
• Step 6: list main points of discussion and be
ready to feed back/
• Step 7: outside class – summarise and reflect on
your discussions and feedback. Write a
paragraph on the discussion board or in a blog.

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OBJECTIVES OF
BUSINESS

REDUCE COSTS
INCREASE SALES
MAXIMISE
PROFIT

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OBJECTIVES
OF SOCIETY
• Vary according to culture,
religion and natural resources
available
• People want to have enough to
eat and a supply of water
• Shelter from the environment
and threats
• Education and health care are a
priority
• Improved lifestyle is seen as
progressive therefore good
• Self-development

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OBJECTIVES • Manage resources fairly and cost-

OF effectively
GOVERNMENT • Support the population
• Provide a regulation framework for
business
• The Abu Dhabi government states its
objectives are:

‘to ensure that public entities’ resources

and funds are managed, collected and
expended efficiently, effectively and
economically, to ensure the accuracy of
the financial reports and compliance of
the public entities with the relevant
laws, rules and regulations and
governance guidelines as outlined in this
Law, and to promote accountability and
transparency principles at the public
entities.’

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FOUR MODELS
OF THE BGS
RELATIONSHIP
• Market Capitalism
• Dominance
• Countervailing Forces
• Stakeholder Model

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MARKET
CAPITALISM

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DOMINANCE
MODEL

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EGYPTIAN
UPRISING
JANUARY
2012

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COUNTERVAILING
FORCES

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STAKEHOLDER

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CASE
STUDY
The Nestle case study is
produced by Nestle.
a) Which model is
illustrated?
b) Give 2 examples from the
case study information
as evidence to support
your answer to (a).
c) If you owned shares in
Nestle, would you be
happy about the
activities described?
Explain your reasons.
d) Carry out research on
Nestle – does the
corporation always
demonstrate good
practice?
Diane Evans (diane.d3evans@gmail.com)
30/08/2012
Business, Government & Society
Nestlé – case study of good practice
Winter 2011
Creating shared values
Nestlé, the world‟s largest food and nutrition company, has been involved in
rural development in emerging countries since the 1920s. At that time, the
Swiss giant built factories in South Africa and Brazil as it created new milk
markets in countries with burgeoning farming sectors.
Today, Nestlé has 443 factories around the globe, nearly a third of which are in
rural areas in the developing world. With that history and breadth of
experience, it is unsurprising that Nestlé is highly skilled at making rural
development of mutual benefit to both the company and the community in
which it operates.
In its 2010 Creating Shared Value report, released earlier this year, Nestlé
listed a number of facts about its 144 factories in developing, rural areas: a
third have numeracy and literacy programmes, two thirds include a Nestlé-built
water treatment plant, and just over half offer formal apprenticeship training.
Nestlé public affairs communications manager John Bee said: “This starts from
our approach to doing business, the idea that creating shared value for
shareholders and the communities that you impact or represent.”
As Nestlé is constantly sourcing raw materials for its products, those
communities are almost always near or in rural areas. As a company
specialising in nutrition, Nestlé usually focuses on programmes that improve the
health of both the people and the livestock. In Pakistan, for example, Nestlé
wanted to improve the quality of its dairy supply, partly through adding iron to
milk to prevent anaemia, a major public health issue in the country. The key
project was to improve veterinary services to the animals.
The company had to be sensitive to local culture. Many of the herders are
women, so Nestlé had to train cadres of female „paravets‟, the animal
equivalent of community health workers, as it would not have been considered
appropriate to have a sudden influx of male workers.
“In partnership with the Swiss Agency for Development & Co-operation, we
provided them with start-up kits that included basic medicines and gave them
training,” explains Bee. “This empowered women and increased the productivity
of the animals. History suggests that we build loyalty among our supplier base
by doing this (helping and training the local workforce), especially when we
source directly from them.”
Source: http://www.ethicalperformance.com/bestpractice/casestudy/107 [accessed 30 August
2012]
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SUMMARY

• The relationships between Business,

Government and Society is co-
dependent and changing
• There are 4 models of BGS
relationship
• Difficult to find a balance between
right and wrong, greed and
compassion, corruption and truth.

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KEY • Society
WORDS • Government
• Value
• Idea
• Ideology
• Business
• Profit
• Social contract
• Corruption
• Capitalism
• Populism
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Stakeholder
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DEFINITIONS
AND
INFORMATION • Steiner & Steiner (2009)
SOURCES: Business, Government &
Society. Publisher McGraw-
Hill.
• http://www.bized.co.uk/educators/16-
19/business/strategy/presentation/busobjectives2_
map.htm

• YouTube videos

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