CH 1

MGMT4P96 – Business & Society
Asma Zafar| Assistant Professor | Goodman School of Business
Week 01 – Introduction to Nonmarket Strategy
10th January 2023

Agenda
 General introductions
 My introduction
 Clarifying some expectations
 Course overview
 Short break
 Introduction to ‘Nonmarket Strategy’
WEEK 1 - INTRODUCTION TO NONMARKET STRATEGY 2

Welcome to Business & Society – some expectations
 Attend classes
 Come to class having read the assigned reading materials
 Be an active and constructive participant in the class
 Experiencing an issue during the course? Approach me early!

Post pandemic classroom – some reminders
 Arrive on time, attend all classes, come to class prepared, actively
participate in discussions
 Raise hand to speak
 Keep classroom discussions professional and respectful
 Let me know if you expect to miss a class, or end up missing one for some
reason
 Masking requirement still on

Your expectations?
 I would like to know more about you all, please take a few minutes (after
the class) to fill out a quick form at this link:
 https://forms.gle/1BDTAepPPYPBrJUN6
 Thank you to those who have already submitted the form

 Education
Who am I?  PhD – University of Alberta
 MSc – Brock University
 MBA, BBA - Pakistan
 Work Experience
 Educator & Researcher
 Banker
 Manager – Business Development
 Teaching Experience
 Brock professor since 2019
 Courses in Management at U of A
 Courses in Organization Studies in
Pakistan
 Executive education – Strategy

Course assessment
Evaluation Component Grade Due Date
Weight
Issue Brief 15% Feb 7th
Term Test 25% Mar 23rd
Group Project
Problem Statement Presentation 5% Feb 28th
Project Presentation 15% April 4th & 6th
Project Report 25% April 11th
Class Participation 15% Throughout
Total 100%

Issue brief
 Short reflective piece of writing that you will submit to me on February 7th
 5 double-spaced pages, 1-inch margins all around, 12 point, Times New Roman
 Introduction to the topic (description of the issue, history, pros & cons etc.)
 Research and application (find the topic at work in real-world from a media
example)
 Critical analysis (your opinion on how should organization address the issue that
you have selected)
 Topics from the course will be assigned on a first-come, first served basis
 Students writing issue briefs will kick-off the class
 Issue brief sign up sheet is now available, please sign up by end of this
week!
 https://forms.gle/7aPLqcpinhoChMDu5

Term test
 In-class test
 Multiple Choice Questions: mostly applied/situational questions
 No make up, unless due to a medical emergency
 More details to follow
 If your special accommodations request has been approved, please contact
me

Group project
 Group assignment where you will find, critique, and/or suggest nonmarket
sources of an organization’s competitive advantage
 You are the outside consultant, working in groups of 4 – 5 to intervene in an
organization of your choice
 The organization must be facing, or should have faced (in the recent past) a non-
market strategy issue
 Problem statement presentation – brief oral presentations to me to discuss your
initial thoughts (via MS Teams)
 Project presentation – 15 minutes followed by 5 minutes of Q & A
 Final report – 15 double-spaced pages
 Groups for the class project
 Students to form their own groups of 4 - 5
 Let me know if you would like me to find you a group 

Class participation
Point Category Components
Value
3 Excellent – a handful of The comment adds substantial value to the discussion; e.g.,
students linking materials to current events, or relevant examples
from prior experiences, building on other’s comments
creates a developmental learning environment
2 Good – Most students Demonstrates knowledge of readings and other relevant
course material
1 Attendance without Ideally everyone contributes, but there are days that
contribution – not uncommon students only want to listen.
0 Absent Ideally no one, but life happens; no make up for missed
(0 – 10%) class, except for due to a medical emergency
-1 Unsatisfactory - Rare The student actively inhibits or impedes the course of class
(0 – 5%) discussions
1 - COURSE OVERVIEW AND INTRODUCTION TO STRATEGY 11

About the course
 Topic of study
 How businesses can improve their performance by managing the institutional and societal
context of economic competition
 Core objective
 To understand and address the social, political, and technological levers that business use to
enhance soft power
 Curriculum
 Eclectic readings
 Readings – contains carefully curated articles
 Brock Library – posted to D2L under the ‘content’ tab
 The Web – linked in the course outline
 Course outline
 Uploaded to Brightspace D2L, also under the ‘content’ tab

Accessing me outside of the class
 How to approach me?
 Email: azafar@brocku.ca
 We will meet via MS Teams
 At mutually feasible time
 Expect a response not before one business day
SESSION 2 - DEEP HISTORICAL FORCES 14

Course Overview
 What is the  Why business &
current market society?
system?  Issues
 Organizational generated by
evolution in Historical the current
Issues economic
relation to evolution
(module 2) system and
current (module 1)
economic organizations
system
 How to address the

Solutions issues?
 Can we see business
as part of the
solutions to the
issues?

Roadmap of the first two weeks
 General introductions  Understanding the

connection between
 Introduction to economic systems &
‘Nonmarket Strategy’ organizational power
Week 1 Week 2

Break – be back in 5 minutes

Today’s learning objective
 Introduction to non-market strategy
 Looking at social, political, technological, and environmental issues as part of
business strategy
 Some academic definitions
 “a firm’s concentrated pattern of actions to improve its performance by managing
the institutional or societal context of economic competition” (Mellahi et al.,
2016)
 “non-market strategy is a way to pursue strategic goals through political and social
leverage. That part of management involving government regulations, civil society
and the media. Non-market strategy helps groups gain soft power and influence
and use them to their competitive advantage” (Figueras 2017)

Governments
Activists
Nonmarket Environment Media
Regulators
General public
NGOs
Competitive Landscape Activists
Direct Competitors
Focal
organization

An organization’s nonmarket environment
 What comprises an organization’s  What comprises an organization’s
market environment? nonmarket environment?
 Suppliers  Government
 Customers  State of technology
 Competitors & Substitutes  Media
 Including potential competitors  Consumer interest groups
 All of these groups comprise what  NGOs/activists
we call “market stakeholders”
 These groups can be collectively
termed “nonmarket stakeholders”

Short group exercise:
 Chat with the person sitting next to you for 5 minutes and discuss the
following question:
 How did Covid-19 impact organizations?
 Which companies seemed to benefit
 Did you observe any non-market elements play out?
 We will then discuss our thoughts as a class

Debrief
 Why do organization’s need a nonmarket strategy?
 The primary answer is an increasingly complex business environment due to
globalization
 Tougher competition
 Variable and complex regulations
 Multiple audiences
 Enhanced scrutiny through NGOs, activists, media, general public
 Wicked problems – climate change and environmental degradation, global poverty,
income inequality…can you think of other issues?
 Sometimes, top managers need to satisfy their need for power by playing in the
nonmarket arena

Creating nonmarket strategies
 The (IA)3 Framework – information is at the heart of nonmarket strategy!
https://sloanreview.mit.edu/article/what-every-ceo-needs-to-
know-about-nonmarket-strategy/

Toyota Prius – an example
 The first generation Toyota Prius was launched in 1997; mass-marketing
started with the state of California, city of LA

Toyota Prius: The celebrity car?

Key takeaways
 Important to view market and nonmarket strategies as integrated
 Nonmarket environments are increasingly becoming more complex
 Nonmarket environments are organized around issues – very important to
understand the issue at hand

Next class
 Watch ‘The Corporation’
 Read the synopsis here: https://zeitgeistfilms.com/film/corporation
 Think about the following question:
 How did organizations become the dominant pillar of the modern society?

Session 02 – The relevance of deep historical forces
January 12, 2023

Agenda
 Housekeeping
 Review of last class
 The (IA)3 framework of creating nonmarket strategy
 Deep historical forces

Welcome back, some housekeeping
 How to approach me?
 Email: azafar@brocku.ca
 Issue brief sign up sheet is now available, please sign up by day-end, today!
 Please remember to sign up by the end of the week at the following link:
 https://forms.gle/7aPLqcpinhoChMDu5
 Thanks to those who have already signed up!
 Groups for the class project
 Do some of you know your group members by now?

Review – last class
 Nonmarket environment comprises those forces that do no necessarily
enter into a direct economic exchange with an organization, but can deeply
influence the organization’s ability to enter into economic exchanges
 The Prius example
 Toyota gained soft power by pulling political and social levers
 A primary driver of the complexity of nonmarket environment is
globalization
 A multitude of audiences
 Multiple and complex regulations
 Constant monitoring by various actors
 Tougher competition
 Shocks like the Covid-19 pandemic!

Continuing from the last class…
 The (IA)3 Framework – information is at the heart of nonmarket strategy!
https://sloanreview.mit.edu/article/what-every-ceo-needs-to-
know-about-nonmarket-strategy/

The (IA)3 framework: Six important questions
 What is the issue?
 Business should take a position on an issue if its resolution could significantly affect the
company’s ability to create and/or appropriate value
 Who are the actors?
 Identify the actors who care about the issue – their economic and/or ideological stakes
 Identify allies and adversaries
 What are their interests?
 What motivates the actors? What outcome(s) are they hoping for?
 In which arena do these actors meet?
 Courtroom or public domain/media, social media?
 What information will move the issue in this arena?
 Information is the currency of nonmarket environment
 What assets are needed to prevail in this arena?
 Reputation, political power, network, financial resources, information
The (IA)3 framework – an example
 Company Z is an international mining company that operates just outside a
small town in a rural region in Nigeria
 Half of the company’s employees come from the small town
 However, there are negligible medical facilities in the town and employees are
often missing work or less productive because of illness
 There is only one school in the town, an elementary school, and many
employees can barely read and write; while this is not mandatory for their job, it
does decrease productivity
 What should company Z do?
 What is the key issue?
 Who are the actors?
 What is the arena?
 Take 5 minutes to discuss in small groups
The (IA)3 framework – example debrief
 Company Z’s employees lack basic human rights such as access to medical
facilities and education. What should company Z do?
 Take action  what & why?  Do not take action

 To understand the deep historical forces that have led to the need for
development of nonmarket strategy

Moving on – the corporation
 Based on the documentary ‘the corporation’ how did organizations emerge
as a dominant institution of our society?
 Did some information come as a surprise/shock?

The corporation - impacts
 The extent of the impact and power of organizations
 Legal person with limited liability
 The 14th amendment used to liberate the black people was used for
organizations
 Harms caused to people: meager wages (1% of the retail price), factory fires,
stringent working conditions, union busting, layoffs
 Harms caused to the environment: Irresponsible harvesting, pollution,
 Corporations as psychopathic  wealth usurpation (wealth created when the
commons are owned privately
 How far are organizations willing to go is scary!!
 Use of harmful chemicals is an example of that

The paradox of the corporation
 What do you understand by the term, ‘the paradox of the corporation?’
 Organizations are necessary but harmful members of the society
 They have shaped our society in two ways
 Immense benefits: health & medicines, easy and quick travel, access to information, a
tremendous variety of products, creation of jobs
 Great losses: shaping consumer’s choices and complexifying lifestyles, dependence,
climate change, inequality, mental health problems

Deep historical forces
Industrial
Revolution
Dominant Population
Ideologies Growth
Globalization
Technology Inequality

The industrial revolution
 An economic metamorphosis in England in
the 1700s
 Focus on productivity  fewer human hours
for each unit produced
 Frederick Taylor and Henry Ford
 Formation of assembly lines
 Preconditions for industrial growth

 Sufficiency of capital, labor, natural resources
and fuels
 Adequate transportation
 Strong markets
 Ideas and institutions that support the
productive blend of all the above ingredients Ford motor plan in 1930s:
https://www.britannica.com/topic/Ford-Motor-Company
(such as supportive government policy)
Inequality
 The basic political conflict in every nation, and often between nations, is
the antagonism between rich and poor
 The industrial revolution accelerated the accumulation of wealth and
widened the persistent problem of its uneven distribution
 Global income inequality is measured by the Gini index
 Gini index: A statistical measure of inequality
 zero is perfect equality (everyone has the same amount of wealth)
 100 is absolute inequality (a single person has all wealth)
 The Human Development Index (HDI) “is a summary measure of average
achievement in key dimensions of human development: a long and healthy life,
being knowledgeable and have a decent standard of living.” (
http://hdr.undp.org/en/content/human-development-index-hdi)
 World inequality database

Inequality
https://data.oecd.org/inequality/income-inequality.htm
World income inequality (1992 – 2018)
https://en.wikipedia.org/wiki/Gini_coefficient#/media/File:GINI_index_World_Bank_up_to_2018.png

World income inequality (2022)

Population growth
 Rapid growth now declining due to changing preferences and lifestyles,
declining fertility
 Implications of current population trends:
 Growth will continue to strain the earth’s ecosystems
 The West is in demographic decline compared with other peoples
 The wealth gap between high- and low-income countries will widen

Technology & innovation
 Throughout history new technologies and devices have fueled commerce
and reshaped societies
 Printing press
 Steam engine
 Innovation
 Foster the productivity gains that sustain long-term economic progress
 Promote human welfare
 Can agitate societies and spread inequality

Waves of innovation since the beginning of the
industrial revolution

Globalization and nation-states
 Globalization: The creation of networks of human interaction that span
worldwide distances
 Besides war for physical control also trade wars
 Transnational corporations are the central forces of current economic
globalization
 Sub-trends underlying economic growth
 Rising trade
 Major expansion of foreign direct investment by transnational corporations
 Consequences of globalization
 Increased economic activity
 Changed cultures….

Dominant ideologies
 The industrial revolution was facilitated by several ideologies:
 Capitalism – private ownership of the means of production
 Individualism – protection of individuals’ rights
 Progress – the idea that humanity was in upward motion toward betterment
 Darwinism – survival of the fittest
 Protestant ethic – hard work, saving, thrift and honesty lead to salvation

Implication of deep historical forces for
organizations?
 These forces have strengthened organizations
 Organizations are immensely powerful legal persons
 Limited liability toward externalities!!!
 On the flip side…
 There is a wide variety of issues, actors, their interests, arenas, information and
assets that organizations need to grapple with
 Given that all of these deep forces increase the uncertainty of the nonmarket
environment, organizations frequently engage with scenario planning

The shell example
 “We have been developing possible visions of the future since the 1970s,
helping generations of Shell leaders explore ways forward and make better
decisions. Shell Scenarios ask “what if?” questions encouraging leaders to
consider events that may only be remote possibilities, and stretch their
thinking. Our scenarios also help governments, academia and business in
understanding possibilities and uncertainties ahead.”
 https://www.shell.com/energy-and-innovation/the-energy-future/
scenarios.html

The shell example… (continued)
 Scenario 1: Waves  Scenario 2: Island  Scenario 3: Sky 1.5
 In response to the Covid-19  “governments and  “responding to the
crisis policy makers pause societies decide to focus on pandemic and related
their attention to greening their own security first, challenges to public well-
of energy sources with a new emphasis on being – health first”
 Global use of coal and oil nationalism”  “There is rapid and deep
peaks in 2030s  “Nations focused on their electrification of the global
 own short-term economic economy, with growth
The world faces long-term
outcomes remain dominated by renewable
consequences (rising
dependent on cheap fossil resources”
average temperatures)
energy for a prolonged
 Decarbonization of fuels is period, and global
fast but starts late emissions decline only
slowly.”
https://www.shell.com/energy-and-innovation/the-energy-future/scenarios/the-
energy-transformation-scenarios.html#

Key takeaways
 The nonmarket environment of organizations maybe more uncertain than
their market environment
 These uncertainties are fueled by the six deep historical forces at work
 But have also helped organizations become one of the most powerful
institutions of our times
 From the perspectives of organizations, scenario planning might be a useful
exercise to deal with the ever-shifting nonmarket environment

Sample exam question
 In 2008, Shell predicted two competing futures over the next 10 years with
the aim of being prepared to the uncertain future. Based on the assigned
activities and class discussion, Shell’s action best exemplifies:
 a) scenario planning
 b) contingency planning
 c) over preparedness
 d) regression modeling
 e) good corporate citizenship

Next class
 Read:
 Wikipedia’s page on Capitalism
 Bower et al., (2011). Introduction: The role of business in the future of market
capitalism (HBR)
 Think about arguments
 For capitalism
 Against capitalism

The predominant economic system
17th January, 2023

Today’s Agenda
 Housekeeping items
 Quick recap
 Three models for understanding the business – government – society (BGS)
relationship
 The capitalistic model
 The dominance model
 The countervailing forces model
 Short break
 Questioning the assumptions of capitalism
 Short group exercise & wrap up
CAPITALISM 2
Housekeeping – groups
 I haven’t heard about any groups yet
 Groups are needed not just for the group project, but also for playing the
‘Net Zero’ simulation on February 14!
 So please report your groups to me by the end of this week!
 Minimum 4 and maximum 5 people in a group
 If you are unable to find a group, don’t worry. I’ll find you a group!
 If you would like me to find you a group, please email me (azafar@brocku.ca)
CAPITALISM 3
Continuing with the introductions…
CAPITALISM 4
Topics choices for issue briefs
Topic Students assigned the topic Count Still
available?
Post-Capitalism Caleb Pelletier 1 Yes
Business & Government Colin Pearson 1 Yes

relations
Consumerism Lex Dobson, Ryan Parkhurst, Hussein Kamaleddine 3 No
Environmental issues Teodora Vucenovic, Emily Stesl 2 Yes
Globalization Godfrey Mawere 1 Yes
Ethical issues Jacob George 1 Yes
Alternative organizational Yes

forms
The future of work Matthew Wilks, Makayla Levy, Michael DeAngelis 3 No
Corporate Governance Brendon Furlanetto, Curtis March, Aric Stubbe 3 No
CSR Marco Muraca, Kaitlin Nethery, Nolan Slywchuk 3 No
CAPITALISM 5
Looking back & projecting forward
 General introductions  Economic systems &  Starting the second

organizational power
module – issues
 Introduction to  Capitalism (today)
 Business & govt
‘Nonmarket Strategy’  Alternatives to capitalism
(next class) relations
Last week This week Next week

(Week 01) (Week 02) (Week 03)
CAPITALISM 6
Review – thus far
 Session 1
 Nonmarket forces in an organization’s environment do no enter into a direct
economic exchange with an organization
 Market and nonmarket environments are deeply interconnected
 A primary driver of the complexity of nonmarket environment is globalization
 Session 2
 The (IA)3 framework for creating non-market strategy
 Issues, actors, interests, arenas, information, assets
 Several other deep historical forces have necessitated that organizations think
about nonmarket factors
 Industrial revolution; globalization; population growth; income inequality;
technological innovations; dominant ideologies
CAPITALISM 7
Today’s learning objective…
 Digging deeper -- how businesses and societal forces connect
 Three models of Business – Government – Society relationships
 The market capitalism model
 The dominance model
 The countervailing forces model
 These are three perspectives to understand how business, governments,

and societies are connected
CAPITALISM 8
The basis of business & society relationship
 A basic agreement or social contract exists between economic institutions
and other networks of power in a society
 Business and the law
 Business and media
 Business and culture
 Business takes resources from the nature, organizes people, and shapes
choices. Therefore, general duties need to be outlined that business must
fulfill to retain the support and acquiescence of the others that it
influences
CAPITALISM 9
Market capitalism model
 Depicts business as operating
within a market environment,
responding primarily to
economic forces
 Driven from the work of Milton
Friedman who argued that the
primary function of business is
to increase shareholder value
($$$)
 Market forces buffer
businesses from the impact of
socio-political forces
(environmentalists, media,
government, etc.)
CAPITALISM 10
Important assumptions of market capitalism
 Government influence in business operations will remain limited
 Laissez-faire: An economic philosophy that rejects government intervention in
markets
 Competitive market is the invisible hand that will restrain businesses and
promote social welfare, underpinned by rational self-interest
 That is, rational consumers will favor the businesses that provide superior products or
services and reject those that are inferior or inefficient
 Businesses will not be governed by greed and will be inherently motivated to give back
to societies that sustain them!
CAPITALISM 11
The dominance model
 Arose as a criticism of market
capitalism
 Elites and corporations run a system
which enriches a few at the expense
of “masses”
 Inspired by the works of Karl Marx on
class struggle
 Sees the society as organized in the
hierarchy of social classes
 Emerged and most applicable in the
1800s, but still relevant due to
massive corporations and their
influence
CAPITALISM 12
The countervailing forces model
 A model of multiple forces in which
some institutions are seen as
countervailing the effect of other
institutional forces
 Sees business as deeply integrated
into an open society
 Business must respond to many
forces (economic forces and non-
economic)
 Business is an initiator of change in
society through its interaction with
government, and production of
goods and services
 Depends on public for legitimacy,
that is, public support
CAPITALISM 14
Our approach to the subject matter
 Comprehensive scope that draws on all three of these models to address
different issues in different contexts
 Interdisciplinary approach with a management focus
 Strategic management: Actions taken an organization to adapt to changes in its
market and sociopolitical environments
 Non-market management: actions taken by an organization to influence the
environment within which it operates
CAPITALISM 15
Short break
 [5 minute timer]
CAPITALISM 16
Key assumptions of capitalism
CAPITALISM 17
1. Private ownership
 Private business owners control
the means of production
 Land, labour, capital
 Food for thought: what
resources should not be owned
privately?
CAPITALISM 18
2. Individualism
 The rational individual, and not
the society or a collective, is the
paramount decision-maker
 Food for thought: Are
individuals rational?
 What are the limits to their
rationality?
 Scholars studying human
psychology have argued that
humans are not rational; they
are biased instead!
 Daniel Kahneman, for example,
argues that decision-making
biases blur our judgment
CAPITALISM 19
3. Equality of opportunity
 All individuals/groups have an
even chance at responding to
some condition in society
 Equality of opportunity: treating
individuals/groups equally
 Equality of outcome: giving each
person the same share
 Emerging large-scale initiatives
 Affirmative action in the U.S.
 Targeted hiring
 Equity, Diversity, Inclusiveness
positions created at
organizations
 Do such initiatives actually
create equality of opportunity
CAPITALISM 20
Equality of outcome – an example
SOURCE: HTTP://RESEARCH.PRATTSILS.ORG/BLOG/COURSEWORK/GENDER-WAGE-GAP-EXIST-PROVIDING-STATISTICAL-GRAPHS-SHOWING-POSITIVE-
RESULTS-2/
CAPITALISM 21
4. Competition
 Many rival sellers seek to provide goods and services to many buyers
CAPITALISM 22
5. Profit
 The excess of revenues over
expenses
 Pursuing the “profit motive”
should be the primary goal of
business
 Outcomes
 Impacts on environment
 Inequality of outcomes
 Short-termism
 Moving toward totalitarian
control
 Companies determine
consumers’ everyday choices
CAPITALISM 23
6. Work ethic
 Code of values, or a body of
moral principles, claiming that
work is desirable, it is natural
activity
 The protestant ethic
 Food for thought: what is lost by
valuing people based on jobs as
opposed to other aspects of
life?
 Social impact
 Impact on wellbeing
CAPITALISM 24
7. Consumer sovereignty
 Consumers are free to choose and make purchase and consumption
decisions
 Food for thought: are consumers really entering into voluntary exchanges
with organizations?
CAPITALISM 25
8. Minimal role of the Government
 Government intervention would be virtually non-existing (e.g., limited to
enforcing contracts) in markets
CAPITALISM 26
Short group exercise
 ITC India is an Indian conglomerate that operates at least 13 different
businesses in 5 different sectors
 One of its businesses is an agribusiness, which is the second-largest
exporter of food products in India
 Traditionally, there are a host of intermediaries between large
purchasers of agricultural products (such as ITC) and producers
(farmers)
 Visit the link below:
https://www.itcportal.com/sustainability/echoupal-ecosystem.aspx
 Read and Discuss in small groups [10-minute timer]
 Is ITC practicing sustainable capitalism?
CAPITALISM 27
Key takeaways
 A social contract binds business and societal forces
 There are several perspectives that help us understand the business and
society relationship
 Market capitalism, dominance, countervailing forces
 Capitalism is the predominant economic model connecting business &
society, though its variants have emerged
 Not all of the model’s underlying assumptions work perfectly
 Scholars and top leaders of the business world see the need for alternatives to
capitalism or a reformed capitalistic model
 Businesses can work within the realms of the dominant economic system and
yet create value for other parties involved in the social contract
CAPITALISM 28
Next class
 Alternatives to capitalism
 Read: Wilson & Kambil (2008). Open source: Salvation or Suicide? (HBR)
 Think: whether the downsides of capitalism are avoidable?
 Report your groups by the end of next week!
CAPITALISM 29
Alternatives to capitalism
19th January 2023

Today’s Agenda
 Groups
 Quick review
 More on capitalism
 Business power in a capitalistic system
 Alternatives to capitalism
 Socialism
 The Buddhist economics
 Open source
 Developing our own alternative economy
ALTERNATIVES TO CAPITALISM 2
 I have heard from the following people so far:
Group number Members

1 Aric, Lex, Michael Damaia, Gwen
2 Makayla, Brendon, Curtis, Teodora, Caleb
3 ?
Topics choices for issue briefs
available?
Post-Capitalism Caleb Pelletier 1 Yes

relations
Environmental issues Teodora Vucenovic, Emily Stesl, Gwen Ryder 3 No
Globalization Godfrey Mawere, Sashwat Lad, Michael MacLeod 3 No
Ethical issues Jacob George, Will Neil, Michael Damaia 1 No
Alternative organizational 3 Yes

forms
Review – last class
 Various ways to understand how business is connected with nonmarket
forces; saw three models
 The Capitalistic system – indirect connection between business and society;
market shields business from nonmarket forces
 The Dominance model – questions the ‘free market assumption’; sees few
private and public owners as jointly running the show; concentration of wealth
 The Countervailing forces – no shield between business and nonmarket forces
 The assumptions of capitalism
 Many of them are now dysfunctional
 Questions have been raised whether our current economic system is a moral
one!
Today’s learning objective…
 To understand the issue of business power in relation to capitalism
 To consider a few alternatives to capitalism
 Open source
 Socialism
 The Buddhist economics
The problems with the capitalistic system
 Fraught with the issues
 Feeds greed
 Inherently exploitative
 Unsustainable (adverse impact on natural resources due to short-termism)
 Gives rise to inequality
 Leads to an erosion of human rights (e.g., the right to choose, free will, etc.;
workers defined by work rather than any other aspect)
 Another problem:
 Organizational power! Businesses want to create and retain control through
intellectual property
What is power?
 Power
 The ability or strengths to act (power to do)
 The ability to compel another entity to act (power over)
 Business power
 The force or strength behind an act by a company, industry, or sector
 Some sources of business power?
 ‘consumerism’ (needs and wants)
 Control over resources (over customers; over products, such as patents)
Forms of power
 Coercive Power
 someone in authority forces someone to do something, with threat of
punishment
 Reward Power
 rewarding people to get things done
 Legitimate Power
 title or position that grants the right to take action
 Referent Power
 those in power are used as role models
 Expert Power
 superior training and experience provide influence
The issues with corporate power
 Corporate personhood
 A corporation is a separate legal person (separate from its founders,
managers, and shareholders). It can acquire and sell assets, enter into
contracts, may sue others and may also be sued in its name, much like a
natural person
 Limited liability
 In case of failure of a corporation, the personal assets of owners and
shareholders are not at risk
On organizational power – the Turing example
 Watch these two videos
 https://nyti.ms/2okXMgz
 https://youtu.be/NS9blbLr
Kv4
 Think about:
 What is valued in the
capitalistic system
 What is not valued?
 Is Martin Shkreli the hero or
the villain of the capitalist
system?
More on the Turing example
 Raised the price of a drug by 5000%
 Claiming for the good of the people
 But was chasing profits
 Is Martin Shkreli a hero or a villain of the capitalist system?
 hero as a capitalist but villain in any other society also a villain for the capitalist
society as well as he made it look worse!
 Possible to chase profits while caring for other constituents
 Why do you think he raised the price of the drug so much?
 Sole rights to the drug Diaprim
 People were dependent!!!
 Noticed the demand and controlled the supply (“inelastic demand”)
Kelly Music Software – another example
 KMS – the Amp Up is a music
 Discussion questions
 What is the dilemma that KMS is facing?
 What can be the advantages of open source software?
 Do you see any downsides?
 [5-minute timer]
Can alternatives solve the problems of capitalism?
Socialism – a better system?
 What is socialism
 Political and economic theory of social organization that advocates that the
means of production, distribution, and exchange should be owned or
regulated by the community as a whole
 Basic ideas and assumptions
 People are primarily cooperative rather than competitive
 Workers’ share is distributed after portion of their income is deducted to be
used for common good (defense, education, health)
 State provides and cares for individuals and groups who can’t provide for
themselves
 Main criticism
 What is common good is often contested and not decided by the public
Market socialism
 While socialism is often equated with authoritarian state socialism, some
new versions have emerged, such as market socialism
 Market socialism: A variant of socialism based on public or cooperative
ownership of the means of production, retention of market competition,
and allocation of factors of production based on market mechanisms
 An example – Solidarity Economy
 Based on worker-owned cooperatives
 Operate under the principles of democratic decision-making
 Inclusive participation (forums)
 Empowerment of marginalized groups
 Still compete in an open market
 New Era Windows https://www.youtube.com/watch?v=V5eRf2boH68
Arguments for & against socialism
 For socialism…  Against socialism…
 Workers are no longer exploited,  Underlying assumption about the
since they own the means of cooperative nature of humans may
production not stand true
 All profits are spread equitably  Doesn't reward people for being
among all workers, according to his entrepreneurial and competitive
or her contribution  Government set up to represent the
 Factors of production are valued for masses may abuse its position and
usefulness to society (as ends) may not represent the masses
Buddhist Economics
 Rests on the philosophy of deep interconnections between the individual,
collective, and the environment
 Individuals’ actions need to be seen as having an impact on the collective and
the environment
 Means or factors of production are seen as ends in themselves
 The Middle way – meditation an important virtue – spend time meditating to
lower the desire for consumption
 Primary measure of success – wellbeing, happiness, equity, sustainability
Capitalism vs. Buddhist Economics
Capitalism Buddhist economy

Concept of the self Self-interest No self
Concept of work Necessary evil Self-fulfillment
Measures GDP Well-being
Concept of factors Means to an Ends in themselves
of production end
Goal of Business Fulfill desires Reduce suffering
Short break
 [Take a 5-minute break]
In-class simulation
 “The Island Economy”
 Debrief
 You will work in small groups to read a scenario and set up a new economy by
thinking about provided prompts.
 From time to time, I will introduce 2 – 3 shocks in the mix
 You end goal should be to decide upon the characteristics of the new economy
that you will set up
 Don’t forget to give your group a name that reflects the kind of economy you’re
creating!
Key takeaway
 The problems of capitalism are very much solvable
 Inspiration can be taken from alternative economic models such as socialism
and Buddhist economics
 Creative, out-of-the-box thinking is needed to solve the problems that have
arisen due to capitalism
Next class
 Business and Government relations
 Please read
 The power of lobbyists is growing in Brussels and Berlin. 2021. The Economist

Business & Government Relations
January 24 & 26, 2023

Today’s Agenda
 Welcome new members!
 More on groups…
 Recap of course evaluation components
 Content
 Quick review
 Government in business
 Business in government
BUSINESS & GOVERNMENT RELATIONS 2

Welcome, new members!
 Course evaluation components
 Issue brief (15%)
 Term test (25%)
 Group project (45%)
 Class participation (15%)
 Please refer to the course outline & previous slides
 All content posted on Brightspace D2L under the ‘content’ tab

Issue brief topics
available?
Capitalism/Post-Capitalism Caleb Pelletier 1 Yes

relations
Alternative organizational Alex Bender 1 Yes

forms

 Thank you to those who have reported their groups!
 MS Teams channels created for groups to work on their project
 Idea presentations will also take place on MS Teams

3 Kaitlin, Jacob, Ryan, Nolan, Alexander

Quick recap – last class
Capitalism Socialism
Self-interest private owners of A central authority (state) owns
means of production means of production
“Free” market Central planning
Competition No - minimal competition
Goal: profit seeking Goal: protection of public interests
The invisible hand of market Elites determine what’s in the best
determines public good interest of the public
Short-termism Inefficient

Today’s learning objectives
 To understand government as an important constituent in an organization’s
environment
 To looks at ways in which the two (business and government) can influence
each other

Government in business – policies, regulations, laws

Influence of government on business
 Example
 Bethesda services example – government
decided to change a social assistance policy,
requiring an organization to come up with a
strategy to gain market share Business Government
 Instead of directing funds to the social service
sector, the Ontario government directed the
flow of funds to families in need
 Bethesda needed to compete for funding $

The various roles played by governments
 Public policy is a plan of action undertaken by government officials to
achieve some broad purpose affecting a substantial segment of a nation’s
citizens
 Fiscal policy – government’s collection of revenues & major spendings
 Trade policy – imports & exports
 Monetary policy – demand & supply of money, interest rates
 Regulations are sanctions or rules to distinguish between acceptable and

inacceptable modes of behavior
 Economic regulations – to modify the operation of markets (anti-trust laws,
penalties, damages, etc.)
 Social regulations – to accomplish social goals (equal employment opportunity,
protection of pension benefits, environmental protection)

The role of the government – some tools
 Bill is a written legislative proposal or initiative, related to the matters of
public interest, proposed by elected government officials
 Legislation is an approved or enacted bill; it is the law!
 Regulation is the set of rules that clarify and supplement the legislation.
Regulations are developed by non-elect government officials or
bureaucrats in regulatory agencies
 Example: the “Environmental Protection Act” in enforced in Ontario by the
“Ministry of the Environment, Conservation, and Parks”
 Let’s take a look at the Canadian legislative process

The structure of the Canadian government
Source: https://www.wilsoncenter.org/article/infographic-canada-101

The need for government regulation
 Reasons for regulation
 Market failure  marketplace fails to adjust prices for the true costs of a
firm’s behavior
 Example: EU standards for food contamination; call on banning “forever chemicals”
 Negative externalities  the manufacture or distribution of a product gives

rise to unplanned or unintended costs (spillover effects)
 Creation of natural monopolies  without competition, firms could raise
prices as much as they want
 Example: electric utility services
 Ethical arguments  consequences, fairness issues

 Example: the Turing example

Business in government – influencing the political
environment

Ability of business to influence its political
environment
 Example
 Toyota convinces the California government
to let its Prius car owners ride in the carpool
lanes even when driving alone and to park
Business Government
for free at public parking stations
 Helped the government address the issues of
bad traffic and environmental pollution

Refer to the assigned reading…
Source: The power of lobbyists is growing

in Brussels and Berlin (2021, May 15).
The Economist

The influence of businesses on governments
 Is it okay for businesses to be involved with politics?
 In your small groups, discuss the question and develop argument for and against
lobbying [5-minute timer]
 Arguments in favor of  Arguments against lobbying
lobbying

The influence of business – Corporate political
strategy
 Involves the actions of businesses to acquire, develop, and use power by
shaping the political agenda
 The goals of developing and executing a corporate political activity may
include
 Ensuring focal firm’s survival and growth
 Limiting rival’s ability to compete
 Have a voice in the process of legislative decision-making

Three pillars of corporate political strategy
 Information strategy
 Businesses seek to provide government policymakers with information to
influence their actions
 Financial-incentives strategy
 Businesses provide incentives to influence government policymakers to act in a
certain way
 Constituency-building strategy
 Businesses seek to gain support from other affected organizations to better
influence government policymakers to act in a way that helps them

Corporate political strategy (continued)
Information Lobbying, invitations at

events, influencing at
Strategy public forums
Funding political
Financial campaigns, economic
Incentives leverage
Advocacy advertising,
Constituency- stakeholder coalitions,
building strategy trade associations, legal
actions

Key Takeaways
 Businesses and governments are deeply intertwined
 Both can influence each other positively and negatively
 While government can help provide a fair ground for businesses to play in,
businesses can provide information for decision-making
 The extent and intent of involvement determine whether the relationship
will benefit the society

Business in government – Continued
Uber in Colorado

Uber in Colorado
 Case synopsis
 Uber faces challenges after its arrival in Colorado as an alternative to traditional
taxi/limousine services
 Through the use of technology, Uber has disrupted the existing business model
 The existing taxi business is highly regulated
 Colorado’s Public Utilities Commission seeks to regulate Uber
 Will McCollum, a recent MBA grad is responsible for the launch and operations
of Uber in Colorado
 Uber initially resists regulation, but the Public Utilities Commission persists!
 Two choices facing McCollum
 Continue to fight regulation in Colorado
 Work collaboratively with state politicians to develop an ongoing set of regulations

Group discussion
 In small groups, discuss:
 How is Uber different from traditional taxi services?
 Who are the key actors and what are their interests?
 Which corporate political strategy will be effective?
 You have 10 minutes

How is Uber different from a traditional taxi
service?
 Organizational structure
 Business model
 Tech breakthrough in terms of business model
 A business model is the way in which the company makes money
 Resources
 Uber drivers own the cars
 Taxi industry has been established for far longer than uber
 Heavily regulated

Who are the actors and what are their interests?
 Consumers: cheap, reliable and safe transportation
 Uber: to continue doing business
 Government: to protect the consumer; favoring the taxi industry
 Can control the taxi industry more easily
 Information access is greater w.r.t. taxi industry
 Public Utilities Commission – regulatory body
 Politicians
 Public:

What corporate political strategy will be effective?
 Constituency-building would make sense
 New business model; the strategy could help government understand the
utility of Uber
 Drivers, general public
 Information strategy: could work because they need to inform/educate
the government

What if?
 What if there was no regulation?
 What would Uber do?
 What would be the impact on consumers?
 Which actors would stand to lose?

Uber’s response
 In January 2014, the Colorado government passed a bill (Bill 125) to allow
Uber to operate under strict conditions (liability insurance, thorough
background checks of drivers, safety inspection of vehicles, and permit
from PUC
 Uber worked closely with the Colorado government to create regulations
that would allow, Uber, Lyft and other ride-sharing services to operate
successfully
 Uber hired two former PUC officials and employed a lobbyist to educate
elected officials about the bill
 Colorado was the first state to approve legislation on ride-sharing
companies
 Uber continues to face scrutiny in Colorado and other locations on a
variety of issues (safety, privacy, pricing, working terms & conditions of
drivers)
What can we take away from Uber’s case?
 Regulation may restrict/limit a company’s ability to generate profit
 However, it can safeguard the interest of other parties related with an
issue
 Can also help garner trust of key stakeholders, leading to long-term
profitability

Next class
 Consumerism
 Please come prepared having read:
 How whole foods primes you to shop
 Consumer sentiment and behavior continue to reflect the uncertainty of the
Covid-19 crisis (supplementary/optional reading)

The rise of consumerism
Tuesday, January 31, 2023

Today’s Agenda
 Groups
 Offering clarification on the components of group project
 Session plan
 Quick review
 Discussion on consumerism!
CONSUMERISM 2
 Group project has three components
 Problem statement presentations – MS Teams channels
 Final report – to be submitted online
 Final presentations – in class
 Here are the groups, thus far:
CONSUMERISM 3
Issue brief topics
available?
Capitalism/Post-Capitalism Caleb Pelletier 1 Yes
Business & Government Colin Pearson, Michael Kazimowicz 2 Yes

relations

forms
CONSUMERISM 4
Review – business & government relations
 Businesses and governments exist in a relationship characterized by mutual
dependence, as well as balance of power
 The influence of governments
 Policy-making
 Regulation
 The influence of businesses – three pillars of corporate political strategy
 Information strategy: to educate politicians about specific business issues
 Financial strategy: to create financial obligations
 Constituency-building strategy: to rally support by forming coalitions,
associations, etc.
CONSUMERISM 5
Today’s objective…
 To understand that what’s, why’s, and how’s of consumerism!
 What is consumerism and why is it bad?
 Why do we, as a society, consume so much?
 How can the issue be resolved?
CONSUMERISM 6
To start us off.. Getting your ideas
 What do you understand by the term consumerism?
CONSUMERISM 7
My take on consumerism
 Consumerism is the idea that consumption is desirable (has advantages)
 Increasing consumption leads to well-being (consumption = happiness)
 Follows from the capitalistic society
 Criticized for degradation of the environment
 Consumerism and materialism – consumers waiting in queues to find
materialistic products in an attempt to increase their happiness and well-being
 Updates on your smartphones aimed to slow down the smartphone!
 Or the ability to get a latest smartphone every two years under contract with a cellular
phone company
CONSUMERISM 8
CONSUMERISM 9
Black Friday!
 What’s the fuss about?
 Why do consumers do it?
 What are they getting out of it?
 What do you think about it?
CONSUMERISM 10
Consumerism
 A powerful ideology in which the
pursuit of material goods beyond
subsistence shapes social conduct
 Consumerism is also a social
movement which promotes the
rights and powers of consumers vis
a vis sellers
CONSUMERISM 11
In defense of consumerism
 Successful products either create value for customers or they fail in
competitive markets
 Intense competition between corporations works to bring consumers more
choices, higher quality, and lower prices
 On the other hand….
CONSUMERISM 12
Remember him?
 Consumer sovereignty is
the assumption that
consumers have and
exercise the power over
producers through the
decisions they make in
purchasing the goods and
services provided by
business
CONSUMERISM 13
‘Whole Foods’ exercise
 Based on your reading of the ‘Whole Foods’ article, discuss:
 Why is it okay for Whole Foods to ‘prime’ consumers
 Why is it not okay for Whole Foods to ‘prime consumers
 Take 5 minutes to discuss in small groups!

CONSUMERISM 14
From market capitalism to consumer capitalism
 Consumer capitalism is an economic
and socio-political condition in
which consumer demand is
manipulated, in a deliberate and
coordinated way, on a very large
scale, through mass-marketing
techniques, to the advantage of
sellers
CONSUMERISM 15
Some statistics…
 Fueled by the Covid-19 pandemic Canadians spent $84.4 billion online
(versus $57.4 billion in 2018)
 In2018, on average, one Canadian spent $2,554 in online orders/person
 In, 2010, this figure was $1,364/person
 In 2019, the Yorkdale shopping center in Toronto reported annual sales of
$1964 per square foot! (its Gross Leasable Area is > 1,000,000 square feet)
 Survey of Canadian household spending (2013) found that households
spent an average $58,592 on goods and services, up 4.1% from 2012
 Couples with children spent $81,636, while one-person households over 65
years spent $29,064
 And most importantly, an American study found that the average
household is filled with over 300,000 things!!!
CONSUMERISM 16
Downsides of consumerism…
 It leads to commodification of all parts of life
 A price to everything!
 It encourages unwise, irrational, and unproductive uses of money,
unstable increases in debt
 Heavy consumption uses natural resources and is incompatible with
sustainability
 It distorts our values
CONSUMERISM 17
Why do we do this?
 Recall Naom Chomsky from “the Corporation”
 “The goal for the corporations is to maximize profit and market share. And
they also have a goal for their target, namely the population. They have to be
turned into completely mindless consumers of goods that they do not want.
You have to develop what are called 'Created Wants'. So you have to create
wants. You have to impose on people what's called a Philosophy of Futility.
You have to focus them on the insignificant things of life, like fashionable
consumption. I'm just basically quoting business literature. And it makes
perfect sense. The ideal is to have individuals who are totally disassociated
from one another. Whose conception of themselves, the sense of value is just,
'how many created wants can I satisfy?' We have huge industries, public
relations industry, monstrous industry, advertising and so on, which are
designed from infancy to mold people into this desired pattern.”
- Noam Chomsky, The Corporation
CONSUMERISM 18
The philosophy of futility
 We are repeatedly told we are not good enough
 Fashionable consumption is the solution
 Seek personal value in the material objects in hopes to improve our being
 Why do consumers buy more?
 Addiction
 Identity
 Lifestyle
 Save money… ironically
CONSUMERISM 19
Solutions…
 Consumer-based solutions
 Anti-capitalism
 Ethical consumption
 Market-based solutions
 Circular economy
CONSUMERISM 20
The consumption continuum
CONSUMERISM 21
Anti-capitalism: the minimalists
CONSUMERISM 22
Ethical consumption
 Intentional purchase of ethically-made products
 What needs to happen to make this into a reality
 Quality over quantity!
CONSUMERISM 23
Circular economy
 Traditional (linear) economy  take, make, use, dispose
 Circular economy  take, make, use, recycle, repurpose & reuse until
the full useful life of the product
 Let’s watch a quick video:
https://www.launch.org/innovators/vigga-svensson/
 For a more detailed description of Vigga (baby clothes retailer) watch the
following videos:
 https://www.youtube.com/watch?v=siU5hvO6eyk
 View Vigga Svensson’s TED Talk (especially 2:30 – 12:40)
CONSUMERISM 24
Next class
 Globalization
 “20 Lessons learned from the world’s sweatshops” (2014). Toronto Star
 https://www.thestar.com/news/world/clothesonyourback/2013/10/27/20_lesso
ns_learned_from_the_worlds_sweatshops.html
CONSUMERISM 25
Globalization
Thursday February 02, 2023

Today’s Agenda
 Session plan
 Housekeeping
 Taking stock
 The history of globalization
 Trade – the backbone of globalization
 Globalization – costs & benefits
 Issues raised by globalization
 Sweatshops – a byproduct of globalization
 Short feedback survey – listening to you
 Listening to your views
GLOBALIZATION 2
Housekeeping
 Further guidance on how to write issue briefs now available – posted to
Brightspace D2L
 Groups

4 Matt, Will, Hussein, Michael DeAngelis, Emily
GLOBALIZATION 3
Issue brief topics
available?
Capitalism/Post-Capitalism Caleb Pelletier; David Parker 2 Yes
Business & Government Colin Pearson, Michael Kazimowicz, Sukhmeet Dhaliwal 3 No

relations

forms
CONSUMERISM 4
Quick review
 Consumerism
 The ideology that well-being and happiness is associated with consumption
 Also a powerful movement to inform individuals about the perils of unhealthy
consumption
 Issues in consumerism
 Philosophy of futility
 Solutions to the perils of consumerism
 Individual-oriented
 Business-oriented
GLOBALIZATION 5
Globalization
GLOBALIZATION 6
The process of globalization
 Globalization can be defined as the
movement of goods, services, capital,
and labor across national borders and is
germinated by international trade
Make
 Sell
Businesses contribute to the process of
globalization through
Source
 Global markets (selling globally)
 Global operations (Manufacturing
globally)
 Global supply chains (buying globally) Globalization
 Overall, global commerce integrates
countries!
GLOBALIZATION 7
Trade – the backbone of globalization
 Some background
 The richest European nations, the dominant traders of the time, ran their
economies according to the theory of mercantilism
 The great run of free trade ended with World War I, which inflamed global
markets with national conflicts
 In the United States an isolationist, Republican Congress passed the
remarkably unwise Smoot-Hawley Tariff Act in 1930
 In the downward spiral of retaliation and bitter national rivalries some
governments moved in the direction of autarky
The triumvirate of International financial and trade institutions (IFTIs)

GLOBALIZATION 8
Free trade versus protectionism
 Not a single country in the world practices free trade, instead all
countries practice some form of protectionism defined as restrictions
applied to international trade
 Import barriers
 Trade tariffs  duties that a focal country imposes on import of certain
products (to be paid by the business wanting to sell their product in the focal
country)
 Benefits of protectionism
 Saving domestic companies from foreign competition
 Helps increase domestic jobs in some industries
 Helps level the playing field – what if the foreign producer is receiving a
subsidy in the home country?
 Provides a source of government revenue
 Protection needed for infant industries
GLOBALIZATION 9
In-class exercise
 You are starting a green technology company (you choose what you sell).
In your small business decide how you feel about protectionism
 How does it impact you in the domestic market? Internationally, in the market
you would really like to be in?
 What protection from foreign competition would you like for your business?
GLOBALIZATION 10
Globalization – a positive or a negative force?
 Benefits  Costs
 Increases global economic  Weakens labour and
productivity environmental standards
 The theory of comparative  Causes job insecurity
advantage – not every nation
has all the resources and idea  Erodes national cultures
conditions to meet all of its
needs therefore, international
trade is more efficient than
isolation
 Increases affordability for
customers
 Learning through technology
transfer
 Increases international peace
and collaboration
GLOBALIZATION 11
Why is globalization problematic?
 Globalization has caused several externalities or by-products (harm to the
environment)
 Externality is the cost of doing business that is passed on to the society, for
example, environmental degradation, waste generation, inequality…
 Example: Fast fashion – Rana plaza case --; Fire in a garment factory
(Bangladesh) Walmart, Gap, Banana Republic, H&M,
 In 2019 still factories in Bangladesh were catching fires!!
 It is an externality caused by globalization because of international supply-
chains (complex supply chains mean that companies cannot keep track of
everything)
 Can companies focus on a broader bottomline?
GLOBALIZATION 12
Bottom Line…
 Business case for “Triple Bottom line”
 Triple Bottom Line refers to a business’s
efforts to incorporate social and
environmental goals besides profits-
seeking goals among its objectives
 Reputational advantages
 Or legitimacy gains – appearing more
legitimate or acceptable to its audiences
can acquire resources more easily
GLOBALIZATION 13
Sweatshops – modern day slavery?
GLOBALIZATION 14
Sweatshops – a by-product of globalization
 Let’s watch a video clip – “Behind the Swoosh”
 https://www.youtube.com/watch?v=M5uYCWVfuPQ (first 10 minutes)
 What do you understand by the term, ‘sweatshops’?

 Why does Nike use sweatshops?
GLOBALIZATION 15
Debrief– sweatshops
 What do you understand by the term “sweatshops”
 Sweatshops refers to “workers quarters” – the ideas is that works will live
close to the factory and work at the factory
 Poor living and working conditions
 Health and Safety concerns (sewage, sharing washrooms)
 Long work hours;
 Not a livable wage $1.25
 Why does Nike use sweatshops?

 Profits $$$
 Race to the bottom: finding cheapest possible materials and labour
 Capitalistic system
 Convenience – labour availability
GLOBALIZATION 16
Debrief (continued)
 Why do workers choose to work in the sweatshops?
 Source of income is guaranteed (maybe higher income than other local jobs)
 Grand challenges of poverty and inequality is the driving force here
 Grand challenges
 Large scale and complex social issues that don’t have straightforward
solutions, and demand extensive collaborative efforts by multiple parties to be
addressed (Ferraro, Etzion, & Gehman, 2015)
 Examples include poverty, climate change, inequality, global pandemics,
addictions, deteriorating physical and mental health, pollution…
GLOBALIZATION 17
Debrief (continued)
 Which one of the “20 lessons” from the assigned reading did you find the
most surprising – why?
 Some that I found shocking…
 $3 as a worker vs $9/day by herself
 How much water goes into making clothes
 Fashion industry’s waste
 A garbage picker’s salary/wage was more than the wage of a sweatshop
worker!
GLOBALIZATION 18
Key takeaways
 Trade is the backbone of globalization
 International trade has also generated “sweatshops,” which can be thought
of as an externality (an unpredicted by-product) of globalization
 Globalization is not all bad – it offer some benefits as well
 I leave you with a question – do the benefits of globalization outweigh its
costs?
GLOBALIZATION 19
Sample exam question
 “US steel industry benefits from import tariffs that Chinese steel
manufacturers are required to pay in order sell their steel in the U.S.”
From the perspective of US steel industry, this statement best
exemplifies:
 A. Sweatshops
 B. Mercantilism
 C. Free Trade
 D. Protectionism
 E. Capitalism
GLOBALIZATION 20
Listening to you!
 Please fill this anonymous survey to let me know about your experience in
the course, thus far
 https://forms.office.com/r/133xyN0fbn
GLOBALIZATION 21
Next class
 Reminder – no class on February 07
 Issue briefs due
 Further guidance on issue briefs uploaded to
Brightspace D2L under the ‘assignments’ tab
 See you on Thursday, February 09 to talk
about ‘Ethical Issues’
 What to read for the next class?
 Schuetz & Woo (2016). Dieselgate – heavy
fumes exhausting the Volkswagen group.
ACRC
 Where to find the reading?
 In the coursepack on Harvard Business
Publishing
GLOBALIZATION 22
Ethical Issues
February 09, 2023

 Session plan
 Housekeeping/admin
 Theory on ethical issues
 In-class exercise
 More theory
 Case discussion
 Next week – simulation head's up
ETHICAL ISSUES 2
Thank you for your feedback!
 Average course rating
 4.5
 What you liked
 Interactive, engaging content and classes
 Generative, inclusive discussions
 Interesting topics
 Post questions regarding readings to sharpen comments
 What you want more of
 More participation from everyone ~ everyone is welcome to participate
 Deeper dive into content ~ a bit tricky
 More class exercises ~ will continue bringing exercises
 Help with group formation
ETHICAL ISSUES 3
Group formation
 We need groups for the next class on February 14
 If you haven’t already done so, please inform me about your group (or
group thus far) by Friday, February 10th
 Email me at azafar@brocku.ca

5 Colin, Cam, Marco, Michael Kazimowicz
6 In progress…
ETHICAL ISSUES 4
Quick review
 Globalization – a positive or a negative force
 Defined as movement of goods, services, labor, capital across international
borders
 Free trade vs protectionism
 Has improved our quality of life but has escalated some grand challenges such
as poverty and income inequality
 Saw this in the context of an example – Nike’s sweatshops
ETHICAL ISSUES 5
 Primary Objective
 To understand what is meant by “ethics,” to understand why organizations must
deal ethically, and to learn frameworks for ethical decision-making
ETHICAL ISSUES 6
Ethical Issues
ETHICAL ISSUES 7
To start us off…
 Based on your issue briefs, how do you understand business ethics or
ethical issues concerning businesses?
ETHICAL ISSUES 8
What is ethics and where does ethics come from?
 Ethics is the conception or understanding of right and wrong,
moral and immoral, even socially acceptable
 Sources of ethical standards
 Religion
 Family
 Educational institutions
 Other social groups (neighbors, ethic affiliations)
 Media! (social, electronic, and print)
 What’s ethical is ‘relative’

 Ethical relativism makes ethical decision-making tricky
 Time, place, unique incident, national and organizational culture, person
involved, and circumstance all make an impact on how to assess a situation
 For example: fracking
ETHICAL ISSUES 9
Why do ethical issues arise?
Personal gain
• Egotistical Competitive
mentality Interest
• ‘what do I
• Focused on Conflict of
want’ interest
Bottom-line
• Desire to
• Favoritism or Cross-cultural
beat contradictions
Nepotism
competitors
• ‘help yourself
at all costs • Ethical
and those
relativism
close to you’
Lawrence, A. T. & Weber, J. (2020). Business & Society. New York: McGraw-Hill
ETHICAL ISSUES 10
Frameworks for ethical decision-making
Framework Critical An Action is Ethical Limitations
Determining Factor When
Virtues Values and It aligns with good Good character is
character character subjective
Utilitarian Cost vs. Benefits Benefits exceed Difficult to measure
costs all associated costs
Rights Respecting rights Basic human rights Rights may be
are respected conflicting
Justice Distributing fair Benefits and costs Lack of agreement
share are fairly on ‘fair share’
distributed
Lawrence, A. T. & Weber, J. (2020). Business & Society. New York: McGraw-Hill
ETHICAL ISSUES 11
In-class exercise
 You are a secret service agent affiliated with your country’s (Country A’s)
special defense unit. You are on a top-secret mission, which requires you to
spot and defeat a rogue agent who plans to bomb the most popular tourist
destination in the country, City X, which attracts thousands of tourists each
season. You’re on a plane to city X when the plane, carrying 250 passengers,
is hijacked. You have two options:
 Deploy a secret pod in the plane to escape, reach city X and begin your mission
 Fight the hijackers on the plane and save the people on the plane; passengers are
mostly doctors and nurses who are enrout to Country B, a developing country, to
initiate a life-saving medical aid project on Hepatitis B. The project, if started
successfully will save thousands of lives in Country B. However, this option will
take time and you might just miss the opportunity to catch the rogue agent.
 What would you do? Apply different ethical frameworks to arrive at

conclusions. [5-minute timer]
ETHICAL ISSUES 12
Business ethics – the role corporate governance
 Corporate governance refers to organizational processes and structures
that govern or control an organization
 Examples include organizational boards, steering committees, senate in
universities
 Board of Governors is a group of people who oversee the work of top-
management and ensure integrity of practices in an organization. The board
represents the interests of shareholders (and sometimes the society-at-large)
 The board functions through several committees, the most important one
being the audit committee
 Good governance practices include selecting of an independent/outside

board of directors (free from the influence of top management), and
reappointing directors frequently through open elections
ETHICAL ISSUES 13
Dieselgate…
 Case Synopsis & timeline
 Early September: VW wins an award for it sustainability practices
 September 18: USEPA blames that VW has been cheating on ethical
standards
 September 22: VW admits of wrongdoing
 September 23: The then CEO, Winkerton resigns
 September 25: Muller takes over as the new CEO to offer VW a “fresh
start”
ETHICAL ISSUES 14
Short group discussion
 Discuss
 Could VW have avoided the scandal? What role could the board have played?
 VW announced a 5 – step plan to remedy the crisis. Part of this plan was to
“review… preventive measure”. What kind of preventive governance
measures would you like to see being implemented at VW?
 Especially think about the role of the board
ETHICAL ISSUES 15
Key takeaways
 Acting ethically is important for businesses, however, ethical decisions may
be complex
 When faced with a dilemma whether a particular action is ethical,
managers may rely on several decision-making frameworks to come to a
conclusion
 Manager need to be wary of gray areas and make careful choices
ETHICAL ISSUES 16
Next class
 Simulation coming up – next class
 Pleas watch introductory videos from within the coursepack at HBP video
 Overview video also available at YouTube:
https://www.youtube.com/watch?v=X4iEGhjyl-4
 We will play it in class as groups
 One person will input decisions in the simulation platform and group members will
provide their input verbally
ETHICAL ISSUES 17
Environmental Issues – Net Zero
Tuesday, February 14, 2023

Today’s Agenda
 Session plan
 Simulation background & brief ~ 20 minutes
 Playing the simulation ~ 40 – 60 minutes
ENVIRONMENTAL ISSUES 2
Key objective today…
 To contextualize the challenge of carbon emissions facing organizations
 To make a business case for sustainability
Climate change – simplified background

Human Activity
Burning of fossil fuels (coal, oil, gas) and
other human activities are leading to
concentration of greenhouse gases in the
atmosphere, which in turn result in global Concentration of Green-
warming and climate change House Gases in atmosphere
 There are different greenhouse gases, with
Carbon Dioxide (CO2) being responsible for
the largest impact on climate change
Global Warming/
 Other important greenhouse gases include Climate Change
Methane (CH4) and Nitrous Oxide (N2O).
Meat production is an important contributor
to Methane emissions
 Different greenhouse gases are expressed in
CO2-equivalent units, so that they can be
compared to each other and added up
The Paris Agreement
 As part of the Paris Agreement, world leaders committed
to take action to keep global warming to ‘well below 2-
degrees’ compared to pre-industrial levels
 Reaching this goal requires the world to be “net-zero” by
2050: The quantity of emissions can not exceed
greenhouse gases removed from the atmosphere
 As an intermediate milestone, the USA, EU and other
countries have committed to reducing emissions by 50-
55% by 2030
 Today’s emissions stay in the atmosphere for decades, so
it is not sufficient to reduce emissions only in 2050. The
world has a “carbon budget”
 For countries to reach their targets, companies and
people responsible for emissions must take action in line
with the Paris Agreement objectives
Measuring and reporting corporate greenhouse gas
emissions
 The Greenhouse Gas Protocol is a global
standard for measuring corporate
emissions. It differentiates between
three types of emissions:
 Scope 1: Emissions resulting from on-site
activity
 Scope 2: Emission arising from purchased
electricity
 Scope 3: Emissions that result from
activities in the wider value chain of the
organization, including from purchased
products and services (upstream) or from
the use of the organization’s products or
services (downstream)
 Scope 3 emissions are difficult to measure
Sustainability management
simulation: Net Zero
“Net Zero” – performance objectives
 You manage a successful 4-star city center hotel for 7 years
 Objectives are to:
 Reduce annual greenhouse emissions by 50%
 Not emit more than the hotel’s total carbon budget during the 7-year period
 Carbon budget target is achieved if emissions reductions are achieved in a “straight
line”
 Manage the financial performance of the hotel (revenues, operating profit)
 Offsets are not allowed; The hotel can not offset its emissions by paying others
to reduce their emissions
 The hotel has 500 rooms
 Economic and demand characteristics remain constant during the game
Location characteristics
 Hotel located in New York and London
 First round (group): New York
 Second round (individual, next session):
London
 Each location has different sustainability New York
characteristics, including:
 Effectiveness of solar panels
 Carbon footprint of electricity
 Carbon footprint of water
London
How to play?
 Analyze current energy consumption and carbon emissions, and review
information on available initiatives
 Select a maximum of three initiative each year
 Be sure to keep a record of your yearly choices by taking screenshots
 And decide on expenditure on staff training & guest communication
 Review feedback on decisions and analyze performance on the dashboard
pages
 Don’t forget to enjoy yourselves!!!
Decisions – three initiatives to decide upon
Energy
 The description of each initiative contains
information on its impact on emissions
 Each year, new initiatives become available
 Install solar panels
Recruitment of Sustainability Officer unlocks
other initiatives Purchasing
 Decisions can be reviewed and changed on

the Summary page
 In addition to three initiatives, decisions are Organic cotton
made on staff environmental awareness
Management
training and guest communication
Recycling bins in rooms
Let’s play!!!
 Give a name to your hotel
 Understand current sources of greenhouse gas emissions
 Review available initiatives. Select three that will most help the hotel reach its
sustainability and business objectives
 Decide on expenditure on staff training and guest communication
 Enter decisions
 Analyze performance; developments in emissions, drivers of emissions and
financial results
 Analyze new initiatives and make decisions for the next year
 Consult the Glossary of Terms when needed
 Goal: Reduce emissions by 50%, stay within the carbon budget and grow profits!
Next class
 See you in the next class for more on environmental issues
 One more round of the simulation (playing individually next time)
 Will collect reflections on the simulation as a class

 Will learn about the issue of the ‘commons’
 Assigned reading
 Pearson et al. (2022). Fast-fashion waste is choking developing countries with mountains
of trash. BusinessWeek [Posted to Brightspace D2L under ‘content’ tab]
Environmental Issues – continued
Thursday, February 16, 2023

Agenda
 Housekeeping ~ 5 minutes
 Simulation – round 2 (London) ~ 30 minutes
 Debriefing and theory discussion ~ 30 minutes
Housekeeping
 First group project assignment coming up!
 After the reading week break, we will come back to hear from groups about their idea presentations
 Short (~ 5 minute presentations)

 Please prepare slides – max 5 slides (excluding title and thank you) (though it may be an oral presentation)
 What to include
 What’s the company you have chosen (some background, when did it start, what industry, what size)
 What is the issue you will discuss (e.g., is it about their CSR, or about the environment, etc.)
 What is your workplan (where you will find data, who will do what, project timeline)
 Where to submit (if making a slide deck)

 Brightspace D2L under “assignments”
 When is it due?
 March 02, 2023, submit the presentation anytime prior to the class PLEASE NOTE THE CHANGE OF DATE
Project groups

6 Godfrey, Shashwat, David, Nick, Michael Macleod
 To experience how characteristics of a place matter for organizational
sustainability practices
 To further our discussion on environmental issues facing organizations
today
Net Zero – a few reminders
 Thank you for playing in the previous class…
 The same exercise today in a different city
 Timed play, only 30 – 35 minutes to finish all 7 rounds
 Choose from three initiatives each year
 Stay profitable while reducing your carbon emissions by 50% over the next 7
years
Simulation debrief
Net Zero – how are you feeling
 How was your experience?
 How are you feeling after playing both rounds?
 What surprised you?
 Reflection
 Which sources of emissions were relatively easy to manage?
 What was the impact of the Hotel’s sustainability initiatives on the hotel’s
economic performance?
 What did you learn about the boarder impact of environmental issues on various
organizations?
Development of emissions by scope
 How did the hotel’s emissions develop by Scope?
 Scope 1: Emissions resulting from on-site activity
 Reduce to zero if Electric Vehicles are purchased (Initiative E3)
 Scope 2: Emission arising from purchased electricity
 Major source of emission reductions
 Scope 3: Emissions that result from activities in the wider value chain of the
organization
 Initiatives in purchasing impact Scope 3 emissions
 Did scope 3 emissions temporarily increase as a result of any initiatives? For example:
 Solar panels
 LED lighting
 Electric Vehicles
How did we do – emissions by scope
Tipton New New York CCLMMG
How did we do – energy consumption
How did we do – operating profit
Environmental issues – more theory and background
Grave environmental issues issues…
 Depleting carrying capacity of the Earth
 Climate Change: changes in the Earth’s climate caused by increasing
concentrations of carbon dioxide and other greenhouse gases
 Global warming
 Ozone depletion
 Caused by harmful chemicals used in industrial activity
 Scarcity of natural resources such as water, and arable land
 Decreasing biodiversity: the number and variety of species and the range
of their genetic makeup has been decreasing
 More than 800 species gone extinct; 3800 critically endangered; violation of
animal rights
 Threatened marine eco-system
Climate change is real!
 Six warmest years
have occurred since
2015
 Top 10 warmest years
have occurred since
2000
 NASA has ranked
2020 (and 2016) as
the warmest year(s)
on record!
A key driver of global warming…
 Industrial activity!
Canadian drivers of greenhouse gas emissions
The concept of “the commons”
Tragedy of the commons
 The tragedy of the commons occurs when individuals share a common
resource and take more than their fair share from that resource for their
short-term gain
 Can you think of some examples of “commons” or resources shared by
everyone in the world?
 Let’s watch the following video and come back
 https://www.youtube.com/watch?v=KZDjPnzoge0
Fast fashion waste is depleting our commons!
 “It's our job to make women unhappy with what they have in the way of
apparel” B. Earl Puckett, Chairman Allied Stores, U.S. (1950)
 “At Chorkor beach, near the capital Accra, layer upon layer of rich-
country detritus forms a wall more than 6 feet high, like geological strata
from different fashion eras. A Crocs sandal peeps out here, a blue Ralph
Lauren polo shirt there, a red Victoria's Secret bra some way down. So
solid is the putrid heap that huts sit on top, a shantytown built quite
literally on a foundation of rags.” (BusinessWeek, 2023)
 There’s still hope
 In 2013 H&M’s became the first major retailer to start a global used-clothing
collection program
Business (market)-led solutions
Some solutions… the sustainability trio
Can make
sustainable
choices
Govt
Can regulate
& monitor
Business
Can comply
& go
beyond
The business case for sustainable management
 Competitive advantage  something that you do better than your
competitors and that helps you achieve better profit margins than
competitors
 Cost savings
 Subaru in Indiana has achieved a zero-waste goal leading to an annual saving
of over USD 2 Million!
 Brand differentiation
 Reputational gains to be achieved from being green. For example apple
announcing commitment to sustainability after US pulled out of the climate
accord
 Market share increases through technological innovation
 Green technology may win additional customers
 Minimization of regulatory risk
Some business-led solutions
 Life-cycle analysis refers to analyzing which part of product’s life
stage generates most waste and then rectifying the situation
 Tide example
 Clean technology refers to the use of any technology that helps improve
environmental sustainability. Over the years, the usage of the term has
also expanded to a host of sustainable practices as well
 Electric vehicles
 Efficient supply chains that minimize waste
 Carbon offsets is a phenomenon used to encourage carbon neutrality or
net-zero emissions; simply speaking, companies in the developed world
are required to offset their carbon dioxide and other greenhouse gas
emissions by investing in clean technology projects in the developing
world
Key takeaways
 Decisions regarding an organization’s environmental footprint may seem to
intersect with its profit-seeking goals, however, these aren’t mutually-
exclusive choices
 Acting sustainably as gone from ‘nice to do’ to a ‘must-have’
 If we can measure it, we can manage it  so it is important to have
sustainability targets that can be measured
 Organizations need to look beyond their own consumption decisions to
their entire value chains for meaningful change
Next class
 See you in the next class – after the reading week break!
 February 28 – corporate governance
 March 02 - Problem statement presentations will take place in the class
Governance
Tuesday, February 28, 2023

Agenda
 Discussion on corporate governance
 In-class exercise
 Housekeeping ~ 5 minutes
GOVERNANCE 2
 To understand
 What is corporate governance and why is it needed?
 Governance mechanisms
GOVERNANCE 3
Corporate Governance
GOVERNANCE 4
To get started…
 Take a look at these figures
 $14 Million
 $36.5 Million
 $281 Million
 49%
 Do you find these figures surprising?
GOVERNANCE 5
Corporate governance
 Executive compensation is only one aspect of corporate governance
 Marriam-Webster defines governance as the act or process of governing or
overseeing the control or direction of something
 Corporate governance may be understood as the process of assessing or
overseeing how a company is controlled or managed
 The term corporate governance encompasses issues such as executive
compensation, reporting, and external monitoring
 The aim of corporate governance is to minimize contracting (also called
‘agency’) costs
GOVERNANCE 6
Understanding the need for governance measures
 Agency theory or the “principal – agent framework” (Jensen & Meckling,
1976)
 Views the firm as a set of contracts between self-interested parties
 The principals – shareholders & society
 The agents – top executives (typically, CEOs)
 Both of these parties have different, often conflicting, interests
 Conflict of interest arises when self-interested agents are hired to promote the
interests of the principals
 Example: Shareholders often want dividend payouts or capital gains, or both,
whereas a CEO might want to invest in seemingly risky projects for long-term
gains, which might affect stock valuation or dividend payout in the short term,
or they may want to maximize executive bonuses
 Therefore, a need to monitor how a firm is managed and run, arises
GOVERNANCE 7
Common governance measures
Shareholder &
Organizational
Regulatory measures stakeholder-led
measures
measures
• Operate by • Careful investment • Design of executive
mandating • Activism compensation
reporting • Lawsuits packages
requirements and • Media monitoring • Use of best
developing and reporting practices in the
reporting standards appointment of a
board of governors
• Voluntary
disclosures
GOVERNANCE 8
Regulatory measures
 Role of the government in controlling CEO compensation
 Listed companies are required, by law, to issue their financial performance reports
 Including publishing the compensation packages of their top 5 executives
 Dodd-Frank Act in the U.S. requires listed companies to hold shareholder vote on
executive compensation once every three years
 Tax incentives for desirable behavior
9
Regulatory measures (continued)
 Reporting regulations
 GAAP – generally accepted accounting principles mandated by Financial Accounting
Standards Board (FASB)  Conservatism has been a desirable financial reporting
practice
 The Canadian Securities Administrators released climate-related disclosure
guidelines in October 2021
 The International Sustainability Standards Board (ISSB) established in 2021 aims to issue its
sustainability standards in the second quarter of 2023  reporting on environmental,
social, and governance (ESG) matters will become mandatory, soon!
10
Shareholder activism – another governance mechanism
 Shareholder activism refers to direct actions of shareholders and investors aimed at
protecting their interests
Institutional Social investment Lawsuits

investment • Also known as • Examples, insider
• Holding large socially-responsible trading, corruption or
amounts of capital investment or impact other scandals
• E.g., mutual funds, investment
insurance • Screening
companies, pension • Divestment
funds, trusts, • Resolutions
university
endowment funds
11
Organizational measures
 Use of best practices in the appointment of a board of directors
 Board of directors is an elected group of individuals who have a legal
duty to establish corporate objectives, develop broad policies, and select
top-level personnel to carry out these objectives and policies
 Typically between 9 – 11 members
 Outside directors  directors who are not the managers of the company
 Inside directors  directors who are also the managers of the company
 Boards work through sub-committees
 E.g., executive committee; legal-action committee; nominating committee
GOVERNANCE 12
Organizational measures (continued)
 Design of executive compensation
 Compensation is a powerful tool to align
executive action with stakeholder
(especially shareholders’ desires)
 Often CEO compensation packages are
dominated by incentive-based pay, e.g.,
performance bonus, stock, and options
 This compensation model is primarily
known as “pay for performance” model of
executive compensation
 Critics say a danger of this approach is
that executives may become so fixated
on their performance pay that they will
do anything to increase the stock price,
even if this involves unethical actions
GOVERNANCE 13
Let’s watch a video before getting to our exercise
GOVERNANCE 14
In class exercise
 Groups will assume the role of
 The Board
 Shareholders
 And read through the briefs provided in class
 Given the circumstances, a special meeting has been called, where the board
as well as shareholders are present
 Shareholders have concerns about CEO compensation, the board’s structure, and
the company’s reputation
 The board is well-intentioned and wants to make sure that company’s governance
issues are resolved
 By means of discussion between two groups, arrive at a solution to
governance issues in the company
GOVERNANCE 15
Executive compensation: is it justified?
 Yes, it is!  No, it is not!


 Inflated executive
Well-paid managers are
compensation may hurt the
simply being rewarded for
firm’s ability to compete with
exceptional performance foreign rivals
 Provide an incentive for  Perceptions of distributive
innovation and risk-taking injustice may prevail in an
 organization
Is a reflection of labor market
supply conditions  Research on the relationship

between CEO pay and
Not many can run the
complex businesses of today company performance has
yielded mixed results
16
Key takeaways
 Corporate governance is needed to ensure that executives (agents) act
according to the desires of shareholders and society (principals)
 There are three broad corporate governance measures/mechanisms:
 Regulatory measures
 Shareholder-led measures
 Organizational measures
 Executive compensation is a powerful governance tool
GOVERNANCE 17
Next class
 Problem statement presentations
 In class – during regular class time
 Approximately 7 minutes per group
 5 for your presentations 2 for any follow-up questions
 No points for making slides
 Though it is encouraged that you use slides
 If using slides, please bring them on a USB stick – we will upload all presentations to
the class computer before we begin
 Will be graded on
 Selection of a case relevant to the course
 Evidence of critical thinking in articulation of the problem
 Plausibility of the workplan
GOVERNANCE 18
Problem statement presentations – reminders
 What to include
 What’s the company you have chosen (some background, when did it start, what
industry, what size)
 What is the issue you will discuss (e.g., is it about their CSR, or about the environment,
etc.)
 What is your workplan (where you will find data, who will do what, project timeline)
 Where to submit (if making a slide deck)

 Brightspace D2L under “assignments”
 When is it due?
 March 02, 2023, anytime prior to the class
GOVERNANCE 19
Project groups

6 Godfrey, Shashwat, David, Nick, Michael Macleod
GOVERNANCE 20
The Future of Work
Tuesday, March 07, 2023

Today’s agenda
 Session plan
 Housekeeping
 Discussion on gig economy
 Discussion on AI
THE FUTURE OF WORK 2

Housekeeping
 Broad feedback on class performance so far
 Issue briefs – class average A
 Did really well on Problem statement presentations – average A
 Class participation – we can do better here
 Shared interim participation scores to encourage you to up your game!

 To discuss, what might work look like, going forward
 Two themes: Gig economy and Artificial intelligence

Gig economy
 How do you understand gig economy?
 Characterized by freelance jobs, where independent contractors/freelancers
complete assigned duties, instead of full-time employees
 Some examples
 Uber, obviously
 Other examples?

Characteristics of gig economy
Online platforms Payment is

connect workers mediated by the
and customers platform
Workers work
whenever they
want
A rate is paid for
a specific task

What do gig economy companies do? An overview
Main asset is the They match Information is being

software The platform generated and kept,
workers with
interface…and receives a fee which improves
customers looking
reputation relative to the task functioning of the
for a specific
service system
For example: Uber does not own vehicles, employs no drivers, has no
maintenance costs. They are simply a network based on sophisticated
software and a clever reputation

The business model
 Business model refers to ‘how a company makes money?’
 Using Uber as an example
 Transportation firms used to be centralized, in order to bring together
geographically dispersed drivers and consumers
 Efficiency was created through centralization
 However….
 Technology has allowed for decentralization
 Businesses maximize successful matches (speed and simplicity)
 Monetize the matches (price)

The consequence…
San Francisco, US
2012 2014 2022

Annual earnings in taxi Uber’s annual earnings Uber’s annual earnings,
industry BEFORE Uber: in the city: globally
$120m $500m $9.14 bn

Gig economy: some advantages and disadvantages
 Pros:  Cons:
 Flex time!  Takes jobs away from some
 people (market share of uber
Greater independence
takes away from taxi drivers)
 Easy to get a job!  Lack of benefits for employees
 Over time (additional money)  Lack of bargaining rights
 For the customer: faster, (exploitation of employees)
reliable service, cleaner ride,  Lack of responsibility on part of
personalized ride!
the organization

But, is Uber the future of work?
 Bill AB5, “the gig economy bill” was passed in the USA on September 11,
2019 and was enacted on January 1, 2020
 Required organization relying on contractual workers to reclassify those workers as
‘employees’
 Implication: companies asked to pay minimum wage, health insurance,
unemployment insurance, workers’ compensation benefits, perks such as paid sick
leave
 The ABC Test

 The worker is free to perform services without the control or direction of the
company
 Two, the worker is performing work tasks that are outside the usual course of the
company’s business activities
 Three, the worker is customarily engaged in an independently established trade,
occupation, or business of the same nature as that involved in the work performed
Contestation over the status of workers
 As soon as the bill passed, gig economy organizations protested and
resisted the bill
 In August 2020, the bill was re-written to include ‘exemptions’ to the bill
(freelance photographers, writers, fine artists, and musicians could still
be contract workers)
 Uber, Lyft, and DoorDash worked to get people in the state of California
oppose AB5 and sign a petition favoring gig economy workers as
independent contractors; the petition was later approved in the state’s
general elections by a 58% majority
 Uber drivers still qualify as independent contractors
 The battle over the status of gig-economy workers continues

Artificial intelligence and the future of work

Do you think some jobs will be wiped out due to AI?
 Technologies likely to be adopted by  Jobs at the greatest risk?
2050  Repetitive, tasks that do not require
 Cloud computing cognitive skills
  Bank teller!
Big data analytics
 Cashiers!
 Text, image, and word processing
 Transit drivers?
 Cyber security
 Could take away some non-repetitive
 AI & machine learning jobs as well!
 Editors?
 Camera crew on movie sets?
 Consider environmental
unpredictability
 Conversations about integrations
rather than replacement!

Jobs of the future

In-class exercise
 ChatGPT vs. Google search
 Developed by OpenAI (now owned by Microsoft) ChatGPT (Chat-based
Generative Pre-trained Transformer) is an AI algorithm that is designed to
generate human-like responses
 Interacts with humans through text and engages in a human-like written
conversation
 Took an MBA exam at the Wharton School of Business (PennState U.) and got a
B on the exam!
 Group exercise brief
 Feed text prompts in the google search engine and ChatGPT
 Compare the answers after every response and note down what surprises you!
 Text briefs on the next slide

In-class exercise (text prompts)
 Feed the following text prompts to Google Search and ChatGPT
 (you may have to create an account for ChatGPT if you haven’t already created
one)
 Access ChatGPT at https://chat.openai.com/chat
 Text Prompts
 What is meant by, “a quick brown fox jumps over a lazy dog.”
 Which country is responsible for the Covid-19 pandemic?
 I am feeling sad, can you help me feel better?
 How to end homelessness in Canada

Exercise debrief
 Did anything surprise you?
 Do you think platforms like ChatGPT can take away some jobs?

Integrating AI and the novel technological
revolution – my take
 The gig economy will not be transformative by itself and many of these
jobs will disappear with AI. Analysts and reporters have focused
obsessively on technology platforms such as Uber and Lyft. This narrow
focus on manual, routine “gigs” misses a larger story.
 What will be transformative is AI technology combined with the gig-
economy. Creative professionals are being empowered by technology and
will not be replaced. They are not offering commodity services; they are
offering specialized, non-routine trades. They aren’t looking to complete a
short task as a side job; they are seeking full-time, but time-limited,
creative projects.

Key takeaway
 While gig economy deemphasizes education and development of cognitive
skills, with the novel technological revolution, it is quite possible that jobs
of the gig economy maybe wiped out (I believe)
 Greater need for investment in self-development to enhance creativity,
cognitive skills, critical thinking skills, complex problem-solving and
decision-making skills, interaction and communications

Next class
 Alternative organizational forms
 Guest speaker visiting us virtually
 Laurel McCalla of Boyle Street
Community Services in Edmonton,
Alberta will be with us for about 40
minutes in the next class
 She will talk about social enterprises
run by Boyle Street Community
Services
 Hiregood.ca
 Four Directions Financial
 Please come prepared to interact with
her/ask questions about the two
social enterprises that she oversees!

Alternative Organizational Forms
Thursday, March 09, 2023

Today’s Agenda
 To understand the ways to re-organize work that emphasize goals other than
accumulation of wealth!
 Session plan
 Guest speaker – Laurel McCalla
 Recapturing the shortfalls of the capitalistic system
 Alternative organizational forms in the post-capitalist world
 Social enterprises
 Workers cooperatives
 Benefit corporation
ALTERNATIVE ORGANIZATIONAL FORMS 2

Welcome, Laurel McCalla
 Director of Development at Boyle Street Community Services in Edmonton
 Previously Director of Ubuntu – a multi-organizational collaborative program
that works with families involved with Child and Family Services
 Recipient of the 2017 ‘Top 40, Under 40’ award for her work
 Hugely successful program – approximately 80% of parents coming to Ubuntu
end up seeking help for their issues

Let’s recapture the values of capitalism
 The sole purpose of business is to make
money!
 Success is defined in purely economic terms
 Assumption is that markets are self-
correcting, so poor performers will be
filtered
 Predominant organization of work
 For-profit bureaucratic corporations
 Centralized decision-making – confined at the
top levels of organizations
 Worker’s duties specified, no share in profits,
focus on efficiency

Issues generated by the current system
Globalization
Ethics
Corporations
Environment

Business as part of the solution
 Important questions to ask:
 Can work be organized alternatively/differently such that an organization
focuses on goals other than profit?
 How can businesses improve workers’ conditions?
 How can businesses give back to the society that they benefit from?
 How can organizations achieve sustainability – meeting the needs of current
generation without compromising the needs of future generations?

In-class exercise
 TOMS shoes is a for-profit California-based company. The company’s
tagline is ‘we are in the business of improving lives.’ Founded in 2006 by
Blake Mycoskie, TOMS introduced the “one-for-one” business model.
When a consumer in the developed world bought a pair of shoes, the
company gave away a pair of shoes to a child in need in the developing
world, for free! Trucks filled with shoe boxes would arrive in parts of the
World where people were experiencing difficult circumstances to
distribute free shoes.
 TOMS one-for-one model was criticized for being dysfunctional. Why do you
think the model was not functional?
 What could be the alternative?

TOMS exercise debrief
 Some problems with the model  Some solutions
 Giving away the fish, not teaching  Use collected money to make
how to catch the fish! investments in educations, health,
 infrastructure in the impoverished
Maybe passing the cost of giving to
parts of the world
the customer!
 Working with local
 Could be doing more – buy 1, give 3?
producers/manufacturers to build
 Superiority complex – white capacity
supremacy!  Addressing the grass-root issues
 Stealing profits from local producers rather than treating the symptom
 Alternatives: investment in
education; solving grass-roots
issues; support local producers;

The concept of ‘agency’
 To give someone something for free is grounded on the assumption that
the recipient is incapable of improving her/his life situation
 This assumption automatically puts the giver in a position of authority
 Consequently, the recipient is
considered inferior
 In turn, the assumption of
Recipient’s inferiority take
Away From her/him the
freedom to act

The rise of alternative organizational forms
 Since early 1970s the realization that capitalism and the resulting
organizational form (the corporation) isn’t perfect has swept across the
globe
1600
Solidarity Economy Enterprises Foudings
1400
1200
1000
800
600
400
200
0
70 72 74 76 78 80 82 84 86 88 90 92 94 96 98 00 02 04 06 08
19 19 19 19 19 19 19 19 19 19 19 19 19 19 19 20 20 20 20 20
Year
Ometto, Zafar, & Hedberg (2021). It takes more than a village: Cultivating alternative organizational forms within
Brazil’s Solidarity Economy Movement. RSO
Some background
 Interest in alternative organizational forms emerged due to a parallel
interest in several like-minded social movements
 Degrowth – shrinking rather than growing economies are more beneficial rather
than growing economies for citizen and plate-wellbeing
 Occupy – sought to gain greater economic and social equality and protest
against corruption, freed and undue influence of organizations e.g., occupy wall
street
 Environmental movement – sought more sustainable solutions to fulfill our
needs as a society and emphasized the role of organizations
 These movements also generated interest in looking at other ways of
organizing in the ‘post-capitalistic’ economies

Several forms of alternative organizations
 Social enterprises are organizations that combine a social as well as
economic mission; may be started by (or for) marginalized groups to help
them earn an income in a respectful way. Example: Boyle Street’s food
truck, or bank for people in the situation of homelessness or Inmates to
Entrepreneurs
 Worker-owned co-operatives are organizations that are cooperatively
owned and managed by its members. Each member purchases
membership to the co-operative. Doing so, earns them a vote in all
governance decisions. Example: Whole Foods
 First introduced in 2006, ‘B Corp’ is a more recently emerging
organizational form. These organizations “stipulate their commitment to
social and environmental benefits” in their charters (Cao et al., 2018).
Example: Natura (The Body Shop in NorthAmerica); Danone; Patagonia

Common characteristics of alternative
organizational forms
 Motivated by a broader set of objectives: the environment, people, social
development, etc., besides profits
 Greater rights of workers: humane work hours, fair wage, bargaining rights,
 Sustainable practices
 Democratic management: member voting on decisions, large assemblies to
help employees voice their concerns
 Minimization of concentration of wealth in fewer hands

The rise of benefit corporations
Ke Cao, Joel Gehman, Matthew G. Grimes, (2018). "Standing Out and Fitting In: Charting the Emergence of
Certified B Corporations By Industry and Region" In Hybrid Ventures.
Distribution of b-corps around the globe
Ke Cao, Joel Gehman, Matthew G. Grimes, (2018). "Standing Out and Fitting In: Charting the Emergence of
Certified B Corporations By Industry and Region" In Hybrid Ventures.
B-Corps - the ecosystem
Market-level
*Social & State-level
legislation impact
environmental assessment
performance, (Benefit
rather than
legal Corporation a
profitability for
commitment, legal form)
invesment
transparency
Organizational- Consumer
level certification outreach through
(B Lab) marketing
Certified
B-Corp*

Key takeaway
 Hope is on the horizon with the emergence of alternative organizational
forms
 Cooperatives
 Social enterprises
 Benefit corporations
 Development of a novel system is required to ensure successful
development of alternative organizational forms

Next class
 Discussion on Corporate Social Responsibility
 Please read:
 Karnani (2010). The case against corporate social responsibility. Wall Street
Journal (Posted on D2L under ‘content’)

Corporate Social Responsibility
Tuesday, March 14, 2023

Today’s agenda
 To understand theory pertaining to CSR
 Session plan
 Listening to your ideas on CSR
 Theory on CSR
 In-class experiential exercise - Patagonia
CSR 2
Your thoughts and opinions…
 What are your thoughts on CSR; what do you understand by the term?
CSR 3
CSR 4
CSR – my (broad) understanding
 How I understand CSR
 Recognizing and holding yourself accountable for the impact that you have on
the community, environment, society – having processes and regulations in
place to ensure that you can avoid negative impact!
 Triple bottom-line – driven by bigger goals (not just profits)
 Now it is more and more about the strategic alignment of business objectives
with what consumers care about!
 Is in direct competition with the capitalistic view of what an organization
should do
CSR 5
Defining CSR
CSR is defined as the expectation
that a corporation will act in a
way that enhances the wellbeing
of the society and its inhabitants
and be accountable for any of its
actions that affect people, their
communities, and the
environment (Lawrence & Weber,
2020)
It is about going beyond an
organization’s legal
obligations to consider
interests other than
profitability
CSR 6
Why do we expect corporation to engage in CSR?
 Various perspectives and organizational theories support the notion of
CSR
 The institutional perspective  organizations exist within a complex web or
network and interacts frequently with others in that complex web. These
others may include
 The Stakeholder view  organizations are accountable to a broader set of
audience than shareholders. A manager’s job is to identify all relevant groups
and balance their demands
 View of organizations as (corporate) citizens  recall from the documentary
‘the corporation’ – organization is a legal citizen with social rights (and
therefore responsibilities)
CSR 7
CSR expectation – the institutional perspective
 Organizations exist in a complex web or network which exerts various
demands/pressures on them
 Isomorphic pressures  pressure to practice what everyone else is doing
 Exerted through regulatory, normative, and cognitive compliance mechanisms
 Regulatory  what does the law state is okay to do?
 Normative  what is the normal or usual thing to do?
 Cognitive  a practice sometimes becomes so prevalent that the followers stop
questioning whether that is the right (or the only way to go about doing things)
 Endowment of legitimacy  compliance to pressures results in greater
positive or desirable attention and resources from those exerting pressures
CSR 8
From the stakeholder perspective…
 Whom should businesses and managers serve?
Shareholde Stakeholder
r View View
Non-Market
Stakeholder
s
Owners Market
stakeholder
s
CSR 9
Some incidents of corporate misconduct!
CSR 10
Corporate power – a reminder
CSR 11
The case against CSR – dealing with a paradox?
 Building on the assigned reading, discuss with your peers whether CSR
and profit-seeking are paradoxical goals for an average for-profit
organization
 If you do think they are paradoxical, think of solutions to resolve the
paradox
 YES!  No, they’re not!
CSR 12
The case against CSR – dealing with a paradox?
 Are a firm’s profit-seeking and CSR goals inherently paradoxical?
 YES!  No, they’re not!
 Resources are always limited;  Can create a balance between
organizations need to allocate CSR & profitability – levels of
important resources to CSR profits!
initiatives  CSR has reputational benefits
 Making substantial CSR  Lots of examples where
commitments also requires
companies are profitable while
building specific skills and
doing CSR!
dedicating time
 Consumers need to be cautious
to push companies to work
toward CSR
CSR 13
Evolution of CSR
Stewardship
• CSR as philanthropic giving
• Driven by well-intentioned managers
Responsiveness
• CSR as a strategic response to stakeholder demands
• Driven by corporate misbehavior reporting & government regulations
Ethics
• CSR as an understanding that incorporation of ethical climate is important
• Driven by Code of ethics, stakeholder pressures
Citizenship
• Formalizing commitments to social behavior
• Market & non-market pressures; strategic concerns (enlightened self-
interest)
CSR 14
ESG reporting – showing commitment to CSR
 ESG (Environmental, Social, and Governance) reporting
 Organizations are increasingly expected to perform and report on social
measures (besides the more traditional financial measures), especially in
the following key areas
 Climate  knowing their greenhouse gas inventory; calculating scope 1, 2, and
3 emissions, and ultimately making net-zero commitments to address climate
change
 Equity, Diversity, Inclusion (EDI)  reporting on policies related to gender,
LGBTQ2+, Indigenous peoples, individuals with disabilities, and visible minorities
 Indigenous reconciliation (Specific to Canada)  Build on the report issued by
the Truth and Reconciliation Commission in 2015 to incorporate the UN
Declaration on the rights of Indigenous peoples as a reconciliation framework
and apply its principles
 Supply chain transparency  reporting on sourcing of raw materials, labour
working conditions in outsourcing facilities, and product stewardship
CSR 15
Other ESG
reporting areas
Source: https://assets.ey.com
CSR 16
Assessing social performance
 Social reporting (more commonly known as ESG reporting)
 Publicizing results from social audit
 Integrated reporting (combining financial, with social and environmental performance)
 Social audit
 A systematic evaluation of an organization’s social, ethical, and environmental
performance
 Measuring social impact of actions against externally defined standards
 Global standards – working to create a unified social reporting standard
 International Standards Organization (ISO)
 UN  Global Reporting Initiative (GRI)
 The Sustainability Accounting Standards Board (SASB)
 Taskforce on Climate-related Financial Disclosures (TCFD)
CSR 17
Challenges of social reporting
 Lack of a unified standard reporting framework
 Lack of internal organizational capabilities to measure and report data on
social performance
 Creating buy-in among members of the top management regarding
usefulness of social reporting (is this a good use of corporate resources?)
 Symbolic adoption more common than substantive adoption
 Verifiability is also a challenge; hard to determine truthfulness/accuracy of
reports
CSR 18
In-class experiential exercise
CSR 19
CSR at Patagonia
 Watch the following videos:
 2013: https://www.youtube.com/watch?v=zfVVvR_1MHE
 2019: https://www.youtube.com/watch?v=dyoIB19vSE4 (already shown in class
before)
 Visit the webpage:
 https://www.patagonia.com/hidden-cost-of-clothes/
 Answer the following questions in groups:
 Which stage of CSR is Patagonia at?
 How has the organization’s CSR evolved?
 Did you find sufficient information on ESG metrices?
 What more on ESG reporting would you like to see?
CSR 20
Debrief
 Which stage of CSR is Patagonia at?
 How has the organization’s CSR evolved?
 Did you find sufficient information on ESG metrices?
 What more on ESG reporting would you like to see?
CSR 21
Key takeaways
 With corporate power comes the concept of corporate responsibilities
 The key is to balance the demands of multiple stakeholders
 Alternative forms of organizations combining a social and economic
mission; but corporations are also expected to integrate social goals within
their strategic goals and report performance on those goals
 Social audit and social reporting becoming common and increasingly
formalized
CSR 22
Next class
 Bartlett (2015). Unilever’s new global strategy: Competing through
sustainability. HBR
 Think about:
 What were the pillars of Polman’s plan to “do well by doing good?”
 How would you evaluate the effectiveness of the USLP? What benefits did it
offer? What were the risks associated with the plan?
 Why did Unilever see the need to expand its sustainable living plan beyond its
boundaries to the entire system, of which it was a part?
 What option would you recommend? Double Down, Hunker Down, or Pivot &
Refocus
CSR 23
Corporate Social Responsibility – Unilever
Thursday, March 16, 2023

Today’s agenda
 Housekeeping
 Discussion on Unilever’s Sustainable living plan
 Some exam pointers
CSR - UNILEVER 2
Housekeeping
 Final project guidelines posted on D2L under assignments
11
CSR - UNILEVER 3
 To understand CSR as a driver of an organization’s non-market strategy
through Unilever’s case
 Keep in mind that the goal of playing in the non-market environment is to shape
it in the focal organization’s favor!
CSR - UNILEVER 4
Unilever’s Sustainable Living Plan (USLP)
 Paul Polman took over as the CEO of Unilever on January 1, 2009
 He faced a global financial crisis, dwindling sales growth, and shrinking
margins
 He developed a turnaround strategy titled “Unilever’s Sustainable Living
Plan (USLP), which connected the organization to its historical commitment
of “doing well by doing good.”
 Double the sales by 2020
 Half the environmental foot-print by 2020
 Increasing positive social impact (Improving the lives of all involved in the value
chain)
CSR - UNILEVER 5
Recall from our class on environmental issues
 Implementing USLP would
mean looking outside the
organization to measure
and manage Scope 3
emissions
 Emissions that emerge in
the entire value chain of an
organization (suppliers and
consumers)
CSR - UNILEVER 6
Evaluating the effectiveness of USLP
 Potential benefits of USLP?  Risks associated with USLP?
CSR - UNILEVER 7
The shareholder vs the stakeholder perspective
 Role play time….
 Class divided into four groups:
 Shareholders
 Suppliers
 Charitable organizations and NGOs
 Employees
 Read assigned briefs and think about how do feel about USLP in the
role assigned to you
[10-minute timer]
CSR - UNILEVER 8
The shareholder vs the stakeholder debrief
 How do you feel as shareholders  How do you feel about USLP as
about USLP? employees, suppliers, consumers,
 Varying perspectives (e.g., short environmental NGOs?
term – hedge funds) or long-  Suppliers feel worse off (learn new
term patient, individual investors standards, maybe replaced, additional
financial burden, employees also felt
unhappy to say the least indifferent,
NGOs likely to be happy)
 Consumers will feel indifferent or slightly
happy
 Employees’ experiences may vary from
nervousness/skepticism to excitement
 Environmental groups/social service
entities are likely to be on board
CSR - UNILEVER 9
Expanding beyond organizational boundaries
 Why did Unilever see the need to expand its sustainable living plan
beyond its boundaries to the entire value chain?
CSR - UNILEVER 10
The systems perspective
 The systems theory outlines some ways in which organizations and
their environments interacts. The notion is grounded in the field of
biology and seeks to understand how organisms evolve
 The open systems perspective – organisms (including organizations)
depend on the external environment for their sustenance. Therefore, they
openly interact with the environment; in doing so, they are shaped by and
shape the external environment (For example, through exchange of
information)
 The notional of organizational boundary denotes a great level of
interdependence among organizations and other constituents in an
environment, such that it becomes difficult to discern where an
organization’s jurisdiction ends, and another’s starts
Aldrich, H. (1971). Organizational boundaries and inter-organizational conflict. Human

relations, 24(4), 279-293.
CSR - UNILEVER 11
Organizational boundary
Open system (systems theory) - Wikipedia

CSR - UNILEVER 12
How to move forward?
 Despite some early success, Unilever is finding it difficult to hit the goals on
some sustainability metrices “especially on the ones that are in the control
of external parties, such as consumers”
 What do you suggest, Double down, Hunker down, or Pivot and refocus?
 Hunker Down  scaling back, cutting investment, reverting to old ways of doing
things
 Pivot & refocus  doesn’t make sense to make more upfront investments; rely
on organizations that may have expertise in the domains!
 Double down  more upfront investment; have already made a great amount
of investment; not necessarily opposed to Pivot-refocus; greater good is more
important than upfront investments
CSR - UNILEVER 13
Unilever’s action – the epilogue
 The organization chose to double down/pivot
 Key argument: the world has come to expect us to do something; don’t want to
back out of this commitment
 The key non-market levers the organization is pulling
 Corporate reputation refers to public evaluations about the quality and
performance characteristics of an organization, as well as about the
organization’s goals, preferences, and values”
 Corporate image denotes how members (internal members, such as employees)
think others view the organization
 Watch the following video, featuring the current CEO Alan Joep
 https://www.youtube.com/watch?v=tmZi-w95xk8
CSR - UNILEVER 14
Unilever’s recent performance
Source: Unilever’s annual report 2021

CSR - UNILEVER 15
Next class
 Course wrap up/review
 Please come prepared to ask clarification questions on concepts that may be
unclear
 Familiarizing ourselves with test format
 35 – 40 MCQs
 80 minutes
 Primarily applied questions, some definitional questions too
 Start preparing by looking at class PowerPoints in detail
CSR - UNILEVER 16

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MGMT4P96 – Business & Society

Asma Zafar| Assistant Professor | Goodman School of Business

Week 01 – Introduction to Nonmarket Strategy

10th January 2023

WEEK 1 - INTRODUCTION TO NONMARKET STRATEGY 2

WEEK 1 - INTRODUCTION TO NONMARKET STRATEGY 3

WEEK 1 - INTRODUCTION TO NONMARKET STRATEGY 4

WEEK 1 - INTRODUCTION TO NONMARKET STRATEGY 5

WEEK 1 - INTRODUCTION TO NONMARKET STRATEGY 6

WEEK 1 - INTRODUCTION TO NONMARKET STRATEGY 7

WEEK 1 - INTRODUCTION TO NONMARKET STRATEGY 8

WEEK 1 - INTRODUCTION TO NONMARKET STRATEGY 9

WEEK 1 - INTRODUCTION TO NONMARKET STRATEGY 10

1 - COURSE OVERVIEW AND INTRODUCTION TO STRATEGY 11

1 - COURSE OVERVIEW AND INTRODUCTION TO STRATEGY 12

SESSION 2 - DEEP HISTORICAL FORCES 14

 How to address the

WEEK 1 - INTRODUCTION TO NONMARKET STRATEGY 15

 General introductions  Understanding the

SESSION 2 - DEEP HISTORICAL FORCES 16

1 - COURSE OVERVIEW AND INTRODUCTION TO STRATEGY 18

1 - COURSE OVERVIEW AND INTRODUCTION TO STRATEGY 19

WEEK 1 - INTRODUCTION TO NONMARKET STRATEGY 20

WEEK 1 - INTRODUCTION TO NONMARKET STRATEGY 21

WEEK 1 - INTRODUCTION TO NONMARKET STRATEGY 22

WEEK 1 - INTRODUCTION TO NONMARKET STRATEGY 23

WEEK 1 - INTRODUCTION TO NONMARKET STRATEGY 24

WEEK 1 - INTRODUCTION TO NONMARKET STRATEGY 25

WEEK 1 - INTRODUCTION TO NONMARKET STRATEGY 26

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WEEK 1 - INTRODUCTION TO NONMARKET STRATEGY 28

Session 02 – The relevance of deep historical forces

January 12, 2023

 Deep historical forces

SESSION 2 - DEEP HISTORICAL FORCES 2

SESSION 2 - DEEP HISTORICAL FORCES 3

SESSION 2 - DEEP HISTORICAL FORCES 4

WEEK 1 - INTRODUCTION TO NONMARKET STRATEGY 5

 Take action  what & why?  Do not take action

SESSION 2 - DEEP HISTORICAL FORCES 8

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 Preconditions for industrial growth

SESSION 2 - DEEP HISTORICAL FORCES 15

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SESSION 2 - DEEP HISTORICAL FORCES 29

The predominant economic system

17th January, 2023

Business & Government Colin Pearson 1 Yes