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Preface vii
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up-to-date examples, and clear explanations of theory. This textbook has benefited greatly
from feedback over the years from thousands of students who have used the material in the
authors’ own classrooms. Its strengths are in many ways a testimony to the students who
have used earlier generations of Business and Society.
The new Fifteenth Edition of the text is designed to be as student-friendly as always.
Each chapter opens with a list of key learning objectives to help focus student reading and
study. Numerous figures, exhibits, and real-world business examples (set as blocks of col-
ored type) illustrate and elaborate the main points. A glossary at the end of the book pro-
vides definitions for bold-faced and other important terms. Internet references and a full
section-by-section bibliography guide students who wish to do further research on topics
of their choice, and subject and name indexes help students locate items in the book.
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New for the Fifteenth Edition

Over the years, the issues addressed by Business and Society have changed as the envi-
ronment of business itself has been transformed. This Fifteenth Edition is no exception,
as readers will discover. Some issues have become less compelling and others have taken
their place on the business agenda, while others endure through the years.
The Fifteenth Edition has been thoroughly revised and updated to reflect the latest the-
oretical work in the field and the latest statistical data, as well as recent events. Among the
new additions are:
∙ An all-new chapter for this edition on business and its suppliers, incorporating the latest
thinking about social, ethical, and environmental responsibility in global supply chains.
viii Preface
∙ New discussion of theoretical advances in stakeholder theory, corporate citizenship,

public affairs management, public and private regulation, corporate governance, social
and environmental auditing, social investing, reputation management, business partner-
ships, and corporate philanthropy.
∙ Treatment of practical issues, such as social networking, digital medical records, bot-
tom of the pyramid, gender diversity, political advertising and campaign contributions,
as well as the latest developments in the regulatory environment in which businesses
operate, including the Dodd-Frank Act and the Affordable Care Act.
∙ New discussion cases and full-length cases on such timely topics as worker safety in the
garment industry in Bangladesh; the ignition switch recalls by General Motors; Google
and the “right to be forgotten”; Uber’s responsibilities toward its drivers, customers,
and communities; the decision to raise wages at Gravity Payments; the regulation of
e-cigarettes; security breaches that compromised customers’ information at Target and
other companies; the hacking of Sony Pictures’ servers; the environmental impact of
hydraulic fracturing; shareholder proxy access at Whole Foods; the sale of chemically
tainted flooring by Lumber Liquidators; substandard wages and working conditions at
nail salons; and JPMorgan Chase’s reputational challenges.
Finally, this is a book with a vision. It is not simply a compendium of information
and ideas. The new edition of Business and Society articulates the view that in a global
community, where traditional buffers no longer protect business from external change,
managers can create strategies that integrate stakeholder interests, respect personal values,
support community development, and are implemented fairly. Most important, businesses
can achieve these goals while also being economically successful. Indeed, this may be the
only way to achieve economic success over the long term.
Anne T. Lawrence
James Weber
Acknowledgments
We are grateful for the assistance of many colleagues at universities in the United States
and abroad who over the years have helped shape this book with their excellent suggestions
and ideas. We also note the feedback from students in our classes and at other colleges and
universities that has helped make this book as user-friendly as possible.
We especially wish to thank three esteemed colleagues who made special contributions
to this edition. Cynthia E. Clark, founder and director of the Harold S. Geneen Institute
of Corporate Governance and director of the Alliance for Ethics and Social Responsibility
at Bentley University, generously shared with us her expertise on corporate reputation,
governance, and media relations. She provided new material for and helped reorganize
Chapter 19, which has greatly benefited from her insights. She also advised us on the revi-
sions of Chapter 3 and contributed the case, “Google and the Right to Be Forgotten.” Anke
Arnaud of Embry-Riddle Aeronautical University provided research support for the two
environmental chapters (Chapters 9 and 10), drawing on her extensive knowledge of the
sustainability literature. An expert in pedagogy, she also prepared the PowerPoint slides
that accompany the text. Harry J. Van Buren III of the University of New Mexico shared
his expertise on technology and society and provided in-depth suggestions on how best to
reorganize the two technology chapters (Chapters 11 and 12), which have been extensively
revised for this edition. For all of these contributions, we are most grateful.
We also wish to express our appreciation for the colleagues who provided detailed reviews
for this edition. These reviewers were Heather Elms of the Kogod School of Business at
American University; Joseph A. Petrick of Wright State University; Kathleen Rehbein of
Marquette University; Judith Schrempf-Stirling of the Robins School of Business at the
University of Richmond; and Caterina Tantalo of San Francisco State University.
In addition, we are grateful to the many colleagues who over the years have generously
shared with us their insights into the theory and pedagogy of business and society. In par-
ticular, we would like to thank Shawn Berman of University of New Mexico; Jennifer J.
Griffin of George Washington University; Ronald M. Roman, Asbjorn Osland, and Marc-
Charles Ingerson of San José State University; Bernie Hayen of Kansas State University;
Cynthia M. Orms of Georgia College & State University; Alexia Priest of Post University;
Sandra Waddock of Boston College; Mary C. Gentile of Giving Voice to Values; Margaret
J. Naumes of the University of New Hampshire (retired); Michael E. Johnson-Cramer and
Jamie Hendry of Bucknell University; John Mahon and Stephanie Welcomer of the Univer-
sity of Maine; Bradley Agle of Brigham Young University; Ann Svendsen of Simon Fraser
University (retired); Robert Boutilier of Robert Boutilier & Associates; Kathryn S. Rogers
of Pitzer College (retired); Anne Forrestel of the University of Oregon; Kelly Strong of Col-
orado State University; Daniel Gilbert of Gettysburg College; William Sodeman of Hawaii
Pacific University; Gina Vega of Merrimack College; Craig Dunn and Brian Burton of West-
ern Washington University; Lori V. Ryan of San Diego State University; Bryan W. Husted
of York University; Sharon Livesey of Fordham University; Barry Mitnick of the Univer-
sity of Pittsburgh; Virginia Gerde, Matthew Drake, and David Wasieleski of Duquesne
University; Robbin Derry of the University of Lethbridge; Linda Ginzel of the University of
Chicago; Jerry Calton of the University of Hawaii–Hilo; Anthony J. Daboub of the Univer-
sity of Texas at Brownsville; Linda Klebe Treviño of Pennsylvania State University; Mary
ix
x Acknowledgments
Meisenhelter of York College of Pennsylvania; Stephen Payne of Georgia College and State
University; Amy Hillman and Gerald Keim of Arizona State University; Jeanne Logsdon of
the University of New Mexico (retired); Barbara Altman of Texas A&M University Central
Texas; Craig Fleisher of the College of Coastal Georgia; Karen Moustafa Leonard of Indi-
ana University–Purdue University Fort Wayne; Deborah Vidaver-Cohen of Florida Interna-
tional University; Lynda Brown of the University of Montana; Kathleen A. Getz of Loyola
University–Maryland; Gordon P. Rands of Western Illinois University; Paul S. Adler of the
University of Southern California; Diana Sharpe of Monmouth University; Pierre Batellier
and Emmanuel Raufflet of HEC Montreal; Bruce Paton, Tom E. Thomas, Denise Klein-
richert, Geoffrey Desa, and Peter Melhus of San Francisco State University; Jacob Park of
Green Mountain College; Armand Gilinsky of Sonoma State University; Tara Ceranic of
the University of San Diego; and Diane Swanson of Kansas State University.
These scholars’ dedication to the creative teaching of business and society has been a
continuing inspiration to us.
Thanks are also due to Murray Silverman of San Francisco State University; Robyn
Linde of Rhode Island College and H. Richard Eisenbeis of the University of Southern
Colorado Pueblo (retired); Steven M. Cox, Bradley W. Brooks, S. Cathy Anderson, and
J. Norris Frederick of Queens University of Charlotte; and Debra M. Staab, a freelance
writer and researcher, who contributed cases to this edition.
A number of individuals have made research contributions to this project for which we
are appreciative. Among the special contributors to this edition were Patricia Morrison
of Grossmont College and Caitlin Merritt and Clare Lamperski of Duquesne University,
who provided research assistance, and Debra M. Staab, who both provided research and
assisted in preparing the instructor’s resource manual and ancillary materials. Thanks are
also due to Carolyn Roose, Nate Marsh, and Benjamin Eagle for research support. Emily
Marsh, of The Sketchy Pixel, provided graphic design services.
We wish to express our continuing appreciation to William C. Frederick, who invited
us into this project many years ago and who has continued to provide warm support and
sage advice as the book has evolved through numerous editions. James E. Post, another
former author of this book, has also continued to offer valuable intellectual guidance to
this project.
We continue to be grateful to the excellent editorial and production team at McGraw-Hill.
We offer special thanks to Laura Hurst Spell, our sponsoring editor, for her skillful leader-
ship of this project. We also wish to recognize the able assistance of Diana Murphy, develop-
ment editor, and MaryJane Lampe and Ligo Alex, project managers, whose ability to keep
us on track and on time has been critical. Casey Keske headed the excellent marketing team.
Keri Johnson, media project manager; Susan K. Culbertson, buyer; Richard Wright, copy
editor; and Studio Montage, who designed the book cover, also played key roles. Each of
these people has provided professional contributions that we deeply value and appreciate.
As always, we are profoundly grateful for the ongoing support of our spouses, Paul
Roose and Sharon Green.
Anne T. Lawrence
James Weber
Brief Contents
PART ONE 14. Consumer Protection 302
Business in Society 1 15. Employees and the Corporation 325
1. The Corporation and Its Stakeholders 2 16. Managing a Diverse Workforce 347
2. Managing Public Issues and Stakeholder 17. Business and Its Suppliers 371
Relationships 24
18. The Community and the
3. Corporate Social Responsibility and Corporation 394
Citizenship 45
19. The Public and Corporate
4. Business in a Globalized World 70 Reputation 417
PART TWO CASES IN BUSINESS AND SOCIETY 439
Business and Ethics 91
1. After Rana Plaza 440
5. Ethics and Ethical Reasoning 92
2. Google and the Right to Be
6. Organizational Ethics 113 Forgotten 451
PART THREE 3. General Motors and the Ignition Switch

Recalls 461
Business and Public Policy 133
4. Sustainability at Holland America
7. Business–Government Relations 134
Line 471
8. Influencing the Political
5. The Carlson Company and
Environment 157
Protecting Children in the Global
PART FOUR Tourism Industry 480
Business and the Natural 6. Ventria Bioscience and the Controversy
Environment 181 over Plant-Made Medicines 489
9. Sustainable Development and Global 7. Moody’s Credit Ratings and the
Business 182 Subprime Mortgage Meltdown 500
10. Managing for Sustainability 205 8. The Upper Big Branch Mine
Disaster 513
PART FIVE 9. Carolina Pad and the Bloggers 523
Business and Technology 231
11. The Role of Technology 232 GLOSSARY 536
12. Regulating and Managing Information BIBLIOGRAPHY 549
Technology 256
INDEXES
PART SIX
Business and Its Stakeholders 277 Name 554
Subject 558
13. Shareholder Rights and Corporate
Governance 278
xi
Contents
PART ONE Stakeholder Dialogue 40
Stakeholder Networks 40
BUSINESS IN SOCIETY 1
The Benefits of Engagement 41
CHAPTER 1 Summary 42
Key Terms 42
The Corporation and Its Stakeholders 2 Internet Resources 42
Business and Society 4 Discussion Case: Coca-Cola’s Water Neutrality
A Systems Perspective 4 Initiative 43
The Stakeholder Theory of the Firm 5
The Stakeholder Concept 7 CHAPTER 3
Different Kinds of Stakeholders 8 Corporate Social Responsibility
Stakeholder Analysis 10 and Citizenship 45
Stakeholder Interests 12
Stakeholder Power 12 Corporate Power and Responsibility 47
Stakeholder Coalitions 14 Corporate Social Responsibility and Citizenship 48
Stakeholder Salience and Mapping 15 The Origins of Corporate Social Responsibility 49
The Corporation’s Boundary-Spanning Balancing Social, Economic, and Legal
Departments 18 Responsibilities 52
The Dynamic Environment of Business 19 The Corporate Social Responsibility Debate 52
Creating Value in a Dynamic Environment 21 Arguments for Corporate Social Responsibility 52
Summary 21 Arguments against Corporate Social
Key Terms 22 Responsibility 56
Internet Resources 22 Management Systems for Corporate Social
Discussion Case: Insuring Uber’s App-On Gap 22 Responsibility and Citizenship 58
Stages of Corporate Citizenship 60
CHAPTER 2 Assessing and Reporting Social Performance 63
Managing Public Issues and Stakeholder Social Audit Standards 63
Social Reporting 64
Relationships 24
Summary 66
Public Issues 25 Key Terms 66
Environmental Analysis 27 Internet Resources 67
Competitive Intelligence 29 Discussion Case: Corporate Social Responsibility
Stakeholder Materiality 30 at Gravity Payments 67
The Issue Management Process 31
Identify Issue 32 CHAPTER 4
Analyze Issue 33
Business in a Globalized World 70
Generate Options 33
Take Action 34 The Process of Globalization 71
Evaluate Results 34 Major Transnational Corporations 72
Organizing for Effective Issue Management 35 International Financial and Trade Institutions 73
Stakeholder Engagement 36 The Benefits and Costs of Globalization 76
Stages in the Business–Stakeholder Relationship 36 Benefits of Globalization 76
Drivers of Stakeholder Engagement 38 Costs of Globalization 77
The Role of Social Media in Stakeholder Doing Business in a Diverse World 79
Engagement 39 Comparative Political and Economic Systems 80
xii
Contents xiii
Global Inequality and the Bottom of the Pyramid 83 Other Functional Areas 120
Collaborative Partnerships for Global Problem Making Ethics Work in Corporations 121
Solving 85 Building Ethical Safeguards into the Company 121
A Three-Sector World 85 Corporate Ethics Awards and Certifications 126
Summary 87 Ethics in a Global Economy 127
Key Terms 87 Efforts to Curtail Unethical Practices 128
Internet Resources 87 Summary 130
Discussion Case: Intel and Conflict Minerals 88 Key Terms 130
Internet Resources 130
Discussion Case: Alcoa’s Core Values in
PART TWO Practice 131
BUSINESS AND ETHICS 91
CHAPTER FIVE PART THREE

Ethics and Ethical Reasoning 92 BUSINESS AND PUBLIC POLICY 133
The Meaning of Ethics 93 CHAPTER SEVEN
What Is Business Ethics? 94
Business–Government Relations 134
Why Should Business Be Ethical? 95
Why Ethical Problems Occur in Business 99 How Business and Government Relate 135
Personal Gain and Selfish Interest 99 Seeking a Collaborative Partnership 136
Competitive Pressures on Profits 100 Working in Opposition to Government 136
Conflicts of Interest 100 Legitimacy Issues 137
Cross-Cultural Contradictions 101 Government’s Public Policy Role 137
The Core Elements of Ethical Character 102 Elements of Public Policy 138
Managers’ Values 102 Types of Public Policy 140
Spirituality in the Workplace 103 Government Regulation of Business 142
Managers’ Moral Development 104 Market Failure 142
Analyzing Ethical Problems in Business 106 Negative Externalities 142
Virtue Ethics: Pursuing a “Good” Life 106 Natural Monopolies 143
Utility: Comparing Benefits and Costs 107 Ethical Arguments 143
Rights: Determining and Protecting Entitlements 108 Types of Regulation 143
Justice: Is It Fair? 109 The Effects of Regulation 147
Applying Ethical Reasoning to Business Activities 109 Regulation in a Global Context 152
Summary 110 Summary 153
Key Terms 111 Key Terms 154
Internet Resources 111 Internet Resources 154
Discussion Case: Chiquita Brands: Ethical Discussion Case: Should E-Cigarettes Be
Responsibility or Illegal Action? 111 Regulated? 154
CHAPTER SIX CHAPTER EIGHT

Organizational Ethics 113 Influencing the Political Environment 157
Corporate Ethical Climates 114 Participants in the Political Environment 158
Business Ethics across Organizational Business as a Political Participant 159
Functions 116 Influencing the Business–Government
Accounting Ethics 116 Relationship 160
Financial Ethics 116 Corporate Political Strategy 160
Marketing Ethics 118 Political Action Tactics 161
Information Technology Ethics 120 Promoting an Information Strategy 161
xiv Contents
Promoting a Financial-Incentive Strategy 165 The Ecologically Sustainable Organization 219

Promoting a Constituency-Building Strategy 170 Sustainability Management in Practice 219
Levels of Political Involvement 173 Environmental Auditing and Reporting 221
Managing the Political Environment 174 Environmental Partnerships 222
Business Political Action: A Global Challenge 175 Sustainability Management as a Competitive
Summary 177 Advantage 222
Key Terms 177 Cost Savings 223
Internet Resources 178 Brand Differentiation 224
Discussion Case: Stop Online Piracy Act—A Technological Innovation 224
Political Battle between Old and New Media 178 Reduction of Regulatory and Liability Risk 225
Strategic Planning 225
Summary 227
PART FOUR Key Terms 227
BUSINESS AND THE NATURAL Internet Resources 227
Discussion Case: Hydraulic Fracturing—Can the
ENVIRONMENT 181
Environmental Impacts Be Reduced? 228
CHAPTER NINE
Sustainable Development and Global
Business 182 PART FIVE
BUSINESS AND TECHNOLOGY 231
Business and Society in the Natural
Environment 184
Sustainable Development 185 CHAPTER ELEVEN
Threats to the Earth’s Ecosystem 185 The Role of Technology 232
Forces of Change 186
The Earth’s Carrying Capacity 189 Technology Defined 233
Global Environmental Issues 191 Phases of Technology in Society 234
Climate Change 191 Fueling Technological Growth 235
Ozone Depletion 194 The Role of Technology in Society 236
Resource Scarcity: Water and Land 194 The Internet 236
Decline of Biodiversity 196 The Digital Divide in the United States
Threats to Marine Ecosystems 197 and Worldwide 239
Response of the International Business Mobile Telephones 240
Community 198 Social Networking 241
Codes of Environmental Conduct 200 The Impact of Scientific Breakthroughs 242
Summary 202 Genetically Engineered Foods 242
Key Terms 202 Sequencing of the Human Genome 244
Internet Resources 202 Biotechnology and Stem Cell Research 245
Discussion Case: Clean Cooking 203 The Role of Technology in Business 246
E-Business 247
CHAPTER TEN Transforming Prevailing Business Models 247
The Use of Robotics at Work 248
Managing for Sustainability 205 Ethical Challenges Involving Technology 250
Role of Government 207 The Loss of Privacy 250
Major Areas of Environmental Regulation 207 Free Speech Issues 251
Alternative Policy Approaches 212 Summary 252
Costs and Benefits of Environmental Key Terms 252
Regulation 216 Internet Resources 252
Managing for Sustainability 218 Discussion Case: How Safe Is Your Personal
Stages of Corporate Environmental Responsibility 218 Information? 252
Contents xv
CHAPTER TWELVE Social Investment 293

Regulating and Managing Information Shareholder Lawsuits 294
Government Protection of Shareholder
Technology 256
Interests 295
Information Technology Challenges for Governments Securities and Exchange Commission 295
and Businesses 258 Information Transparency and Disclosure 295
Government Interventions of Information Insider Trading 296
and Ideas 259 Shareholders and the Corporation 298
Government Internet Censorship and Control 259 Summary 298
Government Acquisition of Information to Protect the Key Terms 299
Public Good 261 Internet Resources 299
Government Protecting Individuals’ Rights and Discussion Case: Whole Foods Adopts Egalitarian
Property 262 Compensation Policies—But Fights Back on Board
Business Access to and Use of Confidential Elections 299
Information 263
Access to Stakeholders’ Personal Information 263
Special Issue: Cybercrime—A Threat
CHAPTER FOURTEEN
to Organizations and the Public 265 Consumer Protection 302
Costs of Cybercrime 266 The Rights of Consumers 304
Exploring Why Hackers Hack 267 Self-Advocacy for Consumer Interests 304
Business Responses to Invasions of Information Reasons for the Consumer Movement 306
Security 269 How Government Protects Consumers 307
The Chief Information, Security, Goals of Consumer Laws 307
Technology Officer 271 Major Consumer Protection Agencies 309
Government Efforts to Combat Cybercrime 272 Special Issue: Consumer Privacy in the
Summary 273 Digital Age 312
Key Terms 274 Using the Courts and Product Liability Laws 315
Internet Resources 274 Strict Liability 315
Discussion Case: Sony Pictures and North Korean Product Liability Reform and Alternative Dispute
Hackers 274 Resolution 317
Positive Business Responses to Consumerism 318
Managing for Quality 318
PART SIX Voluntary Industry Codes of Conduct 320
BUSINESS AND ITS Consumer Affairs Departments 320
STAKEHOLDERS 277 Product Recalls 320
Consumerism’s Achievements 321
CHAPTER THIRTEEN Summary 322
Shareholder Rights and Corporate Key Terms 322
Governance 278
Discussion Case: Lumber Liquidators’ Laminate
Shareholders around the World 279 Flooring 322
Who Are Shareholders? 280
Objectives of Stock Ownership 282
CHAPTER FIFTEEN
Shareholders’ Legal Rights and Safeguards 282
Corporate Governance 283
Employees and the Corporation 325
The Board of Directors 283 The Employment Relationship 327
Principles of Good Governance 285 Workplace Rights 327
Special Issue: Executive Compensation 287 The Right to Organize and Bargain Collectively 328
Shareholder Activism 291 The Right to a Safe and Healthy Workplace 329
The Rise of Institutional Investors 292 The Right to a Secure Job 332
xvi Contents
Special Issue: Wages and Income Inequality 335 Environmental Issues 379
Privacy in the Workplace 336 Supply Chain Risk 380
Electronic Monitoring 337 Private Regulation of the Business–Supplier
Romance in the Workplace 338 Relationship 381
Employee Drug Use and Testing 339 Supply Chain Auditing 384
Alcohol Abuse at Work 340 Supplier Development and Capability Building 387
Employee Theft and Honesty Testing 341 Summary 391
Whistle-Blowing and Free Speech in the Key Terms 391
Workplace 341 Internet Resources 391
Employees as Corporate Stakeholders 343 Discussion Case: Apple’s Supplier Code of Conduct
Summary 344 and Foxconn’s Chinese Factories 392
Key Terms 344
CHAPTER EIGHTEEN
Discussion Case: The Ugly Side of Beautiful
Nails 344 The Community and the Corporation 394
The Business–Community Relationship 396
CHAPTER SIXTEEN The Business Case for Community Involvement 397
Managing a Diverse Workforce 347 Community Relations 399
Economic Development 400
The Changing Face of the Workforce 348
Housing 400
Gender and Race in the Workplace 350
Aid to Minority, Women, and Disabled Veteran-Owned
Women and Minorities at Work 350
Enterprises 400
The Gender and Racial Pay Gap 351
Disaster, Terrorism, and War Relief 401
Where Women and Persons of Color Manage 353
Corporate Giving 402
Breaking the Glass Ceiling 354
Forms of Corporate Giving 405
Women and Minority Business Ownership 357
Priorities in Corporate Giving 407
Government’s Role in Securing Equal Employment
Corporate Giving in a Strategic Context 408
Opportunity 357
Measuring the Return on Social Investment 410
Equal Employment Opportunity 357
Building Collaborative Partnerships 411
Affirmative Action 359
Summary 413
Sexual and Racial Harassment 359
Key Terms 414
What Business Can Do: Diversity and Inclusion
Policies and Practices 361
Discussion Case: Fidelity Investments’ Partnership
Balancing Work and Life 364
with Citizen Schools 414
Child Care and Elder Care 364
Work Flexibility 365
Summary 367 CHAPTER NINETEEN
Key Terms 368 The Public and Corporate Reputation 417
Discussion Case: Unauthorized Immigrant Workers The General Public 419
at Chipotle Mexican Grill Restaurants 368 What Is Reputation? 419
Why Does Reputation Matter? 421
CHAPTER SEVENTEEN The Public Relations Department 422
Using Technology-Enhanced Channels for Public
Business and Its Suppliers 371
Relations 423
Suppliers 373 Brand Management 424
Social, Ethical, and Environmental Issues in Global Crisis Management 425
Supply Chains 376 Engaging Key Stakeholders with Specific
Social Issues 376 Tactics 428
Ethical Issues 377 Executive Visibility 428
Contents xvii
User-Generated Content 430 5. The Carlson Company and

Paid Content 431 Protecting Children in the Global
Event Sponsorship 432 Tourism Industry 480
Public Service Announcements 433
Image Advertisements 433 6. Ventria Bioscience and the Controversy
Summary 435 over Plant-Made Medicines 489
Key Terms 435
Internet Resources 435 7. Moody’s Credit Ratings and the
Discussion Case: JPMorgan Chase’s #AskJPM 436 Subprime Mortgage Meltdown 500
8. The Upper Big Branch Mine
CASES IN BUSINESS AND SOCIETY 439 Disaster 513
1. After Rana Plaza 440 9. Carolina Pad and the Bloggers 523
2. Google and the Right to Be
Forgotten 451 Glossary 536
3. General Motors and the Ignition Switch Bibliography 549
Recalls 461
Indexes
4. Sustainability at Holland America Name 554
Line 471 Subject 558
P A R T O N E
Business in Society
C H A P T E R O N E
The Corporation
and Its Stakeholders
Business corporations have complex relationships with many individuals and organizations in society.
The term stakeholder refers to all those that affect, or are affected by, the actions of the firm. An
important part of management’s role is to identify a firm’s relevant stakeholders and understand the
nature of their interests, power, and alliances with one another. Building positive and mutually ben-
eficial relationships across organizational boundaries can help enhance a company’s reputation and
address critical social and ethical challenges. In a world of fast-paced globalization, shifting public
expectations and government policies, growing ecological concerns, and new technologies, manag-
ers face the difficult challenge of achieving economic results while simultaneously creating value for
all of their diverse stakeholders.
This Chapter Focuses on These Key Learning Objectives:
LO 1-1 Understanding the relationship between business and society and the ways in which business and
society are part of an interactive system.
LO 1-2 Considering the purpose of the modern corporation.
LO 1-3 Knowing what a stakeholder is and who a corporation’s market and nonmarket and internal and
external stakeholders are.
LO 1-4 Conducting a stakeholder analysis and understanding the basis of stakeholder interests and power.
LO 1-5 Recognizing the diverse ways in which modern corporations organize internally to interact with
various stakeholders.
LO 1-6 Analyzing the forces of change that continually reshape the business and society relationship.
2
Chapter 1 The Corporation and Its Stakeholders 3
Walmart has been called “a template for 21st century capitalism.” In each period of history,
because of its size and potential impact on many groups in society, a single company often
seems to best exemplify the management systems, technology, and social relationships of
its era. In 1990, this company was U.S. Steel. In 1950, it was General Motors. Now, in the
2010s, it is Walmart.1
In 2015, Walmart was the largest private employer in the world, with 2.2 million employ-
ees worldwide. The company operated more than 11,000 facilities in 27 countries and had
annual sales of $473 billion. The retailer was enormously popular with customers, drawing
them in with its great variety of products under one roof and “save money, live better” slo-
gan; 250 million customers worldwide shopped there every week. Economists estimated
that Walmart had directly through its own actions and indirectly through its impact on its
supply chain saved American shoppers $287 billion annually, about $957 for every person
in the United States.2 Shareholders who invested early were richly rewarded; the share price
rose from 5 cents (split adjusted) when the company went public in 1970 to around $90
a share in early 2015, its all-time high. Walmart was a major customer for tens of thousands
of suppliers worldwide, ranging from huge multinationals to tiny one-person operations.
Yet, Walmart had become a lightning rod for criticism from many quarters, charged
with corruption; driving down wages, benefits, and working conditions; and hurting local
communities. Consider that:
∙ On the Friday after Thanksgiving 2014—so-called Black Friday—thousands of pro-
testers rallied at 1,600 Walmart stores across the United States, calling on the retailer
to raise its workers’ pay to at least $15 an hour and offer more of them full-time work
and predictable schedules. Said one part-time cashier, “It is very hard on what I earn.
Right now I’m on food stamps and applying for medical assistance.” A month earlier,
the company had announced it would no longer provide health insurance to associates
working less than 30 hours a week.3
∙ In 2012, the company confronted shocking charges that it had conducted a “campaign
of bribery” to facilitate its rapid growth in Mexico. According to an investigation by
The New York Times, Walmart had made $24 million in payments to government officials
to clear the way for hundreds of new stores in what became the company’s most important
foreign subsidiary, in probable violation of both U.S. and Mexican law. Two years later, the
company had spent more than $400 million to investigate the bribery allegations, and faced
numerous lawsuits from irate shareholders and an ongoing U.S. government investigation.4
∙ In 2013, local activists protested the opening of a Walmart neighborhood market in Los
Angeles’s Chinatown, carrying large puppets dressed as the ghosts of small businesses.
It was the latest of many incidents in which communities resisted the arrival of the retail
giant, saying it would hurt local shopkeepers.5 Economists studying Walmart’s impact
in Chicago, for example, found that about one-quarter of neighborhood retailers near a
new Walmart had gone out of business, causing a loss of 300 jobs.6
In a continuing effort to improve its social performance, Walmart offered grants to
small businesses, donated to wildlife habitat restoration, and announced a plan to lower
1
Nelson Lichtenstein, “Wal-Mart: A Template for Twenty-First Century Capitalism,” in Wal-Mart: The Face of Twenty-First
Century Capitalism, ed. Nelson Lichtenstein (New York: The New Press, 2006), pp. 3–30.
2
Global Insight, “The Price Impact of Wal-Mart: An Update through 2006,” September 4, 2007.
3
“Wal-Mart Cutting Health Benefits to Some Part-Time Employees,” Bloomberg, October 7, 2014, and “On Black Friday,
Walmart Is Pressed for Wage Increases,” The New York Times, November 28, 2014.
4
“Wal-Mart Hushed Up a Vast Mexican Bribery Case,” The New York Times, April 21, 2012; “After Bribery Scandal, High-Level
Departures at Walmart,” The New York Times, June 4, 2014.
5
“Walmart in LA’s Chinatown Has Opened, Despite Major Protest,” September 13, 2013, www.huffingtonpost.com.
6
Julie Davis et al., “The Impact of an Urban Wal-Mart Store on Area Businesses: An Evaluation of One Chicago Neighbor-
hood’s Experience,” Center for Urban Research and Learning, Loyola University Chicago, December 2009.
4 Part One Business in Society
the salt, fat, and sugar in many of its packaged foods. The company strengthened its ethics
and compliance program. It also pursued ambitious environmental goals to reduce waste,
use more renewable energy, and sell more sustainable products, and began reporting to the
public on its progress.7 “Reputation is very important to Wal-Mart,” said a historian who
had studied the company. “They put a lot of money into building it.”8
Walmart’s experience illustrates, on a particularly large scale, the challenges of man-
aging successfully in a complex global network of stakeholders. The company’s actions
affected not only itself, but also many other people, groups, and organizations in society.
Customers, suppliers, employees, stockholders, creditors, business partners, governments,
and local communities all had a stake in Walmart’s decisions. Walmart had to learn just
how difficult it could be to simultaneously satisfy multiple stakeholders with diverse and,
in some respects, contradictory interests.
Every modern company, whether small or large, is part of a vast global business system.
Whether a firm has 50 employees or 50,000—or, like Walmart, more than 2 million—its
links to customers, suppliers, employees, and communities are certain to be numerous,
diverse, and vital to its success. This is why the relationship between business and society
is important for you to understand as both a citizen and a manager.
Business and Society

Business today is arguably the most dominant institution in the world. The term business
refers here to any organization that is engaged in making a product or providing a service for
a profit. Consider that in the United States today there are 6 million businesses, according
to government estimates, and in the world as a whole, there are uncounted millions more.
Of course, these businesses vary greatly in size and impact. They range from a woman who
helps support her family by selling handmade tortillas by the side of the road in Mexico City
for a few pesos, to ExxonMobil, a huge corporation that employs 75,000 workers and earns
annual revenues approaching $412 billion in almost every nation in the world.
Society, in its broadest sense, refers to human beings and to the social structures they col-
lectively create. In a more specific sense, the term is used to refer to segments of humankind,
such as members of a particular community, nation, or interest group. As a set of organiza-
tions created by humans, business is clearly a part of society. At the same time, it is also a
distinct entity, separated from the rest of society by clear boundaries. Business is engaged in
ongoing exchanges with its external environment across these dividing lines. For example,
businesses recruit workers, buy supplies, and borrow money; they also sell products, donate
time, and pay taxes. This book is broadly concerned with the relationship between business
and society. A simple diagram of the relationship between the two appears in Figure 1.1.
As the Walmart example that opened this chapter illustrates, business and society are highly
interdependent. Business activities impact other activities in society, and actions by various
social actors and governments continuously affect business. To manage these interdependen-
cies, managers need an understanding of their company’s key relationships and how the social
and economic system of which they are a part affects, and is affected by, their decisions.
A Systems Perspective
General systems theory, first introduced in the 1940s, argues that all organisms are open to,
and interact with, their external environments. Although most organisms have clear bound-
aries, they cannot be understood in isolation, but only in relationship to their surroundings.
7
“2014 Global Responsibility Report,” http://corporate.walmart.com/global-responsibility/environment-sustainability/
global-responsibility.
8
“Wal-Mart’s Good-Citizen Efforts Face a Test,” The New York Times, April 30, 2012.
FIGURE 1.1
Business and Society:
An Interactive
System Society
Business
This simple but powerful idea can be applied to many disciplines. For example, in botany,
the growth of a plant cannot be explained without reference to soil, light, oxygen, moisture,
and other characteristics of its environment. As applied to management theory, the systems
concept implies that business firms (social organisms) are embedded in a broader social
structure (external environment) with which they constantly interact. Corporations have
ongoing boundary exchanges with customers, governments, competitors, suppliers, com-
munities, and many other individuals and groups. Just as good soil, water, and light help a
plant grow, positive interactions with society benefit a business firm.
Like biological organisms, moreover, businesses must adapt to changes in the environ-
ment. Plants growing in low-moisture environments must develop survival strategies, like the
cactus that evolves to store water in its leaves. Similarly, a long-distance telephone company
in a newly deregulated market must learn to compete by changing the products and services it
offers. The key to business survival is often this ability to adapt effectively to changing con-
ditions. In business, systems theory provides a powerful tool to help managers conceptualize
the relationship between their companies and their external environments.
Systems theory helps us understand how business and society, taken together, form an
interactive social system. Each needs the other, and each influences the other. They are
entwined so completely that any action taken by one will surely affect the other. They are
both separate and connected. Business is part of society, and society penetrates far and
often into business decisions. In a world where global communication is rapidly expand-
ing, the connections are closer than ever before. Throughout this book we discuss exam-
ples of organizations and people that are grappling with the challenges of, and helping to
shape, business–society relationships.
The Stakeholder Theory of the Firm

What is the purpose of the modern corporation? To whom, or what, should the firm be
responsible?9 No question is more central to the relationship between business and society.
9
For summaries of contrasting theories of the purpose of the firm, see Margaret M. Blair, “Whose Interests Should Corpora-
tions Serve,” in Margaret M. Blair and Bruce K. MacLaury, Ownership and Control: Rethinking Corporate Governance for the
Twenty-First Century (Washington, DC: Brookings Institution, 1995), ch. 6, pp. 202–34; and James E. Post, Lee E. Preston,
and Sybille Sachs, Redefining the Corporation: Stakeholder Management and Organizational Wealth (Palo Alto, CA: Stanford
University Press, 2002).
In the ownership theory of the firm (sometimes also called property or finance theory),
the firm is seen as the property of its owners. The purpose of the firm is to maximize its
long-term market value, that is, to make the most money it can for shareholders who own
stock in the company. Managers and boards of directors are agents of shareholders and
have no obligations to others, other than those directly specified by law. In this view, own-
ers’ interests are paramount and take precedence over the interests of others.
A contrasting view, called the stakeholder theory of the firm, argues that corporations
serve a broad public purpose: to create value for society. All companies must make a profit
for their owners; indeed, if they did not, they would not long survive. However, corpora-
tions create many other kinds of value as well, such as professional development for their
employees and innovative new products for their customers. In this view, corporations
have multiple obligations, and all stakeholders’ interests must be taken into account. This
approach has been expressed well by the pharmaceutical company Novartis, which states
in its code of conduct that it “places a premium on dealing fairly with employees, cus-
tomers, vendors, government regulators, and the public. Novartis’ success depends upon
maintaining the trust of these essential stakeholders.”10
Supporters of the stakeholder theory of the firm make three core arguments for their
position: descriptive, instrumental, and normative.11
The descriptive argument says that the stakeholder view is simply a more realistic
description of how companies really work. Managers have to pay keen attention, of course,
to their quarterly and annual financial performance. Keeping Wall Street satisfied by man-
aging for growth—thereby attracting more investors and increasing the stock price—is a
core part of any top manager’s job. But the job of management is much more complex than
this. In order to produce consistent results, managers have to be concerned with producing
high-quality and innovative products and services for their customers, attracting and retain-
ing talented employees, and complying with a plethora of complex government regulations.
As a practical matter, managers direct their energies toward all stakeholders, not just owners.
In what became known as the “dollar store wars,” in 2014 two companies made
competing bids to buy Family Dollar, a U.S. discount retail chain based in Char-
lotte, North Carolina—each with very different consequences for stakeholders. One
suitor, Dollar Tree, offered $76.50 per share for the company, while the other, Dol-
lar General, offered $80—seemingly a better deal for shareholders. But the Dollar
General deal faced likely government antitrust scrutiny and would probably have
required the closure of thousands of stores, throwing employees out of work and
depriving low-income communities of access to a discount store. In the end, after
considering the impact on all stakeholders, Family Dollar’s management recom-
mended the lower-priced offer, and three-quarters of its shareholders agreed.12
The instrumental argument says that stakeholder management is more effective as a
corporate strategy. A wide range of studies have shown that companies that behave respon-
sibly toward multiple stakeholder groups perform better financially, over the long run, than
those that do not. (This empirical evidence is further explored in Chapter 3.) These find-
ings make sense, because good relationships with stakeholders are themselves a source of
value for the firm. Attention to stakeholders’ rights and concerns can help produce
10
“Code of Conduct: Values to Live By,” online at www.novartisvaccines.com.
11
The descriptive, instrumental, and normative arguments are summarized in Thomas Donaldson and Lee E. Preston, “The
Stakeholder Theory of the Corporation: Concepts, Evidence and Implications,” Academy of Management Review 20, no. 1
(1995), pp. 65–71. See also, Post, Preston, and Sachs, Redefining the Corporation, ch. 1.
12
“Family Dollar Shareholders Approve Sale to Dollar Tree,” Charlotte Observer, January 22, 2015.
motivated employees, satisfied customers, committed suppliers, and supportive communi-

ties, all good for the company’s bottom line.
The normative argument says that stakeholder management is simply the right thing to
do. Corporations have great power and control vast resources; these privileges carry with
them a duty toward all those affected by a corporation’s actions. Moreover, all stakehold-
ers, not just owners, contribute something of value to the corporation. A skilled engineer
at Microsoft who applies his or her creativity to solving a difficult programming problem
has made a kind of investment in the company, even if it is not a monetary investment. Any
individual or group who makes a contribution, or takes a risk, has a moral right to some
claim on the corporation’s rewards.13
A basis for both the ownership and stakeholder theories of the firm exists in law. The
legal term fiduciary means a person who exercises power on behalf of another, that is, who
acts as the other’s agent. In U.S. law, managers are considered fiduciaries of the owners of
the firm (its stockholders) and have an obligation to run the business in their interest. These
legal concepts are clearly consistent with the ownership theory of the firm. However, other
laws and court cases have given managers broad latitude in the exercise of their fiduciary
duties. In the United States (where corporations are chartered not by the federal government
but by the states), most states have passed laws that permit managers to take into consider-
ation a wide range of other stakeholders’ interests, including those of employees, customers,
creditors, suppliers, and communities. (Benefit corporations, firms with a special legal status
that obligates them to do so, are further discussed in Chapter 3.) In addition, many federal
laws extend specific protections to various groups of stakeholders, such as those that prohibit
discrimination against employees or grant consumers the right to sue if harmed by a product.
In other nations, the legal rights of nonowner stakeholders are often more fully devel-
oped than in the United States. For example, a number of European countries—including
Germany, Norway, Austria, Denmark, Finland, and Sweden—require public companies
to include employee members on their boards of directors, so that their interests will be
explicitly represented. Under the European Union’s so-called harmonization statutes, man-
agers are specifically permitted to take into account the interests of customers, employees,
creditors, and others.
In short, while the law requires managers to act on behalf of stockholders, it also gives
them wide discretion—and in some instances requires them—to manage on behalf of the
full range of stakeholder groups. The next section provides a more formal definition and an
expanded discussion of the stakeholder concept.
The Stakeholder Concept

The term stakeholder refers to persons and groups that affect, or are affected by, an orga-
nization’s decisions, policies, and operations.14 The word stake, in this context, means
13
Another formulation of this point has been offered by Robert Phillips, who argues for a principle of stakeholder fairness.
This states that “when people are engaged in a cooperative effort and the benefits of this cooperative effort are accepted,
obligations are created on the part of the group accepting the benefit” [i.e., the business firm]. Robert Phillips, Stakeholder
Theory and Organizational Ethics (San Francisco: Berrett-Koehler, 2003), p. 9 and ch. 5.
14
The term stakeholder was first introduced in 1963 but was not widely used in the management literature until the publica-
tion of R. Edward Freeman’s Strategic Management: A Stakeholder Approach (Marshfield, MA: Pitman, 1984). For summaries
of the stakeholder theory literature, see Thomas Donaldson and Lee E. Preston, “The Stakeholder Theory of the Corporation:
Concepts, Evidence, Implications,” Academy of Management Review, January 1995, pp. 71–83; Max B. E. Clarkson, ed., The
Corporation and Its Stakeholders: Classic and Contemporary Readings (Toronto: University of Toronto Press, 1998); Abe J.
Zakhem, Daniel E. Palmer, and Mary Lyn Stoll, Stakeholder Theory: Essential Readings in Ethical Leadership and Manage-
ment (Amherst, NY: Prometheus Books, 2008); and R. Edward Freeman, Stakeholder Theory: The State of the Art
(Cambridge, UK: Cambridge University Press, 2010).
an interest in—or claim on—a business enterprise. Those with a stake in the firm’s
actions include such diverse groups as customers, employees, shareholders (also called
stockholders), governments, suppliers, professional and trade associations, social and
environmental activists, and nongovernmental organizations. The term stakeholder is
not the same as stockholder, although the words sound similar. Stockholders—individ-
uals or organizations that own shares of a company’s stock—are one of several kinds of
stakeholders.
Business organizations are embedded in networks involving many participants. Each
of these participants has a relationship with the firm, based on ongoing interactions.
Each of them shares, to some degree, in both the risks and rewards of the firm’s activ-
ities. And each has some kind of claim on the firm’s resources and attention, based on
law, moral right, or both. The number of these stakeholders and the variety of their inter-
ests can be large, making a company’s decisions very complex, as the Walmart example
illustrates.
Managers make good decisions when they pay attention to the effects of their deci-
sions on stakeholders, as well as stakeholders’ effects on the company. On the positive
side, strong relationships between a corporation and its stakeholders are an asset that
adds value. On the negative side, some companies disregard stakeholders’ interests,
either out of the belief that the stakeholder is wrong or out of the misguided notion
that an unhappy customer, employee, or regulator does not matter. Such attitudes often
prove costly to the company involved. Today, for example, companies know that they
cannot locate a factory or store in a community that strongly objects. They also know
that making a product that is perceived as unsafe invites lawsuits and jeopardizes mar-
ket share.
Different Kinds of Stakeholders

Business interacts with society in many diverse ways, and a company’s relationships with
various stakeholders differ.
Market stakeholders are those that engage in economic transactions with the company
as it carries out its purpose of providing society with goods and services. Each relationship
between a business and one of its market stakeholders is based on a unique transaction, or
two-way exchange. Stockholders invest in the firm and in return receive the potential for
dividends and capital gains. Creditors loan money and collect payments of interest and
principal. Employees contribute their skills and knowledge in exchange for wages, bene-
fits, and the opportunity for personal satisfaction and professional development. In return
for payment, suppliers provide raw materials, energy, services, finished products, and other
inputs; and wholesalers, distributors, and retailers engage in market transactions with the
firm as they help move the product from plant to sales outlets to customers. All businesses
need customers who are willing to buy their products or services.
The puzzling question of whether or not managers should be classified as stakeholders
along with other employees is discussed in Exhibit 1.A.
Nonmarket stakeholders, by contrast, are people and groups who—although they do
not engage in direct economic exchange with the firm—are nonetheless affected by or
can affect its actions. Nonmarket stakeholders include the community, various levels of
government, nongovernmental organizations, business support groups, competitors, and
the general public. Nonmarket stakeholders are not necessarily less important than others,
simply because they do not engage in direct economic exchange with a business. On the
contrary, interactions with such groups can be critical to a firm’s success or failure, as
shown in the following example.
Exhibit 1.A Are Managers Stakeholders?
Are managers, especially top executives, stakeholders? This has been a contentious issue in stakeholder
theory.
On one hand, the answer clearly is “yes.” Like other stakeholders, managers are impacted by the firm’s
decisions. As employees of the firm, managers receive compensation—often very generous compensation,
as shown in Chapter 13. Their managerial roles confer opportunities for professional advancement, social
status, and power over others. Managers benefit from the company’s success and are hurt by its failure. For
these reasons, they might properly be classified as employees.
On the other hand, top executives are agents of the firm and are responsible for acting on its behalf. In
the stakeholder theory of the firm, their role is to integrate stakeholder interests, rather than to promote their
own more narrow, selfish goals. For these reasons, they might properly be classified as representatives of the
firm itself, rather than as one of its stakeholders.
Management theory has long recognized that these two roles of managers potentially conflict. The main
job of executives is to act for the company, but all too often they act primarily for themselves. Consider, for
example, the many top executives of Lehman Brothers, MF Global, and Merrill Lynch, who enriched them-
selves personally at the expense of shareholders, employees, customers, and other stakeholders. The chal-
lenge of persuading top managers to act in the firm’s best interest is further discussed in Chapter 13.
In 2001, a company called Energy Management Inc. (EMI) announced a plan to

build a wind farm about six miles off the shore of Cape Cod, Massachusetts, to sup-
ply clean, renewable power to New England customers. The project, called Cape
Wind, immediately generated intense opposition from residents of Cape Cod and
nearby islands, who were concerned that its 130 wind turbines would spoil the view
and get in the way of boats. A nonprofit group called Save Our Sound filed dozens
of lawsuits, charging possible harm to wildlife, increased electricity rates, and dan-
ger to aircraft. In early 2015, EMI appeared blocked on all sides, as local utilities
withdrew their commitments to buy power from the wind farm, which one local
newspaper called the final “death blow.”15
In this instance, activists were able to block the company’s plans for more than a
decade—and possibly permanently—even though they did not have a market relationship
with it.
Theorists also distinguish between internal stakeholders and external stakeholders.
Internal stakeholders are those, such as employees and managers, who are employed by the
firm. They are “inside” the firm, in the sense that they contribute their effort and skill, usu-
ally at a company worksite. External stakeholders, by contrast, are those who—although
they may have important transactions with the firm—are not directly employed by it.
The classification of government as a nonmarket stakeholder has been controversial
in stakeholder theory. Most theorists say that government is a nonmarket stakeholder (as
does this book) because it does not normally conduct any direct market exchanges (buying
and selling) with business. However, money often flows from business to government in
the form of taxes and fees, and sometimes from government to business in the form of
subsidies or incentives. Moreover, some businesses—defense contractors for example—do
15
“Renewable Energy: Wind Power Tests the Waters,” Nature, September 24, 2014; “Cape Wind’s Future Called into Ques-
tion,” The Boston Globe, January 8, 2015; and “Cape Wind Becalmed,” Providence Journal, January 21, 2015. The website
of the project is at www.capewind.org. The story of the opposition to Cape Wind is told in Robert Whitcomb and Wendy
Williams, Cape Wind: Money, Celebrity, Energy, Class, Politics, and the Battle for Our Energy Future (New York: PublicAffairs,
2008).
9
sell directly to the government and receive payment for goods and services rendered. For
this reason, a few theorists have called government a market stakeholder of business. And,
in a few cases, the government may take a direct ownership stake in a company—as the
U.S. government did after the financial crisis of 2008–09 when it invested in several banks
and auto companies, becoming a shareholder of these firms. Government also has special
influence over business because of its ability to charter and tax corporations, as well as
make laws that regulate their activities. The unique relationship between government and
business is discussed throughout this book.
Other stakeholders also have some market and some nonmarket characteristics. For
example, business support groups, such as the Chamber of Commerce, are normally con-
sidered a nonmarket stakeholder. However, companies may support the Chamber of Com-
merce with their membership dues—a market exchange. Communities are a nonmarket
stakeholder, but receive taxes, philanthropic contributions, and other monetary benefits
from businesses. These subtleties are further explored in later chapters.
Modern stakeholder theory recognizes that most business firms are embedded in a com-
plex web of stakeholders, many of which have independent relationships with each other.16
In this view, a business firm and its stakeholders are best visualized as an interconnected
network. Imagine, for example, an electronics company, based in the United States, that
produces smartphones, tablets, and music players. The firm employs people to design,
engineer, and market its devices to customers in many countries. Shares in the company
are owned by investors around the world, including many of its own employees and man-
agers. Production is carried out by suppliers in Asia. Banks provide credit to the company,
as well as to other companies. Competing firms sell their products to some of the same
customers, and also contract production to some of the same Asian suppliers. Nongovern-
mental organizations may seek to lobby the government concerning the firm’s practices,
and may count some employees among their members. A visual representation of this
company and its stakeholders is shown in Figure 1.2.
As Figure 1.2 suggests, some individuals or groups may play multiple stakeholder roles.
Some theorists use the term role sets to refer to this phenomenon. For example, a person
may work at a company, but also live in the surrounding community, own shares of com-
pany stock in his or her 401(k) retirement account, and even purchase the company’s prod-
ucts from time to time. This person has several stakes in a company’s actions.
Later sections of this book (especially Chapters 13 through 19) will discuss in more
detail the relationship between business and its various stakeholders.
Stakeholder Analysis
An important part of the modern manager’s job is to identify relevant stakeholders and to
understand both their interests and the power they may have to assert these interests. This
process is called stakeholder analysis. The organization from whose perspective the analy-
sis is conducted is called the focal organization.
The first step of a stakeholder analysis is for managers of the focal organization to
identify the issue at hand. For example, in the Cape Wind situation discussed earlier in this
chapter, Energy Management Inc. had to analyze how best to win regulatory approval for
the construction of its wind farm. Once the issue is determined, managers must ask four
key questions, as discussed below and summarized in Figure 1.3.
16
Timothy J. Rowley, “Moving Beyond Dyadic Ties: A Network Theory of Stakeholder Influence,” Academy of Management
Review 22, no. 4 (October 1997).
FIGURE 1.2
A Firm and Its
Stakeholders
Employees
Non
governmental Creditors
organizations Customers
Business
Firm
Stockholders
Governments
Competitors
Suppliers
Who are the relevant stakeholders?

The first question requires management to identify and map the relevant stakeholders.
Exhibit 1.B, which appears later in this chapter, provides a guide. However, not all stake-
holders listed will be relevant in every management situation. For example, a privately held
FIGURE 1.3
Who are the relevant stakeholders?
The Four Key
Questions of
Stakeholder Analysis
What are the interests of each stakeholder?
What is the power of each stakeholder?
How are coalitions likely to form?

firm will not have shareholders. Some businesses sell directly to customers online, and
therefore will not have retailers. In other situations, a firm may have a stakeholder—say,
a creditor that has loaned money—but this group is not relevant to a particular issue that
management faces.
But stakeholder analysis involves more than simply identifying stakeholders; it also
involves understanding the nature of their interests, power, legitimacy, and links with one
another.
Stakeholder Interests
What are the interests of each stakeholder?
Each stakeholder has a unique relationship to the organization, and managers must respond
accordingly. Stakeholder interests are, essentially, the nature of each group’s stake. What
are their concerns, and what do they want from their relationship with the firm?17
Shareholders, for their part, have an ownership interest in the firm. In exchange for their
investment, shareholders expect to receive dividends and, over time, capital appreciation.
The economic health of the corporation affects these people financially; their personal
wealth—and often, their retirement security—is at stake. They may also seek to achieve
social objectives through their choice of investments. Customers, for their part, are most
interested in gaining fair value and quality in exchange for the purchase price of goods and
services. Suppliers wish to obtain profitable orders, use their capacity efficiently, and build
stable relationships with their business customers. Employees, in exchange for their time
and effort, want to receive fair compensation and an opportunity to develop their job skills.
Governments, public interest groups, and local communities have another sort of relation-
ship with the company. In general, their stake is broader than the financial stake of owners,
customers, and suppliers. They may wish to protect the environment, assure human rights,
or advance other broad social interests. Managers need to understand these complex and
often intersecting stakeholder interests.
Stakeholder Power
What is the power of each stakeholder?
Stakeholder power means the ability to use resources to make an event happen or to secure
a desired outcome. Stakeholders have five different kinds of power: voting power, eco-
nomic power, political power, legal power, and informational power.
Voting power means that the stakeholder has a legitimate right to cast a vote. Share-
holders typically have voting power proportionate to the percentage of the company’s stock
they own. They typically have an opportunity to vote on such major decisions as mergers
and acquisitions, the composition of the board of directors, and other issues that may come
before the annual meeting. (Shareholder voting power should be distinguished from the
voting power exercised by citizens, which is discussed below.)
For example, Starboard Value LP, a New York–based hedge fund, used its voting
power as a shareholder to force change in a company it had invested in. Starboard
bought more than 8 percent of the shares of Darden Restaurants, the owner of Red
Lobster, Olive Garden, and other eatery chains. It called for radical change, slamming
management for tolerating “lavish excess, bureaucracy, and low standards.” When
Darden resisted, Starboard and its allies fielded their own slate of nominees in the
17
A full discussion of the interests of stakeholders may be found in R. Edward Freeman, Ethical Theory and Business (Engle-
wood Cliffs, NJ: Prentice Hall, 1994).
election for the board of directors, organized support from other voting shareholders—
and won. Activist investors like Starboard engaged in almost 300 such campaigns in
2014, the highest in five years, and won almost three-quarters of the time.18
Suppliers, customers, employees, and other stakeholders have economic power with the
company. Suppliers, for example, can withhold supplies or refuse to fill orders if a com-
pany fails to meet its contractual responsibilities. Customers may refuse to buy a compa-
ny’s products or services if the company acts improperly. They can boycott products if they
believe the goods are too expensive, poorly made, or unsafe. Employees, for their part, can
refuse to work under certain conditions, a form of economic power known as a strike or
slowdown. Economic power often depends on how well organized a stakeholder group is.
For example, workers who are organized into unions usually have more economic power
than do workers who try to negotiate individually with their employers.
Governments exercise political power through legislation, regulations, or lawsuits.
While government agencies act directly, other stakeholders use their political power indi-
rectly by urging government to use its powers by passing new laws or enacting regulations.
Citizens may also vote for candidates that support their views with respect to government
laws and regulations affecting business, a different kind of voting power than the one dis-
cussed above. Stakeholders may also exercise political power directly, as when social,
environmental, or community activists organize to protest a particular corporate action.
Stakeholders have legal power when they bring suit against a company for damages,
based on harm caused by the firm; for instance, lawsuits brought by customers for damages
caused by defective products, brought by employees for damages caused by workplace
injury, or brought by environmentalists for damages caused by pollution or harm to species
or habitat. After the mortgage lender Countrywide collapsed, many institutional share-
holders, such as state pension funds, sued Bank of America (which had acquired Country-
wide) to recoup some of their losses.
Finally, stakeholders have informational power when they have access to valuable data,
facts, or details and are able to bring their own information and perspectives to the atten-
tion of the public or key decision makers. With the explosive growth of technologies that
facilitate the sharing of information, this kind of stakeholder power has become increas-
ingly important.
Consumers’ ability to use social networks to express their views about businesses
they like—and do not like—has given them power they did not previously have. For
example, Yelp Inc. operates a website where people can search for local businesses,
post reviews, and read others’ comments. In 2014, a decade after its launch, Yelp
attracted almost 140 million unique visitors every month. Its reviewers collectively
have gained considerable influence. Restaurants, cultural venues, hair salons, and
other establishments can attract customers with five-star ratings and “People Love
Us on Yelp” stickers in their windows—but, by the same token, can be badly hurt
when reviews turn nasty. A study in the Harvard Business Review reported that a
one-star increase in an independent restaurant’s Yelp rating led to a 5 to 9 percent
increase in revenue. Some businesses have complained that Yelp reviewers have too
much power. “My business just died,” said the sole proprietor of a housecleaning
business. “Once they locked me into the 3.5 stars, I wasn’t getting any calls.”19
18
“The Hedge Fund Presentation on Olive Garden is a Masterpiece,” Business Insider, September 13, 2014; “Activist Hedge
Fund Starboard Succeeds in Replacing Darden Board,” The New York Times, October 10, 2014; and “Taking Recipes from the
Activist Cookbook,” The New York Times, December 9, 2014.
19
“Is Yelp Fair to Businesses?” PC World, November 15, 2011.
Activists often try to use all of these kinds of power when they want to change a com-
pany’s policy. For example, human rights activists wanted to bring pressure on Unocal
Corporation to change its practices in Burma (Myanmar), where it had entered into a joint
venture with the government to build a gas pipeline. Critics charged that many human
rights violations occurred during this project, including forced labor and relocations. In
an effort to pressure Unocal to change its behavior, activists organized protests at stock-
holder meetings (voting power), called for boycotts of Unocal products (economic power),
promoted local ordinances prohibiting cities from buying from Unocal (political power),
brought a lawsuit for damages on behalf of Burmese villagers (legal power), and gathered
information about government abuses by interviewing Burmese refugees and publicizing
the results online (informational power). These activists increased their chances of success
by mobilizing many kinds of power. This combination of tactics eventually forced Unocal
to pay compensation to people whose rights had been violated and to fund education and
health care projects in the pipeline region.20
Exhibit 1.B provides a schematic summary of some of the main interests and powers of
both market and nonmarket stakeholders.
Stakeholder Coalitions
An understanding of stakeholder interests and power enables managers to answer the final
question of stakeholder analysis regarding coalitions.
How are coalitions likely to form?

Not surprisingly, stakeholder interests often coincide. For example, consumers of fresh
fruit and farmworkers who harvest that fruit in the field may have a shared interest in
reducing the use of pesticides, because of possible adverse health effects from exposure to
chemicals. When their interests are similar, stakeholders may form coalitions, temporary
alliances to pursue a common interest. Companies may be both opposed and supported by
stakeholder coalitions, as shown in the example of the controversial Keystone XL pipeline.
TransCanada, a major North American energy company, sought approval to build a
pipeline from Alberta, Canada, to Steele City, Nebraska, where it would connect to
existing pipelines running to refineries and ports along the Gulf Coast. In opposing
the Keystone XL pipeline, environmentalists argued it would enable the export of
oil extracted from Canadian tar sands, an energy-intensive and dirty process. When
burned, the tar sands oil would release carbon dioxide, contributing to further
climate change, and spills from the pipeline could foul water supplies. They were
joined in coalition by other groups, such as ranchers, farmers, and Native Ameri-
cans whose land would be crossed by the pipeline. On the other side, construction
unions, many local governments, and business groups supported the pipeline, say-
ing that it would create jobs, reduce U.S. dependence on foreign oil, and provide a
safer method of transport than trains or tanker trucks.21
Stakeholder coalitions are not static. Groups that are highly involved with a company
today may be less involved tomorrow. Issues that are controversial at one time may be
uncontroversial later; stakeholders that are dependent on an organization at one time may
be less so at another. To make matters more complicated, the process of shifting coali-
tions does not occur uniformly in all parts of a large corporation. Stakeholders involved
with one part of a large company often have little or nothing to do with other parts of the
20
Further information about the campaign against Unocal is available at www.earthrights.org/unocal.
21
“Keystone Pipeline Pros, Cons and Steps to a Final Decision,” The New York Times, November 18, 2014.
organization. Today, stakeholder coalitions are numerous in every industry and important
to every company.
The discussion case at the end of this chapter describes the coalitions that developed in
favor of and opposition to new regulations that would require the ride-hailing start-up Uber
to insure drivers logged onto its system to look for customers.
Stakeholder Salience and Mapping

Some scholars have suggested that managers pay the most attention to stakeholders pos-
sessing greater salience. (Something is salient when it stands out from a background, is
seen as important, or draws attention.) Stakeholders stand out to managers when they have
power, legitimacy, and urgency. The previous section discussed various forms of stake-
holder power. Legitimacy refers to the extent to which a stakeholder’s actions are seen as
proper or appropriate by the broader society, because they are clearly affected by the com-
pany’s actions. Urgency refers to the time-sensitivity of a stakeholder’s claim, that is, the
extent to which it demands immediate action. The more of these three attributes a stake-
holder possesses, the greater the stakeholder’s salience and the more likely that managers
will notice and respond.22
Managers can use the salience concept to develop a stakeholder map, a graphical repre-
sentation of the relationship of stakeholder salience to a particular issue. Figure 1.4 pres-
ents a simple example of a stakeholder map. The figure shows the position of various
stakeholders on a hypothetical issue—whether or not a company should shut down an
underperforming factory in a community. The horizontal axis represents each stakehold-
er’s position on this issue—from “against” (the company should not shut the plant) to
“for” (the company should shut the plant). The vertical axis represents the salience of the
stakeholder, an overall measure of that stakeholder’s power, legitimacy, and urgency. In
this example, the company’s creditors (banks) are pressuring the firm to close the plant.
FIGURE 1.4 HIGH

Stakeholder Map
of a Proposed Plant
Closure Creditors
Stakeholder Salience
Employees
Shareholders
Community
Local
Government
LOW
AGAINST Position on the Issue FOR
22
Ronald K. Mitchell, Bradley R. Agle, and Donna J. Wood, “Toward a Theory of Stakeholder Identification and Salience:
Defining the Principle of Who and What Really Counts,” Academy of Management Review 22, no. 4 (1997), pp. 853–86.
Stakeholders: Nature of Interest
Exhibit 1.B and Power
Nature of Interest— Nature of Power—Stakeholder

Stakeholder Stakeholder Wishes To: Influences Company By:
Market Stakeholders
Employees ■ Maintain stable employment in firm ■ Union bargaining power
■ Receive fair pay for work and mandated ■ Work actions or strikes
benefits ■ Publicity
■ Work in safe, comfortable environment
Shareholders ■ Receive a satisfactory return on ■ Exercising voting rights based on share
investments (dividends) ownership
■ Realize appreciation in stock value over ■ Exercising rights to inspect company
time books and records
Customers ■ Receive fair exchange: value and quality ■ Purchasing goods from competitors
for money spent ■ Boycotting companies whose products
■ Receive safe, reliable products are unsatisfactory or whose policies are
■ Receive accurate information unacceptable
■ Be able to voice concerns
Suppliers ■ Receive regular orders for goods ■ Refusing to meet orders if conditions of
■ Be paid promptly for supplies delivered contract are breached
■ Use capacity efficiently ■ Supplying to competitors
■ Build stable relationships with
business customers
■ Be treated ethically
Retailers, Wholesalers ■ Receive quality goods in a timely fashion ■ Buying from other suppliers if terms of
at reasonable cost contract are unsatisfactory
■ Offer reliable products that consumers ■ Boycotting companies whose goods or
trust and value policies are unsatisfactory
Creditors ■ Receive repayment of loans ■ Calling in loans if payments are not made
■ Collect debts and interest ■ Utilizing legal authorities to repossess or
take over property if loan payments are
severely delinquent
They have high salience, because they control the company’s credit line and are urgently
demanding action. Shareholders, who are powerful and legitimate (but not as urgent in
their demands), also favor the closure. On the other side, employees urgently oppose shut-
ting the plant, because their jobs are at stake, but they do not have as much power as the
creditors and are therefore less salient. Local government officials and local businesses
also wish the plant to remain open, but have lower salience than the other stakeholders
involved.
A stakeholder map is a useful tool, because it enables managers to see quickly how
stakeholders feel about an issue and whether salient stakeholders tend to be in favor or
opposed. It also helps managers see how stakeholder coalitions are likely to form, and
what outcomes are likely. In this example, company executives might conclude from the
16
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DANCE ON STILTS AT THE GIRLS’ UNYAGO, NIUCHI
Newala, too, suffers from the distance of its water-supply—at least

the Newala of to-day does; there was once another Newala in a lovely
valley at the foot of the plateau. I visited it and found scarcely a trace
of houses, only a Christian cemetery, with the graves of several
missionaries and their converts, remaining as a monument of its
former glories. But the surroundings are wonderfully beautiful. A
thick grove of splendid mango-trees closes in the weather-worn
crosses and headstones; behind them, combining the useful and the
agreeable, is a whole plantation of lemon-trees covered with ripe
fruit; not the small African kind, but a much larger and also juicier
imported variety, which drops into the hands of the passing traveller,
without calling for any exertion on his part. Old Newala is now under
the jurisdiction of the native pastor, Daudi, at Chingulungulu, who,
as I am on very friendly terms with him, allows me, as a matter of
course, the use of this lemon-grove during my stay at Newala.
FEET MUTILATED BY THE RAVAGES OF THE “JIGGER”
(Sarcopsylla penetrans)
The water-supply of New Newala is in the bottom of the valley,

some 1,600 feet lower down. The way is not only long and fatiguing,
but the water, when we get it, is thoroughly bad. We are suffering not
only from this, but from the fact that the arrangements at Newala are
nothing short of luxurious. We have a separate kitchen—a hut built
against the boma palisade on the right of the baraza, the interior of
which is not visible from our usual position. Our two cooks were not
long in finding this out, and they consequently do—or rather neglect
to do—what they please. In any case they do not seem to be very
particular about the boiling of our drinking-water—at least I can
attribute to no other cause certain attacks of a dysenteric nature,
from which both Knudsen and I have suffered for some time. If a
man like Omari has to be left unwatched for a moment, he is capable
of anything. Besides this complaint, we are inconvenienced by the
state of our nails, which have become as hard as glass, and crack on
the slightest provocation, and I have the additional infliction of
pimples all over me. As if all this were not enough, we have also, for
the last week been waging war against the jigger, who has found his
Eldorado in the hot sand of the Makonde plateau. Our men are seen
all day long—whenever their chronic colds and the dysentery likewise
raging among them permit—occupied in removing this scourge of
Africa from their feet and trying to prevent the disastrous
consequences of its presence. It is quite common to see natives of
this place with one or two toes missing; many have lost all their toes,
or even the whole front part of the foot, so that a well-formed leg
ends in a shapeless stump. These ravages are caused by the female of
Sarcopsylla penetrans, which bores its way under the skin and there
develops an egg-sac the size of a pea. In all books on the subject, it is
stated that one’s attention is called to the presence of this parasite by
an intolerable itching. This agrees very well with my experience, so
far as the softer parts of the sole, the spaces between and under the
toes, and the side of the foot are concerned, but if the creature
penetrates through the harder parts of the heel or ball of the foot, it
may escape even the most careful search till it has reached maturity.
Then there is no time to be lost, if the horrible ulceration, of which
we see cases by the dozen every day, is to be prevented. It is much
easier, by the way, to discover the insect on the white skin of a
European than on that of a native, on which the dark speck scarcely
shows. The four or five jiggers which, in spite of the fact that I
constantly wore high laced boots, chose my feet to settle in, were
taken out for me by the all-accomplished Knudsen, after which I
thought it advisable to wash out the cavities with corrosive
sublimate. The natives have a different sort of disinfectant—they fill
the hole with scraped roots. In a tiny Makua village on the slope of
the plateau south of Newala, we saw an old woman who had filled all
the spaces under her toe-nails with powdered roots by way of
prophylactic treatment. What will be the result, if any, who can say?
The rest of the many trifling ills which trouble our existence are
really more comic than serious. In the absence of anything else to
smoke, Knudsen and I at last opened a box of cigars procured from
the Indian store-keeper at Lindi, and tried them, with the most
distressing results. Whether they contain opium or some other
narcotic, neither of us can say, but after the tenth puff we were both
“off,” three-quarters stupefied and unspeakably wretched. Slowly we
recovered—and what happened next? Half-an-hour later we were
once more smoking these poisonous concoctions—so insatiable is the
craving for tobacco in the tropics.
Even my present attacks of fever scarcely deserve to be taken
seriously. I have had no less than three here at Newala, all of which
have run their course in an incredibly short time. In the early
afternoon, I am busy with my old natives, asking questions and
making notes. The strong midday coffee has stimulated my spirits to
an extraordinary degree, the brain is active and vigorous, and work
progresses rapidly, while a pleasant warmth pervades the whole
body. Suddenly this gives place to a violent chill, forcing me to put on
my overcoat, though it is only half-past three and the afternoon sun
is at its hottest. Now the brain no longer works with such acuteness
and logical precision; more especially does it fail me in trying to
establish the syntax of the difficult Makua language on which I have
ventured, as if I had not enough to do without it. Under the
circumstances it seems advisable to take my temperature, and I do
so, to save trouble, without leaving my seat, and while going on with
my work. On examination, I find it to be 101·48°. My tutors are
abruptly dismissed and my bed set up in the baraza; a few minutes
later I am in it and treating myself internally with hot water and
lemon-juice.
Three hours later, the thermometer marks nearly 104°, and I make
them carry me back into the tent, bed and all, as I am now perspiring
heavily, and exposure to the cold wind just beginning to blow might
mean a fatal chill. I lie still for a little while, and then find, to my
great relief, that the temperature is not rising, but rather falling. This
is about 7.30 p.m. At 8 p.m. I find, to my unbounded astonishment,
that it has fallen below 98·6°, and I feel perfectly well. I read for an
hour or two, and could very well enjoy a smoke, if I had the
wherewithal—Indian cigars being out of the question.
Having no medical training, I am at a loss to account for this state
of things. It is impossible that these transitory attacks of high fever
should be malarial; it seems more probable that they are due to a
kind of sunstroke. On consulting my note-book, I become more and
more inclined to think this is the case, for these attacks regularly
follow extreme fatigue and long exposure to strong sunshine. They at
least have the advantage of being only short interruptions to my
work, as on the following morning I am always quite fresh and fit.
My treasure of a cook is suffering from an enormous hydrocele which
makes it difficult for him to get up, and Moritz is obliged to keep in
the dark on account of his inflamed eyes. Knudsen’s cook, a raw boy
from somewhere in the bush, knows still less of cooking than Omari;
consequently Nils Knudsen himself has been promoted to the vacant
post. Finding that we had come to the end of our supplies, he began
by sending to Chingulungulu for the four sucking-pigs which we had
bought from Matola and temporarily left in his charge; and when
they came up, neatly packed in a large crate, he callously slaughtered
the biggest of them. The first joint we were thoughtless enough to
entrust for roasting to Knudsen’s mshenzi cook, and it was
consequently uneatable; but we made the rest of the animal into a
jelly which we ate with great relish after weeks of underfeeding,
consuming incredible helpings of it at both midday and evening
meals. The only drawback is a certain want of variety in the tinned
vegetables. Dr. Jäger, to whom the Geographical Commission
entrusted the provisioning of the expeditions—mine as well as his
own—because he had more time on his hands than the rest of us,
seems to have laid in a huge stock of Teltow turnips,[46] an article of
food which is all very well for occasional use, but which quickly palls
when set before one every day; and we seem to have no other tins
left. There is no help for it—we must put up with the turnips; but I
am certain that, once I am home again, I shall not touch them for ten
years to come.
Amid all these minor evils, which, after all, go to make up the
genuine flavour of Africa, there is at least one cheering touch:
Knudsen has, with the dexterity of a skilled mechanic, repaired my 9
× 12 cm. camera, at least so far that I can use it with a little care.
How, in the absence of finger-nails, he was able to accomplish such a
ticklish piece of work, having no tool but a clumsy screw-driver for
taking to pieces and putting together again the complicated
mechanism of the instantaneous shutter, is still a mystery to me; but
he did it successfully. The loss of his finger-nails shows him in a light
contrasting curiously enough with the intelligence evinced by the
above operation; though, after all, it is scarcely surprising after his
ten years’ residence in the bush. One day, at Lindi, he had occasion
to wash a dog, which must have been in need of very thorough
cleansing, for the bottle handed to our friend for the purpose had an
extremely strong smell. Having performed his task in the most
conscientious manner, he perceived with some surprise that the dog
did not appear much the better for it, and was further surprised by
finding his own nails ulcerating away in the course of the next few
days. “How was I to know that carbolic acid has to be diluted?” he
mutters indignantly, from time to time, with a troubled gaze at his
mutilated finger-tips.
Since we came to Newala we have been making excursions in all
directions through the surrounding country, in accordance with old
habit, and also because the akida Sefu did not get together the tribal
elders from whom I wanted information so speedily as he had
promised. There is, however, no harm done, as, even if seen only
from the outside, the country and people are interesting enough.
The Makonde plateau is like a large rectangular table rounded off
at the corners. Measured from the Indian Ocean to Newala, it is
about seventy-five miles long, and between the Rovuma and the
Lukuledi it averages fifty miles in breadth, so that its superficial area
is about two-thirds of that of the kingdom of Saxony. The surface,
however, is not level, but uniformly inclined from its south-western
edge to the ocean. From the upper edge, on which Newala lies, the
eye ranges for many miles east and north-east, without encountering
any obstacle, over the Makonde bush. It is a green sea, from which
here and there thick clouds of smoke rise, to show that it, too, is
inhabited by men who carry on their tillage like so many other
primitive peoples, by cutting down and burning the bush, and
manuring with the ashes. Even in the radiant light of a tropical day
such a fire is a grand sight.
Much less effective is the impression produced just now by the
great western plain as seen from the edge of the plateau. As often as
time permits, I stroll along this edge, sometimes in one direction,
sometimes in another, in the hope of finding the air clear enough to
let me enjoy the view; but I have always been disappointed.
Wherever one looks, clouds of smoke rise from the burning bush,
and the air is full of smoke and vapour. It is a pity, for under more
favourable circumstances the panorama of the whole country up to
the distant Majeje hills must be truly magnificent. It is of little use
taking photographs now, and an outline sketch gives a very poor idea
of the scenery. In one of these excursions I went out of my way to
make a personal attempt on the Makonde bush. The present edge of
the plateau is the result of a far-reaching process of destruction
through erosion and denudation. The Makonde strata are
everywhere cut into by ravines, which, though short, are hundreds of
yards in depth. In consequence of the loose stratification of these
beds, not only are the walls of these ravines nearly vertical, but their
upper end is closed by an equally steep escarpment, so that the
western edge of the Makonde plateau is hemmed in by a series of
deep, basin-like valleys. In order to get from one side of such a ravine
to the other, I cut my way through the bush with a dozen of my men.
It was a very open part, with more grass than scrub, but even so the
short stretch of less than two hundred yards was very hard work; at
the end of it the men’s calicoes were in rags and they themselves
bleeding from hundreds of scratches, while even our strong khaki
suits had not escaped scatheless.
NATIVE PATH THROUGH THE MAKONDE BUSH, NEAR

MAHUTA
I see increasing reason to believe that the view formed some time
back as to the origin of the Makonde bush is the correct one. I have
no doubt that it is not a natural product, but the result of human
occupation. Those parts of the high country where man—as a very
slight amount of practice enables the eye to perceive at once—has not
yet penetrated with axe and hoe, are still occupied by a splendid
timber forest quite able to sustain a comparison with our mixed
forests in Germany. But wherever man has once built his hut or tilled
his field, this horrible bush springs up. Every phase of this process
may be seen in the course of a couple of hours’ walk along the main
road. From the bush to right or left, one hears the sound of the axe—
not from one spot only, but from several directions at once. A few
steps further on, we can see what is taking place. The brush has been
cut down and piled up in heaps to the height of a yard or more,
between which the trunks of the large trees stand up like the last
pillars of a magnificent ruined building. These, too, present a
melancholy spectacle: the destructive Makonde have ringed them—
cut a broad strip of bark all round to ensure their dying off—and also
piled up pyramids of brush round them. Father and son, mother and
son-in-law, are chopping away perseveringly in the background—too
busy, almost, to look round at the white stranger, who usually excites
so much interest. If you pass by the same place a week later, the piles
of brushwood have disappeared and a thick layer of ashes has taken
the place of the green forest. The large trees stretch their
smouldering trunks and branches in dumb accusation to heaven—if
they have not already fallen and been more or less reduced to ashes,
perhaps only showing as a white stripe on the dark ground.
This work of destruction is carried out by the Makonde alike on the
virgin forest and on the bush which has sprung up on sites already
cultivated and deserted. In the second case they are saved the trouble
of burning the large trees, these being entirely absent in the
secondary bush.
After burning this piece of forest ground and loosening it with the
hoe, the native sows his corn and plants his vegetables. All over the
country, he goes in for bed-culture, which requires, and, in fact,
receives, the most careful attention. Weeds are nowhere tolerated in
the south of German East Africa. The crops may fail on the plains,
where droughts are frequent, but never on the plateau with its
abundant rains and heavy dews. Its fortunate inhabitants even have
the satisfaction of seeing the proud Wayao and Wamakua working
for them as labourers, driven by hunger to serve where they were
accustomed to rule.
But the light, sandy soil is soon exhausted, and would yield no
harvest the second year if cultivated twice running. This fact has
been familiar to the native for ages; consequently he provides in
time, and, while his crop is growing, prepares the next plot with axe
and firebrand. Next year he plants this with his various crops and
lets the first piece lie fallow. For a short time it remains waste and
desolate; then nature steps in to repair the destruction wrought by
man; a thousand new growths spring out of the exhausted soil, and
even the old stumps put forth fresh shoots. Next year the new growth
is up to one’s knees, and in a few years more it is that terrible,
impenetrable bush, which maintains its position till the black
occupier of the land has made the round of all the available sites and
come back to his starting point.
The Makonde are, body and soul, so to speak, one with this bush.
According to my Yao informants, indeed, their name means nothing
else but “bush people.” Their own tradition says that they have been
settled up here for a very long time, but to my surprise they laid great
stress on an original immigration. Their old homes were in the
south-east, near Mikindani and the mouth of the Rovuma, whence
their peaceful forefathers were driven by the continual raids of the
Sakalavas from Madagascar and the warlike Shirazis[47] of the coast,
to take refuge on the almost inaccessible plateau. I have studied
African ethnology for twenty years, but the fact that changes of
population in this apparently quiet and peaceable corner of the earth
could have been occasioned by outside enterprises taking place on
the high seas, was completely new to me. It is, no doubt, however,
correct.
The charming tribal legend of the Makonde—besides informing us
of other interesting matters—explains why they have to live in the
thickest of the bush and a long way from the edge of the plateau,
instead of making their permanent homes beside the purling brooks
and springs of the low country.
“The place where the tribe originated is Mahuta, on the southern
side of the plateau towards the Rovuma, where of old time there was
nothing but thick bush. Out of this bush came a man who never
washed himself or shaved his head, and who ate and drank but little.
He went out and made a human figure from the wood of a tree
growing in the open country, which he took home to his abode in the
bush and there set it upright. In the night this image came to life and
was a woman. The man and woman went down together to the
Rovuma to wash themselves. Here the woman gave birth to a still-
born child. They left that place and passed over the high land into the
valley of the Mbemkuru, where the woman had another child, which
was also born dead. Then they returned to the high bush country of
Mahuta, where the third child was born, which lived and grew up. In
course of time, the couple had many more children, and called
themselves Wamatanda. These were the ancestral stock of the
Makonde, also called Wamakonde,[48] i.e., aborigines. Their
forefather, the man from the bush, gave his children the command to
bury their dead upright, in memory of the mother of their race who
was cut out of wood and awoke to life when standing upright. He also
warned them against settling in the valleys and near large streams,
for sickness and death dwelt there. They were to make it a rule to
have their huts at least an hour’s walk from the nearest watering-
place; then their children would thrive and escape illness.”
The explanation of the name Makonde given by my informants is
somewhat different from that contained in the above legend, which I
extract from a little book (small, but packed with information), by
Pater Adams, entitled Lindi und sein Hinterland. Otherwise, my
results agree exactly with the statements of the legend. Washing?
Hapana—there is no such thing. Why should they do so? As it is, the
supply of water scarcely suffices for cooking and drinking; other
people do not wash, so why should the Makonde distinguish himself
by such needless eccentricity? As for shaving the head, the short,
woolly crop scarcely needs it,[49] so the second ancestral precept is
likewise easy enough to follow. Beyond this, however, there is
nothing ridiculous in the ancestor’s advice. I have obtained from
various local artists a fairly large number of figures carved in wood,
ranging from fifteen to twenty-three inches in height, and
representing women belonging to the great group of the Mavia,
Makonde, and Matambwe tribes. The carving is remarkably well
done and renders the female type with great accuracy, especially the
keloid ornamentation, to be described later on. As to the object and
meaning of their works the sculptors either could or (more probably)
would tell me nothing, and I was forced to content myself with the
scanty information vouchsafed by one man, who said that the figures
were merely intended to represent the nembo—the artificial
deformations of pelele, ear-discs, and keloids. The legend recorded
by Pater Adams places these figures in a new light. They must surely
be more than mere dolls; and we may even venture to assume that
they are—though the majority of present-day Makonde are probably
unaware of the fact—representations of the tribal ancestress.
The references in the legend to the descent from Mahuta to the
Rovuma, and to a journey across the highlands into the Mbekuru
valley, undoubtedly indicate the previous history of the tribe, the
travels of the ancestral pair typifying the migrations of their
descendants. The descent to the neighbouring Rovuma valley, with
its extraordinary fertility and great abundance of game, is intelligible
at a glance—but the crossing of the Lukuledi depression, the ascent
to the Rondo Plateau and the descent to the Mbemkuru, also lie
within the bounds of probability, for all these districts have exactly
the same character as the extreme south. Now, however, comes a
point of especial interest for our bacteriological age. The primitive
Makonde did not enjoy their lives in the marshy river-valleys.
Disease raged among them, and many died. It was only after they
had returned to their original home near Mahuta, that the health
conditions of these people improved. We are very apt to think of the
African as a stupid person whose ignorance of nature is only equalled
by his fear of it, and who looks on all mishaps as caused by evil
spirits and malignant natural powers. It is much more correct to
assume in this case that the people very early learnt to distinguish
districts infested with malaria from those where it is absent.
This knowledge is crystallized in the
ancestral warning against settling in the
valleys and near the great waters, the
dwelling-places of disease and death. At the
same time, for security against the hostile
Mavia south of the Rovuma, it was enacted
that every settlement must be not less than a
certain distance from the southern edge of the
plateau. Such in fact is their mode of life at the
present day. It is not such a bad one, and
certainly they are both safer and more
comfortable than the Makua, the recent
intruders from the south, who have made USUAL METHOD OF
good their footing on the western edge of the CLOSING HUT-DOOR
plateau, extending over a fairly wide belt of
country. Neither Makua nor Makonde show in their dwellings
anything of the size and comeliness of the Yao houses in the plain,
especially at Masasi, Chingulungulu and Zuza’s. Jumbe Chauro, a
Makonde hamlet not far from Newala, on the road to Mahuta, is the
most important settlement of the tribe I have yet seen, and has fairly
spacious huts. But how slovenly is their construction compared with
the palatial residences of the elephant-hunters living in the plain.
The roofs are still more untidy than in the general run of huts during
the dry season, the walls show here and there the scanty beginnings
or the lamentable remains of the mud plastering, and the interior is a
veritable dog-kennel; dirt, dust and disorder everywhere. A few huts
only show any attempt at division into rooms, and this consists
merely of very roughly-made bamboo partitions. In one point alone
have I noticed any indication of progress—in the method of fastening
the door. Houses all over the south are secured in a simple but
ingenious manner. The door consists of a set of stout pieces of wood
or bamboo, tied with bark-string to two cross-pieces, and moving in
two grooves round one of the door-posts, so as to open inwards. If
the owner wishes to leave home, he takes two logs as thick as a man’s
upper arm and about a yard long. One of these is placed obliquely
against the middle of the door from the inside, so as to form an angle
of from 60° to 75° with the ground. He then places the second piece
horizontally across the first, pressing it downward with all his might.
It is kept in place by two strong posts planted in the ground a few
inches inside the door. This fastening is absolutely safe, but of course
cannot be applied to both doors at once, otherwise how could the
owner leave or enter his house? I have not yet succeeded in finding
out how the back door is fastened.
MAKONDE LOCK AND KEY AT JUMBE CHAURO

This is the general way of closing a house. The Makonde at Jumbe
Chauro, however, have a much more complicated, solid and original
one. Here, too, the door is as already described, except that there is
only one post on the inside, standing by itself about six inches from
one side of the doorway. Opposite this post is a hole in the wall just
large enough to admit a man’s arm. The door is closed inside by a
large wooden bolt passing through a hole in this post and pressing
with its free end against the door. The other end has three holes into
which fit three pegs running in vertical grooves inside the post. The
door is opened with a wooden key about a foot long, somewhat
curved and sloped off at the butt; the other end has three pegs
corresponding to the holes, in the bolt, so that, when it is thrust
through the hole in the wall and inserted into the rectangular
opening in the post, the pegs can be lifted and the bolt drawn out.[50]
MODE OF INSERTING THE KEY
With no small pride first one householder and then a second

showed me on the spot the action of this greatest invention of the
Makonde Highlands. To both with an admiring exclamation of
“Vizuri sana!” (“Very fine!”). I expressed the wish to take back these
marvels with me to Ulaya, to show the Wazungu what clever fellows
the Makonde are. Scarcely five minutes after my return to camp at
Newala, the two men came up sweating under the weight of two
heavy logs which they laid down at my feet, handing over at the same
time the keys of the fallen fortress. Arguing, logically enough, that if
the key was wanted, the lock would be wanted with it, they had taken
their axes and chopped down the posts—as it never occurred to them
to dig them out of the ground and so bring them intact. Thus I have
two badly damaged specimens, and the owners, instead of praise,
come in for a blowing-up.
The Makua huts in the environs of Newala are especially
miserable; their more than slovenly construction reminds one of the
temporary erections of the Makua at Hatia’s, though the people here
have not been concerned in a war. It must therefore be due to
congenital idleness, or else to the absence of a powerful chief. Even
the baraza at Mlipa’s, a short hour’s walk south-east of Newala,
shares in this general neglect. While public buildings in this country
are usually looked after more or less carefully, this is in evident
danger of being blown over by the first strong easterly gale. The only
attractive object in this whole district is the grave of the late chief
Mlipa. I visited it in the morning, while the sun was still trying with
partial success to break through the rolling mists, and the circular
grove of tall euphorbias, which, with a broken pot, is all that marks
the old king’s resting-place, impressed one with a touch of pathos.
Even my very materially-minded carriers seemed to feel something
of the sort, for instead of their usual ribald songs, they chanted
solemnly, as we marched on through the dense green of the Makonde
bush:—
“We shall arrive with the great master; we stand in a row and have
no fear about getting our food and our money from the Serkali (the
Government). We are not afraid; we are going along with the great
master, the lion; we are going down to the coast and back.”
With regard to the characteristic features of the various tribes here
on the western edge of the plateau, I can arrive at no other
conclusion than the one already come to in the plain, viz., that it is
impossible for anyone but a trained anthropologist to assign any
given individual at once to his proper tribe. In fact, I think that even
an anthropological specialist, after the most careful examination,
might find it a difficult task to decide. The whole congeries of peoples
collected in the region bounded on the west by the great Central
African rift, Tanganyika and Nyasa, and on the east by the Indian
Ocean, are closely related to each other—some of their languages are
only distinguished from one another as dialects of the same speech,
and no doubt all the tribes present the same shape of skull and
structure of skeleton. Thus, surely, there can be no very striking
differences in outward appearance.
Even did such exist, I should have no time
to concern myself with them, for day after day,
I have to see or hear, as the case may be—in
any case to grasp and record—an
extraordinary number of ethnographic
phenomena. I am almost disposed to think it
fortunate that some departments of inquiry, at
least, are barred by external circumstances.
Chief among these is the subject of iron-
working. We are apt to think of Africa as a
country where iron ore is everywhere, so to
speak, to be picked up by the roadside, and
where it would be quite surprising if the
inhabitants had not learnt to smelt the
material ready to their hand. In fact, the
knowledge of this art ranges all over the
continent, from the Kabyles in the north to the
Kafirs in the south. Here between the Rovuma
and the Lukuledi the conditions are not so
favourable. According to the statements of the
Makonde, neither ironstone nor any other
form of iron ore is known to them. They have
not therefore advanced to the art of smelting
the metal, but have hitherto bought all their
THE ANCESTRESS OF
THE MAKONDE
iron implements from neighbouring tribes.
Even in the plain the inhabitants are not much
better off. Only one man now living is said to
understand the art of smelting iron. This old fundi lives close to
Huwe, that isolated, steep-sided block of granite which rises out of
the green solitude between Masasi and Chingulungulu, and whose
jagged and splintered top meets the traveller’s eye everywhere. While
still at Masasi I wished to see this man at work, but was told that,
frightened by the rising, he had retired across the Rovuma, though
he would soon return. All subsequent inquiries as to whether the
fundi had come back met with the genuine African answer, “Bado”
(“Not yet”).
BRAZIER
Some consolation was afforded me by a brassfounder, whom I

came across in the bush near Akundonde’s. This man is the favourite
of women, and therefore no doubt of the gods; he welds the glittering
brass rods purchased at the coast into those massive, heavy rings
which, on the wrists and ankles of the local fair ones, continually give
me fresh food for admiration. Like every decent master-craftsman he
had all his tools with him, consisting of a pair of bellows, three
crucibles and a hammer—nothing more, apparently. He was quite
willing to show his skill, and in a twinkling had fixed his bellows on
the ground. They are simply two goat-skins, taken off whole, the four
legs being closed by knots, while the upper opening, intended to
admit the air, is kept stretched by two pieces of wood. At the lower
end of the skin a smaller opening is left into which a wooden tube is
stuck. The fundi has quickly borrowed a heap of wood-embers from
the nearest hut; he then fixes the free ends of the two tubes into an
earthen pipe, and clamps them to the ground by means of a bent
piece of wood. Now he fills one of his small clay crucibles, the dross
on which shows that they have been long in use, with the yellow
material, places it in the midst of the embers, which, at present are
only faintly glimmering, and begins his work. In quick alternation
the smith’s two hands move up and down with the open ends of the
bellows; as he raises his hand he holds the slit wide open, so as to let
the air enter the skin bag unhindered. In pressing it down he closes
the bag, and the air puffs through the bamboo tube and clay pipe into
the fire, which quickly burns up. The smith, however, does not keep
on with this work, but beckons to another man, who relieves him at
the bellows, while he takes some more tools out of a large skin pouch
carried on his back. I look on in wonder as, with a smooth round
stick about the thickness of a finger, he bores a few vertical holes into
the clean sand of the soil. This should not be difficult, yet the man
seems to be taking great pains over it. Then he fastens down to the
ground, with a couple of wooden clamps, a neat little trough made by
splitting a joint of bamboo in half, so that the ends are closed by the
two knots. At last the yellow metal has attained the right consistency,
and the fundi lifts the crucible from the fire by means of two sticks
split at the end to serve as tongs. A short swift turn to the left—a
tilting of the crucible—and the molten brass, hissing and giving forth
clouds of smoke, flows first into the bamboo mould and then into the
holes in the ground.
The technique of this backwoods craftsman may not be very far
advanced, but it cannot be denied that he knows how to obtain an
adequate result by the simplest means. The ladies of highest rank in
this country—that is to say, those who can afford it, wear two kinds
of these massive brass rings, one cylindrical, the other semicircular
in section. The latter are cast in the most ingenious way in the
bamboo mould, the former in the circular hole in the sand. It is quite
a simple matter for the fundi to fit these bars to the limbs of his fair
customers; with a few light strokes of his hammer he bends the
pliable brass round arm or ankle without further inconvenience to
the wearer.
SHAPING THE POT
SMOOTHING WITH MAIZE-COB
CUTTING THE EDGE

FINISHING THE BOTTOM
LAST SMOOTHING BEFORE

BURNING
FIRING THE BRUSH-PILE

LIGHTING THE FARTHER SIDE OF
THE PILE
TURNING THE RED-HOT VESSEL
NYASA WOMAN MAKING POTS AT MASASI

Pottery is an art which must always and everywhere excite the
interest of the student, just because it is so intimately connected with
the development of human culture, and because its relics are one of
the principal factors in the reconstruction of our own condition in
prehistoric times. I shall always remember with pleasure the two or
three afternoons at Masasi when Salim Matola’s mother, a slightly-
built, graceful, pleasant-looking woman, explained to me with
touching patience, by means of concrete illustrations, the ceramic art
of her people. The only implements for this primitive process were a
lump of clay in her left hand, and in the right a calabash containing
the following valuables: the fragment of a maize-cob stripped of all
its grains, a smooth, oval pebble, about the size of a pigeon’s egg, a
few chips of gourd-shell, a bamboo splinter about the length of one’s
hand, a small shell, and a bunch of some herb resembling spinach.
Nothing more. The woman scraped with the
shell a round, shallow hole in the soft, fine
sand of the soil, and, when an active young
girl had filled the calabash with water for her,
she began to knead the clay. As if by magic it
gradually assumed the shape of a rough but
already well-shaped vessel, which only wanted
a little touching up with the instruments
before mentioned. I looked out with the
MAKUA WOMAN closest attention for any indication of the use
MAKING A POT. of the potter’s wheel, in however rudimentary
SHOWS THE a form, but no—hapana (there is none). The
BEGINNINGS OF THE embryo pot stood firmly in its little
POTTER’S WHEEL
depression, and the woman walked round it in
a stooping posture, whether she was removing
small stones or similar foreign bodies with the maize-cob, smoothing
the inner or outer surface with the splinter of bamboo, or later, after
letting it dry for a day, pricking in the ornamentation with a pointed
bit of gourd-shell, or working out the bottom, or cutting the edge
with a sharp bamboo knife, or giving the last touches to the finished
vessel. This occupation of the women is infinitely toilsome, but it is
without doubt an accurate reproduction of the process in use among
our ancestors of the Neolithic and Bronze ages.
There is no doubt that the invention of pottery, an item in human
progress whose importance cannot be over-estimated, is due to
women. Rough, coarse and unfeeling, the men of the horde range
over the countryside. When the united cunning of the hunters has
succeeded in killing the game; not one of them thinks of carrying
home the spoil. A bright fire, kindled by a vigorous wielding of the
drill, is crackling beside them; the animal has been cleaned and cut
up secundum artem, and, after a slight singeing, will soon disappear
under their sharp teeth; no one all this time giving a single thought
to wife or child.
To what shifts, on the other hand, the primitive wife, and still more
the primitive mother, was put! Not even prehistoric stomachs could
endure an unvarying diet of raw food. Something or other suggested
the beneficial effect of hot water on the majority of approved but
indigestible dishes. Perhaps a neighbour had tried holding the hard
roots or tubers over the fire in a calabash filled with water—or maybe
an ostrich-egg-shell, or a hastily improvised vessel of bark. They
became much softer and more palatable than they had previously
been; but, unfortunately, the vessel could not stand the fire and got
charred on the outside. That can be remedied, thought our
ancestress, and plastered a layer of wet clay round a similar vessel.
This is an improvement; the cooking utensil remains uninjured, but
the heat of the fire has shrunk it, so that it is loose in its shell. The
next step is to detach it, so, with a firm grip and a jerk, shell and
kernel are separated, and pottery is invented. Perhaps, however, the
discovery which led to an intelligent use of the burnt-clay shell, was
made in a slightly different way. Ostrich-eggs and calabashes are not
to be found in every part of the world, but everywhere mankind has
arrived at the art of making baskets out of pliant materials, such as
bark, bast, strips of palm-leaf, supple twigs, etc. Our inventor has no
water-tight vessel provided by nature. “Never mind, let us line the
basket with clay.” This answers the purpose, but alas! the basket gets
burnt over the blazing fire, the woman watches the process of
cooking with increasing uneasiness, fearing a leak, but no leak
appears. The food, done to a turn, is eaten with peculiar relish; and
the cooking-vessel is examined, half in curiosity, half in satisfaction
at the result. The plastic clay is now hard as stone, and at the same
time looks exceedingly well, for the neat plaiting of the burnt basket
is traced all over it in a pretty pattern. Thus, simultaneously with
pottery, its ornamentation was invented.
Primitive woman has another claim to respect. It was the man,
roving abroad, who invented the art of producing fire at will, but the
woman, unable to imitate him in this, has been a Vestal from the
earliest times. Nothing gives so much trouble as the keeping alight of
the smouldering brand, and, above all, when all the men are absent
from the camp. Heavy rain-clouds gather, already the first large
drops are falling, the first gusts of the storm rage over the plain. The
little flame, a greater anxiety to the woman than her own children,
flickers unsteadily in the blast. What is to be done? A sudden thought
occurs to her, and in an instant she has constructed a primitive hut
out of strips of bark, to protect the flame against rain and wind.
This, or something very like it, was the way in which the principle
of the house was discovered; and even the most hardened misogynist
cannot fairly refuse a woman the credit of it. The protection of the
hearth-fire from the weather is the germ from which the human
dwelling was evolved. Men had little, if any share, in this forward
step, and that only at a late stage. Even at the present day, the
plastering of the housewall with clay and the manufacture of pottery
are exclusively the women’s business. These are two very significant
survivals. Our European kitchen-garden, too, is originally a woman’s
invention, and the hoe, the primitive instrument of agriculture, is,
characteristically enough, still used in this department. But the
noblest achievement which we owe to the other sex is unquestionably
the art of cookery. Roasting alone—the oldest process—is one for
which men took the hint (a very obvious one) from nature. It must
have been suggested by the scorched carcase of some animal
overtaken by the destructive forest-fires. But boiling—the process of
improving organic substances by the help of water heated to boiling-
point—is a much later discovery. It is so recent that it has not even
yet penetrated to all parts of the world. The Polynesians understand
how to steam food, that is, to cook it, neatly wrapped in leaves, in a
hole in the earth between hot stones, the air being excluded, and
(sometimes) a few drops of water sprinkled on the stones; but they
do not understand boiling.
To come back from this digression, we find that the slender Nyasa
woman has, after once more carefully examining the finished pot,
put it aside in the shade to dry. On the following day she sends me
word by her son, Salim Matola, who is always on hand, that she is
going to do the burning, and, on coming out of my house, I find her
already hard at work. She has spread on the ground a layer of very
dry sticks, about as thick as one’s thumb, has laid the pot (now of a
yellowish-grey colour) on them, and is piling brushwood round it.
My faithful Pesa mbili, the mnyampara, who has been standing by,
most obligingly, with a lighted stick, now hands it to her. Both of
them, blowing steadily, light the pile on the lee side, and, when the
flame begins to catch, on the weather side also. Soon the whole is in a
blaze, but the dry fuel is quickly consumed and the fire dies down, so
that we see the red-hot vessel rising from the ashes. The woman
turns it continually with a long stick, sometimes one way and
sometimes another, so that it may be evenly heated all over. In
twenty minutes she rolls it out of the ash-heap, takes up the bundle
of spinach, which has been lying for two days in a jar of water, and
sprinkles the red-hot clay with it. The places where the drops fall are
marked by black spots on the uniform reddish-brown surface. With a
sigh of relief, and with visible satisfaction, the woman rises to an
erect position; she is standing just in a line between me and the fire,
from which a cloud of smoke is just rising: I press the ball of my
camera, the shutter clicks—the apotheosis is achieved! Like a
priestess, representative of her inventive sex, the graceful woman
stands: at her feet the hearth-fire she has given us beside her the
invention she has devised for us, in the background the home she has
built for us.
At Newala, also, I have had the manufacture of pottery carried on
in my presence. Technically the process is better than that already
described, for here we find the beginnings of the potter’s wheel,
which does not seem to exist in the plains; at least I have seen
nothing of the sort. The artist, a frightfully stupid Makua woman, did
not make a depression in the ground to receive the pot she was about
to shape, but used instead a large potsherd. Otherwise, she went to
work in much the same way as Salim’s mother, except that she saved
herself the trouble of walking round and round her work by squatting
at her ease and letting the pot and potsherd rotate round her; this is
surely the first step towards a machine. But it does not follow that
the pot was improved by the process. It is true that it was beautifully
rounded and presented a very creditable appearance when finished,
but the numerous large and small vessels which I have seen, and, in
part, collected, in the “less advanced” districts, are no less so. We
moderns imagine that instruments of precision are necessary to
produce excellent results. Go to the prehistoric collections of our
museums and look at the pots, urns and bowls of our ancestors in the
dim ages of the past, and you will at once perceive your error.
MAKING LONGITUDINAL CUT IN
BARK
DRAWING THE BARK OFF THE LOG
REMOVING THE OUTER BARK

BEATING THE BARK
WORKING THE BARK-CLOTH AFTER BEATING, TO MAKE IT

SOFT
MANUFACTURE OF BARK-CLOTH AT NEWALA

To-day, nearly the whole population of German East Africa is
clothed in imported calico. This was not always the case; even now in
some parts of the north dressed skins are still the prevailing wear,
and in the north-western districts—east and north of Lake
Tanganyika—lies a zone where bark-cloth has not yet been
superseded. Probably not many generations have passed since such
bark fabrics and kilts of skins were the only clothing even in the
south. Even to-day, large quantities of this bright-red or drab
material are still to be found; but if we wish to see it, we must look in
the granaries and on the drying stages inside the native huts, where
it serves less ambitious uses as wrappings for those seeds and fruits
which require to be packed with special care. The salt produced at
Masasi, too, is packed for transport to a distance in large sheets of
bark-cloth. Wherever I found it in any degree possible, I studied the
process of making this cloth. The native requisitioned for the
purpose arrived, carrying a log between two and three yards long and
as thick as his thigh, and nothing else except a curiously-shaped
mallet and the usual long, sharp and pointed knife which all men and
boys wear in a belt at their backs without a sheath—horribile dictu!
[51]
Silently he squats down before me, and with two rapid cuts has
drawn a couple of circles round the log some two yards apart, and
slits the bark lengthwise between them with the point of his knife.
With evident care, he then scrapes off the outer rind all round the
log, so that in a quarter of an hour the inner red layer of the bark
shows up brightly-coloured between the two untouched ends. With
some trouble and much caution, he now loosens the bark at one end,
and opens the cylinder. He then stands up, takes hold of the free
edge with both hands, and turning it inside out, slowly but steadily
pulls it off in one piece. Now comes the troublesome work of
scraping all superfluous particles of outer bark from the outside of
the long, narrow piece of material, while the inner side is carefully
scrutinised for defective spots. At last it is ready for beating. Having
signalled to a friend, who immediately places a bowl of water beside
him, the artificer damps his sheet of bark all over, seizes his mallet,
lays one end of the stuff on the smoothest spot of the log, and
hammers away slowly but continuously. “Very simple!” I think to
myself. “Why, I could do that, too!”—but I am forced to change my
opinions a little later on; for the beating is quite an art, if the fabric is
not to be beaten to pieces. To prevent the breaking of the fibres, the
stuff is several times folded across, so as to interpose several
thicknesses between the mallet and the block. At last the required
state is reached, and the fundi seizes the sheet, still folded, by both
ends, and wrings it out, or calls an assistant to take one end while he
holds the other. The cloth produced in this way is not nearly so fine
and uniform in texture as the famous Uganda bark-cloth, but it is
quite soft, and, above all, cheap.
Now, too, I examine the mallet. My craftsman has been using the
simpler but better form of this implement, a conical block of some
hard wood, its base—the striking surface—being scored across and
across with more or less deeply-cut grooves, and the handle stuck
into a hole in the middle. The other and earlier form of mallet is
shaped in the same way, but the head is fastened by an ingenious
network of bark strips into the split bamboo serving as a handle. The
observation so often made, that ancient customs persist longest in
connection with religious ceremonies and in the life of children, here
finds confirmation. As we shall soon see, bark-cloth is still worn
during the unyago,[52] having been prepared with special solemn
ceremonies; and many a mother, if she has no other garment handy,
will still put her little one into a kilt of bark-cloth, which, after all,
looks better, besides being more in keeping with its African
surroundings, than the ridiculous bit of print from Ulaya.
MAKUA WOMEN

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eTextbook 978-1259315411 Business

and Society: Stakeholders Ethics

New for the Fifteenth Edition

∙ New discussion of theoretical advances in stakeholder theory, corporate citizenship,

PART THREE 3. General Motors and the Ignition Switch

CHAPTER FIVE PART THREE

CHAPTER SIX CHAPTER EIGHT

Promoting a Financial-Incentive Strategy 165 The Ecologically Sustainable Organization 219

CHAPTER TWELVE Social Investment 293

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This Chapter Focuses on These Key Learning Objectives:

Business and Society

The Stakeholder Theory of the Firm

motivated employees, satisfied customers, committed suppliers, and supportive communi-

The Stakeholder Concept

Different Kinds of Stakeholders

In 2001, a company called Energy Management Inc. (EMI) announced a plan to

Who are the relevant stakeholders?

What are the interests of each stakeholder?

What is the power of each stakeholder?

How are coalitions likely to form?

How are coalitions likely to form?

Stakeholder Salience and Mapping

FIGURE 1.4 HIGH

AGAINST Position on the Issue FOR

Nature of Interest— Nature of Power—Stakeholder

Newala, too, suffers from the distance of its water-supply—at least

The water-supply of New Newala is in the bottom of the valley,

NATIVE PATH THROUGH THE MAKONDE BUSH, NEAR

MAKONDE LOCK AND KEY AT JUMBE CHAURO

MODE OF INSERTING THE KEY

With no small pride first one householder and then a second

Some consolation was afforded me by a brassfounder, whom I

SMOOTHING WITH MAIZE-COB

CUTTING THE EDGE

LAST SMOOTHING BEFORE

FIRING THE BRUSH-PILE

TURNING THE RED-HOT VESSEL

NYASA WOMAN MAKING POTS AT MASASI

DRAWING THE BARK OFF THE LOG

REMOVING THE OUTER BARK

WORKING THE BARK-CLOTH AFTER BEATING, TO MAKE IT

MANUFACTURE OF BARK-CLOTH AT NEWALA

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