Critical Success Factors

1
Planning
Organizing
Critical Success Factors
Stakeholders
Marketing
Economic
Top Management
INTERNAL
Vision
Operations
Finance
EXTERNAL
Social
Political
Mission
Human Resources
Technological
Strategy
Middle Management
First-Line Management
Controlling
Directing
2
P.E.S.T. Model

• Political Forces
• Government and Legal System
• Fiscal and Monetary Policy
• Regulatory - Forms of Business Ownership
• Economic Forces
• Competition and Globalization
• Capital Markets and Investing

• Social Forces
• Social Patterns and Demographic changes
• Ethics and Corporate Responsibility
• Technological Forces
• information
• e-Commerce

3
The Social Environment

• Demographics, Business Ethics Corporate Social
  Responsibility

• Impact of Demographics
• key factors and cohorts
• impact on business - predictions
• Business Ethics
• approaches to ethical behaviour
• guiding behaviour, building ethical culture
• Corporate Social Responsibility
• stakeholders, areas of, levels of, views on,
  implementing programs

1.2
4
Impact of Demographics

• what is demography?
• why is it important to business?
• Key factors
• people in each age group
• activity participation rate
• Cohorts
• fertility rate -
• birth rate -

5
Cohorts
Future
1995...
Baby Boom Echo
1979/80
Baby Bust
1966/67
Baby Boom
1946/47
1939/40
WWII
Depression Babies
1929/30
Roaring Twenties
1919/20
WWI
1914/15
Pre WWI
6
Predictions/Explanations

• Real estate
• investing
• jobs
• retail
• leisure sports

• cities
• education
• health care
• family
• older,wiser Canada

7
Business Ethics

• ethical or unethical behaviours by a manager or
  employee of an organization(p. 104)
• individual
• resolving moral dilemmas
• Corporate Social Responsibility
• a businesss collective code of ethical behaviour
  towards its stakeholders p. 113
• balancing
• showing concern

8
Why Focus on Ethics?

• right thing to do - reflects personal values
• customers demand ethical behaviour
• improves the work climate
• establishes clear guidelines for empowered
  employees

9
Moral Dilemmas

• Conflict of interests involving ethical choices
• personal moral standards/private morality vs.
  the pressures of the situation

Private Morality
Other Demands
Conflict
Decision Action

• balancing stakeholder needs
• Cultural/regulatory differences

Consequences
10
Approaches to Ethical Behaviour

• Utilitarianism
• Rights
• Justice/Fairness
• Common-good
• Virtue

11
Guiding Employee Behaviour

• include ethics in mission statement
• define a set of core values
• establish codes of conduct
• provide ethics training
• reward systems/
• building an ethical culture

12
Developing a Code of Conduct

• Creation
• Content
• Implementation
• Administration

13
Building an Ethical Culture

• unwritten values and beliefs about what is
  proper, right and appropriate

• establish clear and consistent moral values
• priority - model behaviour
• internalizing - reward system

14
Planning
Organizing
Critical Success Factors
Stakeholders
Marketing
Economic
Top Management
INTERNAL
Vision
Operations
Finance
EXTERNAL
Social
Political
Mission
Human Resources
Technological
Strategy
Middle Management
First-Line Management
Controlling
Directing
15
Planning
Organizing
Critical Success Factors
Stakeholders
Marketing
Economic
Top Management
INTERNAL
Vision
Operations
Finance
EXTERNAL
Social
Political
Mission
Human Resources
Technological
Strategy
Middle Management
First-Line Management
Controlling
Directing
16
Who are the Stakeholders?
Unions
Pension funds
Investors
Employees
Corporation
Environment
Suppliers
Local Communities
Customers
Industry
17
Business - Stakeholder Connection

• Stakeholders provide business with the capacity
  to operate
• investors -
• customers -
• employees
• suppliers
• local communities

• Stakeholders have expectations of the business
• investors -
• customers -
• employees -
• suppliers
• communities

18
Areas of Social Responsibility

• Environment

• Employees

Investors
Social responsibility

• Customers

19
Levels of Social Responsibility

• Obstructionist
• Social-obligation approach (defensive)
• Social-reaction approach (accomodative)
• Social-response approach (proactive)

20
Views on Social Responsibility

• Government regulation and public awareness are
  external forces that have increased the social
  responsibility of business, but business
  decisions are made within the firm - and there,
  it begins with the attitude of management

• Economic model - strategic approach
• Socioeconomic model - pluralist approach

21

• Economic Model
• responsibility for profit only

• Socioeconomic Model
• part of society - cannot ignore social issues

22
Implementing a Social Responsibility Program

• commitment
• planning
• implementation
• follow-up