Mika Skippari Ass.prof., PhD Aalto University School of Economics

1. Business-Society Relations in Retail Value Chain (23E54000, 6cr)10.9.2012Introduction to the course Mika Skippari Ass.prof., PhD Aalto University School of Economics

3. General info: KATU-wiki (https://katuwiki.aalto.fi) is available • Wiki-based communication platform and data bank for retail research • Contains eLibrary (publications), information about past and ongoing research projects, various research data, blogs, news etc. • Go to: https://katuwiki.aalto.fi • It’s easy to sign in: Students can sing in with their aalto-accounts • Feel free to utilize this resource during the course!

4. Why course on business-society relations? • Company does not exist in a vacuum, but acts as a one component of societal order • Corporate responsibility is increasing and intensifying trend in the contemporary world • Management of business-society relations is essential part of stakeholder management and reputation management that requires strategic capabilities • Flow of open information has increased: rise of citizen and consumer awareness and activism

5. Why course on business-society relations in retailing? • Trade (including retailing) is a remarkable sector in society ( about 10 % of GDP and employment) • Retailing is close to and affects on all citizens: we all go shopping • Retailing as a consumer business is especially vulnerable to consumer activism • Retail business activities are regulated by government in many ways that have multiple effects on competition, consumer choices etc. (planning policy, opening hours, selling restrictions)

6. Why course on business-society relations in managing the retail value chain? • Retail value chain largely affects on consumer behavior and option that we have as consumers (on the other hand, what is consumers’ responsibility?) • Competition in retailing has shifted towards competition between value chain networks: thus, the impacts of business-society relations to supply chains are important. • In value chain networks firms are more dependent on each other’s actions: it is not enough for a firm to take care of its own societal stakeholders and responsibilities. • As value chains become more international (or even global) and complex, the importance of monitoring and managing value chain partners’ activities increases. Moreover, it becames more challenging. • ”The moment of truth” in retail value chain does not take place only in end customer interface: the actions of retailers and their value chain members have to be socially acceptable throughout the value chain as well as the various activities (procurement, logistics, marketing etc.).

7. Contents of the course • B-S relations are being approached from four general themes (topic areas) • CSR in retailing • CSR in value chain relations • Consumer ethics in retailing • Government relations in retailing • Key concepts: nonmarket environment and nonmarket strategies; stakeholder management

8. Learning objectives • The course provides student with broad understanding of how various stakeholders in nonmarket environment affect and are affected by business strategies in retail value chain. • Students will learn to acknowledge and analyse the effects of various nonmarket issues (such as green consumerism, responsible procurement, and market regulation) to retail value chain management. • 12 case studies + 12 key articles • Holistic understanding of both business-society relations and value chain management

9. How are we going to learn? Integrating theory (lectures + literature + weekly assignments) and practice (course work) Collective learning through discussion and presentations of own works Improvement of presentation skills ”Role play”: a student adopts the role of his / her case company’s CEO / public relations manager

10. Tasks to be done and estimated work load Lectures (24 hours) , not compulsory (except two (3) own group’s presentations) but highly recommended!! Course assignments, independent work (100 hours) Two (2) week assignments, presentation and discussion of the contents of a specific article Term paper on a specific case company Preparing for exam (40 hours) Exam (4 hours)

11. Evaluation criteria • Week assignments / exercises (25 %) • Term paper (25 %) • Exam (50 %) • Lecture activity is credit with 0,25 points (added to the weighted average). E.g., in case weighted average is 3,25 and student has been active, her average rises to 3,5 and course grade will be 4 (with non-active student the grade remains at 3) • Condition: A student must be present in at least 10 out of 12 lectures • Example: (3*0,25)+(4*0,25)+(5*0,5) = 4,25 + 0,25 = 4,5 ≈ 5

12. Exam material • Lecture material (= slides) • A set of articles (about 20 altogether). The list of articles will be available on the course-site in Noppa. • Steiner, John F. & Steiner, George A. (2009). Business, Government and Society: A Managerial Perspective. McGraw-Hill. 11th or 12th edition. Chapters 1,2,5-10,15.

13. Outline of the course (1) • Lecture timetable and exams https://noppa.aalto.fi/noppa/kurssi/23e54000/etusivu • Each week has a specific topic, see https://noppa.aalto.fi/noppa/kurssi/23e54000/luennot • Mondays lectures are introductions to the week’s theme • Wednesdays are dedicated to presentations of week assignments (+ discussions) • The course requires active participation by the students: So, please let me know by Wednesday Sept. 12th, if you are not going to / able to participate to the course!!!!

14. Outline of the course (2) Weekly assignments: group work (3 persons per group), groups will be determined by the lecturer, 3 groups per week (each Wednesday), two articles per group, 30 minutes per group (10 minutes briefing, 20 minutes discussion) opponent group will read also the articles and prepare for discussion assignment will be given one week before the lecture (on Wednesdays) Term papers: 3 students per group: same groups as in weekly assignments assignment will be given on Wedn., 12th September altogether we will compile 12 case company studies (companies) during the course

15. Instructions to the week assignments • Group work (same group as in term paper): groups will be determined by the lecturer • Power point presentation of the contents of two acticles (research paper) related to the week’s theme • The specific task for the presentation will be given one week before the presentation (on Wednesdays)

16. Instructions to term paper (1) • Group work (same group as in the week assignments) • The task is to analyse case company’s business-society relations and their effects on supply chain management • The case company is determined by the lecturer (on Wedn, Sept., 12th) • Utilize a wide range of data sources, such as: • Annual reports, press releases, newspaper articles, business magazines (Talouselämä, Kauppalehti, Financial Times), official statistics, existing publications (articles, books), interviews…

17. Instructions to term paper (2) • The analysisshouldconsist of the followingthemes: • Description of the case company’snonmarketenvironment (issues, institutions, interests, information; see Baron 1995) • Whoare the keystakeholders, howregulationaffects the firm’s business operations, how the firmaddressesits social responsibility, whatkind of reputation the firmhas, howconsumers’ havereacted to the firm’soperations (criticism, activism)…? • Description of the case company’ssupplychain and how the companycollaborates with it’ssupplychainmembers (partnerships, ad-hoccollaboration) in CSR issues • The structure of collaborationnetwork (actors, activities, resources)? How the firmmanages and controlsitsupplychain? How itmakes sure thatitssupplychainpartnersaresociallyresponsible? Arethereanyconflicts in supplychainrelationsrelated to CSR issues? • Based on thesedescriptions, analysehownonmarketenvironmentaffects on case company’ssupplychainrelationships and how the relationshipsshouldbedeveloped? • Whatkinds of nonmarketissuesthereexist in the valuechain (e.g., in terms of responsiblepurchasing, employeerelations)? • What is the nature of non-governmentalorganizations’ and consumeractivism? • How governmentregulationaffects on the firm’sactivities and supplychainrelations? • How the firmhasresponded to the pressuresemergingfrom the nonmarketenvironment? Creating new innovativeways to respond in terms of collaboration with supplychainmembers, responding to consumeractivism, takingspecificactions to impoveresponsibility and sustainability, etc….

18. Instructions to term paper (3) • Ideal length (excluding cover page, table of contents and reference list): 3000 – 3300 words (= about 15 pages, font size 12, line spacing 1,5, normal margins) • The report should include: references in the text, list of literature, cover page, and table of contents. • In addition to the quality of contents, the formal issues (clarity of argumentation, good language, clean formatting etc.) affects on the grading! • Note: the quality of content is directly linked to the breath of data sources. Therefore, it is advised to use multiple sources!! • Term papers are being presented on the last week of the course (Week 42) • Deadline for returning the term papers (by email to mika.skippari@aalto.fi) is Wednesday, October 10th, 2012.

19. Reading for the next lecture • Baron, D. (1995). "Integrated strategy: market and nonmarket components." California Management Review 37(2): 47-65