Business and Society

1. The Community and the Corporation Chapter 16 Business and Society POST, LAWRENCE, WEBER

2. Figure 16-1 The firm and its communities Stakeholder Interest • Geographic location of a company’s operations, offices, or assets • Immediate neighbors receiving the positive and negative effects of business activities • Affected by externalities from facility (e.g., pollution, traffic) • All parties that use the Internet to learn about the company • Stakeholders that have a real interest in the company • Those who engage in similar activities, or practices (IT experts; ethics officers; community experts) • Those who work or live near facility Community • Site community • Fence-line community • Impact communities • Cyber communities • Communities of interest • Communities of practice • Employee community

3. Figure 16-2 What the community and business want from each other Business participation desired by community • Support for art and cultural activities • Support for traffic management • Participation in urban planning and community development • Support of local health care programs • Support of hospitals and health clinics • Support of schools • United Way campaign support – both leadership and funding • Assistance for less advantaged people • Support for pollution control • Participation in emergency planning • Support of local recycling programs Community services desired by business • Education and cultural resources that appeal to employees • Family recreation facilities • Public services – e.g., police and fire protection; sewer, water, and electric services • Taxes that are equitable and do not discourage business operations • Business participation in community life and decision making • Adequate transportation system – roads, rail, airport, harbor • Public officials who operate honestly and with integrity • Cooperative problem-solving approach

4. Figure 16-3 Business and community need support from each other HIGH Business provides relatively more support to community than it receives Business support for community Community provides relatively more support to business than it receives LOW LOW HIGH Community support for business

5. Education 88% Youth 83 Art and culture 81 Local health 76 Neighborhood improvement 63 Housing 60 Homeless 50 Hunger 48 Minority programs 43 AIDS education/treatment 42 Senior citizen/retiree 39% Low income/minorities health 39 Disaster relief 39 Drug and alcohol abuse 38 Crime prevention 35 Day care 31 Prenatal and well-baby health 30 Safety 24 Hard to employ 24 Environment 23 Other 17 Figure 16-4 Meeting community needs Percentage of life insurance companies involved in community projects, by type of project (1999) Source: Data collected by the American Council of Life Insurers

6. Figure 16-5 Corporate contributions as a percentage of pretax net income

7. Figure 16-6 Strategic philanthropy: good citizenship, good business Business Sponsorship Pure Philanthropy • Community Benefits • Assistance to: • Arts & culture • Health & social services • Civic & community projects • Education • Business Benefits • Cause marketing • Public relations • Goodwill • Political access Strategic Philanthropy (blends pure philanthropy & business sponsorship approaches)

8. Figure 16-7 Distribution of corporate contributions Source: Composite based on data reported in reports prepared by The Conference Board.

9. Exhibit 16-A NBS: Community banking in South Africa • NBS is a modern financial institution specializing in • community-based savings and home loan programs. • Corporate social investment is part of NBS’s business plan. • NBS Corporate Social Investment program operates through • three mechanisms: • 1) NBS Foundation works with education and child care organizations to • provide teacher training and on-site support to urban and rural pre-schools, • 2) annual donations and maintains corporate memberships that support • charities and non-governmental organizations for the arts & education, • 3) through the Staff Participation Campaign, NBS supports the personal • involvement of its employees in community projects.

10. Exhibit 16-B Abbott Laboratories helps Habitat for Humanity • Abbott Chapter of Habitat for Humanity. • Helped renovate several buildings in North Chicago • and Waukegan, Illinois. • Habitat families are selected on the basis of need, ability • to make a low mortgage payment, and a willingness • to help construct the homes of others. Coleman family met • these criteria. • With $38,000 grant for materials from Abbott Laboratories • Fund and 500 hours of labor from the Coleman family, the • house was built in less than one year.

11. Exhibit 16-C Business meets the maquiladoras • Inexpensive Mexican labor & easy access to American markets • lead to boomtown development on South Texas border. • Boomtowns are characteristically fraught with social • problems. • El Paso has high employment but is still one of the poorest • cities in U.S. • Firms realize they need to develop the social infrastructure in • these towns. • El Paso Community Foundation formed by leadership • companies organizes Hispanic wives of workers to do • community work and serves as a bridge between employers • and social problems in the border communities.