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INTL 3306 The Political Role of Business Study Notes

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Lecture 4: The Political Role of Business
Pharma Company Pfizer
Efforts to reduce crime in communities
o Public transit infrastructure
Funded subway turnstiles
Funded and operated subway security
o Community infrastructure
Aluminum Company Sual
Creation of local self-governing bodies to address deteriorating health and education
Creation of a public council for self-governance in region of Shelekhov
Supports NGO to facilitate social entrepreneurship and social activities in Nadvoitsy,
Republic of Karlia
Luxury Safari Company &Beyond
Build schools and hospitals
Community development projects (consumers’ involvement)
Environmental education to the local community
Cadbury in Ghana
The problem:
o Yield of Ghanaian cocoa farmer slipped 40%
o Children leaving for cities
Cadbury Cocoa Partnership will focus on:
o Increasing cocoa farmers yields
o Introducing new sources of rural income
o Investing in community led development
o Working in partnership
Google in China
No longer censoring results to support freedom of speech
Private sector enterprises are playing governmental roles at an increasing rate
Example:
o Education
o Military
o Freedom of speech
o Regulating standards
o Policing behavior
o Infrastructure development
o Curbing corruption
o Health care

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o Water provision
Companies are forced to play this role
Market creates a lucrative incentive profit as a powerful motive for innovation
Business is better equipped and more efficient
Business has no national restrictions multinational companeis have power across
countries
Lack of accontability
Growing public dependence on firms
Potential for conflict of interest and profit motive can override social/ecological motives
Growing Trends
Public service/welfare deficit
Relevance to company activities
o Economic benefit (e.g. Cadbury)
o Society expects a role (e.g. Google)
Lack of governmental power internationally
Government corruption/incapacity/inefficiency
Lack of international governing bodies
Limitations of foreign aid/NGOs
Growing power of private sector in society
Suncor in Fort McMurray
CEO concerned about potential issues
Called a meeting with stakeholders
Stakeholder role-play:
o Environmental groups
o Aboriginal communities
o Fort McMurray mayor’s office
o Labor unions
o Social service groups
o Suncor management
Political Roles
Pfizer building infrastructures for the local community supplement
Sual creating local self-governing bodies to address deteriorating health and
education support
Cadbury’s provision of public services for cocoa farmers (e.g. building hospitals and
schools) substitute
&Byeond’s provision of public service to the local community (e.g. community
development projects) substitute
Google pressuring Chinese government to revisit censorship laws stimulate

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Lecture 4: The Political Role of Business Pharma Company Pfizer • Efforts to reduce crime in communities o Public transit infrastructure ➢ Funded subway turnstiles ➢ Funded and operated subway security o Community infrastructure Aluminum Company Sual • Creation of local self-governing bodies to address deteriorating health and education • Creation of a public council for self-governance in region of Shelekhov • Supports NGO to facilitate social entrepreneurship and social activities in Nadvoitsy, Republic of Karlia Luxury Safari Company &Beyond • Build schools and hospitals • Community development projects (consumers’ involvement) • Environmental education to the local community Cadbury in Ghana • The problem: o Yield of Ghanaian cocoa farmer slipped 40% o Children leaving for cities • Cadbury Cocoa Partnership will focus on: o Increasing cocoa farmers yields o Introducing new sources of rural income o Investing in community led development o Working in partnership Google in China • No longer censoring results to support freedom of speech Private sector enterprises are playing governmental roles at an increasing rate • Example: o Education o Military o Freedom of speech o Regulating standards o Policing behavior o Infrastructure development o Curbing corruption o Health care • • • • • • • o Water provision Companies are forced to play this role Market creates a lucrative incentive→ profit as a powerful motive for innovation Busin ...
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