Solution Manual For Business & Society 11th Edition by Archie B. Carroll, Jill Brown Chapter 1-18 by kriswilliams

Instructor Manual: Carroll/Brown, Business & Society: Ethics, Sustainability & Stakeholder Management, 11e, 9780357718629; Chapter 1: The Business, Society, and Responsibility

Solution Manual For Business & Society 11th Edition by Archie B. Carroll, Jill Brown Chapter 1-18

Chapter 1: The Business and Society Relationship

Table of Contents Purpose and Perspective of the Chapter .................................................................................... 2 Cengage Supplements............................................................................................................... 2 Chapter Objectives .................................................................................................................... 2 Complete List of Chapter Activities and Assessments ................................................................ 2 Key Terms ................................................................................................................................. 3 What's New in This Chapter ....................................................................................................... 4 Chapter Outline .......................................................................................................................... 4 Discussion Questions................................................................................................................. 5 Additional Activities and Assignments ........................................................................................ 8 Appendix .................................................................................................................................... 9 Generic Rubrics ......................................................................................................................................... 9 Standard Writing Rubric ............................................................................................................................ 9 Standard Discussion Rubric ..................................................................................................................... 11

Instructor Manual: Carroll/Brown, Business & Society: Ethics, Sustainability & Stakeholder Management, 11e, 9780357718629; Chapter 1: The Business, Society, and Responsibility

Purpose and Perspective of the Chapter The purpose of this chapter is to introduce some important basic concepts in the business and society discussion, including pluralism, special-interest societies, business criticism, corporate power, corporate social responsibility to stakeholders, and sustainability.

Cengage Supplements The following product-level supplements provide additional information that may help you in preparing your course. They are available in the Instructor Resource Center.     

Instructor’s Manual Transition Guide Test Banks PowerPoint Slides Case Notes

Chapter Objectives The following objectives are addressed in this chapter: 01.01

Define and explain business and society as foundational concepts. Describe how society is viewed as the macroenvironment.

01.02

Explain the characteristics of a pluralistic society. Describe pluralism and identify its attributes, strengths, and weaknesses.

01.03

Clarify what is a special-interest society and how it poses special challenges for business.

01.04

Identify, discuss, and illustrate the factors leading up to business criticism and corporate response. What is the general criticism of business? How may the balance of power and responsibility be resolved?

01.05

Identify what is the changing social contract. Is it better or worse for stakeholders?

01.06

Make clear the major themes characterizing this book: managerial approach, business ethics, sustainability, and stakeholder management.

Complete List of Chapter Activities and Assessments For additional guidance, refer to the Teaching Online Guide. Chapter Objective 1.1 1.1 1.2

PPT Slide

Activity/Assessment

Duration

2 7 20

Icebreaker: Business and You Discussion: Corporate Ethics Discussion: COVID-19

10 minutes 15 minutes 15 minutes

Instructor Manual: Carroll/Brown, Business & Society: Ethics, Sustainability & Stakeholder Management, 11e, 9780357718629; Chapter 1: The Business, Society, and Responsibility

1.4

1.4 1.4

24 26

Discussion: Business Criticism and Rising Expectations Discussion Levels of Power Discussion: Iron Law of Responsibility

15 minutes 15 minutes 15 minutes

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Key Terms Affluence: the level of wealth, disposable income, and standard of living of the society Business: the collection of private, commercially oriented (profit-oriented) organizations, ranging in size from one-family proprietorships Business ethics: ethical issues that arise in the commercial realm Business power: the capacity or ability to produce an effect, have an impact, or to bring influence to bear on a situation or people Economic environment: the nature and direction of the economy in which business operates Education: the process of receiving or giving systematic instruction, especially at a school or university Entitlement mentality: the general belief that individuals are owed something (e.g., a job, an education, a living wage, or health care) just because they are a member of society Iron Law of Responsibility: Whenever power and responsibility become substantially out of balance, forces will be generated to bring them into closer balance. Macroenvironment: the total environment outside the firm Managerial approach: a focus on the three main themes of vital importance to managers, organizations, and society today: business ethics, sustainability, and stakeholder management. Nongovernmental organizations (NGOs): special-interest groups that may be organized on a local, national, or international level Pluralism: a diffusion of power among society’s many groups and organizations Political environment: the processes by which laws get passed and officials get elected and all other aspects of the interaction between firms, political practices, and government Rights movement: a trend and pattern of rising expectations as to how people want to be treated Rising expectation: a belief or an outlook that each succeeding generation ought to have a standard of living higher than that of its predecessor Social contract: a set of reciprocal understandings and expectations that characterize the relationship between major institutions Social environment: the demographics, lifestyles, culture, and social values of the society Social problem: a gap between society’s expectations of social conditions and the current social realities

Instructor Manual: Carroll/Brown, Business & Society: Ethics, Sustainability & Stakeholder Management, 11e, 9780357718629; Chapter 1: The Business, Society, and Responsibility

Society: community, a nation, or a broad grouping of people with common traditions, values, institutions, and collective activities and interests Special-interest society: a society characterized by tens of thousands of special interest groups, each pursuing its own specific agenda Stakeholder management: the management of integral constituents in the business and society relationship Stakeholders: individuals or groups with which business interacts who have a ―stake,‖ or vested interest, in the firm Sustainability: business’s ability to survive and thrive over the long term Sustainable development: a pattern of resource use that aims to meet current human needs while preserving the environment so that these needs can be met not only in the present but also for future generations Technological environment: the total set of technology-based advancements taking place in society and the world [return to top]

What's New in This Chapter The following elements are improvements in this chapter from the previous edition:              

The key terms have been updated. The endnotes have been updated. The topic Business and society relationship (A-head) is updated. The box spotlight on sustainability has been updated. Figure 1-2 from the previous edition has been renamed as Figure 1-1. Figure 1-3 from the previous edition has been renamed as Figures 1-2. Figure 1-4 from the previous edition has been renamed as Figure 1-3. Image 1-2 is revised. The heading ―Awareness through television, movies, the internet, and social media‖ has been renamed to ―Awareness through various media‖. The heading ―24/7 News and investigative program‖ has been renamed to ―24/7 Television programming‖. The heading ―Revolution of rising expectations‖ is renamed to ―Rising expectations‖. Figure 1-3: The data is revised. The titles of ―Ethics in Practice Case‖ have been updated. Title of figure 1-4 is renamed.

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Chapter Outline In the outline below, each element includes references (in parentheses) to related content. “CH.##” refers to the chapter objective; “PPT Slide #” refers to the slide number in the PowerPoint deck for this chapter (provided in the PowerPoints section of the Instructor Resource Center); and, as applicable for each discipline, accreditation or certification standards (“BL 1.3.3”). Introduce the chapter and use the Ice Breaker in the PPT if desired, and if one is provided for this chapter. Review learning objectives for Chapter 1. (PPT Slides 1–3).

Instructor Manual: Carroll/Brown, Business & Society: Ethics, Sustainability & Stakeholder Management, 11e, 9780357718629; Chapter 1: The Business, Society, and Responsibility

1.1 Business and Society (Ch. 1.1, PPT Slides 5–7) a. Business: Defined (Ch. 1.1. PPT Slide 6) b. Society: Defined (Ch. 1.1, PPT Slide 6) 1.2 Society as Macroenvironment (Ch. 1.2, PPT Slide 8-10) 1.3 Pluralistic Societies (Ch. 1.3, PPT Slide 11–14) a. Multiple Publics, Systems, and Stakeholders Ch. 1.3, PPT Slide 14) b. A Special-Interest Society (Ch. 1.3, PPT Slide 14) 1.4 Business Criticism and Corporate Response (Ch. 1.4, PPT Slides 15–25) a. Factors in the Social Environment (Ch. 1.4, PPT Slide 17) 1. Affluence and Education (Ch. 1.4, PPT Slide 17) 2. Awareness through Various Media (Ch. 1.4, PPT Slide 17) a. 24/7 Television Programming (Ch. 1.4, PPT Slide 18) b. Movies (Ch. 1.4, PPT Slide 17) c. Social Media (Ch. 1.4, PPT Slide 17) 3. Rising Expectations (Ch. 1.4, PPT Slide 17) 4. Rights Movement (Ch. 1.4, PPT Slide 17) b. A General Criticism of Business: Use and Abuse of Power (Ch. 1.4 Slide 19) 1. Levels of Business Power (Ch. 1.4, PPT Slide 19) 2. Spheres of Business Power (Ch. 1.4, PPT Slide 19) c. Balancing Power with Responsibility (Ch. 1.4, PPT Slide 21) 1. Iron Law of Responsibility (Ch. 1.4, PPT Slide 21) d. Business’s Response: A Changing Social Contract (Ch. 1.1, PPT Slide 22) 1.5 Focus of the book (Ch. 1.5, Slides 26–30) 1.6 Structure of the book (Ch. 1.6, Slides 31–35) 1.7 Summary [return to top]

Discussion Questions You can assign these questions several ways: in a discussion forum in your LMS; as wholeclass discussions in person; or as a partner or group activity in class. 1. Discussion: Corporate Ethics (page 4, 1.1, PPT Slide 7) Duration 15 minutes. a. Question: In discussion of business and society, why is there a tendency to focus on large-sized rather than small- or medium-sized firms? Have the corporate ethics scandals of the past decade affected small- and medium-sized firms? If so, in what ways have these firms been affected? I. Answer: We tend to focus on large firms when discussing business and society for a number of reasons. Large firms are more visible, their products and services are more widely known, and we generally equate size with power. All of these factors contribute to the fact that large firms are more susceptible to public scrutiny. It is debatable whether the ethics scandals of the first decade of the 2000s have had a significant impact on small and medium-sized firms. On one hand, the scandals may have caused a general increase in the level of distrust of business. This had a chilling effect on stock prices and made it more difficult for smaller firms to raise money, especially through initial public offerings (IPOs). Furthermore, small- and medium-sized

Instructor Manual: Carroll/Brown, Business & Society: Ethics, Sustainability & Stakeholder Management, 11e, 9780357718629; Chapter 1: The Business, Society, and Responsibility

firms that are not publicly traded may feel pressure to adhere to the costly provisions of the Sarbanes-Oxley Act, as lenders, investors, and competitors continue to stress that SOX provisions are the ―best practices‖ by which all firms are measured. On the other hand, as stated above, the public tends to focus more on larger firms, so the effect of scandals may not have ―trickled down‖ to smaller firms on those occasions when members of society actually do think about them. 2. Discussion: Pluralistic Society (page 9, 1.4, PPT Slide 20) Duration 15 minutes. a. Question: How will the COVID-19 pandemic alter business and society relationships? Identify and discuss some of the major effects and impacts. I. Answer: The textbook discusses the COVID-19’s impact on the U.S. and the world economies. Many businesses and governments received criticism on the handling and responsibilities of public safety. Students will have a wide variety of examples to choose from as examples of how businesses have changed. As some business begin to reopen, many will not return. Examples of companies such as the buffet-style restaurants, such as Sweet Tomatoes, closed their doors for good. While other businesses, such as Door Dash and Uber Eats thrived through the pandemic, mobile ordering has seen a tremendous spike in usage, as customers seek out less ―in-person‖ shopping. 3. Discussion: Business Criticism and Rising Expectations (pages 6–13, 1.4, PPT Slide 23) Duration 15 minutes. a. Question: Identify and explain the major factors in the social environment that create an atmosphere in which business criticism takes place and prospers. Provide examples. How are the factors related to one another? Has the pattern of rising expectations run its course? Or is it still a reality among young people today? I. Answer: Many factors contribute to an atmosphere conducive to criticism of business. Affluence, or the level of wealth, allows people the luxury of being critical of social institutions (as Amartya Sen and John Kenneth Galbraith have both noted, people in poverty are primarily concerned with finding enough to eat, not the cause or cure for social ills). In addition, affluence often leads to rising expectations. People generally expect each succeeding generation to have higher standards of living and become dissatisfied if that does not occur. While the recent economic recession may moderate rising expectations in the short-run, the general trend of rising expectations may continue. Such expectations are likely to outpace business’s ability to respond, especially during a recession. Higher levels of education also contribute to a climate of criticism, because people expect more from life, are more aware of ills caused by business, and they are better equipped to research and analyze the causes of social problems. The mass media, particularly television, movies, and the Internet, often provides negative information about business to the public, which increases public’s distrust and unfavorable perception of business. Observers of society have also noted three related trends that contribute to criticism of business, an entitlement mentality, the movement for equal rights, and a victimization philosophy. These trends can also be associated with increased levels of education and affluence, and in some ways, are examples of rising expectations. These trends may also be influenced and exacerbated by the media.

Instructor Manual: Carroll/Brown, Business & Society: Ethics, Sustainability & Stakeholder Management, 11e, 9780357718629; Chapter 1: The Business, Society, and Responsibility

4. Discussion: Levels of Power, (pages 11–12, 1.4, PPT Slide 24) Duration 15 minutes. a. Question: Give an example of each of the four levels of power discussed in this chapter. Also, give an example of each of the spheres of business power. Is business power excessive? I. Answer: The text draws on Edwin M. Epstein’s four levels of corporate power—macro, intermediate, micro, and individual. The macro level encompasses the entire corporate system. This can be seen in business’s ability to effectively lobby Congress to pass laws that enhance corporations’ ability to operate profitably, the fact that nearly half of the largest economies in the world are corporate, not national, or in the profound effects that business has on individuals’ lives. The intermediate level of power resides within particular groups of corporations acting in concert. This type of power is often associated with industries, such as the auto manufacturers, insurance companies or financial services firms. An example of the intermediate level of corporate power is the militaryindustrial complex that influences defense spending. The micro level of corporate power is wielded by an individual firm. The best example of this level is Microsoft, with its dominance of the computer operating system market. Finally, the individual level of corporate power is vested in individual corporate leaders. Bill Gates, founder of Microsoft; Warren Buffett, CEO of Berkshire Hathaway; Elon Musk, former CEO of Tesla; or Jeff Bezos, founder of Amazon, are good examples of people who exercise the individual level of corporate power. Spheres of power include economic, political, social/cultural, technological, environmental, and power over the individual. The fact that corporations control billions of dollars in assets and sales shows their economic power. Nearly half of the largest economies in the world are corporations, not nations. Corporate lobbying efforts, political action committees (PACs), and direct influence on elected officials (e.g., former Vice President Cheney’s ―secret‖ energy policy meetings with corporate leaders) all show the political power enjoyed by corporations. Virtually all new technology is manufactured and distributed by corporations, and much of it is invented in corporate R&D labs, such as cellular telephones, medical treatments, and hybrid automobiles. Corporations produce vehicles that are the number-one source of air pollution in the world, and determine the fashions that teens wear and the movies that we watch. Because most people work for corporations and buy most of their products from corporations, corporate power over the individual is undeniable. 5. Discussion: Iron Law of Responsibility (page 12, 1.4, PPT Slide 25) Duration 15 minutes. a. Question: Explain in your own words the Iron Law of Responsibility and the social contract. Give an example of a shared understanding between you as a consumer or an employee and a firm with which you do business or for which you work. I. Answer: The Iron Law of Responsibility basically says that there is a balance required between power and responsibility to others. The more power an organization has, the more responsibilities that same entity will have. This concept is actually one that most children learn in one form or another. ―To whom much is given, much is expected.‖ ―Rights bear

Instructor Manual: Carroll/Brown, Business & Society: Ethics, Sustainability & Stakeholder Management, 11e, 9780357718629; Chapter 1: The Business, Society, and Responsibility

responsibilities.‖ A social contract is an implicit agreement between two parties or social institutions that states the rights and duties of each party. Students may be easily misled to think of this law like a form of natural law, which, of course, it is not. Consider consumers’ rights and business power. As consumers, we have a right to expect that the products we buy will work properly and not subject us to unreasonable risks. This right extends to financial services products. Abusive practices with credit cards and other predatory practices showed that this social contract was being violated on a regular basis by some corporations. Certain businesses have exploited consumers’ financial circumstances, lack of education or general naivety to bind them to unconscionable contracts. As a result, these consumers may find themselves in situations where they cannot realistically meet their debt obligations. To the extent that these businesses use unfair or predatory practices in selling their financial products, regulation is necessary to protect consumers. The Iron Law of Responsibility does not autonomously correct this. So, the federal government is justified in creating new regulations to meet this need. [return to top]

Additional Activities and Assignments 1. Cases: In this chapter, instructors may utilize a combination of cases: 1- Wal-Mart - The Main Street Merchant of Doom 2- Walmart’s Labor Practices 3- Chipotle’s Struggle with Food Safety: Back on Top Again? 4- The Theranos Story and Fake Blood Testing: Culture,Crime, and Hubris 7- Volkswagen’s Diesel Deception and Its Aftermath 12- Family Business 19- An Ethical Dilemma for Chiquita in Colombia 23- McDonald’s: The Coffee Spill Heard ’Round the World 24- Boeing’s Two Flight Crashes 25- Should States Woo Big Business with Tax Incentives? Amazon Thinks So! 26- Everlane: Ethical Chic and Radical Transparency in Global Supply Chains 27- Slow and Sustainable Fashion 29- ―Dead Peasant‖ Life Insurance Policies 31- Two Vets, Two Dogs, and a Deadlock 33- To Take or Not to Take 2. Group Activity: This group activity focuses on business criticism and corporate response. Divide students into groups of four to five students. Distribute the latest edition of national,

Instructor Manual: Carroll/Brown, Business & Society: Ethics, Sustainability & Stakeholder Management, 11e, 9780357718629; Chapter 1: The Business, Society, and Responsibility

regional and local newspapers among different groups in the class. Have the groups identify the number of articles that criticize business or an employer-related decision. Have the group identify the number of articles that paint business in a favorable light. Ask students to pick a negative article and a positive article for a more in-depth analysis. Students should consider the following questions for each article: Is the business practice or decision accurately portrayed? What is the intended audience of the newspaper? Do you think the affluence, education, expectations, and mentality of the intended audience impact the newspaper’s portrayal of the business decision? If so, how? How should the business in question respond to this situation? Once students have had an opportunity to discuss the review questions in their group, ask each group to report the number of negative versus positive articles and to summarize their answers to the review questions for the class. Look for trends or discrepancies to discuss with the class as a whole. For example, ask students to consider whether they believe business is treated differently by national, regional and local papers based on the responses of each group. Further, ask students to contemplate whether the affluence, education, expectations and mentality of the intended audience affects the way a particular newspaper reports on the actions of business. Finally, encourage students to explore the range of corporate responses to negative and positive media. 3. Individual Assignment: Distribute the following instructions to each student: Select a company and research recent news items that have been released regarding the company. In a written response, note whether the articles were positive or negative for the company. Describe how the company’s actions may impact an individual’s perception of business in the United States. Identify responsibilities that the company has to various stakeholder groups mentioned in the articles. Finally, note any sustainability issues that confront the company and provide suggestions for how the company should handle these issues. [return to top]

Appendix Generic Rubrics Providing students with rubrics helps them understand expectations and components of assignments. Rubrics help students become more aware of their learning process and progress, and they improve students’ work through timely and detailed feedback. Customize these rubrics as you wish. The writing rubric indicates 40 points and the discussion rubric indicates 30 points.

Standard Writing Rubric Criteria Content

Meets Requirements The assignment clearly and comprehensively addresses all questions in the assignment.

Needs Improvement The assignment partially addresses some or all questions in the assignment.

Incomplete The assignment does not address the questions in the assignment. 0 points

Instructor Manual: Carroll/Brown, Business & Society: Ethics, Sustainability & Stakeholder Management, 11e, 9780357718629; Chapter 1: The Business, Society, and Responsibility

Research

The assignment is based upon appropriate and adequate academic literature, including peerreviewed journals and other scholarly work. 5 points

8 points The assignment presents ideas in a mostly clear manner and with a mostly strong organizational structure. The assignment includes an appropriate introduction, content, and conclusion. Coverage of facts, arguments, and conclusions are mostly logically related and consistent. 7 points The assignment is based upon adequate academic literature but does not include peer-reviewed journals and other scholarly work. 3 points

Research

The assignment follows the required citation guidelines. 5 points The assignment has two or fewer grammatical and spelling errors. 5 points

The assignment follows some of the required citation guidelines. 3 points The assignment has three to five grammatical and spelling errors. 3 points

Organization and Clarity

Grammar and Spelling

15 points The assignment presents ideas in a clear manner and with strong organizational structure. The assignment includes an appropriate introduction, content, and conclusion. Coverage of facts, arguments, and conclusions are logically related and consistent. 10 points

The assignment does not present ideas in a clear manner and with strong organizational structure. The assignment includes an introduction, content, and conclusion, but coverage of facts, arguments, and conclusions are not logically related and consistent. 0 points The assignment is not based upon appropriate and adequate academic literature and does not include peer-reviewed journals and other scholarly work. 0 points The assignment does not follow the required citation guidelines. 0 points The assignment is incomplete or unintelligible. 0 points

Instructor Manual: Carroll/Brown, Business & Society: Ethics, Sustainability & Stakeholder Management, 11e, 9780357718629; Chapter 1: The Business, Society, and Responsibility

Standard Discussion Rubric Criteria Participation

Contribution Quality

Etiquette

Meets Requirements Submits or participates in discussion by the posted deadlines. Follows all assignment instructions for initial post and responses. 5 points Comments stay on task. Comments add value to discussion topic. Comments motivate other students to respond. 20 points Maintains appropriate language. Offers criticism in a constructive manner. Provides both positive and negative feedback. 5 points

Needs Improvement Does not participate or submit discussion by the posted deadlines. Does not follow instructions for initial post and responses. 3 points Comments may not stay on task. Comments may not add value to discussion topic. Comments may not motivate other students to respond. 10 points Does not always maintain appropriate language. Offers criticism in an offensive manner. Provides only negative feedback. 3 points

Incomplete Does not participate in discussion. 0 points

Does not participate in discussion. 0 points