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Chapter

1 Business and Society

The Corporation and Its Stakeholders
1-1

Figure 1-1a

A range of levels for understanding the 1-2 business-government-society relationship

Broad conceptual levelEconomy/ Business Society/Culture

Politics/ Government

POST, LAWRENCE, WEBER
McGraw-Hill/ Irwin © The McGraw-Hill Companies, Inc., 2002 All Rights Reserved. McGraw-Hill/ Irwin

© The McGraw-HillCompanies, Inc., 2002 All Rights Reserved.

Figure 1-1b

Figure 1-1c

A range of levels for understanding the 1-3 business-government-society relationship

A range of levels for understanding the 1-4business-government-society relationship

Intermediate level
Industry in general; industry sectors Governments: national, state, local, foreign

Practical, applied management level
Corporation X Specificgovernment agencies and actors

Stakeholders

Primary and secondary stakeholders

McGraw-Hill/ Irwin

© The McGraw-Hill Companies, Inc., 2002 All Rights Reserved.

McGraw-Hill/ Irwin

© TheMcGraw-Hill Companies, Inc., 2002 All Rights Reserved.

Figure 1-2

Figure 1-3

Relations between a business firm and its primary stakeholders
1-5

Relations between a business firm and some of its other(secondary) stakeholders
1-6

Employees (Unions) Wholesalers (Retailers)
Distribute products Sell labor

Stockholders
Invest capital Lend money

The General Public

Local Communities
Positive, negativeopinion

Buy products

Business firm (Managers)
Sell materials

Creditors

Business Support Groups

Advice, research Image, publicity

Jobs, environment Regulation, taxes Business

Federal, State andLocal Governments

Firm (Managers)
Social demands

Foreign
Friendly, Governments hostile

Customers

Suppliers

Media

Social Activist Groups

McGraw-Hill/ Irwin

© The McGraw-Hill Companies, Inc., 2002All Rights Reserved.

McGraw-Hill/ Irwin

© The McGraw-Hill Companies, Inc., 2002 All Rights Reserved.

1

Figure 1-4

Forces that shape the business and society relationship
1-7

Exhibit 1-A...
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