This document discusses business and society (BGS) and its importance to managers. It covers 4 models of the BGS relationship: the market capitalism model, dominance model, countervailing forces model, and stakeholder model. It also discusses the global and historical perspectives of BGS. The models show different views of how business interacts with economic and non-economic forces in society. Managers must understand BGS to help businesses meet objectives and operate responsibly within society.

1. Visvesvaraya Technological University Belgavi,
P.G. Centre Kalaburagi - 585105
Presented By : SOURABH
&
ISRAR

2. CONTENTS
Introduction to BGS
Definitions of BGS
Importance of BGS
Models of BGS and relationship
Global prospective
Historical prospects

4. Importance of BGS to Managers
To succeed in meeting its objectives a business must
be responsive to both its economic and its non
economic environment.
Recognizing that a company operates not only within
markets but within a society is critical.
A basic agreement or social contract exists between
the business institution and society.
Managers must respect and adhere to society’s
expectations.
This contract defines the broad duties that business
must perform to retain society’s support, but these duties
are often ambiguous.

5. 1. To Understand the role of business in society.
2. To understand the business power in society.
3. It becomes criteria for managerial decisions.
4. To understand the extent of corporate social
responsibility.
5. To know the ethical duties of managers and the need for
regulations.

6. 6. To succeed in meeting the objectives of business.
7. To excel in managerial performance.
8. To monitor the non-economic environment by taking
stock of the situation before anything happens.
9. By recognizing that a company operates not only within
markets but within a society is a critical.
10. To think beyond profit in order to understand the forces
governing social responsibility.

7. Four Models of BGS
Relationship
Market Capitalism Model
Dominance Model
Countervailing Forces Model
Stakeholder Model

8. The Market Capitalism Model

9. The Market Capitalism Model
The market capitalism model depicts
business as operating within a market
environment, responding primarily to
powerful economic forces.
The market acts as a buffer between
business and nonmarket forces.
History and nature of markets
Adam Smith, The Wealth of Nations
Capitalism
Managerial capitalism

10. The Dominance Model

11. The Dominance Model
Proponents of the dominance model believe
that corporations and a powerful elite control a
system that enriches a few at the expense of
many.
Populist reform movement opposed the
dominance model.
Marxism emerged in Europe about the same
time.
Most accurate in the 1800s, but is being
resurrected due to the fear of transnational
corporations in a global context.

12. The Countervailing Forces Model

13. Countervailing forces model conclusions:
Business is deeply integrated into an open society and
must respond to many forces, both economic and
noneconomic.
Business is a major initiator of change in society through
its interaction with government, its production and
marketing activities, and its use of new technologies.
Broad public support of business depends on its
adjustment to multiple social, political, and economic
forces.
BGS relationships continuously evolve as changes take
place in the main ideas, institutions, and processes of
society.

14. The Stakeholder Model

15. Stakeholders are those whom the corporation
benefits or burdens by its actions and those who
benefit or burden the firm with their actions.
Primary stakeholders
Secondary stakeholders
Debate about how to identify who or what is a
stakeholder.
Stakeholder model is an ethical theory of
management in which the welfare of each
stakeholder must be considered as an end.

16. Global perspectives of BGS
A global perspective is far more than an
understanding of worldwide business and
international career opportunities.
Global perspective of BGS
a) sustainable development.
b) Globalization.
c) Global issues.
d) Global processes.

17. Historical perspective of BGS
The relationship is a stream of events, of which only
one part exists today. Historical perspective is
important for many reasons. It helps us see that
today’s BGS relationship is not like that of others
eras that current ideas and institutions are not the
only alternatives; that historical forces are
irrepressible; that corporations both cause and
adopt to change; that our era is not unique in
undergoing rapid change ; and that we are shaping
the future now. When appropriate, we examine the
antecedences of current arrangements.