Chapter 5Chapter 5Strategic Strategic

Management Management and Corporate and Corporate Public AffairsPublic Affairs

© 2012 South-Western, a part of Cengage Learning 1

The Concept of Corporate Public Policy

© 2012 South-Western, a part of Cengage Learning 2

Corporate public policy is a firm’s posture, stance, strategy or

position regarding the public, social, global, and ethical aspects of

stakeholders and corporate functioning

Affirmative Action

Sexual harassmentProduct safety

Employee privacy

EnvironmentalSustainability

Corporate Public Policy and Strategic Management

Strategic management

•Refers to the overall management process that focuses on positioning the firm relative to its market environment.

Corporate public policy

•The part of overall strategic management that focuses specifically on the public, ethical, and stakeholder issues the firm faces.

© 2012 South-Western, a part of Cengage Learning3

Emphasis on Enterprise-Level Strategy

For what do we stand?•Key Questions:• What is the role of our organization in society?

• How is our organization perceived by our stakeholders?

• What principles/values does our organization represent?

• What obligations do we have to society at large, including the world?

• What are the broad implications for our current mix of businesses and allocation of resources?

4© 2012 South-Western, a part of Cengage Learning

Manifestations of Enterprise-Level Thinking

• Codes of ethics

• Codes of conduct

• Mission statements

• Values statements

• Corporate creeds

• Vision statements

• Policy-oriented codes and statements

5© 2012 South-Western, a part of Cengage Learning

Core Values

Core Values

•The deeply ingrained principles that guide all of a company’s actions and decisions.

•They serve as cultural cornerstones.

6© 2012 South-Western, a part of Cengage Learning

Importance of Core Values

Apple’s Core Values

•Focus on making great products

•Innovation

•Focus on the few projects that are truly meaningful

•Collaboration

•Never settle for less than excellence

7© 2012 South-Western, a part of Cengage Learning

Enterprise-Level Strategic Thinking

Establishment of committees•Public policy/issues•Ethics•Governance•Social audit•Corporate philanthropy•Corporate citizenship•Ad hoc committees

Public affairs office

Identification/analysis of social or public issues

8© 2012 South-Western, a part of Cengage Learning

The Strategic Management Process

1. Goal formulation

2. Strategy formulation

3. Strategy evaluation

4. Strategy implementation

5. Strategic control

6. Environmental analysis

9© 2012 South-Western, a part of Cengage Learning

Components of Strategy Formulation

10© 2012 South-Western, a part of Cengage Learning

Strategic Corporate Social Responsibility

Responsive CSR•Addresses generic social impacts through good corporate citizenship and value chain social impacts by mitigating harm.

Strategic CSR•Transforms value chain social impacts into activities that benefit society while reinforcing corporate strategy.•Advances strategic philanthropy that leverages competitiveness.

11© 2012 South-Western, a part of Cengage Learning

Public Affairs

Public Affairs

•The management processes that focus on the formalization and institutionalization of corporate public policy.

EmbracesCorporate public policyIssues and crisis managementGovernmental relationsCorporate communications

12© 2012 South-Western, a part of Cengage Learning

Buffering and Bridging

Two types of corporate public affairs activities

1.Activities that buffer the organization from the social and political environment.

2.Activities that bridge the organization with that environment.

13© 2012 South-Western, a part of Cengage Learning

Tools and Techniques•Environmental monitoring/scanning

•Working with the grassroots

•Constituency building

•Issue advertising

•Lobbying

•Political action committees

•Corporate social audits

•Web activism

•Coalitions and alliances

•Community investment

•Stakeholder management14

© 2012 South-Western, a part of Cengage Learning

Competencies for International Public Affairs

15© 2012 South-Western, a part of Cengage Learning