Name: Chapter 3 The Manager's Change Work Enviroment and Ethical Responsibilities Part 1
Uploaded: 2025-09-03T01:20:39.000Z
Duration: 9 min 57 s
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Welcome everyone to Chapter 3, The Manager's Changing Work Environment and Ethical Responsibilities.

Basic passive voice

This chapter is broken up into five sections. 3.1 covers the community of stakeholders inside the organization.

After completing this part of the chapter you should be able to answer this question, who are the stakeholders important to me inside the organization?

3.2 covers the community of stakeholders outside the organization.

After completing this part of the chapter you should be able to answer this question, who are the stakeholders important to me outside the organization?

3.3 covers the ethical responsibilities required of you as a manager.

After completing this section you should be able to answer the major question, what does a successful manager need to know about ethics and values?

Section 3.4 covers the social responsibilities required of you as a manager.

After completing this you should be able to answer, is being socially responsible really necessary?

And the last part of chapter 3, 3.5 is over corporate governance.

The major question you should be able to answer after completing all of 3.5 is, how can I trust a company in doing the right thing?

Now just a quick overview for this chapter is that this chapter is going to set the stage for understanding the new world in which managers must operate and the responsibilities that they will face.

The chapter will begin by describing the community of stakeholders that managers have to deal with.

First its internal stakeholders, that which consists of employees, owners and possibly its directors.

And then we will talk about the external stakeholders in two kinds of environments, both task and general.

The chapter then considers the ethical and social responsibilities required of today's manager as well as the importance of corporate governance.

We will start with 3.1 which talks about our community of stakeholders both inside and outside the organization.

Now first we are going to define stakeholders.

Stakeholders are those people whose interests are directly affected by an organization's activities.

There are two types of stakeholders, both internal and external.

So as you are applying your business practices and your managerial practices in your organization, keep in mind that you are not only affecting those employees, managers and other people within the organization.

You are also affecting your external customers such as dealers of components, possibly your shipping partners.

Everyone has a piece of the organization that you can affect.

So just remember those two organizational environments whenever you are making your managerial decisions.

Figure 3.1 in our text gives us a very good diagram of our stakeholders such as our external stakeholders such as media, lenders, possibly if you are working in a union type environment.

So decisions you make could affect the unions and you have different political or legal forces that you may be affecting as well as different sociocultural forces.

Let's take a look at our internal stakeholders which consists of employees and in many forward looking organizations employees are considered the most important resource.

We have another internal stakeholder are the owners.

The owners of an organization consist of all those who can claim it as their legal property.

Which means owners can be sole proprietors, partners or family owners.

Some companies are partly owned by employees who are members of an employee stock owner's plan.

In all these examples the goals of all these types of owners is to simply make a profit.

Another one of our internal stakeholders could be a board of directors.

In a corporation the board of directors whose members are elected by the stockholders hire the chief executive.

In a non-profit organization the board may be called the board of trustees or possibly even the board of regents.

Board members help set the organization's overall strategic goals and approve all the major decisions of the organization.

Also the directors may be executives of the firm or outsiders.

Now let's take a look at our stakeholders that are external to our organization or people or groups in the organization's external environment that are affected by it.

Now this environment consists of the task environment and the general environment.

The task environment consists of 11 groups that present you with daily tasks to handle.

Customers, Competitors, Suppliers, Distributors, Strategic Allies, Employee Organizations, Local Communities, Financial Institutions, Government Regulators, Specialized Interest Groups and Mass Media.

Now mass media is an important stakeholder because it has tremendous power to rapidly and widely disseminate news both good and bad.

So most companies and non-profits have a public relations person to handle any type of communication effectively with all of the press in our mass media.

So if you don't have a person that's in your organization that is assigned to that you may need to look at whether internal or external in your organization to place someone in charge of that to help make sure that all media is handled very effectively.

Now let's take a look at this question here.

Chemtech International is being picketed by a group of people who live by their biggest plant.

The group is concerned about Chemtech's disposal of waste products into nearby waterways.

In this instance Chemtech is dealing with the what part of its what environment.

Now let's take a look at those four choices you have there in front of you.

And obviously since these people who are picketing live by the biggest plant they are obviously the local communities part of the task environment which we just discussed all 11 groups that are part of our task environment.

So the correct choice is obviously be local communities part of its task environment.

So if you were able to guess that through deductive reasoning based on your reading, great job.

Let's move on to the next section in our chapter.

Now we'll move into the general environment or macro environment.

Economic force, technological, sociocultural, demographic, political legal, and international.

Now you can't control forces in the general environment but they have a profound effect on the organization's task environment.

So the first one we talked about is the economic force which consists of general economic conditions and trends, employment, inflation, interest rates, and economic growth that may affect an organization's performance.

Next we move on to technological forces which are new developments in methods for transforming resources into goods and services.

For example a technological force would be biotechnology.

The next force we move into is of course the sociocultural forces.

Sociocultural forces are influences and trends originating in a country's, society's, or culture's human relationships and values which may affect an organization.

For example the interest in health and fitness has led to a decline in sales of cigarette, whiskey, sodas, red meats, and eggs.

Demographic forces are influences on an organization arising from changes in the characteristics of a population, such as the population's age, gender, ethnic origins, sexual orientation, occupation, income family size, and the like.

And from our text by 2042 minorities are expected to reach 50% of the population and US population will increase from 313 million to 399 to 458 million by the year 2050.

The next force in our general environment is the political legal force which those forces are changes in the way politics shape laws and how those laws affect organizations.

The current political climate affects issues such as antitrust cases.

Now some countries may have more fully developed legal systems than others and you'll need to be aware of that.

American companies may be more willing to advance their interests in using the legal systems as in suing its competitors.

And our next force is international forces.

International forces are changes in the economic, political, legal, and technological global system that may affect an organization.

As you can see this category represents a huge kind of grab bag of influences.

So how well you handle the international forces depends a lot on the training you get within your organization.