Introduction to the concepts of corporate governance. Prepared for students with L2 English studying in the United Arab Emirates. Includes information and student activities.

1. BUSINESS, GOVERNMENT
& SOCIETY
Definitions
Relationships
Models

2. 30/08/2012
PRESENTATION OBJECTIVES
• Define the terms Business,
Government & Society
• Explore the objectives of
business, government and
society
• Investigate the activities of
business, government and
society
• Analyse the relationships of
business, government and
society
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3. 30/08/2012
BUSINESS
• What is the objective of most
businesses?
• How do businesses meet their
objectives?
Click for
definition
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4. 30/08/2012
GOVERNMENT
• What is the objective of most
governments?
• How do governments meet
their objectives?
Click for
definition
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5. 30/08/2012
SOCIETY
• What is the objective of most
societies (cultures/population)?
• How do societies meet their
objectives?
Click for
definition
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Business
Society Government
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7. 30/08/2012
CLASS • Take a coloured card:
ACTIVITY
– Red – Society
– Blue – Business
– Green – Government
• Step 1: get together with other people with the
same colour card
• Step 2: discuss the objectives of your particular
interest group.
• Step 3: feedback main points to whole class
• Step 4: change groups – find at least one person
from each of the other groups.
• Step 5: discuss your objectives. Look for common
areas and possible problems.
• Step 6: list main points of discussion and be
ready to feed back/
• Step 7: outside class – summarise and reflect on
your discussions and feedback. Write a
paragraph on the discussion board or in a blog.
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8. 30/08/2012
OBJECTIVES OF
BUSINESS
REDUCE COSTS
INCREASE SALES
MAXIMISE
PROFIT
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OBJECTIVES
OF SOCIETY
• Vary according to culture,
religion and natural resources
available
• People want to have enough to
eat and a supply of water
• Shelter from the environment
and threats
• Education and health care are a
priority
• Improved lifestyle is seen as
progressive therefore good
• Self-development
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OBJECTIVES • Manage resources fairly and cost-
OF effectively
GOVERNMENT • Support the population
• Provide a regulation framework for
business
• The Abu Dhabi government states its
objectives are:
‘to ensure that public entities’ resources
and funds are managed, collected and
expended efficiently, effectively and
economically, to ensure the accuracy of
the financial reports and compliance of
the public entities with the relevant
laws, rules and regulations and
governance guidelines as outlined in this
Law, and to promote accountability and
transparency principles at the public
entities.’
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11. 30/08/2012
FOUR MODELS
OF THE BGS
RELATIONSHIP
• Market Capitalism
• Dominance
• Countervailing Forces
• Stakeholder Model
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12. 30/08/2012
MARKET
CAPITALISM
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13. 30/08/2012
DOMINANCE
MODEL
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14. 30/08/2012
EGYPTIAN
UPRISING
JANUARY
2012
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15. 30/08/2012
COUNTERVAILING
FORCES
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16. 30/08/2012
STAKEHOLDER
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17. 30/08/2012
CASE Business, Government & Society
Nestlé – case study of good practice
Winter 2011
STUDY Creating shared values
Nestlé, the world‟s largest food and nutrition company, has been involved in
The Nestle case study is rural development in emerging countries since the 1920s. At that time, the
Swiss giant built factories in South Africa and Brazil as it created new milk
produced by Nestle. markets in countries with burgeoning farming sectors.
Today, Nestlé has 443 factories around the globe, nearly a third of which are in
rural areas in the developing world. With that history and breadth of
experience, it is unsurprising that Nestlé is highly skilled at making rural
a) Which model is development of mutual benefit to both the company and the community in
which it operates.
illustrated?
In its 2010 Creating Shared Value report, released earlier this year, Nestlé
b) Give 2 examples from the listed a number of facts about its 144 factories in developing, rural areas: a
third have numeracy and literacy programmes, two thirds include a Nestlé-built
case study information water treatment plant, and just over half offer formal apprenticeship training.
Nestlé public affairs communications manager John Bee said: “This starts from
as evidence to support our approach to doing business, the idea that creating shared value for
shareholders and the communities that you impact or represent.”
your answer to (a).
As Nestlé is constantly sourcing raw materials for its products, those
c) If you owned shares in communities are almost always near or in rural areas. As a company
specialising in nutrition, Nestlé usually focuses on programmes that improve the
Nestle, would you be health of both the people and the livestock. In Pakistan, for example, Nestlé
wanted to improve the quality of its dairy supply, partly through adding iron to
milk to prevent anaemia, a major public health issue in the country. The key
happy about the project was to improve veterinary services to the animals.
activities described? The company had to be sensitive to local culture. Many of the herders are
women, so Nestlé had to train cadres of female „paravets‟, the animal
Explain your reasons. equivalent of community health workers, as it would not have been considered
appropriate to have a sudden influx of male workers.
d) Carry out research on “In partnership with the Swiss Agency for Development & Co-operation, we
provided them with start-up kits that included basic medicines and gave them
Nestle – does the training,” explains Bee. “This empowered women and increased the productivity
of the animals. History suggests that we build loyalty among our supplier base
corporation always by doing this (helping and training the local workforce), especially when we
source directly from them.”
demonstrate good Source: http://www.ethicalperformance.com/bestpractice/casestudy/107 [accessed 30 August
practice? 2012]
Diane Evans (diane.d3evans@gmail.com) 20

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SUMMARY
• The relationships between Business,
Government and Society is co-
dependent and changing
• There are 4 models of BGS
relationship
• Difficult to find a balance between
right and wrong, greed and
compassion, corruption and truth.
Diane Evans (diane.d3evans@gmail.com) 21

19. 30/08/2012
KEY • Society
WORDS • Government
• Value
• Idea
• Ideology
• Business
• Profit
• Social contract
• Corruption
• Capitalism
• Populism
Diane Evans (diane.d3evans@gmail.com)
• 22
Stakeholder

20. 30/08/2012
DEFINITIONS
AND
INFORMATION • Steiner & Steiner (2009)
SOURCES: Business, Government &
Society. Publisher McGraw-
Hill.
• http://www.bized.co.uk/educators/16-
19/business/strategy/presentation/busobjectives2_
map.htm
• YouTube videos
Diane Evans (diane.d3evans@gmail.com) 23