Explain with examples the phrase doing well by doing good.

Civic engagement: Active involvement of businesses and individuals in changing and improving
communities.
Businesses that act in a socially responsible way will reap many benefits
Doing well Being productive, earning profits, good reputation (good community relations), able to
respond quickly to changing stakeholder demands, win loyalty of employees, customers
Doing good contributing to society, being responsible for social problems caused by the business
Corporate citizen companies doing good, be helpful, serve society broadly
The iron law of responsibility in the long run, businesses who do not use power in ways the society
considers responsible will tend to lose it
Example 1: Cisco Systems established a Networking Academy to train computer network
administrators. The program was expanded to more than 10,000 sites in high schools and community
colleges, training more than 1.6 million students.
Doing good: The academy initiative benefits communities throughout the world by providing job
training for young people, many of whom go on to successful careers in systems administration.
Doing well: The company benefitted as the initiative assures a supply of information technology
professionals who can operate Ciscos complex equipment.
Example 2: Johnson & Johnson Tylenol incident several people died after they ingested ExtraStrength Tylenol capsules laced with poison cyanide.
Doing good: To ensure the safety of its customers, J&J immediately recalled the product, an action
that cost millions of dollars in the short term. From then, the companys production processes were
never found defective.
Doing well: Customers rewarded J&Js responsible actions by continuing to buy its products and in
the long run, J&J once again became profitable.
Example 3: Nestl works directly with small farmers in developing countries to source the basic
commodities, such as milk, coffee, and cocoa, on which much of its global business depends.
Doing good: The companys investment in local infrastructure and its transfer of world-class
knowledge and technology over decades has produced enormous social benefits through improved
health care, better education, and economic development of the developing countries.
Doing well: Nestl gets direct and reliable access to the commodities it needs to maintain a profitable
global business.

If doing good would incur additional costs, why should firms bother?
Doing good contributing to society, being responsible for social problems caused by the business
Corporate citizen companies doing good, be helpful, serve society broadly
Increased profit: There is a direct correlation between corporate philanthropy practices and positive
financial performance. Whatever corporate giving a business does, though costly at presently, might
in time provide benefits for the company.
1. Enhanced brand image and reputation
A good reputation, an intangible asset, is often very hard to build. So much of a company's reputation
results from 'trust' by stakeholders. A strong reputation in environmental and social responsibility can
help a company build this trust. However, it needs to result from real practices and policies and
integrity towards the companys responsibilities. A company must also earn its informal license to
operate from society.
2. Increased sales and customer loyalty
Consumers not only want good and safe products, but they also want to know that what they buy was
produced in a socially and environmentally responsible way. Also, they might support a companys
social cause by buying their products. To some consumers, a company's commitment to its
contribution to society is important when buying a product and might be willing to pay more for
products that are in support of the contribution. For example, with every pair of TOMS shoes a
customer purchases, TOMS will give a pair of new shoes to a child in need. Using the purchasing
power of individuals to benefit the greater good is what [they're] all about. Loyal customers of the
business will continue to make purchases from the company.
3. Increased ability to attract and retain employees
A company's dedication to corporate giving can help to attract and retain employees. People want to
work for a company that is in accordance with their own values and beliefs. Employees are not just
worried about promotion and salary any more. With committed employees, it will spur the
productivity of the company and enhance it profits.
4. 'Keeping up' with competitors
This is where business is heading: the world over, regardless of the regional culture. As more and
more companies are embracing the concepts of corporate philanthropy, companies who do not
participate might lose out, especially in comparison with competitors from the same industry. For
enlightened companies, embracing corporate giving makes good business sense. Those that get 'left
behind' are missing business opportunities, competitor advantage and improved management
opportunities.

Discuss the statement, Once a corporation has mapped out all the possible crises, it would no
longer be at risk.
The definition of a crisis is an unexpected, low probability or under-prepared-for event that could
have high impact and could affect the firms reputation, capability, operations or even viability.
Thus the statement for discussion is not true because no matter how prepared or how much foresight
a corporation has, it does not totally eliminate the risk it might face when a crisis occurs.
For example, the entire board of directors of Perth-based Sundance Resources was in Central West
Africa to visit its operations and meet government officials. However the flight they flew on crashed
into a dense jungle. There were no survivors, wiping out the entire corporate leadership.
Such instances caught the corporation by surprise because the probability of such occurrence from
happening is low. Thus they had to activate emergency response procedures and appoint an external
team of advisers to help cope with the crisis.
However, the corporation is able to take crisis management steps, being prepared to respond quickly
and communicate with relevant parties so as to stem the damage a crisis can potentially inflict or to
fight off any concerns about its viability amid any chaos. This is greatly minimize the risk the
corporation would face.
Every business must have contingency plans to deal with crises. They should prepare in advance so
that once a crisis appears, the emergency procedures could be activated.
They could adopt the crisis management steps:
1. Be proactive: understand the various sources of crisis
2. Prepared to act: have an internal communication system that can be activated the moment a
crisis occurs
3. Communicate: use various media to send messages promptly and accurately to public and
relevant stakeholders
4. Do the right thing: be sincere, do not minimize the seriousness of the problem
5. Follow up: contact those involved/affected, be ready to compensate
Rehearsing the Crisis Management Plan would also greatly reduce the risk.
With planning and implementation of a well-rehearsed crisis management program, a corporation
can emerge from a crisis with more preparedness because the experience will be educational in
ensuring future problems are minimized, fewer mistakes made, future internal and external
communications are more effectively and swiftly executed, and relationships with stakeholders
refreshed.

The great income disparities experienced in some countries (high GINI coefficient) is an inevitable
result of a free or capitalist society. Discuss.
The Gini coefficient is a measure of the inequality of a distribution, a value of 0 expressing total
equality and a value of 1 maximal inequality.
It is commonly used as a measure of inequality of income or wealth.
A free society is one where people shall have the right to exercise unlimited freedom in their own
lives, freedom to live in whatever manner they choose, freedom to pursue their own goals, so long as
they do not forcibly interfere with the equal rights of others to do the same. Governments only role
is to secure each individuals rights.
A capitalistic society is an economic system based on private ownership of the means of production,
in which personal profit can be acquired through investment of capital and employment of labor.
Capitalism is grounded in the concept of free enterprise, which argues that government intervention
in the economy should be restricted and that a free market, based on supply and demand, will
ultimately maximize consumer welfare.

Given the rising global population and environmental/ecological concerns, what would the
future role of business be?
Business refers to individual corporations, business community, employees and investors.
Increasing need for biz commitment to ethical responsibility and environmental responsibility.
Given rising population -> increase in consumption at increasing rates. Biz need to ensure that while
meeting those needs for the population, the environment and ecology is not compromised.
Reduction in carbon footprint (total set of greenhouse gas emission), water footprint (sum of direct
and indirect usage of freshwater), ecological footprint (measure of human demand on the Earths
ecosystems)
Businesses should take into account Sustainable Development.
Be part of the environmental movement: 3 Rs plus REFUSE
Example: Hong Kong Shanghai Bank
1. Climate partnership: work with environmental groups to reduce the impact of climate
change on people, forest, freshwater and cities, and accelerate the adoption of low-carbon
policies
2. Reforestation: led 20 SMEs to plant saplings
3. HSBC TreeTop Walk: An avenue for nature recreation for Singaporeans, the HSBC TTW also
play an important role in forest canopy research, an area many researchers were not able to
get into because of lack of access. This bridge will help to facilitate surveys and plant
identification work and further our understanding of how forest ecosystems work.
Biz should manufacture and distribute products more efficiently, consider their lifelong impacts and
to recycle components
Biz should be more environmentally responsive by:
1. Pollution prevention: reduce/eliminate waster before it is created
2. Product stewardship: reduce/eliminate environmental impacts along the life-cycle of the
product
3. Clean technology: develop innovative technologies to support sustainability
Biz should also undertake voluntary business initiatives such as:
1. Design products for biodegradability or disassembly: design products so that at the end of
their useful lives, they biodegrade or can be easily recycled/disassembled
2. Life cycle analysis: collect data and information on the lifelong environmental impact of a
product, from extraction of raw material to production to distribution to use, and to disposal
Eg. Dell Computer has designed its PCs with many recyclable parts and offers free recycling
to customers
3. Industrial ecology: design factories and distribution systems as self-contained ecosystems
Eg. biz can save materials through closed-loop recycling, use waste from one process as raw
material for others, and make use of energy generated as a by-product of production
Biz should set environmental goals:
1. Be carbon neutral: produce net zero emissions of GHG
2. Carry out carbon offsets: investments in projects that remove carbon dioxide or other GHG
from the atmosphere
Eg. paying others to plant trees, produce clean energy.

Explain with examples the relationship among these terms: consumer movement, consumer
education, and consumer protection.
Consumer Protection is comprehensive and it covers 4 forms:
1. Self Protection
2. Legal Protection
3. Consumer Movement and Consumer Education
4. Corporate responses
Self Protection
As long as business existed, consumers have tried to protect their interests when they go to the
marketplace to buy goods and services. This consumer self-reliance has always been one form of
consumer protection. Consumers know what they are buying and have the knowledge and can
exercise their legal rights.
Legal Protection
- Consumer protection laws
Example: Sale of Goods Act, Sale of Food Act, Competition Act 2004, Consumer Protection (Fair
Trading) Act 2003
Consumer Protection laws are a form of government regulation which aim to protect the consumers.
1. Provide consumers with better information when making purchases
2. Protect consumers against possible hazards
3. Promote competitive pricing and consumer choice
4. Protect consumers privacy
With consumer protection laws, regulations and enforcement, manufacturers and marketers could
face prosecutions and legal suits for non-compliance.
Consumer movement is a movement seeking to increase the rights and powers of buyers in relation
to sellers. It can be by individuals or even non-profit groups.
Example: In the US, the Consumer Federation of America, brings together 300 non-profit groups to
actively promote and speak for the interests of millions of American consumers.
Consumer education is the preparation of an individual through skills, concepts and understanding
that are required for everyday living to achieve maximum satisfaction and utilization of his resources.
Can take place in school or outside of school (at work, in organization, clubs)
Consumer activism programs on consumer rights, consumer laws
Consumer education can be conducted by advocacy group.
Example: Consumer fairs by CASE to introduce the Consumer Protection (Fair Trading) Act 2003.
Reasons for consumer movement and education:
1. Products have become more complex difficult for consumer to choose
2. Products and services have become more specialized difficult to assess
3. Questionable advertising and promotions exaggerated claims, emotional appeal,
vulnerable segments (kids, old folks, illiterates)
4. Human health and product safety sometimes ignored: Melamine (Sanlu), Lead in paint
(Mattel toys)
Corporate Responses are ways in which companies can voluntarily respond to consumerism. An
example would be abiding by certain standards set by internationally recognized organizations for
quality management.