The Changing Role Of Business

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Module 2
Lecture
The Changing Role of Business
Module
1-4
⁃Evolu on of
Business

Business
Messages

Module
5­6

Module
7­12

Interac ons

Rela onships

HowBusinessesCommunicateandInteract.

Housekeeping
• Changing Tutorials
• Assignment One

– Further information see Assessments and
Workshop Resources on BlackBoard
– Attend Tutorial 2 to pick your company

• Scholar Centred Discussion
– Presentations
– Important Skills
– Assistance

Learning Outcomes
Learning Outcome 2
• Critically evaluate how business communicates in a culturally diverse environment – Definition of business and society
– Understand the interaction between society and business – Examine the impact the interaction has upon our way of life

By the end of this lecture you should be able to:
• Critically evaluate how business communicates in a culturally diverse environment
– Understand the evolution of business
– Identify and illustrate the social issues which affect the role of business.
– How business responds to changing social values

Business and Society – Lets Recap
Business
Society

The collection of private, commercially oriented organisations.
A broad group of people and other organisations, interest groups, a community, a nation.

Evolution of Business
• 200 years of incremental change
• Society has moved from traditional sources of morality to become dominated by a market morality – self interest rather than mutual interest.

Evolution of Business
• Business institutions are an integral part of a social system in a market economy. • The changing nature of business shapes how we communicate. 1940-50s
• Economic dominance of corporations
• Total autonomy of top management
• Purpose was to provide goods at the lowest possible price to society
– Recovery from the Great Depression
– World War II

1940s

1940s

1940-50s

US Birth Rates, 1909-2008

Source: http://commons.wikimedia.org/wiki/File:US_Birth_Rates.svg

1940s

1950s

1950s

1950s

1960s
• Few formal governance procedures restraining management actions
• Organisational charitable giving expanded
• Increasing government legislation - laws passed for protection of the natural environment, safer products, promotion of equity, and workplace diversity – Rights for Indigenous Australians
– Equality for women

1960s

*

1960s

Appliances
Aviation
Consumer Electronics
Electrical Distribution
Electric Motors
Energy
Entertainment
Finance

Gas
Healthcare
Lighting
Locomotives
Oil
Software
Water
Weapons
Wind Turbines

1960s

1960s

1960s

1960s

Changing social values

OHS
AntiDiscrimination

1960s

1970s
• World competition, bankruptcies, mergers and acquisitions • Recession
• Oil Price peaks/ Oil embargos
• High unemployment & High inflation

1970s

1970s

1970s

1970s

1980s





Flatter organizations (downsizing)
More business scandals
Empowerment of lower-level employees
Focus on profitability and economies of scale

1980s

1980s

1980s

1990s






Knowledge and service economy
Less employee loyalty…