Business-Society System: An interactive social system where business organizations and society continuously interact and influence each other, forming a dynamic relationship that shapes both entities.
General Systems Theory (GST): The idea that organizations and social systems are interconnected and cannot be understood in isolation; they are part of a broader, interdependent network where each component influences and is influenced by others.
1. How can a business practically apply the principles of the Business-Society System to enhance its social license to operate?
2. What does the Business-Society System primarily describe?
3. Who is credited with proposing that a company's primary purpose is to maximize shareholder value?
Business-Society System — definition?
An interactive social system where business and society influence each other.
Business-Society System — definition?
Interactive social system linking business and society.
Shareholder — primary interest?
Maximizing financial returns and long-term value.
Shareholder — primary interest?
Maximize shareholder wealth and profits.
Stakeholder identification — purpose?
Recognize groups affected by or influencing the firm.
Stakeholder interests — example?
Profit, environment, community, or employment.
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