 Demographic structures and product and labor markets

 Socio-economic groupings; the distribution income and wealth

 The influence of culture on organizational values, attitudes, behavior and
performance
 Social responsibility and organization
 Ethical behavior in an enterprise
 The role of the state and its impact on organizations
 Political parties and pressure groups and their influence on government
policy
 Product Market
 A product market is where goods and
services produced by businesses are sold to
households
 It includes a broad group of products that
satisfy a general, yet similar, need.
 Labor Market
 A set of social mechanisms through which
labor is bought and sold
 The market in which workers compete for
jobs and employers compete for workers
 It provides the structure through which
workers and employers interact in relation to
the jobs, working conditions and pay
Labor Market
Primary Secondary
 Jobs tend to be highly  Jobs tend to be low in
skilled and highly pay, prestige, and
paid, have clear lines security, and offer
of advancement, and little opportunity for
offer greater than advancement. They
average degrees of also typically have a
training and job high turnover .
security to workers
 Different Types of Labor Markets and Jobs
Types of Labor-Power
Types of Firm
Market
Independent Primary:
Professional & Technical
Salaried Staff & Control/Line
employees
“White collar” (new) middle
class jobs
Core:
Large firms with Subordinate Primary:
some market power, Production workers, often
ability to plan ahead unionized by an industrial
union (or competing with a
union).
“Blue collar middle class job.”
Craft:
Highly skilled, usually
Control System
Bureaucratic Control:
Mental labor; workers treated as assets.
Workers given “responsible autonomy.:
Job ladders, some job security, a lot of
benefits, and promotion from within.
Rule by law, as opposed to arbitrary
decisions by supervisors
Technical Control:
Direct control, often based on machine-
pacing. Largely manual labor, deskilling
stressed, though not as much as for
secondary workers. Often paid a wage
premium to motivate work or (more
likely) because of union. The union
contract represents a form of
bureaucratic control.
Craft Control:
Management shares control of work
Demographics
 Studies of a population based on factor s
such as age, race, sex, economic status,
lifestyle, level of education, income level
and employment, among others

Demographic trends
 Describe the historical changes in
demographics in a population over time.
 The Value of Demographic
Trends
 Staying up to date on the latest demographic
trends enables organizations to identify
existing and emerging markets for their
products and services. By evaluating
customers’ and prospects’ demographic
trends, business decision-makers can
identify changing needs in the marketplace
and adjust to them. Demographics trends
can also help organizations spot future
spending trends.
Socio-economic Group
 It refers to person’s position in society’s
structural and functional system. These are the
divisions of people by income and occupation.
Categories
 Executives
 High level managerial
 Mid level management
 Skilled laborers
 Semi-skilled workers
 Irregular workers
Distribution of Income and Wealth
Distribution of Income
 Income distribution reveals what percentage
of individuals are at a various wage levels,
information that can reveal more about
overall wage patterns than average income
can.
Income
 Is a net total of the flow of payments
received in a given time period.
Distribution of Income and Wealth
Corporate Profits Income can be in the form
 Three way
of:
distribution 1. Wages
1. Corporate profit 2. Rents
taxes 3. Dividends
2. Undistributed 4. Interest
corporate profits 5. Pensions
3. Dividends 6. Benefit payments
7. Income from self
employment
8. Inheritance
Socio-economic Dimensions of
Income Inequality
 Income distribution can be shown according
to socio-economic characteristics:
 Ethnicity
 Geographic region
 Gender
 Type of job
The Distribution of Wealth
 Distribution of wealth is a comparison of the
wealth of various members or groups in a
society.
 Wealth is an accumulated store possessions
and financial claims. It may be given a
monetary value if prices can be determined
for each of the possessions.
 Wealth consists of those items of economic
value that an individual owns, while income
is an inflow of items of economic value
Culture
 A complex whole which includes
knowledge, belief, art, morals, law, customs
and other capabilities and habits acquired by
man as a member of society
- Edward Taylor
Relationship among values,
attitudes, behavior, and performance
• Values
• What is best

• Attitudes
• What you think

• Behavior
• What you do

• Performance
• Accomplishment of a given task
 New Culture Influences
Organizational Culture
 Utang na loob
 Loyalty, Commitment, Pakikissama
 Pakiusap and Bigayan Process
 Kinship
 Pagdamay
 How Culture Influences
Organizational Culture
 Performance orientation
 Uncertainty avoidance
 Humane orientation
 In-group collectivism
 Assertiveness
 Gender egalitarianism
 Future orientation
 Power distance
Social Responsibility
 Is the obligation of organization’s
management to make decisions and take
actions that will enhance the welfare and
interests of society as well as the
organization
Social Responsibility
 Traditional View  Modern View
“the business of The establishment and
business is business.” development of
business depends upon
the contribution made
by the society
 Social Responsibility of Business
Towards Different Sections of
Society
 Towards owners and stakeholders
 Towards employees
 Towards customers
 Towards government
 Towards suppliers
 Towards inter-business
 Towards Community
 Towards owners and
stakeholders
 To safeguard the capital
 A fair return on investment
 To ensure proper utilization of invested
capital
 Timely payment of dividend
 Provide full & accurate information
regarding business
Towards employees
 Providing fair wages
 Proper selection, training and promotion
 Ensuring health, safety and comfortable
working conditions
 Education of employees
 Participative management
 Providing an efficient complaint handling
system
Towards customers
 True and fair information through advertisements
 Charge reasonable prices
 Avoid black marketing
 To manufacture the product according to the needs of
customers
 Increase productivity
 Improve quality and services
 Smoothen the distribution system
 To ensure product has no adverse effects on
consumers
 To provide opportunity to consumers for making
complaints and to handle the genuine complaints.
Towards government
 To fulfill all legal requirements
 To pay its dues and taxes other state fully and
honestly
 To not purchase political support by unfair
means
 To sell his goods, commodities and services
without adulteration at fair and reasonable
prices, and
 To avoid monopoly
 To avoid corrupting
Towards Suppliers
 To develop and maintain healthy relations
with suppliers
 Dealing with suppliers should be on fair
terms and conditions
 Payment should also be made on time
Towards inter-business
 Provide healthy cooperative business
relationship between different business
 Prevention of unfair and unethical
competition and unfair interference in the
rival’s business
 Not to spread false rumors about rival’s
product
 Not to show unethical advertisement
 Not to create artificial scarcity
Towards community
 Taking appropriate steps to prevent
environmental pollution and preserve
ecological balance
 Assisting in over all development of locality
 Taking steps to conserve scarce resources
 Improving the efficiency of business
operation
 Transportation

Housing In the field of

Facilities agriculture

Towards
community

Health and In the field of

education industry
 Major arguments for and
against social responsibility
FOR AGAINST
 Dependence of business on  Violation of profit
society, long run profit maximization
 Public image  Ignoring the main objective,
 Better environment lead to increase in prices
 Harmonious and healthy  Lack of accountability
relation with the society
 Balance of responsibility
and power
Ethics
 It is a study of right and wrong moral laws
and regulations.

Ethical Behavior
 Means honesty, confidence, respect and fair
acting in all circumstances.
 Ethical Philosophies
One component of the change to a concern
with social responsibility and accountability
has been the recognition or reinstatement of
the importance of ethics organization activity
and behavior.
 Deontological Ethics
According to deontological certain actins are
right or wrong in themselves and so there are
absolute ethical standard which needs to
upheld
Teleological ethics
Teleological theory distinguishes between
“the right” and “the good” with the “right”
encompassing those actions which maximize
“the good”.

Utilitarianism
Is based upon the premise that the outcomes
are all that matter in determining what is good
and that the way in which society achieves its
ultimate good is through each person pursuing
his/her self interest.
Ethical Relativism
May be further subdivided into;
1. Conventionalism
2. Conventional

Ethical Objectivism
There are two variants of ethical
objectivism.
1. Strong
2. Weak
Corporate Behavior
 Involve legal rules, ethical codes of conduct
and social responsibility principles
 CSR

Components
of Corporate
Behavior

ETHICS LAW
The Corporate Behavior
Pyramid
Social
Responsibility

Ethical

Legal

Corporate Behavior
State
 A nation or territory considered as an
organized political community under one
government.
 Is a community of persons more or less
numerous occupying a definite portion of
territory completely free of external control
and possessing an organized government to
which a great body of inhabitants render
habitual obedience.
 Philippine Constitution (1987)
Preamble
We, the sovereign Filipino people, imploring the
aid of Almighty God, in order to build a just
and humane society and establish a
Government that shall embody our ideals and
aspirations, promote the common good,
conserve and develop our patrimony, and
secure to ourselves and our posterity the
blessings of independence and democracy
under the rule of law and regime of truth,
justice, freedom, love, equality, and peace, do
ordain and promulgate this constitution.
State Power
 Police Power
- is the power of promoting the general welfare by
restraining and regulating the use of liberty and
property. Basis is the latin maxim salus populi est
suprema lex (the general welfare is the supreme
law)
 Taxation
- it means the state is able to demand from the
members of the society their proportionate share or
contribution in the maintenance of the government.
 Eminent Domain
- enables the State to acquire private property upon
payment of just compensation for some intended
public use.
 Four Essential Element of a
State
1. Territory
2. People
3. Government
4. Sovereignty
Functions of Government
 Constituent Functions
 Compulsory Functions
 Ministrant Functions
 Discretionary Functions
Impact on Organizations
 Legal
 Economic
 National Defense and Security
 Environmental Protection
 Foreign Affairs
 Social and Cultural
Political Parties
They are the voluntary organizations made up
of members with broadly similar views that
seek to form Government through securing the
election of its candidates.

Pressure Groups
They are the organizations whose members all
share common interests and goals, and they
wish to influence Government to attain these
goals
Types of Pressure Groups

1. Interest and Cause Groups

2. Insider and Outsider Groups
Interest and Cause Groups
 Interest Group  Cause Group
a pressure group that a pressure group that
exists to advance or exists to advance
protect the interests of particular values, ideals
its members and principles
Insider and Outsider Groups
 Insider Group  Outsider Group
a pressure group that a pressure group that
enjoys regular, is either not consulted
privileged and usually by government or
institutionalized consulted only
access to government irregularly
 Comparison
POLITICAL PARTIES PRESSURE GROUPS
 Seek to win power  Seek to exert influence
 Broad issue focus  Narrow issues focus
 Shared preferences  Shared
interests/common
causes
 How do POLITICAL How do PRESSURE
PARTIES influence policy GROUPS influence policy
formulation? formulation?
 Try to be elected  Lobby key policy makers
 Work alongside pressure  Fund parties
groups  Civil disobedience
 Create policy when in  Distribute leaflets
power  Media
 Boycott political  Demonstrating
engagements