Markets, Governments, Organizations

Summer 2020 Geoff Eve geve@trentu.ca

Module 1: Part III

• Solving Public Problems

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Organizations
• There are types of organizations such as grassroots, not-for-profits, charities, even government
that are in society providing public good
• But, they can face obstacles such as fundraising, volunteer recruitment, leadership
• Society doesn’t trust business much more than government, but they still want them to solve
problems, since business has money (money=power/influence) and technology
• Social norms and expectations change (activism through social media, a cheap and easy
method), can negatively affect an organization brand image, loyalty, customer support if
organizations don’t respond
• Investors, stakeholders may also pressure business to rethink their purpose of a corporation

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Solving Public Problems
• Public Problems – in this course we will explore issues of fairness and equality in our markets,
governments, organizations, work and income, health and education, environment
• Government is seen by society as inefficient, corrupted (lobbying), politician self-interest, infighting – society
has lost trust
• Some issues (climate change, trade, health, income inequality and poverty, precarious employment and
outsourcing (automation and AI), Big Data, finite resources) are a global concern – need collaborative
effort with other countries (United Nations) and work with non-governmental organizations
• Governments should be helping to fulfill citizens needs, protect from harm – regulate citizens, other
organizations (business) to force solutions to issues
• Offer “better” public solutions – free healthcare and education, basic income
• Market Solutions? Entrepreneurs and innovators – create products and services; consumer activism and
boycotts (plastics) and demand solutions (energy efficient, recycled products) – innovation drives Capitalism
• Society? Market solutions (Consumer), but personal lifestyle choices as well (materialistic vs. minimalist),
conspicuous consumption
• What about Business?
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“Woke” Capitalism
• Woke – alerted to social injustice
• In times of crises and injustices, people look to their leaders to guide them through tough times and make
decisions to solve these issues
• Capitalism was arguably already in crisis for many reasons (more on this in Module 2), but COVID has
added stress on this System that has been embraced by many countries in the world
• Society wants responsible leadership in organizations – we want to trust, but also become cynics when
organizations try to “do good”
• Some Businesses are speaking up and supporting solutions to public problems (Dick’s Sporting Goods on
limiting firearm sales, Nike Take a Knee, Pepsi Black Lives Matter, Bell Let’s Talk) – going beyond the
Milton Friedman belief about the only responsibility for business is profits – listen to and value stakeholders
• Society (Consumers) support business that support certain political views, social and environmental causes
• COVID crisis – manufacturers switching their production to health supplies (repeat of WWII)
• Organizations are rethinking their purpose – reframing their capabilities, operations and relationships with workers,
customers, suppliers, stakeholders
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