Relationship Between Corporate Policy and Strategic Management, Essay Example

Abstract

The ability to manage the relationship between corporate policy and strategic management has become a core tenant to corporations.  This need to manage social, ethical, public and global factors has increased with the expansion of many organizations moving to a global operation basis.  Public affairs is also increasing as the need to manage an organization’s persona is increasing with the impact it has on the organization’s marketability.  Risk mitigation and ensuring the best economic environment revolves around the ability to have crisis and issue management capabilities ingrained within the organization.

Keywords: Corporate Policy, Strategic Management, Public Affairs, Crisis and Issue Management

Management Assignments

Question 1: Explain the relationship between corporate public policy and strategic management.  Corporate public policy is influenced by social, ethical, public and global factors that influence the organizations policies and their strategic view on garnering shareholder wealth as well as maintaining good relations with the public.  The corporate public policy is how an organization defines itself to outside entities based on the social, ethical and public persona the organization wants to emulate.  These values play a critical role in the strategic management, purpose of the organization, as well as how the organization makes their decisions.  The public policy and strategic management come together as a form of governance and basis for values and integrity of the organization.

Question 2: Which of the four strategy levels is most concerned with social, ethical or public issues? Discuss the characteristics of this level.  The enterprise-level strategy level is the primary focus for social, ethical and public issues because at this level the organization is defined.  This definition is the basis for what the organization is and what their social, ethical and public responsibilities encapsulate.  This is the level in which the governance is defined and where accountability is established.

Question 3: Identify the steps involved in the strategic management process.

1. Goal Formulation
2. Strategy Formulation
3. Strategy Evaluation
4. Strategy Implementation
5. Strategy Control
6. Environmental Analysis

Question 4: What is the difference between a social audit and a social performance report? Why are social performance reports increasing in popularity?  Auditing and performance reporting are two tools that help monitor and control processes.  There are three steps in monitoring and controlling including: setting standards, measuring performance to the standard and taking actions to become effective or efficient against those standards.  Social audits are used to plan and control an organization’s performance in respect to social efforts, goals and other programs the organization is utilizing for social responsibility.  The social audits are structured and performed based on a specific set of instructions.  Social performance reports are less structured and do not require the rigor that an audit encompasses.  Social performance reports can report progress on set goals or they can report out on activities that the organization has undertaken in the realm of social consciousness.  The social performance reports are increasing in popularity because they are easier to accomplish, can be structure in the way the organization wants information presented and still provide information on the social responsibility of the organization.

Question 5: What is the difference between public relations and public affairs? Why is there confusion regarding these two concepts?  Public affairs is the overall management of corporate public policy.  Public affairs is the functional area of public policy that is an integral part of the strategic management of the organization.  The two areas of public relations and public affairs are often confused based on the perception of what public affairs contributes to the organization.  Public relations includes the actions taken to maintain the organizations governance and public persona while the public affairs is an institution within the organization that plays a direct role in the management and development of the strategic intent of the organization.

Question 6: Why do you think global public affairs is a major growth area? Give specifics for your answer.  Public affairs is continually growing as a keystone in strategic management based on the increase involvement of organizations in the governmental interactions, changing political systems, influence of corporations on the societal arena and increased interactions with community related aspects.  Global public affairs is growing based on the global economic environment and the need to interact across the globe to be successful.  The expansion into new markets, prioritization of supply chain needs, distribution actions globally, new business acquisition and corporate influence on a global scale all influence the global public affairs growth.

Question 7: Differentiate between collaborative or problem solving strategy and individualistic or adversarial strategy. Which seems to be more effective in corporate public affairs?  Collaborative/problem-solving strategy emphasizes long-term relationships and a focus on resolution of issues impacting the organization.  This is done through the inclusion of external entities to help provide a solution to the issues.  Individualistic/Adversarial strategies refuse to accept that legitimacy of the social claims on their business models.  The most effective organizations use the collaborative model and this is a direct influence on the corporate public affairs governance.

Question 8: What are the major ways in which public affairs might be incorporated into every manager’s job?  Rank them in terms of what you think their impact might be.  Public affairs needs to show a benefit to the manager.  This can be accomplished by providing a relevancy to the manager showing impacts to their section based on these influences.  The goals and objectives could be tied to social responsibility and thus push the public affairs governance to the forefront of the manager’s prioritized list.  The manager should also own their area of the public affairs matrix.  This allows the manager to take the appropriate actions to achieve the goal and objectives.  The most important area is to time the strategy of the public affairs to the goals of the manager.  The key performance indicators will drive action of the manager.

Question 1:  Which of the major stages in the issues management process do you think is the most important? Why?

• Identification of Issue
• Analysis of Issue
• Ranking or Prioritization of the Issue
• Formulation of Issue Responses
• Implementation of Issue Responses
• Evaluation, Monitoring and Control of Results

The most important is the identification of the issue.  Without proper identification of the issue there could not be a response/resolution.  While all are imperative, understanding the problem is the only way to solve it.

Question 2: Following the approach indicated in Figure 6-1, identify a new issue category not listed in Figure 6-1.  Identify several examples of “crises” that have occurred in recent years under each issue category.

Food-Skittles recalled based on unknown substance in their product that caused multiple people to go to the hospital.

Health-Flu outbreak in 2013-2014 season

Corporate-Blackwater scandal with contractors killing Iraqi civilians

Question 3: Identify one example, other than those listed in Figure 6-4, of each of the leading force categories: events, authorities/advocates, literature, organizations, and political jurisdictions.

• Events: Flu Outbreak in the U.S. during 2013/2014 season-Public Health/Safety
• Authorities/Advocates: Surgeon General Boris D. Lushniak
• Literature: “Getting a Flu Vaccine is a Safe Way to Prevent Serious Illness”
• Organizations: CDC-Center for Disease Control
• Political Jurisdictions: United States

Question 4: Identify a crisis that has occurred in your life or in the life of someone you know, and briefly explain it in terms of the four crisis stages: prodromal, acute, chronic, and resolution.  There is a crisis where a friend of mine returned from deployment overseas and was facing issues during the re-acclimation process.  During the prodromal state, he started to act aloof and did not take part in the same activities that brought him enjoyment prior to leaving.  The acute crisis stage is when he lost his job due to depression and not being able to perform his duties.  He hid the fact that his depression was impacting his life and it ultimately made him lose his job.  During the chronic stage he could not regain the employed and fell into a deeper depression with a sense of worthlessness.  Through the help of family and friends, he was able to begin treatment on his depression and eventually regained control of the debilitating depression.

Question 5: Do research on the impacts on business organizations of the attacks on the World Trade Center in New York and the scandals of the early to mid-2000’s. What have been successful and unsuccessful examples of crisis management that have come out in this research?  Is terrorism a likely crisis for which business may prepare?  How does preparation for terrorism (which comes from without) compare with preparation for ethical scandals (which comes from within)?  Successful crisis management came in the form of support for those that experienced the horrific events on 9/11.    Each individual in the United States was impacted in a certain way during those attacks.  The management of the actual events and aftermath followed the path of the five practical steps for managing a crisis.  This was a vital component in managing the crisis and extending a directed effort into resolution as opposed to other negative actions.  The unsuccessful aspects of the terror attacks revolve around communication.  The communication efforts were decentralized and sources of the truth were coming from a variety of sources and directions.  This caused a state of chaos and provided a haze over what was true and what was false.  Terrorism is a likely crisis in which a business must prepare.  Contingency planning is important to be able to mitigate the risks associated with doing business.  Preparation for terrorism is different from preparation for ethical scandals due in part to the focus of the risk. The external risk is more of a defense against an unpredictable force that would require redundancy for safety, data integrity and operations while the ethical scandal, while still having a great negative impact, is mitigated through policies, procedures, and governance.

References

Center for Disease Control. (2014). Seasonal influenza. Retrieved from: http://www.cdc.gov/flu/freeresources/print-general.htm

Dougall, E., (2008). Issues management. Retrieved from: http://www.instituteforpr.org/essential_knowledge/detail/issues_management/

Project Management Institute. (2008).A Guide to the Project Management Body of Knowledge (PMBOK Guide) Fourth Edition. Newtown Square, PA.