Sphere of Influence in Business
10 Questions
0 Views

Choose a study mode

Play Quiz
Study Flashcards
Spaced Repetition
Chat to lesson

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

What best describes areas classified under the sphere of control?

  • Areas where a company can make direct decisions and implement practices. (correct)
  • Areas where a company has no accountability or decision-making power.
  • Areas that require external collaboration and partnerships.
  • Areas that a company can impact indirectly through advocacy.

    • Which of the following is an example of the sphere of influence?

  • Implementing strict data security measures.
  • Promoting a diverse workplace culture.
  • Partnering with suppliers for sustainable sourcing. (correct)
  • Advocating for climate change policies.

    • How is the sphere of concern defined?

  • Issues beyond direct control that can still affect operations and society. (correct)
  • Issues that a company can directly manage and influence.
  • Concerns that are easily addressed through internal policies.
  • Areas that have minimal relevance to company operations.

    • Which belief is a common misconception concerning the sphere of concern?

    <p>They are entirely beyond influence and should not be engaged with.</p> Signup and view all the answers

    Which of the following actions represents a company's Sphere of Influence?

    <p>Running campaigns to educate customers on recycling</p> Signup and view all the answers

    What does the Sphere of Concern encompass for a business?

    <p>Large-scale issues like climate change and income inequality</p> Signup and view all the answers

    Which statement best reflects the essence of ISO 26000?

    <p>It defines social responsibility through ethical behavior and societal impacts.</p> Signup and view all the answers

    What is the core stakeholder group typically identified in a company's sphere of influence?

    <p>Employees</p> Signup and view all the answers

    What does the proximity principle suggest about a company's responsibility?

    <p>Responsibility is greater when a company is closer to impacted stakeholders.</p> Signup and view all the answers

    What is included in a company's sphere of control?

    <p>Company policies and internal processes.</p> Signup and view all the answers

    Study Notes

    Sphere of Influence

    • Businesses impact the world through various relationships, visualized as expanding circles
    • Workplace at the core, followed by supply chain, marketplace, community, and government
    • Further away from the core represents less direct influence

    Defining the Sphere of Influence

    • Mapped by identifying affected stakeholder groups
    • Employees typically at the center
    • Business partners, suppliers, trade unions, local communities, and customers follow
    • Government and wider society are the outermost groups

    Defining the Sphere of Control

    • Areas where a company has complete control and can make direct decisions
    • Includes internal processes, company policies, and immediate operational activities
    • Example: Sustainable practices within manufacturing processes

    Defining the Sphere of Concern

    • Issues beyond a company's direct control and influence, but with significant impact
    • Examples include climate change, income inequality, and social justice issues
    • Companies can contribute through awareness campaigns, policy advocacy, and community engagement

    Sphere of Control, Influence, and Concern Comparison

    • Sphere of Control: Directly controlled areas like internal processes, company policies, and immediate operational activities
    • Sphere of Influence: Areas where a company can make an impact indirectly through relationships, partnerships, and advocacy
    • Sphere of Concern: Issues beyond direct control and influence but still affecting operations and society

    Examples of Each Sphere

    • Sphere of Control: Implementing energy-efficient practices in facilities, enforcing strict data security measures, promoting diversity & inclusion within the workplace
    • Sphere of Influence: Partnering with suppliers to ensure sustainable sourcing, launching customer education programs on recycling & sustainability, collaborating with other businesses to advocate for industry-wide ethical standards
    • Sphere of Concern: Advocating for policies that address climate change, supporting community initiatives aimed at reducing poverty, participating in global efforts to promote human rights and social justice

    Proximity Principle

    • Influence is often related to how close a company is to affected stakeholders
    • The nearer a company is, the greater its responsibility and ability to make positive change

    Size and Reach

    • Larger companies typically have broader influence due to extensive operations and resources

    ISO 26000

    • Defines Social Responsibility (SR) as the responsibility of an organization for the impacts of its decisions and activities on society and the environment through transparent & ethical behavior
    • Contributing to sustainable development, health, and societal welfare
    • Considering stakeholders' expectations
    • Complying with laws and international norms
    • Integrating and practicing these principles throughout the organization and its relationships
    • Sphere of Influence is a major concept in ISO 26000, mentioned 34 times

    Widespread Impact of Responsibilities

    • Businesses have a responsibility not just to avoid causing harm, but to actively promote good
    • Responsibilities extend beyond immediate operations to include their broader network of suppliers, partners, and the communities they affect

    Impact-Based Responsibilities

    • Avoiding Negative Impacts: Ensuring actions do not cause harm, involves strict policies to prevent pollution and health risks
    • Creating Positive Impacts: Contributing to social and environmental well-being, investing in renewable energy, supporting community projects, adopting fair trade practices

    Leverage-Based Responsibilities

    • Preventing Negative Impacts Through Influence: Using influence to ensure partners and suppliers don't engage in harmful practices, setting high ethical standards
    • Encouraging Positive Impacts Through Influence: Promoting positive changes by encouraging partners and suppliers to adopt better practices, pushing for greener technologies, supporting education and health initiatives
    • Key Takeaways:
      • Think of an organization's impact as a series of expanding circles, with the workplace at the core
      • The further from the core, the less direct control the organization has
      • Sphere of Control: Directly controlled areas, Sphere of Concern: Issues beyond direct control, Sphere of Influence: Indirect impact through relationships
      • Proximity Principle: The closer a company is to affected stakeholders, the greater its responsibility
      • Larger companies typically have a wider sphere of influence
      • Companies can and should address issues at multiple levels simultaneously

    Studying That Suits You

    Use AI to generate personalized quizzes and flashcards to suit your learning preferences.

    Quiz Team

    Related Documents

    Chapter 8: Corporate Responsibility & Sphere of Influence PDF

    Description

    Explore the concept of the sphere of influence in business, detailing how various relationships impact different stakeholder groups. This quiz covers the spheres of influence, control, and concern, illustrating the levels of impact from the workplace to wider society.

    More Like This

    Use Quizgecko on...
    Browser
    Open
    Browser
    Browser