Business & Society Cheatsheet

Cheatsheet Content

### Chapter 1: The Corporation and Its Stakeholders #### Business and Society Relationship - **Interactive Social System:** Business and society mutually influence each other. - *Example:* Taxes fund public services; public opinion shapes business ethics. - **General Systems Theory:** Business is an open system, transforming societal resources. - *Example:* Car manufacturers use raw materials to produce vehicles. - **Separate Legal Entity:** Corporations have independent legal standing. - *Example:* A company can sue or be sued, distinct from its owners. #### Stakeholders - **Definition:** Groups affecting or affected by a firm's decisions. - *Example:* Employees (affected by wages), environmental groups (influence pollution policies). - **Market Stakeholders:** Direct economic exchange. - *Examples:* Customers, Employees, Suppliers, Shareholders, Competitors, Creditors. - **Non-Market Stakeholders:** Indirect influence. - *Examples:* Government (as regulator), Community, Media, NGOs, Trade unions, Public. - **Interests:** Often diverse and conflicting. - *Example:* Customers want low prices, employees want high wages, shareholders want high profits. #### Stakeholder Analysis Framework (4 Steps) 1. **Identify Stakeholders:** Who impacts/is impacted? *Example:* New factory affects local residents, environmental agencies. 2. **Determine Interests:** What does each want? *Example:* Residents care about noise; agencies about air quality. 3. **Assess Power:** How much influence? *Example:* Residents might protest; agencies can issue fines. 4. **Evaluate Coalitions:** Who might team up? *Example:* Residents might partner with environmental NGOs. #### Stakeholder Power (5 Types) - **Power:** Ability to influence the company. - **Voting Power:** Shareholders elect directors. *Example:* Activist shareholders vote against a merger. - **Economic Power:** Customers boycott. *Example:* Consumers stop buying from unethical brands. - **Legal Power:** Stakeholders sue. *Example:* Community group sues for environmental damage. - **Political Power:** Lobbying. *Example:* Industry association lobbies against new regulations. - **Informational Power:** Media exposure, whistleblowers. *Example:* Whistleblower leaks corporate misconduct. #### Stakeholder Salience Model (Power + Legitimacy + Urgency) - **Framework:** Prioritizes stakeholders by attributes. - **Power:** Ability to influence. - **Legitimacy:** Perceived validity of claim. - **Urgency:** Claim requires immediate attention. - **Classification:** - **Latent Stakeholders (1 attribute):** Low salience. *Example:* An unorganized consumer group. - **Expectant Stakeholders (2 attributes):** Moderate salience. *Example:* A local group with a legitimate concern. - **Definitive Stakeholders (3 attributes):** High salience, priority. *Example:* A union representing striking workers. #### Purpose of the Modern Corporation - **Shareholder Theory:** Maximize shareholder value. *Example:* Company focuses solely on increasing stock price. - **Stakeholder Theory:** Serve broader societal purpose, considering all stakeholders. *Example:* Patagonia prioritizes sustainability alongside profit. - **Fiduciary Duty:** Legal obligation to act in another's best interest. *Example:* Board of directors has duty to shareholders. #### Stakeholder Mapping - **Definition:** Visual representation for engagement strategies. - **Power-Interest Grid:** Plots stakeholders by power and interest. - **High Power, High Interest:** Manage Closely. *Example:* Key investors, regulatory bodies. - **High Power, Low Interest:** Keep Satisfied. *Example:* Passive large institutional investors. - **Low Power, High Interest:** Keep Informed. *Example:* Local community groups. - **Low Power, Low Interest:** Monitor. *Example:* General public opinion. ### Chapter 2: Managing for Stakeholders #### Forces Shaping Business and Society 1. **Changing Societal Expectations:** Public demands ethical business. *Example:* Consumers prefer brands with strong ESG. 2. **Growing Emphasis on Ethics:** Increased moral scrutiny. *Example:* Public outrage over corporate fraud. 3. **Globalization:** Interconnectedness brings new markets, risks. *Example:* Supply chain disruptions from political instability. 4. **Evolving Government Regulation:** New laws shape business. *Example:* GDPR introduced strict data privacy rules. 5. **Natural Environment Concerns:** Climate change, resource depletion. *Example:* Pressure to reduce carbon emissions. 6. **Explosion of Technology and Innovation:** AI, automation reshape industries. *Example:* AI transforms customer service via chatbots. #### Public Issues & Issue Management - **Public Issue Definition:** Mutual concern between organization and stakeholders, requiring company response. *Example:* Data privacy for social media. - **Performance-Expectation Gap:** Difference between stakeholder expectations and actual delivery. *Example:* VW's emissions scandal created a huge gap. #### Types of Public Issues (3 Categories) - **Societal Issues:** Affecting whole society. *Example:* Mental health, fake news. - **Scientific/Technological Issues:** New tech creates ethical/safety questions. *Example:* AI, gene editing, data privacy. - **Economic Issues:** Business decisions affecting jobs, inflation. *Example:* Retrenchments, monopolies. #### Issue Management Process (5 Steps) 1. **Identify Issue:** Track media, public sentiment. *Example:* Recognizing employee unhappiness. 2. **Analyze Issue:** Understand implications, stakeholders. *Example:* Retrenchment affects employees, unions, government. 3. **Generate Options:** Develop possible solutions. *Example:* Retrain staff, stagger layoffs. 4. **Act (Implementation):** Choose and execute solution. *Example:* Conduct fair retrenchment process. 5. **Evaluate Results:** Monitor, adjust. *Example:* Assess plastic waste reduction. #### Stakeholder Engagement - Involving stakeholders in decision-making. *Tools:* Surveys, roundtables, public consultations. #### 8 Strategic Radar Screens - Scan environment for potential issues. 1. **Customer:** Preferences, demographics. *Example:* Rising demand for sustainable products. 2. **Competitor:** Strategies, technologies. *Example:* TikTok competing with Instagram. 3. **Economic:** Inflation, unemployment. *Example:* Recession leads to layoffs. 4. **Technological:** New tech, disruptions. *Example:* AI replacing jobs; deepfakes. 5. **Social:** Cultural values, attitudes. *Example:* Expectations of diversity, gender equality. 6. **Political:** Government priorities, party changes. *Example:* US-China tensions affecting supply chains. 7. **Legal:** New laws, regulations. *Example:* EU General Data Protection Regulation (GDPR). 8. **Geophysical:** Climate, natural disasters. *Example:* Floods disrupting supply chains. #### Why Public Issues Matter - **If Ignored:** Lawsuits, new regulations, loss of reputation, employee turnover, consumer boycotts, reduced shareholder confidence. - **If Managed Well:** Competitive advantage, resilience, stakeholder trust, stronger brand, higher morale. - **Benefits:** Reduces conflict, improves trust, minimizes backlash, early problem detection. - **Modern Twist:** Social media offers real-time engagement but risks viral backlash if mishandled. ### Chapter 3: Corporate Social Responsibility and Citizenship #### Corporate Social Responsibility (CSR) - **Iron Law of Responsibility:** Lose power if used irresponsibly. *Example:* Corporate greed leads to public backlash. - **Definition:** Business has responsibilities beyond profit, considering impact on employees, customers, community, environment, society. CSR = "Do well by doing good." *Example:* Bank invests in financial literacy programs. - **Enlightened Self-Interest:** "Doing well by doing good" leads to long-term gains. *Example:* Employee well-being reduces turnover. - **Corporate Citizenship:** How a company puts CSR into action (environmental practices, labor, product safety). *Example:* Unilever uses sustainable palm oil sourcing. #### The Four Responsibilities of Business (CSR Pyramid) 1. **Economic:** Be profitable, produce wanted goods/services. *Example:* Shopee selling affordable products. 2. **Legal:** Obey all laws and regulations. *Example:* Food safety regulations, labor laws. 3. **Ethical:** Do what is right, fair, just, even if not legally required. *Example:* Google restricting unethical AI applications. 4. **Philanthropic:** Be a good corporate citizen; donate, volunteer. *Example:* DBS Bank running financial literacy programs. #### Arguments FOR CSR 1. **Reputation and Brand Value:** Gain trust. *Example:* Patagonia boosts sales through environmental activism. 2. **Avoids Regulation:** Reduces chance of strict government laws. 3. **Better Stakeholder Relationships:** Employees, customers, investors prefer ethical businesses. 4. **Long-term Profitability:** Reduces waste, increases efficiency. 5. **Ethical Obligation:** Businesses should give back to society. #### Arguments AGAINST CSR 1. **Lack of Expertise:** Businesses not trained to solve social problems. 2. **Increased Costs:** Can be expensive. *Example:* Switching to sustainable packaging. 3. **Distracts From Main Purpose:** May reduce competitiveness. 4. **Role of Government:** Social issues should be handled by public officials. #### CSR Stages (4 Stages) 1. **Philanthropy:** Basic giving. *Example:* Sponsoring events. 2. **Risk Management:** Avoid scandals/accidents. *Example:* Safety training. 3. **Strategic:** CSR integrated with business goals. *Example:* Tesla aligns sustainability with business purpose. 4. **Sustainability (highest):** Transforming entire business systems. *Example:* Microsoft aims for carbon negative by 2030. #### Social Auditing and Reporting - Companies publish sustainability goals, carbon emissions, social impact, labor practices. *Main motivator:* Ethical concerns, not financial. #### How CSR Shows Up in Exams - Assess why companies need to act responsibly, if behavior meets ethical/CSR standards, how CSR prevents performance-expectation gaps, when CSR increases/decreases stakeholder support. ### Chapter 4: Globalization #### What is Globalization? - Movement of goods, services, money, people, and information across borders, making countries more connected. Creates global operations, access to global products, cross-border jobs, and government coordination. #### Benefits of Globalization 1. **Increased Efficiency & Productivity:** Cheaper materials and labor. *Example:* Apple produces in China. 2. **Access to Global Talent & Markets:** Enter new countries. *Example:* Grab expanding into Vietnam. 3. **Foreign Direct Investment (FDI):** Multinational corporations bring money, tech, jobs. *Example:* Dyson moving HQ to Singapore. 4. **Innovation Spread Faster:** Technology flows quickly. #### Costs of Globalization 1. **Job Insecurity:** Production moves to cheaper locations. *Example:* US factories shifting to China. 2. **Weak Labor Standards:** Exploitation in developing countries. *Example:* Sweatshops. 3. **Race to the Bottom:** Countries lower taxes, wages, or regulations to compete. 4. **Cultural Erosion:** Local culture replaced by global brands. #### Global Wealth & Power Inequalities - **Wealth Inequality:** Unequal distribution of income/assets across nations. - **Power Inequality:** Wealthier countries gain more influence over trade rules, global institutions, tech access. *Example:* G7 nations influence global finance more than developing nations. #### International Institutions - **World Bank:** Long-term loans for development (e.g., infrastructure). - **International Monetary Fund (IMF):** Stabilizes global currencies, provides emergency loans. - **World Trade Organization (WTO):** Sets global trade rules, prevents unfair trade. *Most-Favoured-Nation (MFN) rule:* Treat all trading partners equally. #### Bottom of the Pyramid (BOP) - People earning very low incomes ( ### Tripartism in Singapore #### What is Tripartism? - Cooperation between 3 groups: **Government** (MOM), **Employers** (SNEF), **Workers** (NTUC). - Work together to maintain good labor relations, solve workplace issues, respond to crises, support national economic goals, prevent strikes. - **Why Singapore uses it:** Small, open economy depends on stability and foreign investment. #### Roles of Each Tripartite Partner - **A) Government - Ministry of Manpower (MOM):** Creates labor laws, ensures fair treatment, protects workers, enforces Employment Act, ensures fair retrenchment, provides employment support. *Example:* Issued Fair Retrenchment Guidelines during COVID-19. - **B) Employers - Singapore National Employers Federation (SNEF):** Represents employers, helps follow fair practices, advises on HR policies, promotes productivity. *Example:* Helps firms implement flexible work arrangements. - **C) Workers - National Trades Union Congress (NTUC):** Protects workers' rights/welfare, represents workers in disputes, negotiates collective agreements, helps upskill workers (e2i), ensures fair wages. *Example:* Negotiated redeployment for workers at Marina Bay Sands. #### Tripartism Institutions - **TAFEP:** Promotes fair hiring (no discrimination). - **NWC:** Issues annual wage guidelines. - **e2i:** Supports worker training and upskilling. - **WSG:** Supports jobs, training, employment matching. - **STF:** High-level platform for discussions. #### Why Tripartism Works in Singapore - **Strong trust** among all parties. - **Shared national goals** (economic growth, job security). - **Non-adversarial approach** (dialogue over protest). - **Supported by institutions** (TAFEP, NWC, WSG, MOM inspections). #### Achievements of Tripartism - **2008/2009 Global Financial Crisis:** Avoided mass layoffs through wage cuts and retraining (SPUR programme). - **COVID-19:** Protected jobs via Jobs Support Scheme + NTUC initiatives. - **Murata Factory Case:** Saved 300 local jobs through negotiation. - **Low strike rate:** Singapore has one of the world's lowest. ### Chapter 7: Corporate Governance #### Corporate Governance - **Definition:** System of rules guiding company direction and control. *Example:* Framework outlines decision-making and accountability. - **Purpose:** Accountability, fairness, transparency; long-term shareholder value. *Example:* Prevents conflicts of interest and ensures fair treatment. #### Board of Directors - **Role:** Oversee management, represent shareholder interests. *Example:* Board approves strategic plan. - **Responsibilities:** Fiduciary duty, strategy oversight, risk management. *Example:* Board reviews CEO's annual bonus. - **Composition:** - **Inside Directors:** Company executives. *Example:* CEO on the board. - **Outside Directors:** Non-employees, external perspective. *Example:* Retired industry veteran. - **Independent Directors:** No material relationship, objective. *Example:* Challenges management's acquisition. - **Committees:** Audit, Compensation, Governance. *Example:* Audit Committee oversees financial reporting. #### Shareholders and Directorship - **Shareholder Rights:** Voting, information, dividends, right to sue. *Example:* Shareholders vote on mergers. - **Directorship:** Role/responsibilities of board service. *Example:* Directors attend meetings, review financials. #### Executive Compensation - **Components:** Salary, bonus, stock options. *Example:* CEO receives salary plus performance-tied stock. - **Debate:** Fairness, performance link, pay ratios. *Example:* Public criticism when CEO pay rises while wages stagnate. #### Shareholder Activism - **Definition:** Shareholder actions to influence company behavior. *Example:* Hedge fund pushes for asset sales. - **Methods:** Proxy votes, resolutions, public campaigns. *Example:* Resolution demands carbon reduction targets. #### Corporate Governance Reforms - **Sarbanes-Oxley Act (SOX) 2002:** Enhanced financial reporting, accountability. *Example:* CEOs certify financial statement accuracy. - **Dodd-Frank Act 2010:** Increased financial regulation, consumer protection. *Example:* Introduced "say-on-pay" rights for shareholders. #### Business-Government Relations - **How Business and Government Relate:** - **Collaborative Partnership:** Government cooperates with business. - **Opposition:** Goals conflict, leading to adversarial relationship. - **Legitimacy Issues:** Companies may encounter governments whose right to power is questioned. #### Government’s Public Policy Role - **Public Policy Definition:** Government plan of action for broad purposes. *Example:* Healthcare reform. - **Elements:** Inputs (external pressures), Goals (objectives), Tools (incentives/penalties), Effects (outcomes). #### Types of Public Policy - **Economic Policies:** Fiscal (collecting/spending), Monetary (currency supply/value), Taxation (adjusts taxes), Industrial (directs resources), Trade (encourages/discourages trade). - **Social Assistance Policies:** Concerns social services. *Example:* Education funding. #### Government Regulation of Business - **Regulation:** Government action to establish rules of conduct. - **Reasons for Regulation:** - **Market failure:** Market fails to adjust for true costs. *Example:* Pollution. - **Negative externalities:** Unintended costs. *Example:* Factory noise. - **Natural monopolies:** Firms could raise prices without competition. *Example:* Electric utilities. - **Ethical arguments:** Fairness issues. *Example:* Minimum wage laws. #### Types of Regulation - **Economic Regulations:** Modify free market operations. - Control prices/wages, allocate resources. *Example:* Dodd-Frank Act (post-2008 crisis) increased financial oversight. - **Antitrust (competition) laws:** Prohibit unfair, anticompetitive practices. - **Price-fixing:** Competitors agree on prices. *Example:* Two phone companies selling the same phone at $1,000. - **Bid-rigging:** Companies collude on contract bids. *Example:* Construction companies coordinating bids. - **Monopolization:** Unfair practices to dominate market. *Example:* Predatory pricing. - **Social Regulations:** Protect consumers, environment, workers. *Example:* Labor laws, consumer protection. #### The Effects of Regulation - **Costs:** Increased compliance costs, administrative burdens, potential for reduced innovation. - **Benefits:** Protection of public health and safety, environmental preservation, consumer protection, promotion of fair competition. - **Cost-benefit analysis:** Evaluates new regulations by weighing monetary and non-monetary costs against benefits. *Example:* Environmental regulations might increase production costs but lead to cleaner air and better public health. - **Continuous Regulatory Reform:** Regulations change markets, leading to new issues, and thus further adjustment. - **Deregulation:** Removal of regulations. *Example:* Airline deregulation in 1980s led to more competition and lower fares. - **Reregulation:** Expansion of regulations. *Example:* Financial services after 2008 crisis to prevent future collapses. #### Regulation in a Global Context - Governments protect citizens' interests through international agreements and cooperation. ### Chapter 9: Business and the Natural Environment #### Natural Environment & Sustainable Development - **Natural Environment:** All living/non-living things humans rely on (air, water, soil). Businesses depend on it for resources. - **Sustainable Development:** Meeting present needs without compromising future generations. Balance economic, social, environmental goals (Triple Bottom Line). *Example:* Renewable energy ensures future energy supply. #### Why Sustainability Is Urgent - **Rising Population:** More consumption, more waste. - **World Poverty and Inequality:** Poorer nations need more energy/resources. - **Industrialization:** Factories, transport, fossil fuels lead to pollution. #### Major Global Environmental Problems (5 BIG ONES) 1. **Climate Change:** Greenhouse gases trap heat. *Example:* Singapore rising heat stress, floods. 2. **Ozone Layer Depletion:** CFCs destroyed ozone, which protects from UV. 3. **Resource Scarcity:** Finite resources like oil, minerals, fresh water. 4. **Air & Water Pollution:** Toxic emissions, industrial waste, plastics. 5. **Biodiversity Loss:** Species extinction reduces ecosystem balance. #### Key Sustainability Management Tools (5 Tools) 1. **Life Cycle Analysis (LCA):** Studies environmental impact of a product from raw material to disposal. *Example:* Apple studies iPhone footprint. 2. **Industrial Ecology:** Waste from one process becomes input to another. *Example:* Kalundborg, Denmark, uses one company's steam as another's input. 3. **Extended Product Responsibility (EPR):** Companies responsible for product's environmental impact post-consumer. *Example:* Apple/Samsung recycling/trade-in programs. 4. **Carbon Neutrality / Net Zero:** Reduce emissions and offset remaining. *Example:* Microsoft aims for carbon negative by 2030. 5. **Technology Cooperation:** Share environmental technologies between countries. *Example:* EU working with ASEAN on solar tech transfer. #### Tragedy of the Commons - When individuals/companies overuse shared resources, everyone suffers. *Example:* Overfishing leads to fish population collapse. **Solution:** Government regulation. ### Chapter 11: The Impact of Technology on Business and Society #### Technology's Role - Integrated into communication, transport, healthcare, business. Helps reduce cost, improve efficiency, innovate, automate. But creates new risks. #### Key Ethical Issues Created by Technology - **A) Loss of Privacy:** Companies collect massive personal data. *Example:* Social media tracks user activity. - **B) Surveillance Capitalism:** Companies profit by collecting data to predict/influence behavior. *Example:* Facebook tracking user patterns for targeted ads. - **C) Algorithmic Bias:** Algorithms discriminate due to biased data. *Example:* AI facial recognition misidentifying darker-skinned people. - **D) Misinformation & Fake News:** Algorithms prioritize engagement over truth. *Example:* COVID misinformation on Facebook, deepfakes. - **E) Cybersecurity Risks:** Hacking and data breaches increase. *Example:* Ransomware attacks on hospitals. - **F) Technology Addiction:** Apps designed to keep users hooked (infinite scroll, notifications). Leads to depression, anxiety. *Example:* Core theme in The Social Dilemma. #### The Digital Divide - Gap between those with and without access to modern technology. - **Global Divide:** Between rich and poor countries. *Example:* High-income nations have near 100% internet access; others ### Chapter 13: The Future of Business and Society #### Learning Objectives - **13-1:** Identify shareholder types, objectives, and rights. - **13-2:** Understand corporate governance and board role. - **13-3:** Analyze executive compensation and debate its fairness. - **13-4:** Evaluate shareholder methods to promote economic/social objectives. - **13-5:** Understand government protection against stock market abuses. #### Shareholders & Corporate Governance - **Shareholders:** Legal owners of company stock, seeking returns. - **Types:** Individual (direct, e.g., John buys Apple stock); Institutional (organizations like pension funds, e.g., CalPERS). - **Objectives:** Long-term growth (capital appreciation), short-term gains, income (dividends), social/ethical (ESG goals). - **Legal Rights:** Receive dividends, vote on board/mergers, financial reports, sue, sell shares. - **Corporate Governance:** System for company control. - **Board of Directors:** Elected group setting objectives, policies, selecting management. - **Composition:** Typically 11-13 members, mostly outside directors. - **Good Governance Principles:** Majority outside directors, open/annual elections, independent lead director, diverse board. - **Executive Compensation:** Set by the board to align management/shareholder interests. - **Agency Problem:** Managers may act in self-interest. Example: CEO prioritizing personal bonuses. - **Pay-for-Performance:** Linking pay to stock value. Example: Granting stock options. Risk: Can lead to unethical actions. - **Debate:** Justified for performance/talent vs. excessive/harms competitiveness. - **Regulation:** U.S. rules require pay disclosure, "say-on-pay" shareholder votes. #### Shareholder Activism & Oversight - **Institutional Investor Influence:** Large holdings give incentive to influence policy. Example: Pension fund advocating strategy change. - **Social Investment:** Using stock ownership for ESG objectives. - **Stock Screening:** Selecting companies based on ESG criteria. Example: Investor choosing green energy companies. - **Shareholder Resolutions:** Proposing social responsibility issues for shareholder vote. Example: Proposal for carbon reduction. - **Stockholder Lawsuits:** Shareholders can sue if damaged by company actions. Example: Lawsuit against executives for misleading investors. - **Securities and Exchange Commission (SEC):** Government agency protecting shareholders. - **Mission:** Ensures fair stock markets, prevents abuses (false info, insider trading). Example: Investigating market manipulation. - **Information Transparency:** Requires truthful financial reports (e.g., 10-K). - **Insider Trading:** Illegal use of confidential info for stock profit. Example: Executive buying stock before merger announcement. - **Shareholders' Role:** Provide capital, monitor performance, ensure market efficiency, raise issues, contribute to business system. ### The Social Dilemma: Technology, Business, Government & Society #### What Is The Social Dilemma About? - Explains how social media creates harm via surveillance capitalism, addictive design, misinformation, algorithm manipulation, polarization, data exploitation. - **Why:** Tech companies' business model = advertising revenue → more screen time, more data, more profit. Company interests conflict with societal needs. #### Key Problems Highlighted in the Film 1. **Surveillance Capitalism:** Companies collect data to predict/influence behavior, selling to advertisers. *Example:* Facebook tracking user patterns for targeted ads. (Links to Ch11: Privacy & data ethics). 2. **Algorithmic Manipulation:** Algorithms control what people see to maximize engagement, not wellbeing. Leads to echo chambers, polarization, fake news. *Example:* Algorithms pushing addictive content. (Links to Ch11: Technology risks & misinformation). 3. **Addiction Engineering:** Apps use notifications, infinite scroll, personalized content to hook users. Leads to depression, anxiety, reduced attention. *Example:* Core theme in The Social Dilemma. (Links to Ch11: Tech addiction). 4. **Fake News & Misinformation:** False information spreads faster due to engagement. Leads to political violence, conspiracy theories. *Example:* COVID misinformation on Facebook. (Links to Ch11: Democratic divide). 5. **Profit > Human Wellbeing:** Tech firms ignore ethical responsibility to maximize shareholder value. (Relates to CSR & ethical arguments for regulation). #### Stakeholders Affected - **Users:** Lose privacy, addicted, exposed to harmful content. - **Parents & Children:** Vulnerable to mental health impacts. - **Governments:** Struggle to regulate misinformation, protect democracy. - **Society:** Polarization, loss of trust. - **Businesses:** Brand safety issues, need to protect user data. #### How to Fix the Social Dilemma - **Government Responses:** Stronger privacy laws (GDPR, PDPA), regulate algorithm transparency, restrict targeted ads for minors, enforce platform accountability. - **Business Responses:** Ethical design, transparency on data use, reduce addictive design, invest in misinformation prevention. Firms must protect users, not exploit them (CSR applies). - **Civil Society Responses:** Media literacy programs, digital education, advocacy for tech responsibility. - **Exam Tip:** Emphasize cross-sector collaboration. #### Exam Connections (SUPER IMPORTANT SECTION) - **Chapter 2 - Public Issues:** Performance-expectation gap (users expect safety, companies act unethically). - **Chapter 3 - Corporate Social Responsibility:** Companies prioritizing profit over wellbeing; ethical responsibilities ignored. - **Chapter 7 - Regulation:** Governments must regulate harmful technology. - **Chapter 11 - Technology:** Privacy risks, algorithmic bias, fake news, digital divide, addiction. - A PERFECT answer ALWAYS links to at least 2 chapters.