\fThe New Business Political Activist: Behind the Scenes Less Visible The New Business Political Activist: Behind the Scenes Less Visible Name: Course: Lecturer: Date Table of Contents 1. Abstract .............................................................................................. ii 2. Introduction to political influence in business ................................................. 1 3. Question One: Business political activism as a global challenge ............................ 1 4. Question Two: Business political strategy ...................................................... 2 5. Question Three: Degree of business involvement in political activity ...................... 3 6. Question Four: The arguments for and against business political activism ................ 4 7. Conclusion .......................................................................................... 5 8. References ........................................................................................... 6 9. Appendix ............................................................................................. 8 Abstract Government policies affect Business organizations directly thus prompting them to get involved in political activities. Sometimes the political influences are quite pronounced to the extent that they determine the success or failure of the business. In most cases, the involvement of business in politics is manifested through campaigns whereby the organizations collude with political parties who they believe have control over the government policies formulation. In this way, the businesses seek to have favorable conditions such as exemption from taxes, reduction of tariffs and other favors that allow the organization to buy resources and sell products easily. This paper analyses the political influence on Starbucks Corporation and its effects. Introduction *I don't need this part so you can mix it with Abstract to expand it.* Starbucks Corporation is a coffee company that has grown around the world by setting up several coffeehouses. The company was founded in 1971 and for a long time it did not engage in politics; it only gave attention to matters affecting its internal operations and employees as well as the satisfaction of its customers. The organization also focused on strategies that could see it maintain its profits. However, the organization came to realize that political activism could have influence on the formation of policies that would have impacts on its business transactions. With the introduction of business politics, the manner in which business transactions and dealings are carried out is changing around the world. In the current world of business, it is very difficult to do away with the influence of politics on business. Question one The desire of Schultz, the CEO and chairman of Starbucks to avoid the organization's participation in the politics of US is unrealistic. Politics are what determines the government put in place. The government, both in its central and local capacity, creates policies that directly affect business. However, a business organization like Starbucks can be considered for some relieves such as reduction of tariffs in both importations and exportations especially when the organization operates internationally. This can only be possible if the business engages in politics. In addition to that, in our world today, politicians make advances to business organizations for financial supports during campaigns. This happens such that if they win the elections, the businesses would be provided with favorable environments, make more investments and operate in a wider market. On the other hand, if the businesses resist the politicians, their operations get affected once the politicians form the government. They may be limited in their operations which could affect their profitability adversely. Therefore, it is not realistic for Schultz to aim at getting Starbucks out of American politics (Lindblom, 1977). Question two When a business organization engages in politics, it has to use strategies that can enable it to be successful. In the case of Starbucks, the political officer, Kris Engskov can use political action committees (PAC) to facilitate the organization's success in politics. A PAC can be formed by a group of individuals of the organization who participate in politics to influence the election of leaders. They elect political candidates and fund their campaigns to enable them win the elections. Thus by setting up a PAC, Engskov will enable the organization to raise government officials of their choice. This is part of successful political activity since the elected officials are the ones to make policies that affect several sectors including business. Hence in this case the policies that are conducive for Starbucks may be set by the government thus enabling the company to operate well without being hindered by government policies (Carroll, & Buchholtz, (2008). In as much as the company is getting involved in political activism, other relevant parties should be involved. It is necessary to seek ideas from all stakeholders and make a decision that cannot have negative outcomes. In this case communication performs a major role in the company to facilitate the making of decisions. It is very crucial for the management to realize that employees are important assets of the company; therefore they should not be ignored when making decisions to determine the extent to which the company should enter into politics. If the employees are not included in the making of decisions, they feel left out and less important in the company. The overall result is poor performance leading to low productivity. On the other hand, if the employees are involved in making decisions, implementation is facilitated since the employees identify themselves with the decisions. Question three The level of which Starbucks should engage in politics is a very essential factor to consider. Starbucks Corporation should avoid direct confrontation of political issues. The company's participation in politics should not be public but rather through careful silent participation. Despite the company's involvement in politics, there are some issues it should avoid in the arena of politics. Through the advice of political experts, the company can contribute to matters of political significance in particular circumstances only (Lawrence, & Weber, 2008). This makes the company to avoid being implicated in political crises and thus protects its public image which is an important determinant of its success. There are ethical issues the company should take into consideration when participating in politics. These issues range from personal contacts that should be created between the company officials and the political figures. For instance, it will be unethical for the management officials of the company to get involved in bribery and corruption. When these unlawful behaviors get exposed especially in the court of law the integrity of the company gets adversely affected. A company with a tarnished name faces many difficulties when dealing with the suppliers of law materials as well as with the customers. Loyalty is lost and its place taken by suspicion and lack of confidence. It is very imperative for the company to avoid political stands that do not allow democracy to prevail. For example, in the company, some of the employees may have a political opinion or stand different from that held by the political officials of the company. Their opinions should be respected and the political officials have got no legitimacy to implicate them as being against the company. For instance, it will be very unethical if the employees are dismissed if they support a different political candidate. On the same note, it is important that the company avoids exploiting its employees for political gains. For example, the company should not force its employees to participate in political campaigns if they are unwilling to do so. Mutual respect should be maintained at all times to avoid other negative results. For instance, if the company exploits its employees in a wrong way there is loss of motivation. An employee who is not motivated performs lowly in his or her work leading to poor productivity. Question four The political officer of Starbucks Company, Engskov should consider several factors to determine whether it is important for him delay or avoid the company's involvement in politics. This follows the CEO's unwillingness to get Starbucks into politics. Engskov should consider the benefits and disadvantages of political activities. He should determine the length of time the company should be in politics and whether it will be possible for the company to quit political activisms without dire consequences. The benefits that are directly realized after participating in political activities should be weighed against the losses. For example, the benefit of tax exemption should be measured against the amount of money committed into political campaigns. From there, Engskov will determine whether to develop strategies despite Schultz unwillingness to involve the company in politics. However, it is important for Engskov not to delay the strategies to involve Starbucks in political activities. The faster involvement of the company in politics makes the company to realize the associated benefits earlier. For instance, if the company wants to export its products to international markets, its faster involvement in politics leads to earlier reduction or removal of tariffs thus more sales. This in turn leads to higher profit margins and the company can continue thriving in the market. Faster development of strategies of company involvement in politics leads to realization of efficiency in company operations is a prompt manner. For instance, tax exemption will lead to more purchases of raw materials and other supplies needed in the company to make its manufacturing process continuous. This ensures production of goods in time which in turn leads to continued supply into the market thus maintaining customer loyalty for the company. Since the aim of any business to maintain its customers and expand its market, continual supply of products and services facilitates higher sales thus more profits (See Fig. 1 in Appendix). Other benefits include receiving financial assistance in times of economic hardships and this guarantees company survival in those hard times (Sturdivant, 2008). Some of the disadvantages associated with prompt involvement of the organization into politics include financial costs and exposure to unethical conducts. When the company gets into political activities, it is expected to give funds for functions like political campaigns. These funds may be large sums of money which would have been committed to other productive sectors of the company. Furthermore, going into politics leads to unethical conducts like corruption. This may ruin the name of the company especially when these issues are spread through the media. Consequently, the company would realize a poor market for its products. Conclusion From the above discussion, it can be seen that political influence in business is very high and it has impacts on success or failure of many organizations. This can be learnt from the fact the company's involvement in politics leads benefits such as tax exemption and reduction of tariffs. However, there are limits within which a company can get involved in politics. Also, whether to get into political activism or not should be analyzed and the best decision made. There are both negative and positive impacts associated with business involvement in politics. \f