Sociology in a business environment 2020 VIVES Belgium Spring 2020 - - PowerPoint PPT Presentation

Sociology in a business environment – 2020

ALESSANDRO NICCOLO’ TIRAPANI CASS BUSINESS SCHOOL, CITY, UNIVERSITY OF LONDON

VIVES Belgium

Spring 2020

Welcome!

About me

• PhD at Cass Business School in London
• Interested in Business and society, particularly conflict and ethics

in Artificial Intelligence

• Worked in Brussels with European institutions
• Chose this path because… I am passionate about the interaction

between business, politics and technology

ALESSANDRO NICCOLO' TIRAPANI – SPRING 2020 – SOCIOLOGY IN A BUSINESS ENVIRONMENT

Scope of the course

• Offer you an overview, a guide
• Not comprehensive, but something you can use if presented with ethical challenges and

social questions

• Help you understand there are multiple ways of seeing business problems
• Help you make sense of challenges ahead (as entrepreneur, manager, marketing expert,

public servant… citizen!)

• Help you see social issues can bring down businesses, make them flourish… same for
• ther kinds of organisations
• Hope you are able to ask different questions and look for different answers by the

end of course. That’s why we do an exercise and you write an essay

• You will be in a position of having to choo;se between helping your organisation or

helping the society around you: to be able to see both sides is crucial

• ‘Recognise the other’

ALESSANDRO NICCOLO' TIRAPANI – SPRING 2020 – SOCIOLOGY IN A BUSINESS ENVIRONMENT

Structure of the course

First day Second day Third day Fourth Day 09:30-10:00

Introduction; debating the news Debating the news Debating the news Introduction of the day/instructions for exam

10:00-11:00

Introduction; debating the news Clip from ‘The Corporation’ (2003) plus debate Theory: AI, business ethics Class essay

11:00-11:15

Break Break Break Class essay

11:15-12:30

Theory: sociology Theory: Business ethics Group work Class essay

12:30-13:30

Lunch break Lunch break Lunch break Lunch break

13:30-15:00

Theory: sociology Theory: Business ethics ‘AirBnB in Barcelona’ exercise Discussion of cases in essay

15:00-15:15

Break Break Break Break

15:15-16:00

Theory: ethics Theory: AI, business ethics Presentations Wrap-up, conclusions

ALESSANDRO NICCOLO' TIRAPANI – SPRING 2020 – SOCIOLOGY IN A BUSINESS ENVIRONMENT

ALESSANDRO NICCOLO' TIRAPANI – SPRING 2020 – SOCIOLOGY IN A BUSINESS ENVIRONMENT

• Welcome and presentations
• Which kind of questions should we ask if we want to take a sociological approach?
• An introduction to Sociology
• Positivism, interpretivism/constructivism, critical theory
• Classic sociology authors
• Different voices in sociology
• A brief overview on Ethics
• CSR, Business & Society, Business Ethics
• The origin of the corporation
• The origin of CSR and its limitations
• New types of companies: does the AI revolution changes everything or it is more of the same?

Plan

ALESSANDRO NICCOLO' TIRAPANI – SPRING 2020 – SOCIOLOGY IN A BUSINESS ENVIRONMENT

• Three approaches for business studies
• Sociology: macro theories of society. Different perspective on how we
• rganise social life
• Ethics: what is ‘Right’? what should I do?
• Corporate Social Responsibility and business ethics: how do we apply the

ethics and sociology to organisations?

• We will put them in practice with activities and videos
• 1. What is the story of the corporation?
• 2. How to take collective choices that pose social and ethical questions?
• 3. New technologies and business ethics: the current frontier

Plan II

Let’s hear your voice!

What about you?

• Something in common?
• Small game
• What’s your background?
• Which are your passions?
• Which are your strengths?

ALESSANDRO NICCOLO' TIRAPANI – SPRING 2020 – SOCIOLOGY IN A BUSINESS ENVIRONMENT

Let’s hear your voice!

What about you?

• Why did you choose this course?
• What do you expect?
• What would you like to cover? Something you are curious about

ALESSANDRO NICCOLO' TIRAPANI – SPRING 2020 – SOCIOLOGY IN A BUSINESS ENVIRONMENT

ALESSANDRO NICCOLO' TIRAPANI – SPRING 2020 – SOCIOLOGY IN A BUSINESS ENVIRONMENT

• Discuss the news
• Prepare news at home before class
• We talk about them together to find social and ethical issues
• Watch clip from The Corporation & Black mirror
• Discuss the origin of multinational companies and the way forward
• Class exercise (40% of final grade)
• The case of AirBnB in Barcelona (Spain)
• You will represent different actors, divided in groups
• Collectively, you will have to reach an agreement over a new regulation
• Essay to be written in class (60% of final grade)
• Choose two open questions out of five. Scenarios of ethical dilemmas in business

Plan III - Activities & Assessments

Debating the news

WHY IT MATTERS AND WHAT IT TELLS US ABOUT THE RIGHT QUESTIONS TO ASK IF WE WANT TO TAKE A SOCIOLOGICAL APPROACH

ALESSANDRO NICCOLO' TIRAPANI – SPRING 2020 – SOCIOLOGY IN A BUSINESS ENVIRONMENT

Why caring about news?

• Point of contact between business and society
• Ethical puzzles
• Legal puzzles
• Need to look at them critically
• Strategic insights: foresee what is gonna happen next and prepare

Being up-to-date and being able to follow the news is of rising relevance, especially because of media-relations skills required in most professions

ALESSANDRO NICCOLO' TIRAPANI – SPRING 2020 – SOCIOLOGY IN A BUSINESS ENVIRONMENT

ALESSANDRO NICCOLO' TIRAPANI – SPRING 2020 – SOCIOLOGY IN A BUSINESS ENVIRONMENT

ALESSANDRO NICCOLO' TIRAPANI – SPRING 2020 – SOCIOLOGY IN A BUSINESS ENVIRONMENT

ALESSANDRO NICCOLO' TIRAPANI – SPRING 2020 – SOCIOLOGY IN A BUSINESS ENVIRONMENT

Is there any breaking news?

Presenting your news

• Source
• Topic
• Why you chose it
• Reflections

Debating the news

• Did you find something similar?
• Do you agree? Why?
• Disagree? Why?

ALESSANDRO NICCOLO' TIRAPANI – SPRING 2020 – SOCIOLOGY IN A BUSINESS ENVIRONMENT

ALESSANDRO NICCOLO' TIRAPANI – SPRING 2020 – SOCIOLOGY IN A BUSINESS ENVIRONMENT

Evaluating sources – The CRAAP method

Currency

• How recently was it published?

Relevance

• How well does it address your central question?

Authority

• Who or what is the source of the information?
• Can it be trusted? If yes, under which conditions?

Accuracy

• Is the source reliable, truthful and correct?
• Are there dubious claims or obvious errors?
• How many sources were consulted for this article?
• Are there any ‘extraordinary’ details or claims? If so, what evidence does the article provide to back them up?

Purpose

• Why does this information exist?
• For whom do you think was this article written?
• What sorts of details have been included or excluded?
• For what purpose was this article written?

So, what do we make of the news?

• Which is the difference between the questions we ask in

management vs in sociology?

• Why do we need to ask different ones?
• How can this help us in practical terms?

ALESSANDRO NICCOLO' TIRAPANI – SPRING 2020 – SOCIOLOGY IN A BUSINESS ENVIRONMENT

Managerial questions

• Which are the strategic implications?
• Which is the impact on business models?
• Which is the impact on costs or profits?
• How are competitors/suppliers being affected?
• How are customers being affected?
• How can we enhance employees and

technological performances?

• How can we do better in the marketplace?

WHICH ARE THE STRENGHTS OF THIS VIEW? IS THERE SOMETHING MISSING?

ALESSANDRO NICCOLO' TIRAPANI – SPRING 2020 – SOCIOLOGY IN A BUSINESS ENVIRONMENT

Sociological and critical questions

• Which are the actors?
• How is power distributed?
• Which are trade-off?
• Which stakeholders are/are not considered?
• Which are the social, ethical and political

assumptions?

• How can we design less unequal, more just,

more inclusive societies?

WHAT ABOUT HERE? IS THERE SOMETHING MISSING?

ALESSANDRO NICCOLO' TIRAPANI – SPRING 2020 – SOCIOLOGY IN A BUSINESS ENVIRONMENT

An evolving scenario

ALESSANDRO NICCOLO' TIRAPANI – SPRING 2020 – SOCIOLOGY IN A BUSINESS ENVIRONMENT

Business and Society

Corporate Social Responsibility IT Revolution and Corporate politics

Critical theory and European sociology

Gender, inequality, ethnicity, etc… Qualitative studies of power

Social studies as ‘Science’

Economics + Strategy Positivist sociology

THERE IS ONE SINGLE WAY TO IMPROVE SOCIETY FOR EVERYONE SOCIETY IS

• CONFLICTUAL. SOME

ISSUES ARE MORE IMPORTANT. SUBJECTITIVITY CAN BUSINESS STUDIES INCORPORATE THESE ISSUES? RETHINK SOCIETY AND ‘PUBLIC’

What is sociology about?

A BRIEF INTRODUCTION TO SOCIOLOGY

ALESSANDRO NICCOLO' TIRAPANI – SPRING 2020 – SOCIOLOGY IN A BUSINESS ENVIRONMENT

What is sociology about?

Sociology studies human societies, their interactions, and the processes that preserve and change them. It does this by examining the dynamics of constituent parts of societies such as institutions, communities, populations, and gender, ‘racial’, or age. Sociology also studies social status or stratification, social movements as well as societal disorder in the form of crime, deviance, and revolution.

(Source: Encyclopaedia Britannica)

ALESSANDRO NICCOLO' TIRAPANI – SPRING 2020 – SOCIOLOGY IN A BUSINESS ENVIRONMENT

What is sociology about?

• The study of society, humans living together
• The problem of conflict: why do we fight?
• How to deal with power? How to deal with resistance? How to deal

with inequality?

• Sociology looks at way to solve the problem of conflict in society
• Depending on the approach, questions and answers can be very

different

ALESSANDRO NICCOLO' TIRAPANI – SPRING 2020 – SOCIOLOGY IN A BUSINESS ENVIRONMENT

Different views

Thomas Hobbes (1588 – 1679)

• Homo homini lupus
• Society is created to avoid state of Nature

and violence among humans – which is natural Latest studies on co-operation

• Chimpanzee and other primates have an

innate sense of justice and cooperation

• Violence is not the state of nature for

advanced mammals

ALESSANDRO NICCOLO' TIRAPANI – SPRING 2020 – SOCIOLOGY IN A BUSINESS ENVIRONMENT

Ways of studying social phenomena - 1

Positivism

• Reality is objective
• There is one single truth to be discovered
• Only one perspective is the right one, others are biased
• There is one specific configuration that is superior to all
• thers, so we can solve all problems
• Social sciences should mimic ‘hard sciences’
• We should analyse data systematically to bring order

and collective prosperity

ALESSANDRO NICCOLO' TIRAPANI – SPRING 2020 – SOCIOLOGY IN A BUSINESS ENVIRONMENT

Ways of studying social phenomena - 1

Positivism - Example

• How do we solve crime?
• Define crime in a single way
• Find data about crime, thus defined
• Analyse how it emerges and how it can be lowered
• Develop proposals for institutions able to do so
• Limitations?
• Does not take into account cultural differences
• Proposes solutions that might leave someone worst-off
• It measures only what can be observed or quantified
• Assumes that researcher ‘knows best’

ALESSANDRO NICCOLO' TIRAPANI – SPRING 2020 – SOCIOLOGY IN A BUSINESS ENVIRONMENT

Ways of studying social phenomena - 1

Example of Positivism

• Emile Durkheim (1858-1917)
• ‘Division of labour in the society’
• Sociology should be holistic, meaning

the whole is ‘independent’ from individuals

ALESSANDRO NICCOLO' TIRAPANI – SPRING 2020 – SOCIOLOGY IN A BUSINESS ENVIRONMENT

Ways of studying social phenomena - 2

Interpretivism

• What is ‘real’ depends from the background and social

position of actors

• ‘Reality’ is a puzzle, made of many different perspectives on

the same object

• Different conditions can lead to different interpretations
• Scope of research is to ‘understand’ and present multiple

perspectives, so to propose ‘ad-hoc’ solutions

• Social sciences should adopt qualitative as well as

quantitative methods

• Interviews, ethnographies, art, manufacts, language…

ALESSANDRO NICCOLO' TIRAPANI – SPRING 2020 – SOCIOLOGY IN A BUSINESS ENVIRONMENT

Ways of studying social phenomena - 2

Interpretivism - Example

• How do we solve crime?
• Understand the setting to decide a definition of crime
• Find data about crime, asking people who experience it ad perpetrate it
• As in positivism, analyse how it emerges and how it can be lowered
• Develop proposals for institutions able to do so, but solutions are not universal
• Limitations?
• Assumes all views are equally present, worthy, and neutral
• As in positivism, proposes solutions that might leave someone worst-off
• It measures only what can be observed or quantified, although better than

positivism

• Assumes that researcher is neutral, and should not take normative stances (A is

better than B because of ethical reasons)

ALESSANDRO NICCOLO' TIRAPANI – SPRING 2020 – SOCIOLOGY IN A BUSINESS ENVIRONMENT

Ways of studying social phenomena - 2

Example of interpretivism

• Max Weber (1864 – 1920)
• Society should be interpreted
• Individual and ‘cultural factors’

affect society as a whole

• Yet, sociology can and should

provide factual answers, and lead politics

ALESSANDRO NICCOLO' TIRAPANI – SPRING 2020 – SOCIOLOGY IN A BUSINESS ENVIRONMENT

Focus on social structures

Pierre Bourdieu (1930 – 2002)

• ‘Habitus’: there are different types of

capital used in social interaction

• These ‘determine’ the integration and

success of people, leading to a hierarchical structure of society (ie France)

• ‘Symbolic violence’: how a view of the

world has material consequences on whoever does not share it

ALESSANDRO NICCOLO' TIRAPANI – SPRING 2020 – SOCIOLOGY IN A BUSINESS ENVIRONMENT

Ways of studying social phenomena - 3

Critical theory

• What is ‘real’ depends on power: like interpretivists, but

assigning ethical and moral values to alternatives.

• Takes an historical look: who decided what is normal, just or

acceptable? Who was excluded?

• Begins with assumption there are injustices in society and job of

sociologists is to help solving them – reject neutrality

• “The point is to change [society]” as Marx put it
• Scope of research is to ‘unveil’ power relations, domination,

exploitation, resistance, alternatives to the current social order

ALESSANDRO NICCOLO' TIRAPANI – SPRING 2020 – SOCIOLOGY IN A BUSINESS ENVIRONMENT

Ways of studying social phenomena - 3

Critical theory - Example

• How do we solve crime?
• Understand who defined ‘crime’ as such: history of deviance
• Find data about crime, asking people who experience it and what is their

perspective

• Analyse how it is connected to social exclusion or poverty, clarify how to find

‘just’ solutions

• Develop radical alternative ideas, that solve the cause behind crime
• Limitations?
• ‘Takes a stance’, so it is not seen as neutral or ‘scientific’
• Might rely on long-term solutions, lacking pragmatic answers
• Different critical schools can be in contrast, so no coherent body of research

ALESSANDRO NICCOLO' TIRAPANI – SPRING 2020 – SOCIOLOGY IN A BUSINESS ENVIRONMENT

Ways of studying social phenomena - 3

Example of Critical theory

• Karl Marx (1818 – 1883)
• Sociologists should look at

the economic system and who owns the means of production

• The multiple perspectives of

reality are not equivalent, as

• ne side is oppressed

ALESSANDRO NICCOLO' TIRAPANI – SPRING 2020 – SOCIOLOGY IN A BUSINESS ENVIRONMENT

Summarising the overarching divisions

Approaches Structural level of analysis Individual level of analysis Positivism

• Grand theories of society
• Close to economics
• Cognitive mechanisms
• Close to psychology

Interpretivism

• Context-dependent

bureaucracies

• Institutional theory
• Ethnographic studies of social issues
• Cultural studies

Critical Theory

• Comprehensive, global view
• f inequalities
• Marxism
• Study of different perspectives, voice
• f minorities
• Resistance, colonialism, gender, etc…

ALESSANDRO NICCOLO' TIRAPANI – SPRING 2020 – SOCIOLOGY IN A BUSINESS ENVIRONMENT

Focus on knowledge and power

Michel Foucault (1926 – 1984)

• Centrality given to the

relationship between knowledge and power

• What is normal? Accepted?
• The panopticon as a dispersed

view of power and control

ALESSANDRO NICCOLO' TIRAPANI – SPRING 2020 – SOCIOLOGY IN A BUSINESS ENVIRONMENT

Focus on knowledge and power

The panopticon as a dispersed view of power and control

ALESSANDRO NICCOLO' TIRAPANI – SPRING 2020 – SOCIOLOGY IN A BUSINESS ENVIRONMENT

Focus on Eurocentrism, colonialism

Edward Said (1935-2003)

• Recount history from the perspective
• f the colonised
• ‘Orientalism’: the romanticisation,

infatilisation of non-Westerns. Either barbarians or mystical lands, but without subjectivity

ALESSANDRO NICCOLO' TIRAPANI – SPRING 2020 – SOCIOLOGY IN A BUSINESS ENVIRONMENT

Focus on Eurocentrism, colonialism

Frantz Fanon (1925-1961)

• Book ‘The Wretched of the Earth’:

consequences of Algerian war and French colonisation

• The condition of the colonised as altered

forever:

• Collective psychological trauma
• National identity of former colonies is

defined through struggle

• There is a common condition between

colonised/oppressed, which should create a collective identity

ALESSANDRO NICCOLO' TIRAPANI – SPRING 2020 – SOCIOLOGY IN A BUSINESS ENVIRONMENT

Focus on Liberalism

Friedrich von Hayek (1899-1992)

• Part of the ‘Austrian School’:
• Social systems should maximise individual freedom
• The best way to achieve collective freedom is through

markets – reaction to XX Century totalitarian regimes

• The State should limit its action to enforce contracts, so

market can work

• Radical liberalism: each individual should

autonomously decide what is best for her, and be coerced as little as possible within her property

• His views were less extreme than those of some

followers, i.e. Ayn Rand and the Chicago School

ALESSANDRO NICCOLO' TIRAPANI – SPRING 2020 – SOCIOLOGY IN A BUSINESS ENVIRONMENT

Author Main question Scope of his research How can we use it? Durkheim

How do societies stratify? Understand social structures To have an overarching view of Western societies, focusing on division of labour

Weber

How do bureaucracy and values intertwine? Understand social values and institutions To understand the importance of bureaucracies and institutions

Marx

How does capitalism shape societies? How to change it? Develop (radical) social change To understand how economic differences affect social settings

Bourdieu

How does social mobility work? Understand social reproduction To understand how personal backgrounds reproduce social settings

Foucault

How does power influence knowledge and social relations? Affirm that knowledge is relative and not neutral To understand the limitations of scientific paradigms, and to study social exclusion

Said

How does colonialism affect knowledge? Understand non-Western social structures To study the consequences of colonialism, even in Western societies

Fanon

How do we overcome colonialism? Develop (radical) social change from a non Western perspective To understand how violent social change happens, and the impact of trauma

Hayek

How do we maximise individual freedom? Develop a theory of freedom through markets and minimal State To understand how individuals coordinate themselves without central authority

ALESSANDRO NICCOLO' TIRAPANI – SPRING 2020 – SOCIOLOGY IN A BUSINESS ENVIRONMENT

Summarising…

• Durkheim – Positivism
• Weber – Interpretivism
• Marx – Critical theory
• Bourdieu – Social stratification
• Foucault – Knowledge and power
• Said – Postcolonialism
• Fanon – Postcolonialism
• Hayek – Liberalism

We could add…

• Talcott Parsons
• Societies as biological systems
• Niklas Luhmann
• Systems’ reproduction
• Saskia Sassen
• Global cities
• Gayatri Spivak
• Postcolonialism
• Many more…

ALESSANDRO NICCOLO' TIRAPANI – SPRING 2020 – SOCIOLOGY IN A BUSINESS ENVIRONMENT

Some ethical questions

TAKING DECISIONS FROM A SOCIOLOGICAL PERSPECTIVE

ALESSANDRO NICCOLO' TIRAPANI – SPRING 2020 – SOCIOLOGY IN A BUSINESS ENVIRONMENT

How do we avoid evil?

Hannah Arendt (1906 – 1975)

• ‘Banality of evil’: how political and

social relations are embedded by individuals

• She studied the relationship

between bureaucratic State and totalitarianism

• Connected to the theory of

hegemony of Antonio Gramsci

ALESSANDRO NICCOLO' TIRAPANI – SPRING 2020 – SOCIOLOGY IN A BUSINESS ENVIRONMENT

How can we be democratic?

Jürgen Habermas (born 1929)

• Importance of taking decisions by

consulting all actors involved

• ‘Deliberative democracy’ as a

bottom-up, collective process

ALESSANDRO NICCOLO' TIRAPANI – SPRING 2020 – SOCIOLOGY IN A BUSINESS ENVIRONMENT

How to give voice to the oppressed?

Patricia Hills Collins (born 1948)

• ‘Stand point theory’
• The social position of actors matters in

taking decisions

• What is ‘fair’ depends on your social

position, so decisions affecting minorities should be taken by them

• Questions of race, gender, LGBT etc. cannot

be solved in isolation but need to be connected

• Intersectionality

ALESSANDRO NICCOLO' TIRAPANI – SPRING 2020 – SOCIOLOGY IN A BUSINESS ENVIRONMENT

Sociology in a business environment

WHICH ARE THE MAIN SOCIAL FACTORS AFFECTING BUSINESS STUDIES?

ALESSANDRO NICCOLO' TIRAPANI – SPRING 2020 – SOCIOLOGY IN A BUSINESS ENVIRONMENT

Moving forward…

• We have seen thinkers... But what is the status quo?
• Types of social order
• Socialism
• Neoliberalism
• Ordoliberalism
• ‘Chinese capitalism’
• Corporate Social Responsibility
• Critical issues in management

ALESSANDRO NICCOLO' TIRAPANI – SPRING 2020 – SOCIOLOGY IN A BUSINESS ENVIRONMENT

Different ways of organising the society

Organisations, public and private, operate in a society The way in which such society is organised matters!

• Legal issues
• Cultural issues
• Access to capital and people

ALESSANDRO NICCOLO' TIRAPANI – SPRING 2020 – SOCIOLOGY IN A BUSINESS ENVIRONMENT

Business studies and sociology

Why should we care?

• Power and resistance in organisations
• How society impacts the activities of organisations matters
• How do we implement strategies taking into consideration
• thers?
• Which types of business affect others more? Which have

positive outcomes? For who?

• What is the scope of the organisation?

ALESSANDRO NICCOLO' TIRAPANI – SPRING 2020 – SOCIOLOGY IN A BUSINESS ENVIRONMENT

Mapping Markets and Politics

• Horizontal axis: how should the

exchange of goods and services being done? Should it be fully under the control

• f the State (LEFT), fully in control of

free markets (RIGHT) or a mix of the two?

• Vertical axis: how much individual

freedom should be granted to personal and social choices? How should be power managed?

ALESSANDRO NICCOLO' TIRAPANI – SPRING 2020 – SOCIOLOGY IN A BUSINESS ENVIRONMENT

The PESTLE framework

ALESSANDRO NICCOLO' TIRAPANI – SPRING 2020 – SOCIOLOGY IN A BUSINESS ENVIRONMENT

Macro social-setting 1

• Socialism (State monopoly)
• Political: strong role of State and of few political parties
• Economic: State intervention in markets is strong, high regulation
• Technology: it depends, but tend to be centralised
• Legal: strong constrains to market activity, high bureaucracy
• Examples: USSR, Venezuela, Cuba, some African and Middle-Eastern
• countries. To date, very rare in its extreme form

ALESSANDRO NICCOLO' TIRAPANI – SPRING 2020 – SOCIOLOGY IN A BUSINESS ENVIRONMENT

Macro social-setting 2

• Neoliberalism (privatisations)
• Political: strong role of ‘civil society’, small role of State in economy
• Economic: very high freedom to trade, presence of large corporations
• Technology: it depends, but tend to be decentralised and privatised
• Legal: minimal constrains to market activity, low bureaucracy
• Examples: USA, Chile, South Korea. To date, high number of countries

has introduced some degree of neoliberal reforms, but few countries are purely neoliberal

ALESSANDRO NICCOLO' TIRAPANI – SPRING 2020 – SOCIOLOGY IN A BUSINESS ENVIRONMENT

Macro social-setting 3

• Ordoliberalism (State regulation)
• Political: multi-party democracy, medium role of ‘civil society’, State

regulates after listening to social parts

• Economic: mixed. Some sectors are regulated, some services are

provided publicly, rest is managed by markets

• Technology: it depends, but tend to be both public and private
• Legal: medium to high bureaucracy, right to individual freedom in

most spheres

• Examples: European Union (Germany as birthplace), Canada

ALESSANDRO NICCOLO' TIRAPANI – SPRING 2020 – SOCIOLOGY IN A BUSINESS ENVIRONMENT

ALESSANDRO NICCOLO' TIRAPANI – SPRING 2020 – SOCIOLOGY IN A BUSINESS ENVIRONMENT

Macro social-setting 4

• Remaining dimensions of PESTEL
• Social: different countries go towards different trends. For

instance Europe and Japan are growing older. USA, China, as well as Afriacan and Asian countries are experiences growth in population and overall shift in resources allocation

ALESSANDRO NICCOLO' TIRAPANI – SPRING 2020 – SOCIOLOGY IN A BUSINESS ENVIRONMENT

ALESSANDRO NICCOLO' TIRAPANI – SPRING 2020 – SOCIOLOGY IN A BUSINESS ENVIRONMENT

Macro social-setting 5

• Remaining dimensions of PESTEL
• Environmental: Global warming is a global trend which
• verarches local issues. It is of utmost urgency
• Examples: extreme weather, desertification, rising sea levels, new

routes through Artic circle opening, stigma on fossil fuels, stigma on non-sustainable production and consumption…

ALESSANDRO NICCOLO' TIRAPANI – SPRING 2020 – SOCIOLOGY IN A BUSINESS ENVIRONMENT

ALESSANDRO NICCOLO' TIRAPANI – SPRING 2020 – SOCIOLOGY IN A BUSINESS ENVIRONMENT

Neoliberalism

FEW ADDITIONAL WORDS

ALESSANDRO NICCOLO' TIRAPANI – SPRING 2020 – SOCIOLOGY IN A BUSINESS ENVIRONMENT

Neoliberalism 1

Friedrich von Hayek (1899 – 1992)

• ‘Austrian school’ & ‘Chicago School’
• Individual Freedom is the highest value
• The best way to organise the society is

through markets because they are the best way to allocate resources and informations while respecting individual freedom

• See also Ayn Rand & Thomas Sowell

ALESSANDRO NICCOLO' TIRAPANI – SPRING 2020 – SOCIOLOGY IN A BUSINESS ENVIRONMENT

Neoliberalism 1

Initialy ignored, then applied in 80s

• UK: Margareth Thatcher – the ‘Iron

Lady’

• USA: Ronald Reagan

Main policies:

• 1. Privatisations
• 2. Cut of welfare
• 3. Limitation of Unions
• 4. Globalisation

ALESSANDRO NICCOLO' TIRAPANI – SPRING 2020 – SOCIOLOGY IN A BUSINESS ENVIRONMENT

Neoliberalism 2

Why are we talking about neoliberalism?

• If the market is the best way to allocate resources, then

businesses are central in the way we understand and manage our society

• Centrality of businesses and financial markets makes them

political actors

• Control of resources
• Wealth inequality
• Actual vs formal opportunities
• Responsabilities of businesses

ALESSANDRO NICCOLO' TIRAPANI – SPRING 2020 – SOCIOLOGY IN A BUSINESS ENVIRONMENT

Neoliberalism 3

A case in point: ‘Meritocracy’

• Michael Young, 1958, ‘The rise of meritocracy’
• Distopic book, yet it almost became reality
• Everyone should advance thanks to its merits
• But if we ignore the social conditions, rules can be biased and

have negative effects

• Who decides who and what is meritocratic?

ALESSANDRO NICCOLO' TIRAPANI – SPRING 2020 – SOCIOLOGY IN A BUSINESS ENVIRONMENT

Neoliberalism 4

Let’s think of examples of consequences of privatisations:

• Control of resources
• Wealth inequality
• Actual vs formal opportunities
• Responsabilities of businesses

ALESSANDRO NICCOLO' TIRAPANI – SPRING 2020 – SOCIOLOGY IN A BUSINESS ENVIRONMENT

Neoliberalism 4

What’s the problem with organising the society through markets? Imagine the economy as a poker game. Same opportunities and same rules mean that the game does not favour anyone per se. Yet, each round the fishes become more and more concentrated in somebody’s hand. So even though the game is still ‘fair’ in terms of rules, newcomers or people with less fishes have way lower chances of winning.

ALESSANDRO NICCOLO' TIRAPANI – SPRING 2020 – SOCIOLOGY IN A BUSINESS ENVIRONMENT

Corporate Social Responsibility and Business Ethics

ALESSANDRO NICCOLO' TIRAPANI – SPRING 2020 – SOCIOLOGY IN A BUSINESS ENVIRONMENT

Business studies and sociology

Why should we care? We have seen that as markets grow in importance, businesses provide for more and more goods and services ‘Corporate Business Responsabilty’(CSR) addresses these points:

• How do we implement strategies taking into consideration others?
• How do we do business taking into consideration others?
• What is the scope of the organisation?
• How do organisations can tackle political issues?
• Power and resistance in organisations

ALESSANDRO NICCOLO' TIRAPANI – SPRING 2020 – SOCIOLOGY IN A BUSINESS ENVIRONMENT

Context Globally

Liberalisation of markets – reduction of the regulatory approach Emergence of global giants, consolidation of market share Development of the ‘embedded firm’ and the global value chain

• Development of supplier networks in developing countries
• Tendency towards monopolies or few giant corporations
• Detachment between national legislation and corporate activities

ALESSANDRO NICCOLO' TIRAPANI – SPRING 2020 – SOCIOLOGY IN A BUSINESS ENVIRONMENT

Business studies and sociology

ALESSANDRO NICCOLO' TIRAPANI – SPRING 2020 – SOCIOLOGY IN A BUSINESS ENVIRONMENT

Management

Shareholders Profits maximisation

Corporate Social Responsibility

Stakeholders Welfare maximisation

Stakeholder Theory (Freeman, 1984) – A stakeholder is “any group or individual who can affect or is affected by the achievement

• f an organisation’s purpose.” Argues that it

is in the company’s strategic interest to respect the interests of all its stakeholders. Shareholder – An individual, a group of people, a private organisation or a public

• ne that owns a part or all the company.

ALESSANDRO NICCOLO' TIRAPANI – SPRING 2020 – SOCIOLOGY IN A BUSINESS ENVIRONMENT

Source: Parmar, B. L., et al. (2010). Stakeholder theory: The state of the art. The academy of management annals, 4(1), 403-445.

The rise of CSR – 1 / Friedman, 1970

• Calls for a neat division between government and private
• rganisations
• QUOTE: “What does it mean to say that ‘business’ has

responsibilities? Only people have responsibilities. A corporation is an artificial person and in this sense may have artificial responsibilities, but ‘business’ as a whole cannot be said to have responsibilities, even in this vague sense.”

ALESSANDRO NICCOLO' TIRAPANI – SPRING 2020 – SOCIOLOGY IN A BUSINESS ENVIRONMENT

The rise of CSR – 1 / Friedman, 1970

• Why does he say this? Because the business should

maximise the profits and distribute dividends to its

• shareholders. With this money then the shareholders will

independently decide who to finance, how etc…

• The only responsibility is to do what is legal
• Managers are only agents of shareholders, nothing else

ALESSANDRO NICCOLO' TIRAPANI – SPRING 2020 – SOCIOLOGY IN A BUSINESS ENVIRONMENT

The rise of CSR – 1 / Friedman, 1970

WHY IS THIS VIEW PROBLEMATIC?

• Ethical issues
• Externalities
• Growing role of businesses in regulation and services

ALESSANDRO NICCOLO' TIRAPANI – SPRING 2020 – SOCIOLOGY IN A BUSINESS ENVIRONMENT

The rise of CSR - 2

Classic answer to ethical problems:

• Albert Hirschmann (1915 – 2012)
• ‘Exit, Voice, Loyalty’ (1970)
• Recently, people added ‘neglect’ as a form of loyalty
• If you do not like what a business does, just choose one of three
• ptions

But, there is power imbalance: can you really exit

• r voice?
• Examples of Facebook, Google, Whatsapp…

ALESSANDRO NICCOLO' TIRAPANI – SPRING 2020 – SOCIOLOGY IN A BUSINESS ENVIRONMENT

The rise of CSR – 3

The evolution of Corporate Social Responsibility

• Initially, secondary problem/no problem (see Friedman)
• Then moved from Shareholders theory to Stakeholder

theory

• Shareholders: those that have economic links with the business
• Stakeholders: those who have something ‘at stake’ with the

business, so beyond just economic links

ALESSANDRO NICCOLO' TIRAPANI – SPRING 2020 – SOCIOLOGY IN A BUSINESS ENVIRONMENT

The rise of CSR – 3

What are externalities? An economic perspective

• ‘The tragedy of commons’ (Hardin, 1968)
• If anyone follows its own interest, society will maximise it is own

interest

• Resources will be allocated though the market
• But what happens when a common resource, like a river or a lake,

is used this way?

• Positive and negative externalities

ALESSANDRO NICCOLO' TIRAPANI – SPRING 2020 – SOCIOLOGY IN A BUSINESS ENVIRONMENT

Main Concepts of CSR

CSR Firms have responsibilities to societies including economic, legal, ethical and discretionary (or philanthropic). Social Contract There is a tacit social contract between the firm and society; the contract bestows certain rights in exchange for certain responsibilities. Institutional Theory Campbell, 2007: ‘Do no harm’ – Companies mimic what those around them are already doing

ALESSANDRO NICCOLO' TIRAPANI – SPRING 2020 – SOCIOLOGY IN A BUSINESS ENVIRONMENT

Freeman’s (1984) view of Stakeholders

ALESSANDRO NICCOLO' TIRAPANI – SPRING 2020 – SOCIOLOGY IN A BUSINESS ENVIRONMENT

“Strategic Management: A Stakeholder Approach” (1984) Look at the different ‘actors’ involved in business activities

Carroll’s (1991) pyramid

ALESSANDRO NICCOLO' TIRAPANI – SPRING 2020 – SOCIOLOGY IN A BUSINESS ENVIRONMENT

“The pyramid of corporate social responsibility: Toward the moral management of

• rganizational

stakeholders” (1991) A visualisation of the different issues that managers can look at when taking decisions and assessing consequences

The rise of CSR – 4

The evolution of Corporate Social Responsibility in the way business perspective shifts

• 1. From neglect to reactive
• From ‘not my problem’ to ‘ok, we fix it’
• 2. From reactive to proactive
• From ‘ok, we fix it’ to ‘we will have a manager dealing with that’
• 3. From proactive to becoming a full business function
• From ‘we will have a manager dealing with that’ to fully embedding

political and ethical questions in the decision making + strategic choices

ALESSANDRO NICCOLO' TIRAPANI – SPRING 2020 – SOCIOLOGY IN A BUSINESS ENVIRONMENT

CSR: explicit or implicit?

ALESSANDRO NICCOLO' TIRAPANI – SPRING 2020 – SOCIOLOGY IN A BUSINESS ENVIRONMENT

Current critiques – 1

Some people critical towards CSR say it is used only as a marketin tool, and it is not embedded in the decision-making No real change has happened, only better comunication Examples:

• Greenwashing
• Communicating that you are environment-friendly, but still polluting or damaging the

environment

• Pinkwashing
• Communicating that you are implementing gender policies, yet still not enforcing

women-friendly or gay-friendly policies in the board or in the HR department

ALESSANDRO NICCOLO' TIRAPANI – SPRING 2020 – SOCIOLOGY IN A BUSINESS ENVIRONMENT

Current critiques – 2

Why would this happen? Four main critiques from some people

• Companies are by definition motivated by profit. Need to change the scope of the
• rganisation in the society to achieve change
• There is a stong asymmetry of information. Large firms can ‘spin the story’, or just

pretend to listen to stakeholders concerns

• Managers do actually care, but the short-term nature of management makes

impossible to bring real change (see Foucault, peer-pressure, etc…)

• Managers all come from a similar background, so it is very hard to have different

views as many do not even see the problem (see Bourdieu, Sassen, etc)

ALESSANDRO NICCOLO' TIRAPANI – SPRING 2020 – SOCIOLOGY IN A BUSINESS ENVIRONMENT

New types of challenges: platform

• nline organisations

Platform business model

ALESSANDRO NICCOLO' TIRAPANI – SPRING 2020 – SOCIOLOGY IN A BUSINESS ENVIRONMENT

The exponential growth of platform business model

ALESSANDRO NICCOLO' TIRAPANI – SPRING 2020 – SOCIOLOGY IN A BUSINESS ENVIRONMENT

What does a platform do?

• “Platforms are technologies, products or services that create

value primarily by enabling direct interactions between customers or participant groups.” (Hagiu, 2014: 71)

• Their business model is based on the ability of connecting

demand and supply, instead of directly producing or buying the goods or services to be distributed

• Supply chain is no longer how you make money - what the
• rganization owns is of lesser importance than who and what it

can connect.

ALESSANDRO NICCOLO' TIRAPANI – SPRING 2020 – SOCIOLOGY IN A BUSINESS ENVIRONMENT

What does a platform do?

• 1. Make extensive use of AI technologies, from more basic like data

collection, to predictive ones, like Deep Learning. They transform data points in information as a core part of their business model

• 2. Set rules privately, as part of their managerial activities, with far

fetching social consequences/negative externalities

• Trained algorithms might not recognize and therefore exclude users from

disadvantaged backg

• 3. Have a global reach, as the online-based business model makes them

able to operate in many countries without being physically present in the country

• But they need a license to operate, which could be problematic (Uber,

AirBnB….)

ALESSANDRO NICCOLO' TIRAPANI – SPRING 2020 – SOCIOLOGY IN A BUSINESS ENVIRONMENT

“In a lot of ways Facebook is more like a government than a traditional company. We have this large community of people, and more than other technology companies we’re really setting policies”

(Mark Zuckerberg, Facebook CEO, 2018)

ALESSANDRO NICCOLO' TIRAPANI – SPRING 2020 – SOCIOLOGY IN A BUSINESS ENVIRONMENT

ALESSANDRO NICCOLO' TIRAPANI – SPRING 2020 – SOCIOLOGY IN A BUSINESS ENVIRONMENT

ALESSANDRO NICCOLO' TIRAPANI – SPRING 2020 – SOCIOLOGY IN A BUSINESS ENVIRONMENT

ALESSANDRO NICCOLO' TIRAPANI – SPRING 2020 – SOCIOLOGY IN A BUSINESS ENVIRONMENT

ALESSANDRO NICCOLO' TIRAPANI – SPRING 2020 – SOCIOLOGY IN A BUSINESS ENVIRONMENT

Problems with data

• 1. Platforms COLLECT, CREATE, STORE, ANALYSE, USE,

COMMERCIALISE data

• 2. The better they do the above, the more successful they

are Yet, data can be SENSITIVE, PRIVATE, MISUSED, BIASED

• Data can lead to privacy breaches to an unprecedented scale (see

Cambridge Analytica)

• Data contain biases

ALESSANDRO NICCOLO' TIRAPANI – SPRING 2020 – SOCIOLOGY IN A BUSINESS ENVIRONMENT

Problems with data

ALESSANDRO NICCOLO' TIRAPANI – SPRING 2020 – SOCIOLOGY IN A BUSINESS ENVIRONMENT

Problems with data

Examples: bias on gender & ethnicity https://www.newscientist.com/article/2166207- discriminating-algorithms-5-times-ai-showed-prejudice/

ALESSANDRO NICCOLO' TIRAPANI – SPRING 2020 – SOCIOLOGY IN A BUSINESS ENVIRONMENT

Problems with data

https://www.newscientist.com/article/2206211-ais- seem-to-be-much-worse-at-recognising-objects- from-poorer-countries/

ALESSANDRO NICCOLO' TIRAPANI – SPRING 2020 – SOCIOLOGY IN A BUSINESS ENVIRONMENT

Problems with data

https://twitter.com/jackyalcine/status/615329515909156865?ref_sr c=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E615329 515909156865&ref_url=https%3A%2F%2Fwww.theverge.com%2F2 015%2F7%2F1%2F8880363%2Fgoogle-apologizes-photos-app-tags- two-black-people-gorillas

ALESSANDRO NICCOLO' TIRAPANI – SPRING 2020 – SOCIOLOGY IN A BUSINESS ENVIRONMENT

Problems with data

https://www.theguardian.com/technology/201 8/jan/12/google-racism-ban-gorilla-black- people

ALESSANDRO NICCOLO' TIRAPANI – SPRING 2020 – SOCIOLOGY IN A BUSINESS ENVIRONMENT

Class case study: AirBnB in Barcelona (Spain)

A MULTI-STAKEHOLDER INITIATIVE SIMULATION

What is a Multi-Stakeholder Initiative?

• An MSI is a voluntary private regulation which most common takes place in

which normal State regulation is not possible or not achievable

• It begins with a social problem or a social conflict, between local citizens,

private organisations and intermediaries (governments, suppliers, customers, NGOs, etc)

• It aims at drafting a set of rules, accepted by all the social and business parts,

that regulates how they behave. There can be ‘official’ sanctions, if laws are created, or ‘unofficial’, like losing your certificate of belonging to that group

• It is based on the idea of finding legitimacy for operating in industries where

stakeholders are very different, dispersed and with different interests

ALESSANDRO NICCOLO' TIRAPANI – SPRING 2020 – SOCIOLOGY IN A BUSINESS ENVIRONMENT

How does this MSI simulation works?

• You will divide in groups of 3 or 4 members
• Each of you will represent a Stakeholder, which I will assign to you
• You have some time to prepare, understand the case, and which actor

you are. Do your own research, look at the files in the dropbox folder, talk to me

• Propose an amendment to the collective regulation and convince
• thers to vote it
• Finally, vote for the final version of the proposal. Will it pass or not?

ALESSANDRO NICCOLO' TIRAPANI – SPRING 2020 – SOCIOLOGY IN A BUSINESS ENVIRONMENT

ALESSANDRO NICCOLO' TIRAPANI – SPRING 2020 – SOCIOLOGY IN A BUSINESS ENVIRONMENT

https://www.theguardian.com/commentisfree/2018/oct/24/airbnb-unregulated-damage-cities-barcelona-law-locals

ALESSANDRO NICCOLO' TIRAPANI – SPRING 2020 – SOCIOLOGY IN A BUSINESS ENVIRONMENT

https://www.bloomberg.com/news/articles/2019-05-23/death-of-brazilian-tourists-adds-to-airbnb-problems-in-chile

ALESSANDRO NICCOLO' TIRAPANI – SPRING 2020 – SOCIOLOGY IN A BUSINESS ENVIRONMENT

https://www.bloomberg.com/news/articles/2019-05-28/spain-s-most-aggressive-rent-controls-may-soon-hit-barcelona

The case study

• You are representing all the main stakeholders of AirBnB in

Barcelona, Spain

• Barcelona has seen a gigantic increase of tourism, with adverse

effects on housing. AirBnB is a leading cause of housing shortage for locals

• Prices for long-term rents have increased as the supply has shrunk.
• Local people have asked for social protections, on the model of
• ther cities like Berlin, where rent controls have entered into force

this year.

ALESSANDRO NICCOLO' TIRAPANI – SPRING 2020 – SOCIOLOGY IN A BUSINESS ENVIRONMENT

ALESSANDRO NICCOLO' TIRAPANI – SPRING 2020 – SOCIOLOGY IN A BUSINESS ENVIRONMENT

The case study

• The Mayor, supported by the left-wing majority, has just suggested a new regulation that

requires anyone renting to obtain a licence.

• In the red area, no AirBnB licences are given. In the green area, some licenses will be

granted, so to spread tourism outside city center.

• Regulation as it is cannot be passed because of national and European laws. Yet, many

citizens demand a solution. There is now an assembly where all stakeholders are invited to discuss if this regulation should go through and its main consequences

Sea Outer area - AirBnB allowed Central area – AirBnB forbidden

Instructions for the case study

Each group (4 people) gets assigned a specific stakeholder List:

• 1. AirBnB management
• 2. AirBnB shareholders
• 3. Mayor & Left-wing representatives in municipal assembly
• 4. Right-wing representatives in municipal assembly
• 5. Association of local home-owners
• 6. Association of local tenants (long-term)
• 7. Association of hotel owners

ALESSANDRO NICCOLO' TIRAPANI – SPRING 2020 – SOCIOLOGY IN A BUSINESS ENVIRONMENT

ALESSANDRO NICCOLO' TIRAPANI – SPRING 2020 – SOCIOLOGY IN A BUSINESS ENVIRONMENT

Instructions for case study

Discuss the following point among yourselves a be ready to make your policy recommendation in the final debate (slides are not mandatory, but have detailed notes)

• Summarise the situation
• Understand what is the position of your stakeholder: how is the shortage of housing and the rise of

prices affecting you? Positively or negatively?

• How will the new regulation affect you? Positively or negatively?
• Decide which is you position towards the new regulation. Decide so by asking both managerial (i.e.

what is the impact on our profits or house prices?) and sociological questions (what is the right thing to do? Can any thinker we have seen help you deciding?).

What’s your recommendation?

• Craft two amendments to change the proposal from its current form into something you

might accept (based on the analysis above)

• Be ready to present one of them only. Keep the second if someone else presents the same or

if you think it has more chances to pass

• Think which are your ‘red lines’: what kind of regulation you cannot accept ever? Why?

ALESSANDRO NICCOLO' TIRAPANI – SPRING 2020 – SOCIOLOGY IN A BUSINESS ENVIRONMENT

Instructions for case study

The case will be in rounds (like in reality) 1. The Major and the left-wing party will present their proposal and explain why the others should vote in support 2. All actors will speak once to present either their amendments or they straight support of the

• proposal. You cannot immediately reject it without amendments, because you accepted to

join the MSI

• Here is fundamental that you find support: convince at least 4 others to vote for your idea.

Some amendments might be incompatible among them, so decide strategically what to suggest

• Amendments can be obligation to do a report, a change in regulation, financial

compensation, change of the areas, and so on… 3. There is a vote for each amendment that is admitted (I will be the ‘judge’). 4. You all make a second round of pledge in favour or against the new text, now amended. You need to convince the others in favour or against. There will be only one vote by majority

ALESSANDRO NICCOLO' TIRAPANI – SPRING 2020 – SOCIOLOGY IN A BUSINESS ENVIRONMENT

Evaluation of case study

The case worth 40% of final grade 1. I will assign the same grade to all members of each group 2. I will both evaluate the process before and during the debate 3. I will evaluate (all worth 25% of this part)

• Effort: how much you work together, research, engagement during the debate, professionalism –

pretend it is a real negotiation!

• Research: how much you understood your stakeholder, what are its interests, what you should ask
• References to theory: how much you draw from things discussed in class, at least partially. Also,

how much you use them to convince others or to analyse your position

• Reflections and critical thinking: how much you think ethically, how much you try to understand

social issues, and how much you connect to the negotiation. Overarching point: I evaluate your efforts, not only your results. So focus on doing your best. Winning the case does not matter per se, but how you try to understand and convince others based on what we have done in class

Additional information

FURTHER READINGS AND A SURVEY

ALESSANDRO NICCOLO' TIRAPANI – SPRING 2020 – SOCIOLOGY IN A BUSINESS ENVIRONMENT

How to balance stakeholders? A game

The Financial Times has released this brief online game, based on actual events, to let you play with balancing between:

• Short-term profits
• Social responsibility
• Environmental responsibility
• Long-Term investments

https://ig.ft.com/esg-purpose-profit-game/

ALESSANDRO NICCOLO' TIRAPANI – SPRING 2020 – SOCIOLOGY IN A BUSINESS ENVIRONMENT

Further readings (some available in most languages)

• Delanty, G., & Strydom, P. (2003). Philosophies of social science: The classic and

contemporary readings. Open University Press

• Harvey, D. (2007). A brief history of neoliberalism. Oxford University Press, USA.
• Fanon, F. (2001). The Wretched of the Earth. Penguin Modern Classics
• Marx, K. (1867). Capital. Available in all languages and also free online
• Weber, M. (2013). The Protestant ethic and the spirit of capitalism. Routledge.
• Moon, J. (2014). Corporate social responsibility: A very short introduction. OUP

Oxford.

• Standing, G. (2016). The Precariat: The New Dangerous Class. Bloomsbury

Revelations

• Srnicek, N. (2017). Platform capitalism. John Wiley & Sons.

ALESSANDRO NICCOLO' TIRAPANI – SPRING 2020 – SOCIOLOGY IN A BUSINESS ENVIRONMENT