MGMT 101 Lecture Notes - Lecture 6: Starbucks, Brevican, Trado
Document Summary
Starbucks was accused by an ngo of buying coffee at low prices and not buying fair trade" coffee beans. There is currently very little trust in businesses: ngos have more powerful tools to threaten corporate reputations through media, distribution channels, the internet, etc, ngos have shifted their focus from governments to social problems. Organization"s actions fall into: performative actions (assortment of merchandise, competitive prices, convenient locations in the retail industry) institutional actions (donating to charity) that demonstrate the company"s adherence to unwritten social norms (may carry more weight) Both contribute to the legitimacy of the organization. Negative institutional actions harms the performance of even high-performative firm. Low-performative firms with high institutional actions can outperform high-performative firms. Category killers: ngos focus on a single issue. 5 approaches ngos use to threaten corporations: developing campaigns against businesses. Targets companies with successful and well-known brands i. e. targeting shell for dumping their oil in the ocean in the 1990s: attempting to build market intelligence.
