models, tests, paradigms

4 steps of stakeholder analysis (1st priority)

1. Who are the stakeholders?

2. What do the stakeholders want?

3. What power do the staekholders have?

4. Can they form coalitions?

5 types of stakeholder power (2nd priority)

1. Voting power: Influencing businesses through elections or shareholder votes.

2. Economic power: Influencing businesses through buying, selling, investing, or withholding money.

3. Political power: Influencing government policies and decisions.

4. Legal power: Using lawsuits or legal rights to influence business behavior.

5. Informational power: Influencing public opinion through information, media, or communication.

3 stakeholder salience (3rd priority)

1. Power = Can this stakeholder actually affect the business?

Examples: Customers can stop buying; the government can fine the company; employees can strike.

• Employees go on strike → power because they can stop production.

• Customers boycott Nike → power because sales can fall.

• Government fines a company → power because it can legally punish the business.

• A major supplier refuses to ship parts → power because production can stop.

• Amazon changes fees for a small seller → Amazon has power because the seller depends on the platform.

• Advertisers pull out of the NFL → power because the NFL could lose revenue.

Easy question: “Can they actually do something to the company?”

2. Legitimacy = Is the stakeholder’s concern reasonable or valid?

Example: customers wanting safe peanut butter is a legitimate concern.

• Customers expect peanut butter not to make them sick → legitimate.

• Employees expect a safe workplace → legitimate.

• Neighbors complain that a factory is polluting their air → legitimate.

• Parents want accurate movie ratings so they can judge content for children → legitimate.

• A homeowner complains about an $800 tow when they had no choice of towing company → legitimate.

• A community worries a huge data center could raise electricity demand and rates → legitimate.

• Easy question: “Does this stakeholder have a fair reason to care?”

3. Urgency = Does the issue need attention right now?

Example: if people are getting sick or dying, the issue is urgent.

• Peanut butter is actively making people sick → urgent.

• A gas leak could cause an explosion → urgent.

• A company discovers a dangerous product defect → urgent.

• Workers are currently being exposed to unsafe chemicals → urgent.

• A cyberattack is happening right now → urgent.

• A restaurant has a serious food-safety contamination problem today → urgent.

Peanut butter contamination:

• Legitimacy → customers deserve safe food

• Urgency → people are getting sick

• Power → government can shut the plant down or customers can stop buying

NFL advertisers:

• Power → can withdraw advertising money

• Legitimacy → may reasonably care about how controversy affects their brands

• Urgency → if the controversy is happening during the season they may want a fast response

AI data center community:

• Legitimacy → residents may reasonably worry about electricity rates

• Power → they may influence local government or permits

• Urgency → could become urgent if approval or construction is happening soon

Best memory trick:

Power = “Can they hurt/help us?”
Legitimacy = “Are they justified?”
Urgency = “Does it need action now?”

A factory is polluting a neighborhood's drinking water.

• Power: Residents can organize protests or pressure government officials.

• Legitimacy: Residents have a legitimate concern because their drinking water is contaminated.

• Urgency: The contamination is happening now and could immediately harm people's health.

4 stakeholder relationships (9th priority)

• Inactive = ignore the issue
  The company does little or nothing about stakeholder concerns.

  Example: Seattle towing companies kept charging very high fees until government stepped in.

• Reactive = respond after the problem happens
  The company waits until there is controversy or pressure.

  Example: NFL responded to the kneeling controversy after it had already become a major public issue.

• Proactive = anticipate the problem before it becomes serious
  The company tries to identify issues early and act first.

  Example: a company notices customers are worried about data privacy and creates stronger privacy protections before a scandal happens.

• Interactive = actively work with stakeholders
  The company communicates with stakeholders and involves them in finding solutions.

  Example: a company planning a new data center meets with local residents and government officials to discuss electricity use and community concerns before construction.

4 stages of the public policy process (4th priority)

Public Policy Process — 4 parts:

1. Inputs = Why is government acting?

   • Outside pressures or problems pushing government to respond.

   • Example: sick workers, labor unions, public health concerns.

2. Goals = What is government trying to accomplish?

   • The result the policy is supposed to achieve.

   • Example: protect workers and public health.

3. Tools = How will government achieve it?

   • Penalties, incentives, legal action, license removal, information requirements.

   • Example: Postmates fine = a “stick.”

4. Effects = What happened after the policy?

   • Can be intended or unintended.

   • Example: minimum wage raises pay but may also lead employers to hire fewer workers.

Easy memory:
Why → What → How → What happened.

9 reasons for government regulation (10th priority)

1. Market failures.

2. Externalities.

3. Government-approved monopolies

4. Encourage ethical conduct.

5. Limit self-regulation

6. Tort law is inedeqaute

7. Caveat emptor (buyer beware)

8. Guardrails

9. Cost benefit analysis

3 components of Regulatory Impact Analysis (11th priority)

1. Statement of need: Explain why the regulation is necessary.

2. Alternatives: Examine different ways to address the problem.

3. Costs and benefits: Evaluate the proposed regulation and its alternatives.

4 methods of substantive deregulation (12th priority)

1. Changing or repealing the law.

2. Sunset laws: Regulations expire automatically unless renewed.

3. Replacing command-and-control with flexible enforcement.

4. Preemption: Higher-level laws override conflicting lower-level laws.

5 methods of procedural deregulation (13th priority)

1. Reduce funding for enforcement agencies.

2. Fire regulators.

3. Appoint agency leaders opposed to the agency's mission.

4. Leave regulatory positions vacant to prevent a quorum.

5. Change the factors used in cost-benefit analysis.

6 factors of the Economic Realities Test (5th priority)

1. Permanence → How long does the worker stay?

2. Skill → Does the job require special skills?

3. Investment → Does the worker pay for equipment?

4. Profit or Loss → Can the worker make or lose money?

5. Control → How much control does the employer have?

6. Business Integration → Is the work a main part of the business?
   Easy memory: P-SIP-CB

6 factors of the hostile work environment test (7th priority)

1. verbal or physical.

2. How frequently the conduct occurred.

3. How hostile or offensive the conduct was.

4. Whether the offender was a coworker or supervisor.

5. Whether others participated in the conduct.

6. Whether the conduct targeted one person or multiple people.

2 employer safeguards against harassment claims (14th priority)

1. Establish and clearly communicate a zero-tolerance harassment policy.

2. Create an effective complaint procedure that prevents retaliation and addresses complaints promptly.

4 business-government-society models (8th priority)

1. Market capitalism: Businesses operate mainly through markets, competition, and private ownership.

2. Dominance: Powerful corporations and elites have disproportionate influence over government and society.

3. Countervailing forces: Different groups, including businesses, government, labor, and interest groups, balance one another's power.

4. Stakeholder: Businesses are responsible for considering the interests of groups affected by their actions.

3 components of Regulatory Impact Analysis (RIA)

1. Statement of need: Explain why the regulation is necessary.

2. Alternatives: Examine different ways to address the problem.

3. Costs and benefits: Evaluate the proposed regulation and its alternatives.

Exceptions to employment at will (6th priority & beyond, unlikely)

1. Union contracts requiring just cause.

2. Individual employment contracts.

3. Breach of good faith and fair dealing, including constructive discharge.

4. Public policy protections, such as jury duty or military service.

5. Protected union organizing and activities.

6. Illegal discrimination under Title VII and other applicable laws.