In the non-market environment, public or private politics both

In
the non-market environment, public or private politics both can affect the
operation of an organization by putting them in
the spotlight. Public politics’ actions are being
supported by the government and may cause new legislation and laws against the
practices of the target company, meanwhile, private politics are led by private
institutions, NGOs, and activists. These institutions use social pressure to
persuade the company change its policies. Private politics may take place in different
ways. Firstly, managers and CEO of the company will get noticed about the issue
privately, and then they will negotiate about that to see if they are
responsible enough to do something effectively through eliminating this problem
or not. Secondly, activist groups and organizations like NGOs influence on
interests and advocacy groups to inform the public and society about the issue
which is mainly related to health care, environment, human rights and etc. They
try to, by organizing a public confrontation against the target company
operations, achieve more progress toward their goals. Thirdly, activists may
manage to forme some type of private governance institutes which have the
authority to control companies’ practices. Finally, news and media cover the
events and negotiations around the issue to absorb public attention and help
interest groups to create social campaigns challenging the target company’s
strategies. 

            Initially, NGOs and other activists used confront against
economic agents’ performance, but in 1990, NGOs turned to take cooperative
approaches in some cases. Many companies got significant advantages in this
regard. For instance, corporations as like as Wal-Mart and KKR managed to
change their strategies in an efficient manner by collaborating with organizations
like as Environmental Defence Fund (EDF) and Delberg Global Development
Advisors. However, the selection of strategy whether confrontational or cooperative
depends on the characteristic of the target and the cost of the procedure.

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Selection
of the target is a crucial component of private politics. It is necessary to
know how vulnerable or powerful, the target company is, and how this
characteristic would affect the outcome of private politics. Regarding the power
of the company and its public face, activists may take diverse approaches. For
example, if a company has a particular and popular brand, a typical strategy is
forming social campaigns  to confront the
company’s policies directly, meanwhile for organizations who are not popular
among society, activist will boycott their suppliers or retailers who have
branded products, and by this tactic, they can pressure the target company indirectly.
As a whole, advocacy groups and activists usually use different tactics, such
as boycotts and media attack toward reaching their goals. However, each
institute according to its concept and background has its own strategy and
authority which should be used in a productive way. Social activists have not
the same power as Labor Unions, they do not have the authority to influence company
position by voting or legislation, but they can take the advantage of social
media to inform people and create social campaigns against what the company is
doing.

            In addition, social activists may discourage the shareholders
to keep their funds in the target company implicitly, this kind of activities
would impact negatively on the share prices and the firm’s position in its
market and industry. Besides, a firm is probably associated with different
social industries, so the other products from different markets, but the same
industry, will get affected by private politics imposing on the certain company
( Baron, 2011). As a result, other companies who are working and associating
with the same industry, which target firm is active in that, would pressure on
the company to change its policy. For instance, animal testing as a social issue
will limit the operation of cosmetic factories, pharmacies, and even school laboratories.
While they do not provide the same products o services, they will interact or
force each other to overcome the issue (Baron, 2013).

            Another strong tactic that activists do, is launching boycotts.
Organizations as like as Greenpeace can do such symbolic acts which invite the
people from all around the world to confront against destructive policies of
the target company. A boycott likelihood of success may depend on numerous factors
such as the concept of the issue, product’s consumers and the effort of
activists. Consumers mostly by use of their common sense and observation eventually
stop purchasing the products which are the target of a boycott (Baron, 1995). However,
I believe in case that the target product is not associated with a competitive
market, there would not be many alternatives for consumers, furthermore, the
boycott strategy does not impact adversely on the product’s market value.

Interestingly,
the development of internet and use of computers make the communication and
announcement much easier. The social activists are able to make the
confrontation campaigns through the internet and be in touch with other groups
and institution to direct the private politics in an effective way. Regarding social
media and World Wide Web, it is expected that all corporations establish
programs showing their response about human rights, animal rights, natural
sources conservation and also health care, as it is observing continuously by
the public (Buell Hirsch, 2014). Besides, another impressive role, which
internet has on globalization and advancing an issue, is in fundraising. Since public
figure finds NGOs as a high trusty organization, they have deposited a huge
amount of money for launching advertisements and announcements against target
company from all around the world by use of the internet (Baron, 2013)

            Many activists and advocacy groups utilize petition and
lawsuits, which are based on some social and environmental legislation written by
courts or private governance institutions, to advocate the target company’s
policies. Another tactic which is mostly less successful in this case is questioning
the shareholders of the company about their resolution related to the human
rights, animal rights, environmental problems and other issues in their annual
meeting. Regarding shareholders right, they may distribute them in different
manners to contribute and cooperate to the confrontation (Baron, 2011)

            On the other hand, firms and corporations who have been
objected will use different strategies to handle the situation and remain stable
in the industry and market with the minimum amount of loss. Firstly, they need
to identify the exact demand of the activists. Secondly, target firms should assess
the power of activists and their value chains. Thirdly, determining public
attention toward this issue and deciding whether to cooperate with NGOs or
fight against activists regarding the influence of them on society and market (Baron,
2013).

Statoil

Alberta
has a vast resource of Tar sands, which are a major deposit of bitumen. This substance
will convert to oil through an expensive and complicated process. However, this
process would be so harmful to the environment and first nation communities who
are living in that region. Athabasca River and air would get polluted, a large
part of the Boreal forest will be destroyed, and the amount of greenhouse gas
would increase through developing this destructive project. Besides, increasing
number of reports are being sent by local and first nation communities,
complaining about the high level of health and social problems they are facing with
due to this industrialization in their living region (Greenpeace, 2010).

Statoil
is a Norwegian oil company who is the main investor of tar sands in Alberta. They
had claimed that their operations would not pollute rivers, water, soil and air,
while many interest groups such as Natural Resources Canada, Environment Canada,
and affected communities refuted this statement by different approaches (Greenpeace
Canada, 2011). Donna Dahm explained that the resource extraction process has
lots of detrimental effects on their daily life. They are experiencing many health
problems like as: a headache, joint paint, and mental disorders, which have
been caused by harmful emissions surrounding their living environment. In spite
of repeated complaints about this issue to the regulatory bodies such as
Alberta Environment and ERCB, there was not any support from the government and
other private governance regulatory (Donna Dahm, 2011). In addition, there were
many advocacy and interest groups who did many scientific investigations
regarding the deleterious effect of bitumen extraction activities on water
contamination, water use, and habitat disturbance (Greenpease, 2011).