QBT Task 4 – Final Version 2 Robb Farrell Western Governors University Student ID# 000242903 THE REAL BOTTOM-LINE OF TODAY’S BUSINESS Research reveals that companies that focus on adhering to ethical standards and investing in socially responsible practices to the benefit of all stakeholders have a significant business advantage it today’s market place. Socially and ethically conscious originations have compelling business results in related to employee loyalty, company profits and consumer affinity. There was a time in our capitalist society that an organization’s number one priority and predominant focus was profits and shareholder interest. Indeed things have and are changing. In today’s market climate, companies have had to increase their consciousness as to what really matters.
Within business ethics, an important factor is the relationship within a business – in all aspects. Whether it be the company itself, the employees, employers, shareholders, stakeholders, they all are influenced by one another and have a strong role dedicated to them within a business. Stakeholders are those that hold an interest in the company, but do not own it, and stockholders have actual shares within the company – they own a part of it. This can just be a small fraction that they share with many other people, or they can own a large fraction of a company. Scholars such as Friedman suggest that treating the economic responsibility as the most important responsibility of a business, is called a profit-maximising view, and “the social responsibility of a business is to increase its profits.” This kind of view states that a company should be operated on a profit-orientated basis, with its sole mission being to increase profits.
P6 - Describe how political, legal and social factors are impacting upon the business activities of the selected organisations and their stakeholders All businesses and corporations will face external factors that impact the business activities and stakeholders of a business. These factors of changes can be political, legal, and social within the business environment. Politics is a process by which groups of people make collective decisions. These decisions can affect businesses as well as the working economy. For example, a new legislation or a regulatory change of policies from the government will affect business activities.
You may work with individuals, major corporations and/or small businesses. You will work closely with clients in preparation, explanation and verification of any financial paperwork, you also help consumers to go over budgeting and to make plans for future investments. You can also work for private or business sector and may specialize in tax work or in the handling of client assets. In conclusion, accounting is the balance of finances, but it offers plenty of opportunities for the man who made it his profession. Accountants carry the primary responsibility for financial records, making sure the appropriate taxes are paid by federal and state deadlines, My goal in creating and controlling
However other groups are able to influence the decision making such as pressure groups and government. When meetings are being held about the interests of the business then directors and shareholders are able to express their views and opinions about what works in the business and what does not. Here are some examples of internal and external stakeholders and how they can influence a business. I will be relating the influences of stakeholders to the businesses that I have chosen; Tesco (PLC) and Ty Gobaith (Charity trust). Owners are interested in how much profit the businesses make.
EST1 Task 310.2.1-05: Ethical Situations in Business Western Governors University February 2, 2013 EST1 Task 310.2.1-05: Ethical Situations in Business Companies have four levels of social responsibility: 1) economic, 2) legal, 3) ethical, and 4) philanthropic. A company has to balance its duty to shareholders to make a profit with its contract with society to make socially responsible decisions. In order to increase profit, a company must understand the needs of the stakeholders and develop a coordinated plan which establishes standards within the company that can be understood and accepted by all employees; as well as supporting the needs of the community it serves. Company Q has supported the need to improve profit by closing two unprofitable stores. However, an analysis should be made regarding the need to close those stores.
Your boss has developed the following set of questions you must answer to explain the U.S. financial system to DellaTorre. Why is corporate finance important to all managers? Corporate finance is essential to each and every executive level position, which provides the skills to ascertain specific business strategies and particular tasks that integrate value to their organization. In addition to being able to foresee capital provisions and their implementation into the business Describe the organizational forms a company might have as it evolves from a start-up to a major corporation. List the advantages and disadvantages of each form.
27 the World Business Council for Sustainable Development (1999), which also identifies stakeholders as the representatives from labor organisations, academia, church, indigenous peoples, human rights groups, government and non-governmental organizations and shareholders, employees, customers/consumers, suppliers, communities and legislators. According to Ansoff (1965), a firm’s objective could be achieved through balancing the conflicting interests of these various stakeholders. Therefore, a fundamental aspect of stakeholder theory is to identify the stakeholders an organization is responsible for. Any stakeholder is relevant if their investment is, in some form, subject to risk from the activities of the organization (Clarkson 1995). Corporate
With Citigroup’s organizational culture it has guided employees toward the behaviors and attitudes that have put the company at risk. The company must revert to what is important that is the customers and focus on the core values of the organizations, and the vision of the organization. To change Citigroup’s organizational culture there needs to be a shared responsibility among the leaders of the company, managers, and employees. By having a shared responsibility will make Citigroup’s organizational culture more effective and productive. Having shared responsibility will allow each employee to achieve or accomplish his or her full potential, and acting with the greatest level integrity when dealing with one another, and customers.
Mini Case Page 45: a. Why is corporate finance important to all managers? Financial managers assist in many different areas of the business environment. They use the information provided by the accounting managers in deduce how to invest it to maximize firm profits. The financial managers have a number of internal and external functions.