Industrial Relation Essay

676 WordsDec 19, 20133 Pages
2. Global demands for responsible business Business is presently facing an uncertain competitive environment with multiple demands and pressures from customers and numerous stakeholders. Many of these demands and pressures are converging into one theme: corporate responsibility. Rise in stakeholder consciousness increasingly, Corporations are motivated to become more socially responsible because their most important stakeholders (customers, employees, shareholders and investors, community, etc.) expect business to understand and address relevant social and community issues. Without appropriate actions in response to these demands, stakeholders may react negatively to business. Taking suitable actions, thus, often leads to a positive contribution to business success. Understanding what causes are important to employees is often a priority because of the many interrelated business benefits that can be derived from increased employee engagement in terms of more loyalty, improved recruitment, increased retention, higher productivity, and so on. Shareholders and investors (particularly institutional investors) themselves, through socially responsible investing (SRI) are exerting pressure on corporations to behave responsibly and ethically. They are not only concerned for their financial returns but also for the practices that ensure business continuity. The marketplace is developing both social and environmental information and criteria to supplement the traditional financial criteria used to make investment decisions. Market indexes and professional firms now provide information for mutual funds, private equity funds, venture capital funds, commercial banks and other financial market investors about a wide range of corporate characteristics, including governance, human resource management, health and safety, environmental protection and community development

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