In today’s market climate, companies have had to increase their consciousness as to what really matters. The market is demanding more and more that organizations account for the interests of not just shareholders but all stakeholders. Team members, shareholders, customers, vendors, the environment and society’s interests must be in the forefront of consideration of all companies wishing to stay relevant in today’s market and workforce environment. This in more than just the right thing to do, it is an operational imperative that offers significant ROI to a business’ bottom-line. Companies must view themselves as part of an ecosystem; one entity in an interdependent interconnected environment.
Balanced Scorecard Organizations and upper-management often use a Strengths, Weaknesses, Opportunities, Threats, and Trends (SWOTT) analysis model to concentrate on the company’s competitive advantages, their possibilities, evaluate how to improve susceptibilities, and avoid coercion. Organizations depend on SWOTT analysis to remain successful in their industries. For a business to be successful and sustain their performance, the entity is obligated by their external environment to generate strategic objectives and constantly evaluate its vision and mission. Organizations must reflect on their mission and vision frequently to assess each for validity, consistency, and making sure the objectives are components useful to the desired vision. Businesses require a tool to measure the execution of objectives.
Do firms have any responsibilities to society at large? Yes, I definitely think firms have responsibilities to society at large. They need to make sure they are providing a safe working environment to not just their employees but to the world. They need to make sure they avoid polluting the air or water, and produce products that are safe for the consumers. 2.
It is very important that for a company to succeed every area of the business must be covered. Therefore when speaking about laws business laws are extremely important. Without laws, companies could not be secured. Whether is a multi-dollar company or a papa and mama’s place law is very important, law will help from companies getting sued and at the same time it helps companies become more productive and more profitable, laws will help a company get contract agreements in place whether is with other companies or customers. It is very important to have agreements and contract because it helps a company be honest and helps be
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.
Assignment 1 “The American Red Cross (ARC)” 1. Determine the impact of this even on ARC’s “benefits of business ethics” (employee commitment, investor loyalty, customer satisfaction, and bottom line). “Business ethics relates to rules, standards, and moral principles regarding what is right or wrong in specific situations. Business ethics comprises values, and standards that guide behavior in the world of business.” (Ferrell and Fraedrich 2011 page 7). Creating dependable leaders should always be a part of business education, but it seems over time it has become more of incident by result than by vital content.
Understand product liability issues and recotnize contractual and non-contractual liability in business transactions. 4. Locate government resources, programs and legislation that impact international trade and investment. 5. Recognize situations in which legal advice should be obtained.
The Vioxx was believed to increased cardio vascular problems. Addition to that, Senator Charles Grassley quoted on the case study that ‘a blockbuster drug (had become) a blockbuster disaster’ (Lawrence & Weber, 2011). From this result, it is clearly shown that it is important for all companies to act ethically and should be socially responsible in all their actions for them not to have a negative image to the market and can also have a huge impact to their stakeholders. ‘Corporate Social Responsibility [CSR] is the idea that businesses interact with the organization’s stakeholders for social good while they pursue economic goals’ (Lawrence & Weber, 2011). This means that all stakeholders expect companies to always act responsibly and to consider the society in all their business operations.
ALL WK 1, DQ’s: WK 1, DQ 1: What is a business’s obligation to build an ethical culture and balance its desire for profit with ethical responsibilities to employees, customers, society, and the environment? Ethics is different from one person to the next, so it is imperative that business clearly define the norm for staff members and management. The decisions organizations make influence more than business partners, affiliates, culture, and others. It is important for organizations center of attention on maximizing shareholder revenue. Therefore, maximizing profit without causing destruction to the business culture can be a balancing act for most organizations.
The manager of the business must focus on the day-to-day aspects of keeping the department, team or organization running smoothly. Which includes making sure the department is staffed appropriately, that the company is on target for sales which production is on target. Any leader of a business, must be able to set goals and aspirations for the team, the leader needs to set the tone of the organization, motivate and inspire the group. Truthfully, managers must be able to do both. They must inspire and motivate and they must ensure that the company operates effectively.