...Business and society Overview Companies play an important role in society, impacting on communities and regions as well as individual employees. The concept of corporate social responsibility recognizes that businesses often voluntarily integrate social and environmental concerns into their business models. Issues of corporate governance come into play particularly in cases of company restructuring. The Foundation monitors developments through its European Restructuring Monitor. A quarterly analysis of trends and in-depth case studies are available in the ERM quarterly. Through their business operations, companies have an important impact on the natural environment. The corporate sector has found itself in the media spotlight for environmentally problematic activities. Small and medium-sized enterprises are also under increasing pressure to adopt environmentally responsible practices. Introduction Businesses interact with the wider society they are part of. Businesses are affected by society, for example in the kinds of goods and services they are expected to produce, and businesses affect society by their activities. It is a two-way process. See, for example this article on discrimination in the workplace: http://news.bbc.co.uk/1/hi/business/1605029.stm Some of the ways in which businesses affect society are negative, and usually governments limit these activities by law. For example, some business activities damage the environment. In addition, there are ethical constraints...
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...MODULE - 1 Forms of Business Organisation Business Environment 3 Notes FORMS OF BUSINESS ORGANISATION 3.0 INTRODUCTION After identifying the business in any field e.g., Insurance, it is necessary then to have a legal entity to be known in the society. The legal entity can be in any form of a business organization. The various forms of organization are as follows: 1) Sole proprietorship 2) Partnership 3) Co-operative Society 4) Joint stock company (Private and Public) These are explained in brief as follows:3.1 OBJECTIVES At the end of this lesson you will be able to know Various forms of organization Its formation & features Merits & Demerits 3.2 SOLE PROPRIETORSHIP 3.2.1 Meaning: The sole proprietorship is a form of business that is owned, managed and controlled by an individual. He has to arrange capital for the business and he alone is responsible for its management. He is therefore, entitled to the profits and has 24 DIPLOMA IN INSURANCE SERVICES Forms of Business Organisation MODULE - 1 Business Environment to bear the loss of business, however, he can take the help of his family members and also make use of the services of others such as a manager and other employees. This type of business organisation is also called single ownership or single proprietorship. If the business primarily consists of trade, the organization is a sole trading organization. Small factories and shops are often found to...
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...Business Ethics and Social Responsibility Apparently, the concept of social responsibility refers to the means of achieving full sustainability through the adoption of the Triple-Bottom-Line (TBL) concept. Any viable organisation will enhance and facilitate long-term viability and success through the critical adoption of fundamental social responsibility principles such as transparency and accountability (Benn & Bolton, 2011). For instance, in the year 2010, the international organisation for standardisation gave out an international standard, which could help other organisations in addressing and accessing their social responsibility. Further, it is through critical and careful attention to impacts on the environment and the entire society that various organisations are able to achieve their sustainability. Through such scenario frequencies, any organisation can spur growth and development within the shortest time possible. Embracing the culture of transparency and positive ethics enhances and facilitates an approach that helps in the protection of the long-term success of both the environment and organisational success (Benn & Bolton, 2011). Social responsibility Social responsibility on a personal or corporate level means having a passionate commitment to act in an ethical and sensitive manner to alleviate poverty from society without destroying the cultural values and environmental settings of the community, and ensuring economic benefits to the organisation that...
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...Institutional Affiliation Financial Performance and sustainability efforts Business are usually in business to make profits. The management takes a lot of time to evaluate the market and also the potential of the firm. The goals and objectives of most businesses are aimed at maximizing the profits they are currently getting. Some of the ways that have been used in the maximization of profits are increasing the products prices, getting cheaper labour and raw materials, and purchasing better machines for the organization. Increasing the prices of the products sometimes results in success but in most times it leads to low sales as the customers go for the substitutes which are much cheaper and affordable. Having cheap labour and raw materials is not always possible. As much as the business would like to improve its financial performance, measures taken should have a positive effect on the people and the environment. Profits are obtained from the subtracting the total input from the total sales. The sustainability of the business highly depends on the profits being made. The financial performance is not only important to the firm, but also to the shareholders and the investors. When a business has high returns, the shareholders get a higher share, and it also attracts the investors. Most business concentrates more in increasing the profits and just ignore their social responsibilities. A business that engages in sustainability activities has to use some of its finances...
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...Business Context Glyndŵr University Table of Contents Introduction: 1 British Airways: 1 Organisational background: 1 The industry: 2 PASTLE Analysis 3 Carroll’s four part model: 5 Demand and Supply: 7 Supply and demand in British Airways: 8 Price elasticity: 8 Conclusion: 9 References: 10 Introduction: In order to reach the maximum sustainable level of income and profitability in business, often analytical tools are used in the business methods. These analytical tools help to improve the effectiveness of the target program that is active and can help to show which areas of the business will be subject to refinement or applying again to the profit and loss account to maximize (Thrall et al 1954). According to Rizzello (1999), By addressing the business quantitative methods, management and recalculate a better understanding of the forces at work in their departments and in the business environment as a whole, in general the establishment of a higher level of control over all aspects of business. Many senior level executives concerned about increased investment in staff and systems to provide a comprehensive assessment to make. Ideally, the existing theories of the organizational and administrative arrangements are there to use environment as reliable guides for environmental activities. And therefore, a number of tests to assess the amount of the existing theory used by practitioners of the strategic environmental assessment and decision-making...
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...STRATEGY: Strategy refers to a plan of action designed to achieve a particular goal. The word is of military origin, deriving from the Greek word strategous, which roughly translates as general. Or Strategy is defined as the comprehensive (complete/broad) & integrated (included/ incorporated) plan to assure that the basic objective of the co or enterprises are achieved. CORPORATE STRATEGY/ STRATEGIC MGMT: It focuses on how managers formulate and implement, and evaluate strategies or plans aimed at developing and maintaining competitive advantage. Here competitive advantage means “the reason some firms enjoy higher levels of performance than their rivals or competitors” FEATURES OF STRATEGY: It includes planning & implementation. It is creative in nature. It is a dynamic & flexible program. It includes all the levels of Org. but maximum efforts are done by Top & Middle Mgmt. Its Life Span is Limited. It is Future Oriented or Forward Looking It offers Broad Guidelines or blueprints to be successful. Strategy is a well defined roadmap of an organization. (mission & Vision are defined). COMPONENTS OF STRATEGY: The strategy statement of a firm sets the firm’s long-term strategic direction and broad policy directions. It gives the firm a clear sense of direction and a blueprint for the firm’s activities for the upcoming years. The main constituents of a strategic statement are as follows: a) STRATEGIC INTENT(PLAN/TGT/GOAL) An organization’s strategic intent is the purpose...
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...Responsibility (CSR) is a term in business, which is started in the early 1950 and become important term till at 1990's .The aim of CSR is to do better for society through business. CSR is a broad concept, so it has different meaning given in this term. Anders George and Guido Palazzo mentioned the involvement of CSR by explained it as "umbrella term" and also the importance and duties of business for society ( Oliver, F. Williams).According to Koestler, CSR is way to educate the firms to be concerned many social problems, which are related with their business also(2007). Mondaq business Briefing (2012, Aug.24) stated that CSR helps the companies to operate their business in a method which bring pros for them as well as for stakeholders who are affected by their activities. Through CSR, business becomes responsible to behave morally and provide their services to development the society. They are also responsible for improving the life of workers and their families as well as of the local community and society (Lord Holmen and Richard Watts, 1999). Now, business and markets become the new drivers of world growth. Many countries including India, Brazil, and China etc. are planned to take steps under CSR for providing food, water and energy for more people. CSR has various ares like economic, environmental, ethical and social. This eassy is about to different methods related with social issues, economic development and environmental awareness which are helpful to business for incorporate CSR into...
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...Affiliation Financial Performance and sustainability efforts Businesses are usually in business to make profits. The management takes a lot of time to evaluate the market and also the potential of the firm. The goals and objectives of most businesses are aimed at maximizing the profits they are currently getting. Some of the ways that have been used in the maximization of profits are increasing the products prices, getting cheaper labour and raw materials, and purchasing better machines for the organization. Increasing the prices of the products sometimes results in success but in most times it leads to low sales as the customers go for the substitutes which are much cheaper and affordable. Having cheap labour and raw materials is not always possible. As much as the business would like to improve its financial performance, measures taken should have a positive effect on the people and the environment. Profits are obtained from the subtracting the total input from the total sales. The sustainability of the business highly depends on the profits being made. The financial performance is not only important to the firm, but also to the shareholders and the investors. When a business has high returns, the shareholders get a higher share, and it also attracts the investors. Most business concentrates more in increasing the profits and just ignore their social responsibilities. A business that engages in sustainability activities has to use some of its finances. It incurs...
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...[pic] Hochschule für Wirtschaft und Recht Berlin Berlin School of Economics and Law Nilay BIÇAKCIOĞLU 310978 Title of Essay: Why are ‘Corporate Social Responsibility’ strategies important for enterprises? Prof. Dr. Jose M. Magone LV 400591.01 Work, Business & Society Berlin, 2011 Abstract Nowadays, the importance of social responsibility activities is growing awareness for companies.It is directly related to your business and if you want to have long term business success, you have to create value for the society.People are aware of the social and environmental problems of society.In this technology time, it is so easy to reach the information whatever they want They always follow the daily news from the world and care about them.Due to the fact that paying for the strategies of CSR increases attention to the corporation.Companies’ understanding of social responsibility should always be the part of their investment strategy.They should regard the “Corporate Social Responsibility” as a business management philosophy not as a social activity.It definitely provides sustainability to the business.The purpose of this essay is to explain why “Corporate Social Responsibility” strategies are so important for enterprises.Firstly I will explain the theoretical information about criterias and framework of CSR and then I will support the facts by giving examples from the international companies to clarify...
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...about how society benefits. In recent years, it has become important for companies to demonstrate how the company will help individuals and the economy to flourish. This has become a big concept for companies to adopt guidelines in ethics that puts individuals first before the company operations. There have been some individuals that have presented their views of what social responsibilities are, such as Peter Drucker, William Cohen, Milton Friedman, and Gayle Beebe. They have explained the methods of ethics in business and how social responsibilities become a part of the ethics picture (Jennings, 2012). Social responsibility is a business concern for social welfare and how it prospers with the company growth. Social responsibilities are also obligations of companies to have and develop and implement courses of action that aids in impacting the issues that affects society. Corporations must look at their legal responsibilities, legitimacy, and what charitable contributions that it has made to society in areas where the company operates. This means that companies have to focus on the long-term goals of how society will grow. The company helps society through their business as a main goal. Companies reap success when society prospers and meets the needs of society. This means companies need to find problems that societies are having and then develop solutions to fix the problem so that the company prospers and keeps the long-term sustainability in favor of society (Jennings...
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...Topic: Chapter 3: Analyzing the Marketing Environment Subject: Marketing Management Prepared by: Joel Gapit Cañon Professor: Dr. Antonio S. Valdez ------------------------------------------------- MBA School Year: 3rd Semester2014-2015 Learning Objectives: (2nd part allocated reports / continuation) * Identify the marketing trends in the firm’s natural resources and technological environments. * Explain the key changes that occur in the political and cultural environments. * Discuss how companies can react to the marketing environment. ------------------------------------------------- Natural Environment –involves natural resources that are needed as inputs or that are affected by marketing activities. Natural resource economics focuses on the supply, demand, and allocation of the Earth’s natural resources. Its goal is to gain a better understanding of the role of natural resources in the economy. Learning about the role of natural resources allows for the development of more sustainable methods to manage resources and make sure that they are maintained for future generations. The goal of natural resources economics is to develop an efficient economy that is sustainable in the long run. Importance of Environment This diagram illustrates how society and the economy are subsets of the environment. It is not possible for society and economics systems to exist independently from the environment. For this reason, natural resources economics...
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...HAROLD PUPKEWITZ GRADUATE SCHOOL OF BUSINESS Project 1: role of ethics and social responsibility in business decision making Tobias Endjala 200414518 Business Law & Ethics Project 1 Dr Jacqui Meyer 14 January 2015 Part A Roles of Ethics 1. Definition of business ethics: Business ethics (also corporate ethics) is a form of applied ethics or professional ethics that examines ethical principles and moral or ethical problems that arise in a business environment. It applies to all aspects of business conduct and is relevant to the conduct of individuals and entire organizations. Or Business Ethics: can be defined as the critical, structured examination of how people and institutions should behave in the world of commerce. In particular, it involves examining appropriate constraints on the pursuit of self-interest, or (for firms) profits, when the actions of individuals or firms affect others. Why it is important to understand ethics’ role in business? * To attract customers to the firm's products, thereby boosting sales and profits * Make employees want to stay with the business, reduce labor turnover and therefore increase productivity * Attract more employees wanting to work for the business, reduce recruitment costs and enable the company to get the most talented employees * Attract investors and keep the company's share price high, thereby protecting the business from takeover. Unethical behavior or a lack of corporate social responsibility...
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...Social Responsibility ? Introduction Carroll’s four responsibilities of business are economic, legal, ethical, and discretionary (Carroll, 1991). Economic responsibility is a business organization to produce goods or service to society, and creditors or shareholders can get return. Legal responsibility is defined in law by government that management is expected to follow. Ethical responsibility is organization management to obey the beliefs in a society. The last discretionary responsibility is the management of their own accord to take obligations, they do it by themselves, and not others force them to do (Carroll, 1991). Definition of Corporate Social Responsibility Corporate Social Responsibility (CSR) is defined as a business’s decisions or actions are made which take outcomes beyond the organization's economic profit into account in the decision making process (Carroll, 1991). Social responsibilities include ethical responsibilities and discretionary responsibilities. The difference between them was that less people expect a firm to perform discretionary responsibilities, while a lot of people expect a firm to perform ethical responsibilities. Discretionary responsibilities are like day-care centers, to training the hard-core unemployed and philanthropic contributions. A firm can take actions to perform its ethical responsibilities and discretionary responsibilities that society will value it but not put it into law yet. After satisfied ethical responsibilities...
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...Economic Environment: Markets require purchasing power as well as people. The available purchasing power in an economy depends on current income, prices, savings, debt, and credit availability. Marketers must pay close attention to major trends in income and consumer-spending patterns. Marketers often distinguish countries with five different income-distribution patterns: (1) very low incomes; (2) mostly low incomes; (3) very low, very high incomes; (4) low, medium, high incomes; and (5) mostly medium incomes. Marketers must pay careful attention to major changes in incomes, cost of living, interest rates, savings, and borrowing patterns because they have a strong impact on business and PepsiCo is always aware of economic environment for Pepsi. Natural Environment: In the natural environment, marketers need to be aware of raw materials shortages, increased energy costs and pollution levels, and the changing role...
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