...(David) Chapter 10 Business Ethics/Social Responsibility/Environmental Sustainability 1) Many people consider it unethical for a firm to be socially irresponsible. Answer: TRUE Diff: 1 Page Ref: 310 AACSB: Ethical Understanding and Reasoning Abilities Objective: 10.01 Explain why good ethics is good business in strategic management. Learning Outcome: Discuss the roles of ethics and social responsibility in strategic management 2) Social responsibility refers to actions an organization takes that are legally required to protect or enhance the well-being of living things. Answer: FALSE Diff: 2 Page Ref: 310 AACSB: Ethical Understanding and Reasoning Abilities Objective: 10.01 Explain why good ethics is good business in strategic management. Learning Outcome: Discuss the roles of ethics and social responsibility in strategic management 3) Sustainability refers to the extent that an organization's operations and actions protect, mend, and preserve rather than harm or destroy the natural environment. Answer: TRUE Diff: 1 Page Ref: 310 Objective: 10.05 Discuss specific ways that firms can be good stewards of the natural environment. Learning Outcome: Discuss the roles of ethics and social responsibility in strategic management 4) Good ethics is not a prerequisite for good strategic management. Answer: FALSE Diff: 2 Page Ref: 311 AACSB: Ethical Understanding and Reasoning Abilities Objective: 10.01 Explain why good ethics is good...
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...environment, social issues and competitors? The Role of Top Management and the Importance of Company Policy Introduction to Business Policy Chief Executive – serves as the head and has the knowledge about the nature of the company. Responsibilities of the Chief Executive 1. Elaborate the major policies of the firm. 2. Define the objectives of the firm. 3. Develop strategies and the long-range plan for achieving these objectives. 4. Must develop an organization which most efficiently carries out the company’s strategic plan. 5. Must develop the operating policies which ease the burden of decision-making to carry out the plan. 6. Be involved in controlling the operations of the firm and in problem solving. Definitions 1. Major Policies Major policies (or “company” policies) deal with the firm’s fundamental nature, its identity, and the direction in which it is expected to move. They provide a framework within which the objectives can be established. 2. Objectives The firm’s objectives or goals (these are two terms used interchangeably) specify, usually in quantitative terms (e.g., dollars, percentages, or time periods), where the firm is expected to be at some time in the future. 3. Strategy Business strategy is the approach developed to achieve the objectives which have been defined. The development of the strategy is a critical part of long-range planning. A firm’s strategy (its strategic plan) defines in detail how the firm is to get...
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...with some overall goal in mind. Thus, the decision function of management can be broken down into three major areas: The investment, financing, and asset management decisions. Investment Decision: The investment decision is the most important of the firm’s three major decisions. It begins with a determination of the total amount of assets needed to be held by the firm. Picture the firm’s balance sheet in your mind for a moment. Imagine liabilities and owners’ equity being listed on the right side of the firm’s balance sheet and its assets on the...
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...Contents 1. Introduction 2. A Young Company’s CSR Motives 3. The Potential for Backfire 4. CSR Development: The Three Phases 5. A Mature Company’s CSR Motives 6. Vice Industries CRS Initiatives 7. Other Schools of Thought 8. Conclusion 1. Introduction Scholars explain the surprising fact that companies in the United States alone spend $9 billion annually on philanthropic causes by investigating the motives behind such apparent generosity (e.g. Cone et al., 2003). The critical importance of CSR derives from the fact that CSR practices have considerable influence on a company’s reputation and “the reputation of a firm is arguably the most valuable asset” (Peloza, 2006: 69). The term “corporate social responsibility,” or CSR, can be defined broadly as a firm’s charitable contributions and social initiatives, such as “philanthropy, cause-related marketing, environmental responsibility, and humane employee treatment, among others” (Ellen et al., 2006: 148). Researchers have found that over the past 30 years CSR correlated positively with corporate financial performance (CFP) (Orlitzky et al., 2003). “At its simplest, some argue that this ‘trend’ is purely self-serving marketing or philanthropy to offset concern over organizations’ increasing profit or corporate scandals.” (Brock, 2005: 58). By examining the motives behind CSR as purported by a broad spectrum of scholars, this paper will argue that companies initially implement CSR initiatives...
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...A look back at the history of the firm reveals a strong commitment to product development. It all began back in the mid-1860s when Nestlé created a new baby formula to offer to the market. This very early development within Nestlé soon developed to include an expansion of products within the firm with chocolate being added to milk products to reach a larger target market. Crunch bars were launched in 1965 and since then have been offering a delicious combination of chocolate with crisped cereals. Crunch contains no artificial colours, flavours or preservatives. The Crunch range consists of: * Crunch Milk Bar * Crunch White Bar * Crunch Milk Sharing Block * Crunch Hazelnut Sharing Bloc Nestlé’s mission statement is supported by the expression ‘good food, good life’ (Nestlé, 2014, p. 1). Meaning more than the nutritional values of the food they produce, Nestlé support the need to show a commitment to quality, safety and ultimately convenience for the consumer to enhance enjoyment. The notion of the creation of ‘shared value’ is a main focus of the firm and is an area which is supported by the firm’s ability to ‘go beyond compliance and sustainability and create new and greater value for our people, our shareholders and society as a whole’ (Nestlé , 2014, p.1). This statement supports the integrated approach Nestlé adopt through their commitment to recognising the responsibility the firm has to the wider external environment, which moves beyond a simple aspiration...
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...Topic 1: Business Organisation and Environment 1.3 Organisational Objectives • “If you don’t know where you are going, you’ll end up someplace else.” – “Yogi” Berra, Major League Baseball player and manager. Why do we need objectives? • • • • • • • • • Implement the mission/vision Focus for decision making Set target Motivate employees Have control over actual performance Provide criteria for evaluating performance Reduce uncertainty Provide sense of unity Positive image Hierarchy of Objectives Hierarchy of Objectives Mission and Vision • “Guiding Hand” • Written by senior management. Strategic Objectives • Practical Application of Mission • Allows lower management to make sense of the mission. Tactical Objectives • Elements of mission in practice • Day-today focus for all employees. Hierarchy of Objectives • Objectives run down, becoming more specific. • Overall objectives are replaced, with more relevant ones. • Hierarchy ensures consistency. Objectives • LO1: Explain the importance of objectives in managing an organization. • LO2: Distinguish between objectives, strategies and tactics, and discuss how these interrelate. Objectives • Traditional Objectives – Survival / Breakeven – Cost minimisation – Profit maximisation – Growth (market share) – Profit satisficing Market Share • Relating to this, what could some objectives be for these firms? • What was released on 29th June , 2007? • What does this chart look...
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...School of Business, Public Policy and Social Entrepreneurship SUBJECT-101 BUSINESS, CULTURE AND SOCIETY Shareholder v/s. Stakeholder Theory Under the guidance of Dr. Kuriakose Mamkoottam Professor & Director School of Business, Public Policy & Social Entrepreneurship (SBPPSE) Ambedkar University Delhi (AUD) Submitted by: Amrita Arora S143F0005 Shareholder v/s. Stakeholder Theory The term business refers to any organization that is engaged in making a product or providing a service for a profit. And society, in its broadest sense, refers to human beings and to the social structures they collectively create. Both, business and society, taken together, form an interactive social system. Each needs the other, and each influences the other. The most central and debatable topic on the relation between business and society today is about the fundamental purpose of the business. This question has been answered with the help of two different theories – Shareholder Theory and Stakeholder Theory. Each of them is explained below. The Shareholder Theory (Ownership Theory of the Firm) sees the firm as the property of its owners. The purpose of the firm is to maximize the returns to its shareholders, which is also depicted in its single objective of Value Maximization. Here, managers and boards of directors are agents of shareholders and have no obligations to others, other than those directly specified by law. Many companies, like Apple, have performed exceptionally well...
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...Research Paper DOES CORPORATE RESPONSIBILITY TO STAKEHOLDERS MAXIMIZE FIRM’S VALUE? DOES CORPORATE RESPONSIBILITY TO STAKEHOLDERS MAXIMIZE FIRM’S VALUE? Topic: This paper seeks to explore the economic mechanisms behind corporate responsibility based on a microeconomic perspective of the firm. The ultimate objective is to ruminate on the effects of corporate responsibility of firms to stakeholders. That is how corporate responsibility to stakeholders can help maximize or minimize the firm’s value. In this research paper, I am going to explain the principle of stakeholder and the corporate social Responsibility that corporation owes to its stakeholders. The fact that corporations are entitled to its stakeholders and the environment within its scope of business has been a controversial issue. At the beginning, I will give a clear understanding of what Corporate Responsibility by firms to its stakeholders is. Later, I will make an argument in favor and against Corporate Responsibility by the firm to its stakeholders. Lastly, I will come to a conclusion on how firm’s value is maximized. That is what corporation should do for its stakeholder. According to rigorous research, each person has his or her personal responsibility that needs to be performed in order to maintain a good image in the society. Just as humans are faced with responsibilities, so as Corporations, since they are seen as a group of individuals working together to accomplish a goal, that goal being making...
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...Social media in Hospitality and Food Beverages Industry | Executive Summary Social media is widely used by firms in the Hospitality and Food and Beverages (F&B) industry as it is low-cost and has potentially many viewers. With the rising numbers of firms marketing on various platforms, this report aims to determine whether some social media platforms are being under-utilized and how firms can use these platforms to refine their marketing efforts. Research data was gathered through interviews of representatives working in the industry. Interviewees were asked questions relevant to their firm’s usage of social media and its importance to the firm. This report concludes that Twitter, Blogs, Pinterest and Foursquare are under-utilized among firms in the industry and Small-sized firms should focus on developing their profiles on twitter and foursquare, while Medium-sized or larger firms should focus on developing their profiles on Blogs and pinterest. Table of Contents 1 Introduction 1 1.1 Background 1 1.2 Purpose 1 1.3 Scope 1 1.4 Limitations 2 1.5 Sources and methods 2 2 Findings and discussion 2 2.1 Social media usage patterns in Hospitality and F&B industry 2 2.1.1 Social media usage patterns in Small-sized companies 3 2.1.2 Social Media usage patterns in Medium-sized companies and above 4 2.2 Firms’ specific interests in using social media 5 2.2.1 Middle sized companies and above 5 2.2.2 Small-sized companies 6 2.3 Discussion...
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...in the quest for competitive advantage. A. | Supply chain management | B. | Integrated technology management | C. | Strategic management | D. | Inventory management | | 3. | _____ is best described as a set of goal-directed actions a firm takes to gain and sustain superior performance relative to competitors. A. | Behavior modification | B. | Strategy | C. | Credo | D. | Competency management | | 4. | Which of the following stages of the strategic management process involves an evaluation of a firm's external and internal environments? A. | Strategy analysis | B. | Strategy implementation | C. | Strategy formulation | D. | Strategy control | | 5. | In _____, a firm frames a guiding policy to address the competitive challenge. A. | strategy control | B. | strategy implementation | C. | strategy formulation | D. | strategy analysis | | 6. | Through _____, a firm puts its guiding policy into practice by employing a set of coherent actions. A. | strategy control | B. | strategy implementation | C. | strategy formulation | D. | strategy analysis | | 7. | A firm that achieves superior performance relative to other firms in the same industry or the industry average has a(n) _____. A. | competitive advantage | B. | balanced scorecard | C. | power position | D. | equity leverage | | 8. | Cadia Foods Inc. was the first company to start selling...
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...Effective Information Security Requires a Balance of Social and Technology Factors MIS Quarterly Executive Vol. 9 No. 3/ Sept 2010 Team 3 Article 12 Review, BUS ADM 744 Kirt Oaks, Deepika Gopukumar, Nutan Narway, Gregory Gohr *Note: The superscript number refers to the references mentioned at the end of the document. INFORMATION SECURITY HAS BECOME A STRATEGIC ISSUE: With growing threats of cyberterrorism and evolving government regulations information security is at the forefront of many organization’s priorities. Such actions as hiring of security executives, restructuring the information security structure within a company or increasing budgets for security have helped companies to feel more secure and pass that on to their shareholders and customers. Companies have prevalently relied on technology based solutions, but that is only part of the solution. There needs to be a connection between the security entity and the business. This will allow for the budgets and policies to be more in line with the business requirements. A technically focused information security strategy was followed in the past. Since security was technically focused, organizations placed the information security group as part of low level function which operated independently from business which in turn did not serve the business effectively. To overcome this, current information security strategy follows a socio-technical security strategy which is strategically focused or business driven....
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...Business and Corporate Social Responsibility Research Paper Bussines and Corporate Social Responsibility 1.0 Introduction: Corporate Social Responsibility means the way in which business firms integrate environmental, economic and social concerns into their culture, values, strategy, decision making and operations in an accountable and transparent manner and, therefore, leading to better creation of wealth, an improved society and better practices in the business organization. Activists, the media and governments all over the world have become adept by holding their organizations or enterprises to account for the social impacts of their actions. It is in this response that the use of Corporate Social Responsibility (CSR) has emerged to be one of the inescapable top priorities for various business leaders or managers all over the globe. However, the fact remains that many current approaches to Corporate Social Responsibility are quite disconnected from the initial strategy of various companies or firms using it. In order for business enterprises to contribute significantly towards their key competencies, then they should treat Corporate Social Responsibility as something that is central and vital towards their business strategy. The aim of this research paper is, therefore, to explain the importance of Corporate Social Responsibility in business organizations and ascertain how various organizations apply it to achieve various objectives of their business firms (Banerjee, 2007,...
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...their tasks of enhancing both customer value and shareholder value. (Langfield Smith & Kim, 2009:6). Conversely, Green tourism describes basic tourism focused on visiting wildlife sites, historical heritage and sustainable tourism which does not damage the sites and communities being visited and a travel which is environmentally friendly. The undesirable state of the natural environment contaminated with harmful substances as consequences of human activities in regards to air, land and water is called Pollution. It is vital the tourism industry thrives being Fiji’s main income earner. To maximize the customer and shareholder value, it is imperative for Fiji to promote Green tourism which can be achieved by reducing pollution. Business firms need relevant and timely information regarding their level of waste disposal. Therefore, the management accounting techniques assist the managers develop strategies to curtail the impact of their business operations on the environment namely, pollution, which would in turn contribute to green tourism attracting more visitor arrivals whilst adding value to Fiji’s tourism. The tourism sector is vital for Fiji’s economy as it provides employment, earned over $850 million in 2008 in foreign exchange and is Fiji’s main income earner. Sadly, the tourism sector in Fiji faces a large threat today. The tourism sector is hindered by the startling rate of pollution and degradation of natural environment decreasing customer value, and this poses a...
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...Effective Information Security Requires a Balance of Social and Technology Factors EffEctivE information SEcurity rEquirES MIS Uarterly a BalancE of Social and tEchnology xecutive factorS1,2 Q E Tim Kayworth Baylor University (U.S.) Dwayne Whitten Texas A&M University (U.S.) Executive Summary 2 Industry experts have called for organizations to be more strategic in their approach to information security, yet it has not been clear what such an approach looks like in practice or how firms actually achieve this. To address this issue, we interviewed 21 information security executives from 11 organizations. Our results suggest that a strategically focused information security strategy encompasses not only IT products and solutions but also organizational integration and social alignment mechanisms. Together, these form a framework for a socio-technical approach to information security that achieves three objectives: balancing the need to secure information assets against the need to enable the business, maintaining compliance, and ensuring cultural fit. The article describes these objectives and the security alignment mechanisms needed to achieve them and concludes with guidelines that can be applied to ensure effective information security management in different organizational settings. INFORMATION SECURITY HAS BECOME A STRATEGIC ISSUE Information security continues to be a major concern among corporate executives. The threat of terrorism,...
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...Ethical Objectives The way the business responds to such issues is depend on their ethics Definition of ethics – individual’s moral beliefs and values about what is right and what is wrong, good or bad that guide his behavior. It is code of behavior that is acceptable to a person/organization to follow in a given society. It is a value judgment that may differ in importance and meaning between different individual. Ethics are based on individual beliefs and social standards; vary from person to person, from situation to situation and from culture to culture. Social standards of individual influence by; - The behavior af parents and other adults - Influenced by peers - Experience shapes our lives and contributed to aur ethical beliefs and our behavior How employees (managers) make a decisions is depends on their moral and belief. Business ethics is a term used to refer to ethical and unethical behaviors by employee of commercial organizations. Ethical behavior – behavior which is conforming to generally accepted social norms concerning beneficial and harmful actions. Ethical objectives – are targets based on a moral code(ethical code) for the business, for example ‘doing the right thing’. The growing acceptance of corporate social responsibility has led to businesses adopting an ‘ethical code’ to influence the way in which decisions are taken. Ethical code – a document detailing a company’s rules and guidelines on staff behavior that must be followed by all employees...
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