...lines: no man is an island; we are all responsible for each other. N.O. speaks about a company’s responsibility to society as being about more than increasing profits. Whether profits are increased or not, he argues that companies have a moral obligation to better the living conditions of the societies within which they operate. And indeed, if one person is able to make a difference, imagine what a single company- with access to more resources, more manpower, and above all, more funds- could do for the community. Being a successful corporate citizen is about more than writing a cheque: companies must integrate corporate responsibility into their business models and focus on the areas where the greatest change is required. In the aftermath of apartheid, South Africa is faced with a new set of problems, vastly different to that, that was championed by Harry Oppenheimer. In the midst of political stability, and relatively steady economic growth, we are faced with the reality of abject poverty, illiteracy, HIV and growing inequality. Nearly 24 million people live below the poverty line and the recent spats of violence that erupted as a result of this volatile situation (such as the xenophobic attacks, and assault on Eskom staff in the rural areas) serve as a warning of what will come if the rich get richer and the poor, poorer. As Pravin Gordhan said, “we need business leaders who will say: “I have enough, I have to share for everyone’s benefit.”” In this paper, I will discuss...
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...control over the use of accounting policies. Also, anticipating profits (that Enron did) is just an estimate and the determinants of such as estimate is very subjective. In Enron, the business leaders were too concerned about inflating the share prices and showing a pretty picture of the company’s financial position. The leaders of Enron should have had more moral grounding in understanding that such behaviour would have repercussions. Good corporate governance could have prevented this greed from building up. When the company anticipated their downward slope, Jeff Skilling did not take action to acknowledge his mistake and instead swept the matter under the carpet. Instead of this corporate governance would have made sure that such behaviour would strictly not be allowed. Tighter laws and stricter policies would have ensured that the scandal did not take place to such a large extent. Better accounting policies that ensured that only sales actually realised should be accounted for. Laws such as more transparency about the running and operations of companies would actually mean the Enron would be more careful about their operations since their actions were under the public eye. Therefore, Good corporate governance could have actually prevented all the damage that Enron caused to the society. Sample Answer: * Prevent the use of mark to market accounting. * Look after stockholder interest by reviewing stock price – not inflate the price *...
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...Berend (2000) – From Plan to Market, From Regime Change to Sustained Growth in Central and Eastern Europe * After the state socalism collapsed in Central and Eastern Europe in the early 1990s, the Washington consensus of 1989 (a broadly accepted set of criteria for a reform program) was adopted as a blueprint for the process of transformation. * Central elements: * Macro-economic stabilization (for countries with significant inflation and indebtedness) * New institutions * Legislation * Price and trade liberalisation * Radical privatization * Most of the “transformatology“ literature is based on the assumption that the elimination of deformed non-market economies, a restoration of market, and private ownership, paired with a laissez-faire free market system would automatically solve all major economic/social problems of the transforming countries. * The economic crisis within the Central and Eastern Europe area started much earlier – in the mid-late 1970s when growth slowed significantly and the terms of trade for the state socialist countries began to deteriorate (1973 first oil shock 20% decline, for some even 26-32%) Schumpeter’s theory of “structural crisis”: advancements in technology lead to decline of the old leading sectors and export branches based on old technology, generating wide-ranging slow-down and decline and causing an economic crisis even in rich, advanced countries. However, although rising new technology...
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...03/10/16 Business, Government and Society Relationships Business, Government and Society have similar goals and objectives. All three interact each other. Firstly, Business’s objectives are to keep their cost low, increase sales and maximize their profit. Secondly, Society’s objectives focus around survival, health care, education, shelter and opportunity to succeed. Lastly, Government’s objectives are to provide regulation to instill a fair, safe use of resources for business and to protect citizen against things like unethical business. For Example, Society need car and Ford Motor Company wants society chose their products as their vehicle objective. The Government has to ensure that Ford Motor Company operates ethically to not harm the environment or the customer. There are four different models that how Business, Government and Society should interact: 1. The Market Capitalism Model, 2. The Dominance Model, 3. The Countervailing Force Model, 4. The Stakeholder Model. The Market Capitalism Model: Dominance: - The represents primarily the perspective of business critics. In it, business and government dominate the great mass of people. Countervailing Force Model: - To maintain public support, business must adjust to social, political and economic forces it can influence but not control. Stakeholder Model: - An Entity is benefited or burdened by the actions of a corporation or whose action may benefit or burden the corporation. After read the definitions of Business, Government...
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...current work focuses on development and covers topics including the impact of international aid and policymaking on education equality outcomes, as well as the post-2015 development agenda, the role of technology in quality of life improvements, and governance and anticorruption. It is commonly believed that BD results in a decrease in tax revenue to the government... I actually have a different view on this matter. From the remittances is it first of all the households that are benefitting from it, but secondly the government is benefitting as well. I will explain this in more detail. The remittances spent on the consumption of both domestically produced goods and imports increase the tax base, which in turn increases revenues from sales taxes, value-added taxes and import duties and other indirect taxes. (stroomdiagram) With the remittances, the individuals/society determine their spending priorities as opposed to the agenda of the government as is the case with taxes and foreign aid. Besides this, governments are now able to increase their debts, because of the constant inflow generated by tax, or governments can spend more on infrastructure. (Abdih et al, 2012) In other words, remittances can provide the (indirect) tax revenues (increase), which allowed some countries to increase spending. This effect is explained in more detail as the (Keynesian) multiplier effect. (Lowell, 2001), (Clemens, 2013), (Ebeke, 2010). Actually, Sophie, that brings up an interesting...
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...Chapter Review Chapter 1: The Study of Business, Government, and Society In chapter one the author lays a foundation for the information which will be shared in the following chapters. This foundation allows the reader to understand basic terminology, ideas, and relationships as it pertains to the operation of business, government and society. For a more distinct explanation of what the author helps the reader to understand; the collaborative information that the chapter provides illustrates a somewhat intangible relationship, in which we (business, government, and society) all are stakeholders. The author helps the reader understands the interactions of the stakeholders, and these interactions shape how business’ assumes social responsibility; whether it is self imposed, dictated by law/regulation, or pressured by social values, ideas, and expectations. The author then offers four definitive relational models which helps the reader understand the multiple variables which help shape and control the relationship between business and society. In addition, the models also help the reader to understand the effects, the value added, and the challenges that are imposed on those parts of society which assume them. One interesting thought for the reader to keep in mind when learning the four models is how the nature of the models can vary based local and national politics, market maturity, and social structure. The first model that author presents is the Market Capitalism Model. In...
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...Indians contacted Europeans, Indians got familiar with lots of new artifacts. Thus, Indian traders began to seek profits and gain money to have their own properties. Governmental Impacts: Astor bribed and suborned some politicians including a president. That shows that American political system was not well based and taking advantage over government was easy. Natural Impacts: The fur traders destroyed forests to trade posts and find fuel. They also, killed lots of animals. Legal Impacts: Because the fur traders bribed politicians they had the upper hand against government, competitors and people. Therefore, governments had some new laws and regulations. Internal Impacts: Astor dominated American Fur Company and considered nothing but himself and his company's revenue. 4. The most important stakeholders were Astor as an owner, employees, customers, suppliers and government. They were not treated responsibly at all. For example, Indian trappers were cheated, robbed and even killed. Also, the fur traders bribed politicians and so, government was manipulated. 5. If we examine this question in terms of Astor and government, they have many advantages and revenue. On the other hand, if we consider Indians, this Industry was a nightmare for them. In my opinion negative effects of the industry overbalanced its positive effects. However, this question requires to compare total benefits and...
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...Roles and Functions of Law Laws must be observed in order for business, society, and local government to operate proficiently. Laws are put into place to help keep people’s behaviors in order and to regulate standards. Law is a body of rules of action or conduct prescribed by controlling authority and having legal binding force. The common characteristic of the current state of law is that it creates duties, obligations, and rights that reflect accepted views of a given society (Melvin, 2011). The law provides a format to resolve disputes that arise from the duties and rights and allows parties to enforce promises in a court of law. Laws serve many roles and functions in business, society and local government. Roles and Function of Law in Business Business laws establish guidelines for what companies can and cannot do, as well as certain things they must do. Law is a broad discipline with several fields that serve important functions. Just like individuals, businesses are responsible for paying taxes on income that they earn, and tax law determines how businesses pay taxes to the government. The Internal Revenue Service lets business owners choose from one of several business structures that affect taxation. The antitrust law is designed to promote business competition by curbing anticompetitive behavior such as price fixing and monopolization. Competition is good for the economy because it tends to lead to better products and services as well as fairer prices. Intellectual...
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...Executive Summary This report examines interests of each role in social members and evaluates power relations in society, which covers government, corporations and civil society. Research method is covered a literature review which is based on quality academic journal articles, texts and research institutes’ materials. The report clarifies each member’s interaction and its power residents. This power resident and relationship can be reformed through social agenda setting. There is possibility that power-balanced society in capitalism can be diminished through its change into neoliberalism agenda. This is examined through reviewing Japan’s development in last couple of decade. Contents Table 1.0 introduction..............................................................................................3 2.0 Role and power resident.........................................................................3 2.1 The role and power resident of Government.....................................................3 2.2 The role and power resident of Corporations....................................................4 2.3 The role and power resident of Citizens...........................................................5 3.0 An Interaction of Government, Corporations and Citizens…………6 4.0 Character of social context (capitalism, neoliberalism)…………....7 4.1 A power interaction in Capitalism...................................................................7...
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...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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...3372817 Tutor: Mr. Peter Hayes Topic: Using examples from two countries write a business report on how globalisation is changing relationships between government, business and civil society? Discuss with specific reference to the topic of power. EXECUTIVE SUMMARY The report is commissioned to examine the relationship between government, business and civil society under the impact of globalization. Taking education industries in Australia and Vietnam as examples, the positive and negative impacts are clarified which in turn show the change in power battle. Some definitions firstly are introduced to state that globalization is connecting economies, societies, polities and cultures together and it affects in all aspects. Thanks to it, education has changed vigorously compared to the past, diversified itself to many forms and expanded across border. Basing on the strongly development of globalization, plus the impact of cutting fund from government, many Australia universities view transnational education as a possible solution. Number of offshore campuses grow dramatically in South Asian. The examples show that, offshore campuses bring huge amount of revenue to Australian transnational education providers as well as strengthen Australian economy through tax. In addition, it helps many universities save money thanks to low cost operation in developing countries. Finally, through education, society takes advantage of globalization through brain gain. Meanwhile, Vietnam suffers...
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...given society. In business and society, the law serves many roles and functions to uphold its main purpose of promoting fairness and equality. It is said that, the roles of law in business and society can be classified into three different categories. Those categories are civil and criminal law, substantive and procedural law, and public and private laws. All of these categories of law help define not only what is right but also what is wrong. Criminal law is a protection of society and where crimes committed by the public are prosecuted by governing bodies. Substantive law provides an individual with rights and creates certain duties while procedural laws provide a structure and set rules for pursuing substantive rights. If an individual intentionally harmed another citizen, substantive law would state how this is a crime. Civil law is used in business and society to compensate individuals or businesses for losses as a result of another’s misconduct. It determines the amount of damages the victim has suffered and is settled with compensation. An example of civil law would be if a person was suing their business partner for not living up to their business contract. If the partner suddenly became enraged and murdered the person this would be an example of criminal law. Procedural law would define how the government could try the case in a court of law. Public laws are laws derived from government entities and define the relationship between individuals and the government with statutes...
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...Should Government have the largest influence on Corporate 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...
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...Ideologies and Ethical implication of Society [Name of the Writer] [Name of the Institution] What moral obligation Government has to citizens and Communities The matters of every Country existed in this universe is handled by certain group of people that are elected by residents of that country is called Government, this elected body of people has certain moral, ethical and Social obligation toward their citizens. On the basis of following ethical concepts the moral obligation of the government will be discussed by providing clear examples from the Inside jobs Social Contract theory The basic concept of social contract theory is that it provides the need to maintain social order among them to maintain the level of ethical morality, it is very important to develop such order in order to leave the life among each other with mutual respect and trust. According to modern authors like Hobbes who explained that without social contract the live of the people will be dangerous as everyone will be willing to do what he wants (Browne, J, K, 2008). There are four important factors that every individual require to live the life comfortably and if these are not provided and society without any mutual agreement will be doomed • Equality of life: (all the basic needs like food, clothing and shelter must be equally provide to everyone) • Scarcity: (supply of food, clothes and shelter is limited so if it is not equally distributed that economic scarcity...
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...goals of business and government vs. The social goals of the citizens and government of American society September 28, 2015 By: Tevita Uasilaa ID#U0769666 There are many conflicting reasons among economic goals of business and government as to the social goals of citizens and government in the American society. In this assessment, I will go over a few points from both sides and how they would conflict with one another based on moral standards. Thoreau says, “understanding business is crucial to learning how to avoid being crushed by itthat and education in business allows for maximum utility.” ( Foundation of Business Thought. Pg. 5, Lines 2528n understanding business, you should know the ins and the outs, different ) I potential conflicts and how to resolve the issues. In the meanwhile,uring the first few d class discussions we often discussed motivation and what the real motivator was. When we were asked as a class, “what motivates people?” Many replied, “money.” Then when told, we came to the realization that the real motivator is what money buys. hether it W be a new car, house, new clothes, etc. Whatever it may be, that’s what drives many to the point of discussion. First, we will start off with economic goals of business and government. An economic goal for a business and government would be efficiency . How well the business/ gove...
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