Part A: Stakeholders and Interrelationships
The basic objective of business is to develop, produce and then supply the finished goods and the services to the customers. The management of the companies carries out these activities in such a manner that it helps the organization to register profit which in turn demands far more than just the skills of the company to make profits from the business. Companies improve their resources by means of the development of materials and the ideas. It is important for the business to ensure the goods and services meet the basic demands of the customers. However, Apart from making profit and meeting the needs and demands of the people, the companies have a great responsibility towards the society.
My study in the last four modules has helped to gain a clear and transparent understanding of the interrelationship between the business and the society. The business enterprises benefits society by creating jobs, developing new goods and most importantly creating awareness for the environment and also taking care of the backward class which is termed as the corporate social responsibility. The corporate social responsibility of the companies helps them to benefit the society and also perform humanitarian acts. A number of different factors can be considered to be the main drivers of corporate commitment to the community. Some of them are customer appreciation, Support for the new business, creation of a proper competitive advantage, support of recruiting, improvement in productivity and many more as such.
It will be better to get the understanding if I can cite the examples from Module 1 of the previous researches. The example of TCCC that was used by me in the first module can be said to be one of the best examples in this regards. The earlier actions of TCCC to not plan in a scientific manner for its consumption of a huge amount of water is surely one of the gravest mistakes committed by the organization. The response from the management of the company in the following regards was appropriate as they employed a number of expert stakeholders and a large number of social care organizations including the WWF and CARE.
The Tobacco Industry is another activity on which I did my research and realized how both business and society are interrelated with each other. The secondary smokers are the secondary stakeholders because of their non-involvement in any kind of commercial transaction. On the other hand, the secondary smokers get affected by the tobacco consumption of the primary smokers. The third hand smokers are those persons who interact or deal with the persons who smoke all the time. My study in the following case helped me to provide response on how will I ethically manage a tobacco company in the present times and ensure the maintenance of the responsibility of the company towards the society.
As said by me in the first module, I will ensure the presence of a strict rules and regulation including not selling tobacco products to minors below the age of 21 and also not receive supplies of tobacco leaves from firms that engage minors in their farms. Therefore a theoretical perspective as well as the above said practical examples is the best way for me to get a clear understanding of the interrelationship between business and society.
Awareness and understanding of the interrelationship between business and society
Business enterprises deal with different kind of conflicts and issues all the time. The main reasons or the issues are the different set of values, cultural ethics, expectation and the involvement of different communities in the business organization. Conflict generally arrives in many different forms in the business world with a large number of people being involved and some other involving practices. The presence of a large workplace and a large workforce will ensure conflict in a number of different ways. It can occur through the difference in goals, difference of beliefs, conflict of interests, personal grievances, problems with the management and the staff and many more as such.
I think that it is utmost important to build a good communication and be patient before arriving to any kind of decision. Communication forms an important part that can help to resolve business conflicts as a communication gap will be harmful for the business organization. The very first module, the example of TCCC can be said to be the most appropriate for answering the following question. The use of a large amount of water amounting to over 80 billion gallons is an area of huge concern for the community where the company operates. The failure to engage in a proper consultation with the community and also to consult with the concerned stakeholders had led to a serious conflict of interest and has highlighted the unprofessionalism of the management of the company.
In a similar manner, the initiative of Coca-Cola to start a campaign named Water Neutrality initiative has performed equally bad though it has been marketed and promoted with the use of a number of keywords like ‘sustainability’, plus ‘reduce, recycle and replenish’ has not been accepted by the community because it has failed to address the conflict of interests especially with the company and the farmers who depend on water for agriculture and irrigation facilities. According to me, it must be the responsibility for the management of the companies to ensure a conflict free business. Considering myself from the perspective of both the companies, my first task would have been to ensure a meeting with the stakeholders and the concerned parties to deduce a neutral approach that would benefit both the business enterprise as well as the parties involved.
`- “Circles of reflection” are the elements of the reflection where the personal responses have to be considered according to six different perspectives. This includes the likes of Self, Family, Peers, Community, Country and humanity. The responses in these particular grounds have to be understood on how my experiences relate to my surrounding social as well as the cultural worlds. The circle of reflection that has been used in my earlier studies has helped me to learn a lot and decide on the different kinds of perspectives. The fact that the reflection circles have a lot of different benefits has been identified in each of the examples that were taken by me in each of the different modules.
Considering the case of the AIDS/HIV drugs which are unethically sold by the firms to the patients on the discretion of the management, it is seen that such an unethical practice has a huge impact on my perspective. The globalization of the markets has led to the rat race in the industry and the power to control the market and take their own decisions is simply the most unethical practice and is equally harmful for the family, the community and the country as well. The example of Uganda can be cited in this case. Uganda is a third world country where most of the people are below the poverty level and thus they have failed to meet the expenses of these drugs. Thus the example of Uganda has really helped me to select the perspective.
Challenges of dealing with the Conflicts
External Social pressure has become a major driver in business ethics. The following is especially true for a large number of businesses. The management of the business enterprises must provide a strong consideration to the social expectations in the areas of general community involvement and environmental responsibility. Though ethics and responsibility are followed in different parts of the world, I have seen that the corporations do not have the right to influence the ethics in the countries where they operate. I have studied the case of Motorola Company in the 1950’s where a Motorola executive refused to bribe the foreign officials. The executive preferred not to bribe the officials fully aware of the fact that the bribe could ensure huge profits and turnover for the organization.
I also found an important role of the internal and the external forces of the business when I saw the way on how the pharmaceutical business organizations reaps tremendous profits from sale of AIDS/HIV drugs to the customers. A financial figure showed that HIV antiretroviral sales across different markets having largest number of HIV positive people like USA, Japan, France, Germany and some other countries amounted to around $11.8billion. I found out that the management of the pharmaceutical industries targets a positive economic utility from these transactions. On the other hand it is seen that proper treatment during the terminal condition of the disease increases the life expectancy of the people. The fact that the organizations target the profit only is totally unfair to me. The management of the companies must ensure that they balance between their rights and the social and ethical elements. It is their duty to help the people live in this world rather than making them a puppet that can fetch them huge profits and make them die.
Another best example that provides a great picture of the external influence of business in the organization is the example of Royal Dutch Shell. The year 1995 experienced a tremendous year for the organization and the management made a number of different changes in the industry. The first ethical issue was seen when the management of the company carried out a large number of tests and operations on the lands of the Ogoni people. The company did not give a proper share of revenue from the oil extraction to the local people. A local activist name Saro-Wiwa carried out a large number of demonstrations and protest against the people in the organizations.
However the military government of Nigeria supported Shell and executed the protestor. It was really a bloody act and can be better termed as an act of killing democracy. However, the execution turned out to be the catalyst as the international community including UN accused the company to be having blood in its hands. The negative publicity, which was an internal as well as an external influence affected the performance of the organization and saw a large dip in the revenue of the organization. Therefore according to me it is important for the business organizations to ensure the presence of ethics in the organization.
Impact of using ‘Circles of reflection’ on the perspective
Ethics are basically the moral principles and the system that generally defines about what is right and what is wrong. I can also add to these as I have seen it as a guiding philosophy for each and every decision I make. I can also define it as to how I meet the challenge of performing the right thing when that will cost much more than what to pay. The previous module papers have a large number of different examples that support my view. At the beginning of the start of the discussion I have seen that business ethics is one of the most important aspect especially in the times of globalization.
I have never and will never shift in my perspective in the different examples that I have cited in my research before the formulation of the final phase of the article here. For example my perspective on the companies selling the AIDS/HIV drugs cannot be changed as because it is totally unethical as well as inhumanly to sell the medicines according to their decisions and only with the aim of making profits. To me, this inhumanely act must be stopped as the right to live of the patients diagnosed with the dangerous disease outweighs the rights and choices of the pharmaceutical companies to provide medicines and drugs according to their choices. On the other hand my view on Merck will again be same and I will never change my perspective as the organization had committed a great mistake with regard to Vioxx as they had invented the drug which was supposed to aggravate the problem. It was totally unethical for the organization to commercialize the sales of the drug which was seen to have adverse health effects on the people consuming the drug.
Yes I consider Business ethics and social responsibility to be important in the modern day. Social Responsibility has become increasingly important to the companies over the last several years. This has happened through a number of different causes including helping the environment, empowerment of the women, implementing socially responsible strategies and many more as such. According to me, a social responsibility from the endpoint of the management of the organizations helps improve the branding of the company and bolster the image of the organization. It will also help to engage the customers in the business and retain the best talents in the company. I support the initiative of the companies when they try and achieve social responsibility. Social responsibility is needed more as because, the consumers of the organization demand a much better business practice to be effective in the business and also to improve the safety of the society and the environment. If Shell could have been responsible enough it could have gained much profit as well as could have been applauded for its responsible measures.
Both the external as well as the internal factors have a large role in the business. Both of these factors are dependent on each other. The dependency on each other helps in the smooth operations of the business enterprises. I have identified a number of external factors which can be termed as the external factors that have an impact on the society. This includes economy, technology and environment whereas my cited examples have revealed corporate governance, citizenship, protection of the consumers and the rights of the employees to be the internal influences.
Part B: Forces and Influences
The measurement of the socio economic impact of the business helps the organization to reduce cost and risk to create and capture new kinds of business opportunities. The following tasks underpin the decision of the management of the company to measure the socio economic impact of the business. The economic growth of the business organization has a large impact on the economy of the organization. Mapping the future process also helps the organization to ensure the economic condition of the organization. Smaller business is believed to have a positive impact on the community as well as the country. The consumers give back the money or the revenue they earns when they visit the small business organizations.
Successful local business supports the local community and helps to bolster the community and in turn helps in the economic growth of the community. The smaller businesses typically possess the ability to adapt to changing climates at a much quicker pace due to the high level of customer orientation. In turn, it is likely the customers who will continue to support the local business organizations even in times of serious economic crisis. I have also noted that apart from ensuring sound economic benefits, the company has to ensure the presence of the most proper and sound corporate citizens in the workplace.
The upside of course, is that done right, there are many business and societal benefits that focus on this area of a number of business organizations – such as reducing risks, enhancing brand and creating new business opportunities.
So are the organizations actually doing a good job of managing our socio-economic impact and how can we measure it? These days there are so many tools measuring different areas for companies to navigate, choose from, and then adopt, that it is often overwhelming. In an effort to provide a simple starting point for business, the World Business Council for Sustainable Development (WBCSD) has produced measuring socio-economic impact: a guide for business. The guide helps companies articulate the business case for managing socio-economic impact, explains essential concepts and theory, and profiles a set of tools that have been selected based on two criteria. Firstly, these tools focus exclusively on socio-economic impact, moving beyond the more established environmental performance measurement. Secondly, they have been developed specifically for business, and are being actively used by companies.
On the other hand I am left awestruck with the impact of technology in the business. The technological developments in the market have led to growth of different business organizations in the society. Technology has ushered in a revolution on the way the companies enable small businesses to level the playing field with the larger organizations. The technology is mainly used for the reduction of the operating costs and to enable a firm to automate the different business functions. Another major improvement of the organization includes the improved communication process. The use of internet for mails, texting, searching websites, online orders have reduced the costs and have significantly improved the accuracy of communication. The improvement in the communication process has helped the organizations to make their business operations much smoother and faster and also improve their skills.
Ethics and Social Responsibility relate to some of the internal and external forces in business
Apart from the above mentioned improvements, another major improvement in terms of technological advancement is the increase in the productivity; Companies are capable of providing a better productivity through the use of technology. The reduction in the manual labor and the use of technological labor like use of computer and other applications has helped the organization to increase productivity with ease. The fundamental business technologies and the implementation of the technologies properly and effectively can have a major impact in the business. The use of technology can also broaden the customer base and provide the organization with a proper competitive business advantage.
Though the internal and external forces have a positive impact on the overall growth of the organizations, the absence of ethics as shown in my research can have a major impact to the growth. My research on the absence of proper ethics and unscientific planning has led to a number of controversies and environmental degradation. Therefore from my perspective the management of the organizations must make it a point to abide by all the different ethics and business standards in different areas and different countries where they operate.
The Government has a big role to play in the business and the different types of social actions today in a broad scope. After completing all the earlier researches and analyzing them I have realized a variety of roles of the Government. They are as follows;
- Prescribes the rules for the business organization
- Government acts as a major purchaser for the business products and the services
- Government acts as the major architect of the economic growth
- The Government directly manages large areas of the private businesses
- Government also acts as the financer or the capital provider of the business organizations
My research has led me to believe that Government plays a large number of roles in the business. This includes internal force, external force as well as the stakeholders of the business. Firstly if we cite the example of the Shell Company and its unethical business practices in Nigeria, the role of the Government both as an external as well as an internal force can be easily identified. The pressure and the force with which the Government subdued the protest against the Company by the locales was an act of internal force whereas the act of the Government to allow the management of the Shell Company to carry out unethical practices in the country in favor of unethical helps like bribes and foreign exchange earnings can be cited as an example of external force.
On the other hand the Government act as the shareholders for the tobacco business in spite of being aware of the fact that tobacco causes unlimited damage to the people and causes major health issues like cancer. However, the fact that the following item fetches a large amount of tax and revenue forces the government to allow its sales.
The journaling activities of the organization have helped me to ensure the presence of the organizational presence. The journaling activities in the following process have also helped me to identify my own biases and have made me to select my perspectives on different cases that has been cited as an example by me in the earlier researches. Though I have my own set of biases, the biases were absolutely justified. My perspectives on the like of TCCC, Shell and other companies cited by me like Merck have been justified as because all of them are responsible for different kinds of unethical practices. The unethical practices are seen to be grave offences and are directly related to the lives of different people as well as the environment.
Biases have been present in media since a long time. From the beginning itself, the time when newspapers were the only form of media platform biases had a large impact on the perspectives of the business organizations. I have seen through my study that biases played a major role in the debate over tobacco, its use and the end of it. The study of tobacco industry in my first module is the best example where I have cited the role of the government who plays the stakeholders of the business and earns revenue from the sales. On the other hand I have experienced that the media has played a mixed role in each of the cases and has never played a neutral role. They have regularly stayed biased on the particular topic. This includes the total ban of the advertisements and different forms of promotion of tobacco. However, the media have been able to ensure their presence in the following area through social websites as there are a number of such websites where the media has openly voiced their support for human rights and allowing people to smoke at their own will. These social media sites have also voiced their concerns against the rise of the price of the cigarettes and other tobacco products. Media plays an important role in the perception and the expectation of the stakeholders. Media has a very strong presence in the market as it has the capability of providing fame to a person in one single day and then again taking it away from him in another single day. The business stakeholders generally use media in an effective manner to convey the information of the goods and the services produced by the organizations and also promote the organization in a proper and effective manner. I am totally awestruck after I saw that a large amount of money is generally invested by the management of the organizations to promote their business.
The above example clearly shows the negativity of the media as media has been seen as a powerful tool by the community which must spread awareness and support the ban on smoking and tobacco products. However, they are seen to be promoting the use of tobacco in a different process which provides a negative message to the community. However, there are also other cases where the media has not supported the pro smoking activities. The best case can be cited with the case of Austria where pro smoking activists ensured the fall of the ruling government and the creation of a coalition to allow public smoking in different places. The media strongly criticized the activists and reported about the new government which promised to allow smoking in an effective manner in public places. The following stories are one of the few where the media can be seen standing against the use of tobacco and ensure that the debate over the use of the tobacco products is far from over. I believe that it is the duty of the media to act in a ethical and concise manner and bring forward only the truth. It is important for the media to promote truth and stay away from making or publishing any kind of hoax and false news on sensitive issues. This is because any such acts from the part of the media can create ruckus and problems in the community.
The following course has been of great help to me both professionally as well as personally. One might wonder on what has been the benefit from my personal point of view as I have been able to receive a large amount of knowledge on ethics and ethics in business. Ethics from my point of view can be termed as the logical understanding of right and wrong that sets out or segregates of what people must do and what not to do. I feel that it is necessary for the management of the organization to continuously examine the standards that are to be followed by them and also ensure great responsibility. Ethics must have a continuous effort within the own moral beliefs. The following of the moral beliefs which makes us a better person must be taken as an example by the management of the business organizations to ensure that they stay reasonable. Most of the tools for critical thinking for ethics are subject to relativism and must be universal in nature. I must say that it is important when the relativism beliefs differ from individual to individual on what is right and what is wrong. The examples that I have cited in the other modules shows the importance of the organization to maintain a social well being and also follow and abide both the organizational values and also the local values and culture.
As said earlier, I have been able to learn a whole lot of things from this particular study. The main focus point from this study has been on the absence of ethics in the business operations of the organization. I had no idea before the conduction of the research on the problems and issues that are generally created by the large scale organizations just to make profit. It was unfortunate to know that the organizations can even ignore the health of a person as well as play a secondary role in execution of a person. Apart from this I also found out that the management of the organizations especially the pharmaceutical companies practices different kinds of unethical practices that diminish the characteristic of the organization. The management of the companies has a feeling that unethical practices are the only way to achieve profits is the only way to ensure profitability for the organization. Thus the main knowledge gained from the study is the importance of ethics in modern business. As we see that globalization has changed the way that the business houses operate in the present day. There is a unethical rat race between the different organizations in order to have a control over the business. However, this rat race is dangerous enough for the mankind and can lead to fatality. Therefore my recommendation to the large-scale organizations is to practice ethics and make sure that their strategies to gain competitive advantage have less negative impact on the consumers.
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