Social Responsibility and Executive Management - Coursework Example

 Social Responsibility and Executive Management 2. Discuss the strengths and weaknesses of each of the three (3) historical phases of social responsibility The first phase is profit-maximizing management. In this phase, business executives and managers focus on making profit and wealth for the enterprise. The strength of the first phase is profit maximization. This means that if a business can make good profits, it can develop a strong financial base. Business organizations were thought as nation’s wealth generators. Consequently, the wealth generated by the business organizations benefited the society in the end. However, many weaknesses were associated with the first phase of social responsibility. The first disadvantage associated with the first phase is it disregarded human and employee rights. Business enterprises regarded human resource (labour) as a commodity to be purchased and sold at will. Business organizations employed child labour and exploited labour through low wages. The working conditions were unsafe and injured employees were terminated without benefits. According to Barry (2000), there were high levels of cultural discrimination and harassment in the work place. There were no guidelines on advertisement and selling activities. In addition, there were no regulations on the quality of the products sold and people’s lives were in danger. The business enterprises exploited, manipulated and mislead their customers. The managers of the business enterprises were accountable to the owners. The governments were not concern with the regulation of business enterprises at first phase of social responsibilities. Consequently, members of the public were exploited. The second phase of social responsibility was the trusteeship management. Profit maximization was not the only driving force of the business enterprises. The human resource at this second phase was recognized as a valuable input to the business organization. Business enterprises acknowledged the rights of the employees, suppliers, customers, creditors, stakeholders and the community in which it operated. The second phase showed governments’ commitment to protect it citizens for bad business people. Legal frameworks and institutions were established to regulate business enterprises and protect the public from exploitative business organizations. However, business enterprises were faced with increasing expenses. The employees received better pay, business enterprises spend more on provision of quality products and services. The profits of the business were lower in the short run but improved significantly in the long-term. The third phase of the social responsibility was quality life management. The phase was considered more advanced as compared to the other preceding two phases. Business enterprises treated all its stakeholders with respect and courtesy. Business enterprises became proactive in transforming the quality of the life of its employees and the community in which it operates. The business enterprises are perceived as important for the advancement of the society. Consequently, the business enterprises receive support from the members of the community and become sustainable. However, it has to allocate more money to the corporate social activities that reduce their profits. The business enterprises face stringent government regulations and stiff competition at the third phase of historical social development. 3. Make a survey of different CSR activities being conducted by enterprises and discuss the advantage or disadvantage of the said activities to the enterprise itself. Business organizations are increasingly allocating small portion of their profits to socio-economic activities in the societies in which they operate. There are many types of corporate social responsibilities that are undertaken by business enterprises. They include giving out money, employee time, gifts in kind and playing the role of a good neighbour. Each business enterprise has its own reason as to why it involves itself in corporate social responsibility. However, most business enterprises donate in order to access wider markets for their product or services in the community in which they operate. Very few business enterprises want to donate for the sole purpose of assisting the community. Business enterprises find it advantageous to involve themselves in the corporate social responsibility activities. Advantages include tax benefits, positive public image, diverting attention and business related long term interests. The first advantage is realized by the business enterprise when it involves itself in the corporate social responsibility activities is tax benefits. Business organizations that engage itself in donating for charity usually have their tax reduced in proportion to the amount of donation made. The second disadvantage is positive public image. When a business enterprises fund projects that help the society in which they operate, they get noticed and appreciated. Corporate social responsibility activities become a marketing strategy for the business organization and most businesses have forged sense of loyalty to business enterprises that are perceived to be helpful. As a result, they become regular customers. The third advantage for the business enterprises that engage themselves in corporate social responsibility is the ability to divert the public from the real issues that may affect them. Some business enterprises engage themselves in the production of goods and services that are harmful to the environment and the people of the society. The products include cigarettes and alcohol. Such companies spent resources on corporate social responsibility so as to cover for the damages they cause to the people and the environment. Finally, the fourth advantage for the business enterprise is promotion of business long term interests. Through Corporate social responsibility, business enterprises can donate their money to ventures that enable the communities to sustain themselves profitably. As a result, members of the society get involved in profitable ventures thus create conducive environment for trading and commerce. There are some disadvantages that business enterprises experience when they involve themselves in the corporate social responsibility activities. These include high production costs, profit maximization and loss of business time. The first disadvantage that business enterprise experience when they engage themselves in corporate social responsibility is increase in the production cost. The amount of money that has been donated to improve the society is integrated into the cost of products and services. The second disadvantage to the business enterprises is profit maximization. The sole purpose of business existence is to make profits. Therefore, corporate social responsibility is not part of their core business because it drains the resources of the business. The third disadvantage is that most business organization that donate employee time end up wasting the company’s time. Corporate social responsibility social responsibilities may not yield benefits anticipated and thus the company losses. References Andrew, C., Abigail, W & Dirk, M 2008, The oxford handbook of corporate social responsibility, oxford university press, oxford. Barry, J 2000,Organization and management: a critical text, Cengage Learning EMEA, New York. Ian, R. & Rob, P 2004, implementing effective corporate social responsibility and corporate governance, BSI British Standards Institution, Britain. Read More