The Type of Business Conduct on Visual Arts - Essay Example

?CRITICAL EVALUATION OF THE TYPE OF BUSINESS CONDUCT ON VISUAL ARTS Visual arts have been playing an important role in the societal development. The contextual role that visual arts play in the development of the social perspective is not confined to the development of the entertainment arts in the society only, but at the same time the domain of the visual arts is expected to play the role of educational and intellectual development of the society (Peaker & Vincent, 1990; Landry et al, 1996). For instance, Matarasso, (1999) defined the holistic view of the sustainable impact of arts related activities that have sustainable impact that also changes over time. Wealth of the literature has been developed in this context where visual arts have been performing not role of entertainment development but at the same time has social and economic impact (Kay & Watt, 2000; Jermyn, 2001).This dual responsibility lending on the form of arts requires considerable resources. However, contrary to this, the visual arts platform of the society constantly remains under the financial pressures and vulnerability even in the sound economic conditions of the country. The proponents of the visual arts, on this vulnerable situation of the visual arts platform have been raising constant voices over the matter. One the of such voices claim that visual arts organisations in order to successfully meet the societal requirement and expectation of educational and entertainment development shall maintains the system that provides it sound financial strength. However, despite the consensus on the need of the sound financial muscles for the visual arts organisations, there have been contrary views on the system to be employed for achieving them. One dominant view on the matter is pertaining to Royce (2011) view who insists that visual arts organisations shall develop a system similar to the business organisations. According to Royce (2011), well defined systems or more appropriate to state that conduct like a business is mandatory for the effective results generation from the visual arts organisation. In this perspective, Royce (2011) stated that ‘Sound business models are a necessary component in healthy visual arts ecology and essential for most publicly funded organisations’. Royce (2011), for its concern over the detrimental and vulnerable condition of the visuals arts organisation shall proposed that all such organisations shall also have system for achieving the profitability. Viewing in the context of the definition for the arts in general and among definitions developed for the purpose, Shaw (2000) defined arts and creative industry activities as one that can be determined on the basis of its sustainable impact. As already reported, this impact is spread not only the social aspects but at the same time wide economic impact is also identified in many studies (Landry et al, 1996); hence, it is important to understand the fact that an organisation in order to fulfil such responsibilities requires strong system. Royce (2011) assessment report was based in reference to the Arts Council England and the Turning Point Network but reflects the overall industry requirement. Visual arts organisation’s financial vulnerability, according to the Royce (2011), is due to the three main factors. First, the culture of organisational conduct prevailing at the visual arts organisations’ is in clear contrast to the economic principle mainly in terms of productivity. This practice is despite the proven facts that visual arts have always played an important role in the economics of the country and society (Reeves, 2002). More importantly, this practices is also in contrast to the development early in the history where since 1980s all cultural activities have been seen in the main context of their contribution the economic development and restructuring as well as revival of the manufacturing industry (Reeves, 2002). Second factor that is responsible for this vulnerability is the tradition of free entry offered to audience in the many of the programs conducted at various such organisations. An assessment of the financial inflows and outflows from the arts related activities revealed factors that determine the cost and revenue sources in such organisations. In the referred report, tickets, retailing and catering services were identified as a major source of tangible inflow to the organisational model (Mycake, 2010). Simple business requires cost of an activity is to be paid by the revenues generated from such activities. However, on practical grounds, cost is being incurred in the same prospect where as the sources of the revenues are unattended. Hence, the report has referred the set of the factors that are to play an effective role in the sustainable growth of such organisation. It is note worthy, almost all factors in this context is based on their respective growth as a percentage of revenue. The third factor identified for the carrying the responsibility of the financial vulnerability of the visual organisations is undue tolerance of the funders in claiming the return from such organisations. In a typical business, investors are concerned for the return from funds invested. Returns in the visual and other arts organisations are generated from the tangible as well as intangible assets such as artists excellences etc (Mycake, 2010). Kelly and Kelly (2000) identified various aspects through which the performance of the organisation’s pertaining to arts shall be measured. Hence, prospects from which such institutions generate financial strength to further strengthen and develop and expand their performance shall be evaluated. Royce (2011) on the basis of the above mentioned aspects have proposed that visual arts organisations shall establish the system or adopt business model. Business models have clear demarcation for the performance measures which is generated from the various tangible and intangible assets of the organisations. This recommendation appears to significantly effective in order to reduce the financial vulnerability of the visual arts organisation and continues their respective contribution in the economy as a whole. Hence, as the sustainable business model is one that effectively and efficiently contributes to all aspects of society; therefore, visual organisations must also consider the financial aspect in addition to its contribution in other aspects of society. This view of the Royce (2011) is apparently in wide contradictions to the proposed conduct for the art organisations. For example, Taylor (2006) contradicted that visual arts are concerned with the betterment in the society and following business does not always result in improved societal and even business results. Hence, Taylor suggested that arts organisations shall move a step ahead than typical business in order to perform effectively in the society. Taylor (2006) established six points based agenda for the conducted of the business. Review of such six points that proposed the guideline for the arts business conduct revealed that all the points required organisation to effectively perform job in a manner that is successful and in the best interest of the society. For instance, the guiding agenda of defining own goals, measuring performance in different currencies, embracing social roles and most importantly embracing all these roles with business tools (Taylor, 2006). Combine assessment of the various arts organisations have concluded that lack of expertise and skills to maintain the organisational operations have resulted in the non-sustainable state of the art organisations (Mycake, 2010). Hence, the contrasting review from the Taylor, (2006) is more a step forward towards a recommendation of Royce (2011) as latter one identifies the solution to non-benefit generating organisation while former one determines guidelines for the purpose. Furthermore, it is important to notice that all these guideline appear be the systematic solution to the issues identified by the Royce (2011). It is a common practice that each industry moulds the business model in a manner that suits to its requirement to generate best performance. Also businesses in the contemporary world have moved towards transforming their business model to a sustainable model and hence businesses have initiated to increasingly consider the social and other societal aspects. For example, businesses have incorporated the systems such as Balance Score Card and gap analysis etc. These flexible measures have widened the spectrum of the performance assessment such as balance score card not only evaluates the financial growth but also evaluates the internal learning and growth of the organisation. Therefore, all organisations in the businesses are moving towards more holistic view of growth. This refers that organisation related to the arts can also integrate measures to the control the performance under strict inspection and defined targets. Such integrations will in turn improve the overall prospect of the art related organisations including the financial strengths. In addition to the fact that assessment of the Taylor’s (2006) views that was apparently contradicted to the idea of Royce (2011), many other views had been employed that attempted to create the vision in different dimensions. Benyus, (2002) claims that sustainable development principles of the business are aimed at redesigning or even developing mimicry of the economic activities in accordance to the principles that are aligned to the environmental safety. Milne et al (2009) has also presented an effective example where New Zealand Business Council for Sustainable Development attempted to find the middle way between the production-based thesis of the business and the anti-thesis of proponents of the environmental development. Also, Milne et al (2009) has identified the economic and ecological perspectives and has required business to address the gap between the both fronts to determine the sustainability perspectives. All these assessment are though not accurate sustainable businesses that attempt to meet the societal conditions of environment, but at the same time also does not contradict the business conduct as unfair. Milne et al (2009) have developed that detailed reviews about the reality in business’s claims about the sustainable development by employing factors that inculcate the importance of the environment in the business conduct and established that most of the sustainability claims are mere business rhetoric. However, it is of much importance to note that Milne et al (2009) conclusion maintains that claims of sustainability from business are largely and not all rhetoric. Therefore, following the recommendation of Royce (2011) organisations of visual arts of England can develop the model of business that is more sustainable. Hence, being sustainable is to find the best suited ground between the environmental and economical balance and does not require organisation to set its platform to any of the extreme of both dimension. Hence, various techniques employed are centrally aimed at creating an influential impact on the stakeholders. As a sustainability imperative, Oak and Oaks (2012) assessed that the marketing and accounting based communication have connection with various discourse and these domains does not clearly specify the positions that have contradiction. Oaks and Oaks (2012) evidenced that Arts Council Review (England) report that 31 and 10 pages from 135 in total had numerical and pictorial representations and drew context that pictures and numbers according to Campbell et al. (2009) is mainly aimed construct the viewers opinion. Oaks and Oaks (2012) established that both accounting and marketing have been overlapping in ability to justify their respective position in influencing the art policy and collectively reflected the Habermasian tension of ideal situation between the norms and the fact. This in turn still failed to determine the either position of conduct for the organisation of the arts and even for the report of the organisation it reviewed in the context. Hence, Royce (2011) claim and requirement to integrate business traits in the maintain the systems of the arts organisation in order to reduce the vulnerable condition of organisation still maintained due to its clarity in idea. It is also important for the fact to identity the arts organisations that are truly involved in the contribution to their own field of arts, social development as well as economic growth. This suggestion has no where mandated to imply the system of the manufacturing concern over the arts organisations. Rather, it is only aimed at inculcating the systematic traits to generate the due and effective results from the type of organisations under reference. Contradictions to the idea, on assessment, have only proved to be mere extension of the concept or discourse discussions. List of References Benyus, J. M. (2002). Biomimicry. NY: HarperCollins. Campbell, D., McPhail, K., & Slack, R. (2009). 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The ideological role of sustainable development reporting. Accounting, Auditing & Accountability Journal, vol. 22, no. 8, pp. 1211-1257. Mycake. (2010). The arts benchmark. Available from http://www.vaga.co.uk/images/stories/explain-assets-4.pdf [Accessed 20 November 2013] Oakes, H., & Oakes, S. (2012, September). Accounting and marketing communications in arts engagement: A discourse analysis. In Accounting Forum (Vol. 36, No. 3, pp. 209-222). Elsevier. Peaker, A., & Vincent, J. (1990). Arts in Prisons: Towards a Sense of Achievement: a Report Commissioned by the Home Office Research and Planning Unit and the Arts Council. London: Home Office. Reeves, M. (2002). Measuring the economic and social impact of the arts: a review. London: Arts Council of England. Royce, S. (2011). Business models in the visual arts: an investigation of organisational business models for the turning point network and arts council England. England: Arts Council England Shaw, P. (2000). Measuring the Impact of Culture?, Seminar Report. Arts Research Limited, Autumn Taylor, A. (2006). ‘Act Like a Business? Why Aim So Low? in Management and the Arts W. J. Byrnes (2008) Abingdon, Oxon, Taylor & Francis Group (p. 54-56). Article originally appeared in ‘Inside Arts’ (2006)  Read More