Government in Your Business - Article Example

?GOVERNMENT IN YOUR BUSINESS Wal-Mart Inc. is a renowned American multinational retailer corporation operating chains of large discount warehouse and departmental stores. It is currently the biggest private employer in the world with slightly over 2 million employees. It operates on a philosophy of providing quality goods to its customers at a low price. Management committee at Wal-Mart should expect a new working relationship with the government, where government will offer incentives for their growth in America and globally. Further, the managers at Wal-Mart would work closely with the government to ensure that incentives offered are utilized for the growth of the company. Government is working hard to put in place long term measures that will save businesses such as Wal-Mart in case of an economic meltdown. For instance, introduction of greater ties between the interests of business and society influenced operation of Wal-Mart in terms of designing its products and services for its customers. The new regulations that the government has put place aim to promote desired behavior by preventing the company from exploiting customers. For example, Wal-Mart Company had to ask its suppliers to report about its sustainability programs by asking them to report on their environmental concerns such emission of greenhouse gases. In addition, Wal-Mart is offering funding for the development of the second party consortium, which aims to give information about the environmental footprint of its products. Other public concerns such as creation of environmental friendly products, workplace education, and training influence how Wal-Mart operates. As Wal-Mart aims to expand outside the US, government is decreasing control across national borders which implies that it is easy to circumvent tough business regulations at home while at the same time getting more friendly rules overseas where the company will be able to make profits (Reich, 2009). The move by the government to be less involved in the operation of businesses has created a close working relationship between government and businesses. For instance, Wal-Mart is opening supercenters and small shopping centers across the US to reach all customers. More so, this has enabled it to venture into other businesses such as banking, travel services, internet services and used cars. Reich (2009), states that, the government is coaxing its operations but not regulating it, which in turn has made the company successful. If the government engaged in regulating behavior, it would have blocked innovation at Wal-Mart but the introduction of coaxing measures has encouraged its innovation and expansion in US and other parts of the world. Furthermore, the government has allowed Wal-Mart to decide how to achieve its desired outcomes. For example, rather than force the company to offer specific employee benefits, Wal-Mart has been allowed to offer a minimum amount per employee into a common fund accessible to those who do not get such benefits. Wal-Mart managers engage with the government as opposed to shielding it from participating in its activities. In this manner, it is of great benefit because the system is efficient and affordable whereby both parties benefit. For any business to succeed, managers need to devote attention to public concerns and try to come up with solutions before those concerns develop into political action. For instance, it is important for Wal-Mart to convince its customers that they will produce quality goods at low prices. Wal-Mart has been vulnerable to attacks regarding ethical issues. In this purview, they have been accused of providing low pay and poor working conditions to workers. Environmental issues also threaten Wal-Mart’s success. This is against government demands, which requires that all businesses must be responsible for the activities. Further, they have to develop public trust to enable the business thrive. Managing the extended enterprise Corporate social responsibility is the ability of a company to conduct its business in an ethical manner and in the best interest of the community. In addition, corporate social responsibility entails that the company is in a position to respond positively to emerging societal expectations and priorities (Porter & Kramer, 2009). CSR is very vital in the creation of wealth by a company in that if managed properly it should improve the competitiveness of the business and maximize the value of creation of wealth to the community. With the growing public awareness and desire for socially responsible businesses, it is significant to note that companies consider planning for future socially responsible business operation. If McDonalds were to evaluate their prospects for social responsibility using similar frameworks that direct business choices, they would realize that CSR could be much more than a cost or a charitable action as it can be a source of innovation, competitive advantage, and opportunity to invest more in society. McDonald is the largest company in the world that deals in hamburger food restaurants. In reference to its corporate social responsibility, the company is taking action, maintaining openness in communication with its customers and shareholders while attaining its desired outcomes. McDonald Company has done much to improve the social and environmental consequences of its activities. However, McDonald is being blamed for poor nutrition and obesity despite the fact that the company identifies all of the effects of fast foods has on society. When analyzed strategically, CSR can become a source of social progress, as the business uses expertise, insights, and resources to activities that benefit society (Porter & Kramer, 2009). For example, McDonald gives part of its pre-tax profits to corporate charity as part of its strategy to be socially responsible. It conducts philanthropic contributions via the Ronald McDonald Houses Charities, which focus to create, get, and support programs that improve the health of children in society. This body ensures that children in vulnerable communities can receive medication and dental treatment in order to improve their health and strengthen their respective families. McDonalds use its CSR to show its moral obligation to help people and maintain its reputation. The company and its stakeholders should develop a program that looks into environmental issues. For instance, it has to manufacture packaging bags that are friendly to the environment, as this will protect the environment from pollution. The firm needs to develop strong interaction network with other businesses and stakeholders for it to succeed in both local and international arena. This relationship will in turn lead to the creation of wealth for the company. Managers at McDonalds have a responsibility to meet the legitimate claims of all stakeholders because stakeholders supply critical resources and have the power to affect the success of the company (Post, Preston & Sachs, 2002). For instance, the company should be determined to bring together financial, physical and human resources in order to develop a productive relationship among its workers and managers to attain organizational goal. References Post, E. J, Preston, L & Sachs, S 2002, Managing the extended enterprise: The new stakeholder View, California Management Review Vol. 45:1. Porter, M & Kramer, M.R 2009, Strategy and Society, Harvard Business Review. Reich, R 2009, Government in your business, Harvard Business Review. Read More