How the social resposibilities of ship management business managershas changed - Essay Example

HOW THE SOCIAL RESPONSIBILITIES OF SHIP MANAGEMENT BUSINESS MANAGERS HAS CHANGED Introduction Corporate social responsibilities require that business consider the consequences of their operations on the environment they are living/society. They should have in contemplation the societal needs and satisfy them accordingly. Social responsibility is based on one assumption that organizations have a role to play to society. They have a care with regard to ethics and moral responsibilities. 1 The ship management business have moved from the traditional responsibilities of maximizing profits by reducing costs unethically and maximizing their revenues is more people oriented goals. The focus now is on people and the community at large and not those activities which hold the business generate more income. The following are areas of concern to show how this has changed over time. The Community The shipping management business never regards the community with the importance they deserved. The community was not seen to add any value to the business but this has changed with time. The ship management business has now devised programmes for its community and provides them with employment opportunities. When job vacancies arise the first priority goes to the community. Social responsibility to community has also been in form of aids and donations from these ship management business managers. Traditionally donations were given in arrears that were perceived to help the organizations. This is now not the case; donations are given to all and sundry. They take the form of project initiatives like construction of social amenities such as schools and hospitals. It also extends to the assistance given to HIV-Aids victims and conducting of Aids workshops to sensitive them on the need to refrain from irresponsible sexual behaviours. (Davis and Blomstrom, 1975) The ships management business now gives free emergency services to those in entire need of them. They have also trained their own staff on some of the safety precautions that the community ought to follow in the usage of their services. These are then disseminated to the community through trainings absolutely for free. Social responsibility to community entails doing things that do not injure or harm the community in any way. Their products must be safe to use and the environment to which the workers operate should also be protective. The ship business management managers have also deviated from that social responsibility embodied by the law to that relates to the people's customs and traditions at large with the sole purpose of providing/doing what the people need. Additionally, the business is now recognizing and appreciating people's human rights in interacting with the community. a) The Employees Employees form a major part of the company stakeholders. Unfortunately, this group is rarely looked into when it cares to awarding of benefits, salary increment as a whole. But the ship management business managers have started showing some form of social responsibility towards its employees in the following manner. (Davis and Blomstrom, 1975) a) Fair recruitment & selection exercise - The business managers have started hiring its workforce based on merit, traits exhibited during interviews etc. All the candidates are subjected to similar interviewing environments with the interviewer asking almost similar questions. There have been changes from; embarrassing questions to fair questions; seriousness to friendliness; general appearance to merit; subjectivity to objectivity. 2 b) Improved conflict management criteria - The managers have moved from competition/ authoritative command of conflict management to accommodating/smoothing style of managing conflicts. Competition/authoritative command is where managers used to be in co-operative but assertive. They used to work against the wishes of the employees, fight to dominate and force things to a favourable conclusion through the exercise of authority or power. The managers therefore achieved victory through force, superior skill or domination. The employees were forced to accept a solution. The result here was winning-lose conflict since the employers achieved their desires to the exclusion of their employees. (Davis and Blomstrom, 1975) c) Positive Climates to change Earlier the managers of the ship management used to impose change in the organization. They acted as if locked into the past. They used to be dynamic as far as change was used to be dynamic as far as change was concerned and change it whichever way they wanted. The managers never used to communicate to the employees the positive aspects of change. They never used to encourage interchange of criticism, suggestions and ideas among organizational members. Listening, trusting and respecting the dignity and creative potential of other people were not adhered to. This lack of involving the participation of members in affecting change gave rise to resistance to change. 3 The managers have now changed their strategies. Change is now never imposed but participated by all. Not only the employees are now engaged in effecting change but also the union and others stakeholders. Committees and task forces are also created and people are given the opportunity to ask questions. Any change anticipated must be communicated to all. This shows a sense of concern and responsibility to all the stakeholders. Reasons for change need be explained in advance and open discussions held. The employees and other people should be let to see the logic behind change especially its benefits. This creates a felt need for change. They should avoid showing that the old system was wrong in it's entirely. Instead they should show the proposed changes as necessary because things will be better for employees should be psychologically prepared to accept change. (Carroll and Buchholtz, 2003 3. The Consumers In the earlier times the managers of the ship management business never lay a lot of emphasis on the satisfaction of customer needs. The social responsibility to customers has now changed and the business is regarding the importance and loyally of customers. They are now producing and offering high quality services aimed at winning and retaining their trust. The managers are doing extensive researchers on their behavioural methodologies towards the customers. The consumers/users of the products services highly regard quick services rates and now customers do not have to waste a lot of time while being served. Product packaging has also been improved and this is done in a better way than in the past. (Davis and Blomstrom, 1975) 4. The Government Social responsibility towards the government is shown through prompt payment of taxes, fighting grafts, fee payments and laying of proper books of accounts for audit purposes. The ship management business have devised practicable ways of fighting graft in their business by creating independence in the work place where every employee has a distinct assignment and where internal checks exist. Unlike in the past where they had to pay taxes after such a notice has been finished by relevant revenue authorities, today the ship management business managers compute their own tax relations which they submit early in advance. They are now employing well qualified professional accountants aimed at preparing correct books. Of accounts which show a tale and fair reflection of what they are purporting to portray. (Davis and Blomstrom, 1975) 5. The Environment The ship management business managers are now showing a lot of responsibility in the environments in which they are operating. This has been done through better dumping methods avoidance of pollution - both sound and air pollution. They have also been involved in tree planting exercises and awarding of the pro-environment. They are now packing their products in disposable and bio-degradable bags as opposed to the non-biodegradable and environment unfriendly ones. They are also designing their operations in a 'killed' through pollution by a dangerous chemicals or oil spillages. 4 6. The Supplies These are the supplies of the equipments and other materials to the ship management business. Social responsibility to the suppliers comes in the form of prompt payments for materials and equipments supplied. The managers have also realized the importance of maintaining a good relationship with the suppliers since some of them turn out to be the customers/consumers of their goods & services. (Carroll and Buchholtz, 2003 7. Creditors Creditors are the financiers of any business agency. There is always a need to show responsibility to creditors such as banks by abiding with what is referred to as bond covenants. Traditionally, the business managers used to do the following acts. a) Taking high risk projects: - when the borrowed capital is used to finance a high risk project, there can either be very high returns from the project or even huge losses which may lead to liquidation of the firm. The firms used to gain in cases of huge profits but lose in cases of huge losses. b) Sale of assets: They would sell assets that were already used as collateral for obtaining loans. c) Payments of very high divided: - This would affect the firm's ability to meet their financial obligations since huge dividend pay outs affected the retained earnings. d) Borrowing additional debt: - The firms used to borrow additional/debts. 5 All these have changed and the firms have adopted the following ways to as sign of social responsibility to their creditors. Restricted amount of dividends they pay. Restricted the type of project to be undertaken Restricted in the level of liquids to be maintained Restricted the amount of additional debt that can be borrowed Restricted on any sale of asset. (Griffin and Mahon, 1997) HOW A NEW PORT DEVEOPMENT MAY COPE WITH OR INFLUECNE THE EXTERNAL ENVIRONMENT IN WHICH IT OPERATES Every organization operates in an environment and not vacuums. These are the surrounding circumstances and influences on organizations. The environmental influence can either be positive or negative. a) The Ethical Environment Ethics refers to that code of morals that govern the conduct of an individual person or organization because they give its image integrity and credibility. 6 The new development part must adjust themselves accordingly and cope with the general laid down code with the general laid down code of conduct of the post business. They must show professional ethics in their premises through transparency and accountability for their operations. A standard of competence conduct and integrity must be maintained. Ethnical behaviours are just fair conduct which goes above laws and regulations. They have to devise their operational methods in such a way that it goes beyond the pre-set laws and regulations. Its management must cope with the moral principles being guided by certain values and operating in a way similar organizational right to operate. 7 In order to adhere to ethics, management ought to distinguish between rights and wrongs or proper form improper actions in a moral sense. Then how is this done. This is done through a) Setting realistic goals: - Unrealistic goals bread corruption practices and unorthodox means of achieving such goals. b) Having other organizational goals other than profits the new part development will have to be achieving other goals other than the profit maximization goal. Where there is great pressure to make profit people may use unorthodox means practices to achieve/realize the profit target. These other goals are shareholders wealth maximization consumer satisfaction, social responsibility etc. (Griffin and Mahon, 1997) c) Fair pricing methodologies: - They will have to charge fair prices for their customer. Charging two low prices vis-a-vis the competitors poses a stiff and unfair completion with rival business entrepreneurs. (Carroll and Buchholtz, 2003 d) Adhering to rules and regulations pertaining to production of high quality and safe goods and services. e) Paying the suppliers on time and according to the credit terms. f) Non-use of confidential information in order to gain massive profits e.g. insider trading. g) Fair employment (Griffin and Mahon, 1997) b) Technological Environment Technology is changing at all times and businesses have to change with technology so that their businesses are not rendered obsolete. The management of the part development will have to retrain their staff to be able to cope and adapt to the new technological changes. The development will also have to employ certain research exercises to ascertain the technological/ requirement of their business and change these accordingly. Though the use of technology, the community might not acquire employment opportunities form the business because their work shall have been done by machines. The firm will also required additional capital to cope with the new & huge technological requirements. (Griffin and Mahon, 1997) c) Political Environment Political systems greatly affect firms operations. The new part will have to cope with government strategies or development plans. Expansions of the new post development may be met with stiff resistance of the local authorities on grounds of different government plans on such expansion areas. In some nations, government set out certain rules and regulations regarding the health and safety of the working environment and the part development will have to adjust accordingly. (Griffin and Mahon, 1997) Influence the operations of the new part development. d) Economical factors The interest rates in the economy keep on fluctuating and the new part development must adjust accordingly to this. It also has to adhere to the labour laws that exist in that business industry. The economical situations also influence consumer buying behaviour and their bargaining power. The part development will have to re-adjust more during periods of recession than boom periods. 8 Conclusions In conclusion it is important for the new part development to understand the external environment to which it operates and adjust accordingly because this might have an effect on its resultant profits. References Carroll, A. and Buchholtz, A. (2003): Business and Society: Ethics and Stakeholder Management. 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