Strategies Businesses Use to Act in Ethical and Sustainable Way - Essay Example

INDIVIDUАL RЕРОRT АND RЕFLЕСTIОN Name Course Tutor Date Approaches of different SME In the recent years, sustainable development has come to play a significant role for business enterprises. In the perspective of the practical issues when it comes to the ecological and social exterior, there is no reason for one to assume the challenges of sustainable development are likely to become less crucial. This is a view which is support by the results of top surveys. When it comes to over 70 percent of large corporations and more than a third of the firms in the nation, the perspective for sustainable development is already an important issue which is actively being considered. At the same time, the businesses which are being categorized as sustainability oriented are able to boast more favorable results as compared to those which are grouped as passive. Different types of strategies that businesses use to operate in an ethical and sustainable way The concept for sustainable development has to be incorporated into the policies and processes within enterprise if it is supposed to follow the sustainable principles which are meant for development. This is not an indication that new means of management are going to have to be reinvented; it requires new cultural orientations and alterations done to the systems and procedures (Schaltegger 2009). The main areas of the management system which have to be changed are the ones which are related to the continuous improvement of the practices related to reporting, and the greater accountability for the nontraditional stakeholder. Developing an effective management framework for sustainable development needs the address of both governance and the ability to make decisions. The concept of sustainable development has to be integrated into the management information and control modules as well as the business planning systems. Governance is increasingly becoming significant considering the growing accountability of the corporation and its management control modes. The senior management has to come up with reports which would measure the performance against these strategies. Some steps are needed in the management of an enterprise according to the guidelines for sustainable development. Performing analysis of stakeholders This is needed for the identification of parties affected by the operations of the enterprise. It would set the issues and needs of the stakeholders considering the sustainable development activities of the firm. The existence of the company would be directly connected to the global environment and the community which it is based. In carrying out activities, the company has to have respect for human dignity and strive toward societies where the global environment would be protected. At the beginning of the century, the strategies of companies were directed toward earning the best returns for the shareholders and investors. Enterprises were not expected to achieve social or environmental goals. The exploitation of the natural and human resources was normal for industries considering lack of regard for the communities where the businesses operated. The stakeholder analysis starts with the identification of different groups as affected by the enterprise activities. These are the regulators, creditors and employees as well as the community in which the enterprise would operate. It also has to include the individuals that are affected or who consider themselves as being affected. This is not an instance of altruism on the part of the corporation but rather a case of good business. The firms which have an understanding of what the stakeholders want are going to be able to capitalize on the opportunities which are presented. They are going to benefit from a more informed and active workforce and better means of information in the capital markets. When it comes to identifying the stakeholder groups, the management needs to look at the business activities and the operation locations. Some of the stakeholders could be common to the locations and activities. Others like the local communities are going to vary according to the location and the activity. Setting sustainable development policies The other objective would be articulating the basic values which the enterprise would want from the workers with respect to development and to set targets for performance. Senior management is there for the formulation of a sustainable development policy when it comes to the organization and for coming up with specific objectives, sustainable means of development implies more than just the surroundings. There are social elements like the alleviation of poverty and distributional equity. It also considers economic elements which may be absent from a strictly environmental. For one, there is emphasis on maintaining the capital endowment and highlight limits for the ability of the society to substitute man made for natural means of capital. Development of a supportive corporate culture In order to make sure the firm and its members provide backing to the sustainable development policies, there is a need for an appropriate corporate culture. In the process of the implementation of sustainable development or environmental management modules, a number of firms have experienced some organizational renewal of sorts. Increased participation of the employees not only produces practical ideas but also increases the level of enthusiasm for the program. Most of the clients and workers enjoy being part of a company which is not committed to operations in a responsible way. The implementation of sustainable policy development goals is going to need the management to change its attitude. This could be done only after retraining. Some of the executives may have the feeling their sole purpose is to maximize the wealth of the proprietor. Meanwhile, some of the management may not be used to the identification of needs for eco efficient approaches like recycling and energy efficiency. There are some that have not considered the effect of their actions on stakeholder groups other than the shareholders. The management of multinational firms may not believe that it is adequate to redesign their programs to make sure to contribute to sustainable development for the poorer nations. Effective communication is important. Every management level and workers have to come to terms with the policies and objectives that have been set up. The concept pertaining to sustainable development needs the firm to come up with a culture that would emphasize on the participation of the employee. The internal reporting systems may have an important effect upon the corporate culture. They have to be designed in order for them to reinforce some of that positive behavior with respect to sustainable development. There is also a need to be linked to the recognition of the enterprise’s promotion and recognition systems. Active and visible involvement of the senior executives and directors can be a force when it comes to the formation of attitudes and the creation of a supportive culture where sustainable business practices can develop. The executives are the individuals that set the policies and norms by which the business is conducted. Examine how companies implement CSR The company of choice for CSR analysis and management approach is Harley Davidson. Harley Davidson’s mission statement is to fulfill the dreams of individuals through the experience of riding the motorcycle. This is done by providing the motorcyclists and also to the general public a wide range and an expanding line of motorcycles as well as branded products and services in different market segments. This shows that the company focuses mainly on customer satisfaction and the overall growth of the organization. The organization’s vision describes an action oriented company and a leader in its commitment to continuously improve the quality of relationships between various stakeholders. This shows that the company believes that the key to sustaining a successful business is to maintain a balance between the interests of all the stakeholders through empowering the company’s employees to focus on value added activities (Scott 2008). Four principals of management Planning Planning is a very integral part to ensure the success of any business as it lays down the objectives and goals needed to be achieved by the business and how they are going to be achieved. It is therefore necessary for an organization to have strategic, operational and financial plans in order to be successful (Williams 2009). Planning is done in the following steps: 1. Establishing the objectives of the company needed for it success. 2. Establishing the planning premises is concerned with determining the causes of deviation from the actual plan. 3. Make a choice between alternative course of action by looking at the pros and cons of each objective made 4. Formulation of derivative plans which are sub plans that help in the achievement of the main plan. 5. Ensuring co-operation between employers and employees so that the plans can be implemented with confidence. 6. Appraisal of the plans selected and implemented is important as it measures their effectiveness. The company’s strength and success is attributed to its strong marketing plan that is based on customer satisfaction which involves maintenance of customer relations, branding, promotion, price, quality products and distribution. The company has built their image continuously over the last 20 years and has managed to convert its services and products into a lifestyle. It maintains strong relationships with their customers to ensure brand loyalty. One of the innovative strategies used by the company to create a great experience with the Harley is sponsorship of the Harley Owners Group (H.O.G), a group that has become very popular with about 450,000 members. The intention of the company using the strategy was to increase and strengthen the relationship between members, dealers as well as employees, by organizing for rallies and at the same time, to promote the Harley experience to potential customers. Members would also receive a list of services such as, Harley rentals, discounted products and emergency road services. This greatly increased customer loyalty and experience as the members feel like they belong to a large family (Davidson 2002). Organizing Organizing is a function of management that comes after planning. This is where the combination and synchronization of the physical, financial and human resources within an organization takes place which help to achieve the desired results. Therefore organizing as a function is able to spell out different roles and positions held by the employees and define the coordination between authority and responsibility (Williams 2009). Harley Davidson is able to perform the task of organizing through following the basic steps and at the end a clear organizational structure is drawn. These steps include: 1. Identification of activities: the management is responsible for identifying the tasks needed to be performed in order to achieve organizational goals. In this case the company has identified activities such as manufacturing, marketing and sales, quality control and financial activities such as preparation of accounts. 2. Organizing the activities within departments: the management of the company then combines similar and related activities into departments such as marketing, manufacturing, accounting and finance, human resources etc. 3. Classify the authority: after the departments have been made, the manager has to classify the powers to different individuals. The hierarchy of managers appointed is usually top level, middle level and lower level managers who have different powers and authority and help create efficiency in the organization. 4. Co-ordination between responsibility and authority: at this point, relationships are established among different groups in order to achieve smooth interaction toward the achievement of the organizational goals. Leading The management of a company must continuously demonstrate continuous improvement of quality and efficiency as a way of performing tasks within the organization (Williams 2009). The management team at Harley Davidson is firmly committed to their employees and is encouraged to develop and grow within the organization. A mutual trust between the management and the employees has been established and this helps to curb communication problems between them and creates a productive environment for them (Saladin & Szymezak 2002). The management has created has system whereby full involvement of the employees is essential and hence is also a competitive advantage. They also believe that leadership in the business environment also involves contributing to a better society. As a corporation, they support causes and encourage their employees to be involved as volunteers to help the society in any way possible. The social responsibility set out by the managers is really an investment in the quality of life within the society and benefits all the stakeholders which include employees, customers, community, shareholders, suppliers and even the government (Reid 1990). Controlling This management function ensures that the organizations resources are utilized effectively and efficiently in order to achieve it main objectives as it facilitated co-ordination and helps in planning. It also measures the deviation of the actual performance of the company from the standard performance (Williams 2009). During the 1980s, Harley Davidson had some serious issues with control and the company was near bankruptcy showing that the management did not perform their control functions as required (Saladini & Szymezak 2002). A decline of sales and quality of the product was noted at the time due to the following reasons: The management did not communicate with their employees and failed to give them the responsibility to create quality products. The management focused mainly on short term returns. High number of unused inventory was very costly to the company and reduced the productivity level (Reid, 1990). The new management team restructured the company after this crisis and through good control systems in the organization; it was able to emerge successful and enjoys being a monopoly in the heavy weight motorcycle industry. The new management realized the importance of maintaining a good relationship with all their stakeholders. To ensure efficiency is delivered by their employees, the management trains their employees to understand the dynamic business environment and also to improve their skills and ensure their growth and development as individuals. TQM of the Harley Davidson Company stands for the quality of their products and services that they produce and offer to their consumers. This has been ensured with the continuous creative innovations in maintaining their customers and improving their product. This has been done by enabling communication through the organization as seen earlier where the flattened organization and team work has improved efficiency and effectiveness to producing good quality products and services. The company has also provided the dealers with extensive training on their work to ensure quality service to their customers (Scott 2008). Part 2: Individual Reflection Development in the key skills: Communication According to the VARK assessment module, I found that I am more of an auditory than visual learner, which suggests I am not good with visual aids such as presentations or graphs but I am a good listener. I have learnt to capitalize on this since I am adept at listening and interacting because I understand the concept being debated more so than if it were being done via conference. As such, I am great with in person meetings and discussions that involve project team’s discussions on various subject matters. I am able to remember and understand more things when it is done in real settings as opposed to virtual relays. I have thus learnt to delegate on the weak points such as virtual conferencing and organizational evaluation and editing. Organizations require financial analysis of performance which requires accounting modes. This is done by the use of balance sheet tables and income statements which reveal the position of a company as related the financial position that was retained in the previous years. This comparison will bring an adequate assessment of how the company is doing. Because a large percentage of this requires visual aids and representations, I have elected to delegate the assessment of firm financial performance to get the main points of how the company is doing as regards debt situation, assets and profit making ability. Numeracy Being numerate is an implication of having the confidence and skills for utilizing numbers and procedures in every element of life as well as, everyday activities at home and beyond as clients in the management of finances as well as children learning and making sense of the health information. Numeracy would complement literacy and it is sometimes perceived as statistical literacy. Both of the skills are required for functioning in modern life. Being numerate would mean being able to reason with numbers and other concepts and applying these in a scope of scenarios and to solve a number of issues. Being numerate would be about thought and logical processing as it would be about doing summations. Unfortunately, this is not a particular strong suit of mine considering that I am not good with visual aids or representation. Numeracy means being able to interpret information from a diagram or a chart and processing that information to form something that is tangible. I am good with visual learning and so I have elected to delegate these parts of the learning process to an assistant that will assist make sense on these aspects to bring about a tangible outcome. At this point, I would be able to supplement by checking the answers and explaining the solutions. I would then make decisions based according to logical thought and reasoning. ICT I have learned the value of technology since starting the independent branches in Kuwait. One needs to find different and more effective ways of internal business operations and of marketing the service to reach and retain a wider population in the current tech oriented society. As such, I have had to become very acquainted with the technological advancements in business and marketing management for small and medium business enterprises. This includes learning the importance of using social networking and media for advertising and market research. Problem Solving I have endeavored to make useful solutions to pressing issues on the enterprise during this learning period. Problems pertaining to the enterprise are mainly grouped as objective based instead of process based. This makes the proprietor perceive operations as leading to a particular goal instead of considering the path toward it. Considering the goal rather than the process, allows me to focus on the end product instead of the process. I am now able to categorize performance in a clear manner and assess the progress of the business through the years. I am also able to gauge the progress of solving issues up to the ultimate solution. Adjusting to a new market in the United Kingdom would mean assessing the market and so research and market share present the biggest issues as there is trial of entry and acquiring the right suppliers. Working with others I was not always a proponent for team work because I had successfully started a business which germinated into four branches. However, I quickly came to learn that I could not do everything by myself. Sometimes, problems happen in a simultaneous manner which means that I cannot divide myself into two or three parts but have to search out help on these different problems. Going to the United Kingdom market would be an extra step to expand the business which is an implication that I need even more help to run the daycare. I have thus learnt to work in a team which is assisted by my communicative tendencies of looking toward discussions. Reference List Davidson, W. G. 2002. 100 years of Harley Davidson. Boston. Bulfinch Press. Reid, P. C. 1990. Well made in America: Lessons from Harley Davidson on being the best. New York: McGraw Hill. Scott, M. (2008). Harley Davidson Motor Company. Westport, Conn. Greenwood Press. Saladini, A, & Szymezak, P. 2002. Harley Davidson. New York: Metrobooks. Williams, C. 2009. Principles of Management. Mason, OH: South Western Cengage Learning. Schaltegger, S. 2009. Sustainability Management in Business Enterprises Concepts and Instruments for Sustainable Organisation Development. Federal Ministry for the Environment, Nature Conservation and Nuclear Safety. retrieved online from < http://www2.leuphana.de/umanagement/csm/content/nama/downloads/pdf-dateien/nmu_fs_engl_final.pdf> Read More