Business Environment 3_Responsibilities of organisations

The lecture provides knowledge on responsibilities of organization and strategies employed to meet objectives of stakeholders through Social Responsibilities Environmental Responsibilities Ethics and Business Management Responsibilities Public Relations and Corporate

RESPONSIBILITIES OF ORGANIZATION AND STRATEGIES EMPLOYED TO

MEET OBJECTIVES OF

STAKEHOLDERS

BUSINESS ENVIRONMENT_Task 1c

Responsibilities of

Organisations

1 Social Responsibilities pages 48-52

2 Environmental Responsibilities pages 53-60

3 Ethics and Business pages 61-66

4 Management Responsibilities pages 66-70

5 Public Relations and Corporate Image

pages 71-73

1 Social Responsibilities

 Defined as he obligations that the organisation has towards the people & the environment in which the company operate

To Shareholders

 To maximise profit

To Employees

 Certainty and regularity of wages (organisation must honor the employment contract)

 Concern and respect for workplace and work practices (healthy and safe)

 Provision of a coherent career and training structure

 Adaptation to other pressures on employee’s lifestyles e.g

workplace creches

 Equal opportunities to all, e.g Avoid discrimination-sex, racial, disability

More information about responsibility to employees on

pages 106-123

1 Social Responsibilities

To Customers

 Environmental impact of an organisation’s activities open to public comment such as reduce CFCs in aerosol cans,

introduce rangers of goods that are supposed to be friendly to the environment

More information about responsibility to consumers on pages 77-100

To Suppliers

 A supplier may make restrictions on the end-use of products a condition of sale, e.g a supplier of high-technology items may require that these are not re-exported to the enemies of the nation where the supplier is based

To Professional Bodies

 Control is exercised over certain members of management by their membership of professional bodies, which have

standards of ethics and conduct.

1 Social Responsibilities

To Neighbours

 Every effort should be made to prevent any

pollution of the environment, e.g noxious

gases, noise & traffic disturbance

To Elected Authorities

 By legislation

 By influencing the climate of public opinion

 By trying to persuade commercial

organisations to follow a particular line or

policy.

2 Environmental

Responsibilities

Legislation and regulation

 Organisation must follow the law on environmental

protection, e.g Develop waste management plan

Ecological issues

Environmental Issues Relevant to Business

 Resource depletion – damage to soil, water, trees, plant-life, energy availability, mineral wealth, animal and marine

species

 Genetic diversity – damage to wild species

 Pollution concerns – water, air, land, noise

 Acid rain

 Ozone depletion

 Waste

 Climatic change

 Energy resources

2 Environmental

Responsibilities

Green concerns

 Primary sectors (mining companies)

 should preserve natural ecosystem

 Secondary sectors (manufacturing companies)

 should produce “green” products, e.g biodegradable packaging

 Tertiary sectors (retailers, service providers,

small businesses)

 environmental auditing, greet training, waste

management, pollution control specialists

3 Ethics and Business

Ethics - codes of moral principles that people follow with respect to what is right or wrong

 Obey the law

 Be fair

 Avoid harming others

 Prevent harm to others

 Help those in need

 Do not lie or cheat

3 Ethics and Business

Examples of Business Ethics:

 Criteria for distribution of profit

 The relative pay and rewards for all employees

 Decisions about priorities

 Loan charges

 The sale of harmful products

Ethical Problems Facing Managers:

 Extortion

 Bribery

 Grease money

 Gifts

4 Management

Responsibilities

To Employees

 Good pay & working conditions

 Good training & development schemes

 Fair recruitment policy

 Retirement policy – pension, training courses

 Redundancy policy – redeploy staff without making them redundant,

provide training to learn new skills for the new job, take steps to help

employees to get a job elsewhere

To Consumers

 Providing good product/service

 Dealing honestly and fairly

4 Management

Responsibilities

To Employees

 Good pay & working conditions

 Good training & development schemes

 Fair recruitment policy

 Retirement policy – pension, training courses

 Redundancy policy – redeploy staff without making them

redundant, provide training to learn new skills for the new job, take steps to help employees to get a job elsewhere

More information about responsibility to employees on pages 106-123

To Customers

 Providing good product/service

 Dealing honestly and fairly

More information about responsibility to consumers on pages 77-100

5 Public Relations & Corporate Image

Corporate Image – image of the company in the mind

of the general public, specifically in the minds of

potential customers.

 Reasons why organisation might attempt to build

up a corporate image:

 To strengthen customer loyalty

 To create customer awareness

 To strengthen employee’s attachment to the company

 To be socially responsible

 To win public & political support

 To have a sound, well-established company

5 Public Relations & Corporate Image

Environmental Pressure Groups

 Information-based activity – publicity campaigns

 Direct action – peaceful protests

 Partnership & Consultancy – groups aim to work with

businesses to pool resources and help improve

environmental performance

Employees – increasing pressure on business; they work

for own safety & to improve company’s public image

Legislation – growing pressures from the green-influenced

vote

Media pressure – focuses on large-scale disasters & more

technical issues, e.g global warming

Workshop 6

Instructions: Write your answers on your WORKSHOP NOTEBOOK

Always keep your notebook neat and organized for easy

reference when doing your assignments.

Use the same organisation that you have selected in

Workshop 1.

1. In a tabular form, identify the responsibilities

of your selected organisation and strategies

employed to meet them.

2. Below the table, briefly explain your answers in

paragraphs.

Sample Table for

Workshop 6

Specific Responsibilities of Organisation

Strategies Employed to Meet Them

Social

Responsibilities

Environmental

Responsibilities

Ethical

Responsibilities

Management

Responsibilities Example: 1.Provide good

products to customers

2.Provide good pay to employees

Develop quality control standards Develop good salary scheme

Public Relations &

Corporate Image

Homework: Create a

Leaflet

1 Pick up a product from

the list below or think of

your own:

 Bleach

 Biological soap powder

 Disposable nappies

 Diesel cars

 Mahogany furniture

 Beef burgers

 Eggs

 Mobile telephones

 Cable television

 Pesticides

 Etc.

2 Identify the environmental

concerns associated with the product.

information for issue to consumers who have concerns about the product Make your leaflet as “user-friendly” as possible and give a balanced view

on the product.