Introduction:
In new era every organization wants to build good repute to gain competitive advantage. An innovative idea, a charming business plan, and good strategies are mean less if a company does not have remarkable repute in the eyes of customers, employees, and organization’s current and potential investors. Employees prefer to work in high reputed organizations, investors also prefer good reputed firms. A good corporate reputation shows people’s confidence to do business with company and to help company in recession also. Some organizations are able to manage their good repute but many are failed to do so. Charles J. Fombrun director of reputation institute developed “Reputation Quotient” that used to measure the reputation of the firms. “Reputation Quotient” measure company’s repute on the basis of following six key elements: “ emotional appeal, product and services, financial performance, vision and leadership, and workplace environment and social responsibility”.
Many researchers have developed positive relation between corporate social responsibility and firm’s corporate reputation. (Fombrun, 2005) says companies are engaged in CSR activities because of extrinsic motivation by its corporate reputation. (Maidnan & Ferrel, 2001) categorized CSR practices of organization as follows: legal, ethical, and discretionary (philanthropic). Most companies adopted the four principles of CSR known as: economic CSR, ethical CSR, legal CSR, and philanthropic CSR (Carroll, 2000).
Economic responsibility of organizations is gaining importance due to extensive global competition. It is not good for a good corporate behavior that an organization focus on making profit. Good corporate organizations’ investors earn high return on the...
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Corporate Social Responsibility (CSR) is the way a corporation achieves a balance between its economic, social, and environmental responsibilities in its operations so as to address shareholder and other stakeholder expectations. In general, when firms hold this wider encouraging role on the public by being engaged with stakeholders, a variety of profit can be produced for both company and the stakeholders. A key inclination is the combination of Corporate Social Responsibility (CSR) into the organization strategy, culture, mission and communications. By incorporating corporate citizenship into the company it is no longer an additional “nice thing to do” or something made to obey laws or regulations. Instead, corporate responsibility has become something business leaders and workforce want to engage in, frequently because executives who believe in the long-term see business profit. The four types of social responsibilities a...
The Introduction (Rebuttal). The Introduction (Rebuttal). American publicly traded companies, investment firms, and our elected officials continue to make bad decisions and mistakes with normal citizen’s retirement/college funds or investment money. Does success in business necessarily mean you need to cross the boundaries between good and evil? I certainly don’t believe that, However, in my business career I have seen both. There are a few senior executives with character traits frequently associated with the darker side of human nature. Some companies still have the mindset of "Profit at Any Cost” and are still doing unethical business and losing investors’ money.
The topic of corporate social responsibility is play a key role to run a business and has become one of the standard business practices of our time. In current, most successful companies whether big or small enterprise for instance Apple, lnc. and Krotron has engaged in CSR because it is a good way for companies to benefit themselves while it also benefiting society. And in order to obtain benefits that can give them the advantage over their competitors.
Today, it is generally perceived by the public that the single and sole objective of corporations is to maximize profits (Bartlett, 2015), reflected in President Bill Clinton’s radio address in 1996 during which he stated “the most fundamental responsibility for any business is to make a profit”. This belief could be substantiated by the statistic that the profit margins of American corporations have risen from the 1980s to 2008 (Blodget, 2012), shown by the increase in nominal GDP of the United States over the period (Yardeni, Johnson, 2016). Given the above, it could be deduced that most businesses do indeed have a single objective of profit maximization and therefore tend to pursue short-term gains at the expense of all other considerations.
Building standards of ethical behavior is essential for public company. Otherwise, it causes accounting scandals and bankrupts. Over the last decade, there were a lot of enormous bankrupts that because of unethical behavior of investors and auditors. Lehman Brothers Holding Inc. is an example of accounting scandals. In this research paper, I am going to analyze this firm.
Corporate social responsibility is globally defined as operating a business in a way that meets or exceeds the ethical, legal, commercial and public expectations that society has of business. The concern of CSR has drastically increased over the last two decades. It has enhanced interactions between governments, businesses, society and internationally. In the past, businesses primarily focus themselves with the economic results of their decisions. Now, businesses must also reflect on the legal, ethical, moral and social consequences of their decisions. Corporate Social Responsibility is no longer defined by how much money a company contributes to charity, but by its overall involvement in activities that improve the quality of people’s lives.
Adams, J. E., Highhouse, S., & Zickar, M. J. (2010). Understanding general distrust of corporations. Corporate Reputation Review, 13(1), 38-51.
Although, managing reputation in this new environment requires organizations to respond skilfully to potentially dangerous issues and disruptions, while staying focused on their long-term growth and market goals. The measurement of the level of trust within an organization provides it with the opportunity to improve its marketing efficiency and build a long lasting reputation. Therefore, we must understand that trust and reputation work concurrently, and they need to be enhanced and safeguarded.
In conclusion, this case described a company that started out very strong, but as soon as they seen a decline in stock prices they fell apart. When the stock prices fell the CEO, Kozlowski started making poor choices, such as falsifying financial information and stealing from the business. From my observation, companies that give out large bonuses for reached goals find themselves fighting with executives that put their morals aside for
The outside pressure of having 20 million customers throughout America, Canada and Puerto Rico drove the top executives to become greedy for power and money. The chief officers recognized this and began to commit fraudulent activities. For example, in companies like Waste Management, Inc., officer compensation is tied to the earnings that the company produces. If the company were to struggle in falling short of their earnings target, it would endanger the officers of the company. Compensation tied to earnings brings about a major culture of fraud in any occupational environment. These officers had the opportunity to commit fraud within the company’s financial statements because they were all high up in the hierarchy of the organization. Buntrock, along with the other stakeholders, let greed get in the way of operating the company in an honest and efficient manner. They would falsely value their garbage trucks, assign estimated values on assets that they knew had little to no worth and held off on recording an expense from the decreases in value of their many
Guyon, J. (1997, August 4). Why is the world’s most profitable company turning itself inside out? Fortune, 136(3), 120-125.
The trust of an organization can be used as the only resource to identify the growth of the organization. The greed plays an important role on the business transaction as well. The greed can destroy a business. The case study shows that the confidence, promises and the greed was main things to make the business success and experience the fall in the later time. Bernie Madoff got the investors by using his career and the strategy of win trust. The people become greedy for high return and invested as well as Bernie Madoff became greedy at a point and the organization become unable to meet the user expectations that introduced the failure for that organization. The increasing number of investors and high volume of investment bring the scenario. The organization is failed to give the return while the time came to pay the return for high
CEO Kenneth Lay’s ambition for ENRON a company he had helped form went beyond the business of piping gas. Enron went to become the largest natural gas merchant in North America and the United Kingdom. But the reality is, this company business model never worked. This was a company that was so desperate to win Wall Street 's respect that it kept it stocks shares prices going up despite the losses it was incurring in order for executives to keep lining their own pockets. Over the course of this Case Assignment, I will identify the examples of financial reporting misconduct, I will explain the deontological as well as a utilitarian ethical perspective and lastly I will identify the stakeholders likely to be affected by that misconduct.
Based on the literature review, reputation is a significant driver in creation of value or the obliteration of it. A number of the consumers consider reputation of a company as their most substantial purchasing criteria. Reputation provides a unique competitive advantage which enables companies to overtake the market. A decrease in reputation is linked with average market loss. Due to globalization, financial and economic unrest, growing business complexity, the news cycle rapidity and the evolution of social media companies are more vulnerable than ever. Today it’s hard to predict crisis which can be harmful to the most carefully build reputation. For example Volkswagen’s reputation has continued to be damaged by the revelation that it cheated emission tests. The company has a had a strong reputation for value but that reputation is now tainted. With different stakeholders all brands need to take care of their solid
It can make or mar you or your organization without giving any notice, because it is a very important marketing strategy. It earns you customer buy referral from others who know much about you and your firm. ‘’A good reputation inspires others, because we all need positive role models, even the best and brightest among us’’ (Lickerman, 2010).