Corporate governance has become an issue of worldwide importance. Corporations have a role to play in promoting economic development and social progress therefore they must have the best members on the board to assure good standards. Board members and directors should possess certain characteristics that will allow them to make good decisions for the firm. The appropriate characteristics should be possessed by each c... ... middle of paper ... ...lling away from the company. This new Nasdaq rule is suppose to make investors and the public aware of what is happening with the company weather its conflict of interest or other corporate abuse.
Big might be sometimes better, but companies, corporations and monopolies can get too big. “Some merged companies become so huge that they lose focus, gain overhead and increase their expenses dramatically. Ultimately they can be less innovative and competitive than before.” Big companies tend to care only for making money and devalue things such as the quality of the product they produce. “Smaller companies by contrast, can hold some clear advantages. They are leaner, more focused and nimble than giants and relatively speaking, the can be more profitable.” Smaller companies, I believe, are out to make a living and care for the consumer’s satisfaction more then just the money they will receive.
“Corporate Social Responsibility” “Corporations today are under a microscope. Virtually every aspect of operations is subject to scrutiny by consumers.” According to Ogilvy, If CSR issues are managed well, there will be opportunities for a company to build its reputation and differentiate itself. In today’s society, what you stand for as an organization matters way more than what you produce, sell or what services you provide. CSR is a commonly used as an abbreviation for “Corporate Social Responsibility”. It is the corporate plan to assess and take liability for the organization’s effects on the environment and impact on social welfare.
These have been governed by making profits and dominating in the world, despite the harm they cause. The modern corporation has been impossible to regulate as some of them wield more financial power compared to a whole country. Their adaptability has been favored by ewer legal constraints and laws that have enabled them to consolidate. This hostility by the corporations and their desire to acquire unlimited power has led to many negative impacts both on the society and the environment. One of the goals of the corporations is to make huge profits.
This contributes to the ongoing cycle of poverty and increases the gap between the rich and poor. Those who are left unemployed have no means to... ... middle of paper ... ...s are being over shadowed due to globalization. Although we all enjoy the advantages that globalization has made way for, we cannot disregard the negative effects it has had on the world. It’s easy to understand how businesses may benefit from a global market in some ways, but to me it is far more important that jobs not be loss as a result of globalization. Many different factors contribute to the exploitation of developing countries and has caused many issues for them economically.
Capitalism on Our Side In the twenty-first century efforts need to be made to enhance the benefits of capitalism. This system has been able to improve the lives of many Americans. Critics however, point out that the improvements have come at a high cost. Specifically, they point to the amount of damage done to the environment. Although capitalism has raised the standard of living, because of the damage done to the environment capitalism is a wasteful system.
In the United States, the most popular country, these companies are the most gigantic and moneymaking companies there are to be found. Even though these stores have a positive impact on the world, many local residents are affected by the costs related to the management and development of these companies. The government should mandate that all 'Big Box' companies give back to their communities so as not to undercut small local businesses or local retail shop or enterprises, to fight poverty, and to promote an environmentally friendly and healthy environment. Firstly, the 'Big Box' companies have helped to increase productivity and caused consumer prices to fall. They use high-volume sales against price mark-ups to generate profits; therefore, they are often able to sell their goods at lower prices, which attract more clients to purchase in their companies compared to small local and independent stores.
In my opinion, companies are becoming more socially responsible mainly to remain competitive and for increased goodwill, and not on the basis that it is good for the company, which in some cases it can be. Corporate social responsibility is very expensive in the short-term, so whether or not a company decides to become more socially responsible will depend on how willing the shareholders are to invest in such a project. However, the company could see an increase in profits in the long-term future if they were to do so. References: Daft, R. (2003) Management. South-Western, Ohio, USA.
This concept focuses on the company’s relationship with its stakeholders. There are debates on whether companies should take the responsibilities beyond the target of maximising shareholders ' interests. Some experts argue that businesses do not have responsibilities for stakeholders other than stockholders; they believe “a corporation’s responsibility is to make as much money for the stockholders as possible” .However, some researchers find that companies which take their responsibilities can earn more profits than other companies. The views of companies in the eyes of stakeholders, especially customers, can be strong motivations for the companies to fulfil their social roles. The theory of corporate social responsibility is a constrain... ... middle of paper ... ...y conflicts of interests between different stakeholder groups.
CSR activities are limited to CSR budget whereas Creating Shared Value is mobilizing the entire budget of corporation to impact social issues. Creating Shared Value is a genuine way to restore the legitimacy of corporations as results are measured not just by profitability but by the social and economic value created. Companies who