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Corporate social responsibility quizlet
Corporate social responsibility quizlet
Corporate social responsibility quizlet
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Firstly, you are required to think about the following:
Innocent smoothie
(brief introduction of the company; Innocent was founded by three Cambridge University graduates: Richard Reed, Adam Balon and Jon Wright. In February 2013 Coca-Cola increased their stake to over 90%, leaving the three founders with a small minority holding.
How Innocent smoothie is sustainable?
Sustainable ingredients
Sustainable legacy
Sustainable packaging
Sustainable Brand
Sustainable production
Why is sustainability important in the business environment?
‘A process of change in which the exploitation of resources, the direction of investments, the orientation of technological development and institutional change are all in harmony and enhance both current
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For the enterprise implies, therefore, a concrete commitment to reduce emissions to try to prevent climate change; savings and the reuse of resources by closing the cycle without waste; attention to their impact, knowing often use a natural capital slowly regenerated, to promote the restoration of ecological systems and protection of biodiversity. The urgency and seriousness of the effects of human behavior on this our only planet require companies a strong …show more content…
Empirical research shows, however, that the unwary enterprises to social and environmental sustainability, and more likely to operate in a climate of conflict, with the most problems with the stakeholders.
Responsible companies often show positive results of competitive capacity, turnover and value added per employee, but not on the shareholder wealth. These, however, preserve more equity capital, because the company, while not the most profitable, is more competitive and with less strategic risks and thus more robust in the long term. Barattano therefore future of the company (and not forget our society) against short-term profitability.
The ratio of cost of sustainability and performance of responsible companies is not necessarily neither positive nor negative, and this is already good news
2.) Secondly, you are required to choose an organisation or industry to critically evidence some of your previous
With forward movement in society, it is important to consider not just what will propel most toward success, but also what will help to sustain the environment along the way. What may have been considered appropriate decades ago, may no longer be socially acceptable due to the changes observed in both the business world and the environment (Fiske, 2010). Therefore, it is important for organizations thriving in today?s economy to consider how they may capitalize most effectively from their product or service of choice while minimizing or eliminating any damages along the way (Knoke, 2012).
A business should make sure its methods of production are not negatively affecting its employees and that all the people in the business are happy and willing to work. Also, a business should make sure that its methods of production are not producing any waste on land or water or air pollution, for these negatively affect society. A business that cares about it’s influence on the environment, and its consumers is bound to make a difference. For example: General Mills wants to reduce the amount of energy it uses. In order to do this, they had energy monitors installed into some of their equipment in one of their manufacturing plants. The result: General Mills saved around six hundred thousand dollars (James). Profit can be obtained faster by a business that is looked upon as a positive influence on the environment and its employees. Overall, a business should be careful about how it produces its products and think about society’s health before it makes a decision, for if it doesn’t, the liability for damage is a much greater price to
It can be really irritating when you make a smoothie and realize that's its not thick enough. If your smoothie is coming out extra thin you can make it thicker by adding ice cubes.
Through out his tenure at Sunbeam,Al Dunlap’s advocated profit by firing many employees and shutting down many factories.If we look at it in the short term ,this approach seems very attractive as it brings in quick short term gains.In the long term ,however, such a decision would not ensure the sustainability of the company. Profitability and responsibility can and should be combined in an ideal world, however it is clear that they are at least partially contradictory. Shareholder pressure should not force a company to make short-term decisions that might be detrimental to the long-term profitability of the company.
The agent-of-society view holds that corporate managers are prima facie obligated to consider the interests of everyone who is likely to be affected by what managers decide to do. With this view in mind, Michael Hoffman states, “Corporate managers should be held morally responsible for going beyond considerations of profits, law, and market morality to try to do what they can to help solve our most pressing environmental problems.” In his article, Hoffman argues that business must creatively find ways to become part of the solution, instead of the problem. Business should try to become more environmentally friendly and think of ways to help mitigate the many environmental problems we have. Consumers argue they have no control over or say in whether business provides environmentally friendly products or not. They argue that it’s not up to them “how the products are made, how the services are provided, or how the legislation is enacted.” Although, some businesses have tried to come up with environmentally friendly products but they find that consumers are unwilling to pay extra for them. He thinks corporations can and must develop a conscience, including an environmental conscience. Like the owner of the paper company, business should think of ways to stop the pollution and harm to the environment and take action quickly so that they can set an example for other businesses to follow.
When discussing profit maximization and maximization of shareholder equity (i.e. wealth) we must take into account that shareholder equity is responsible for all of the difficulties of the environment. To whereas, profit maximization does not, in other words the profit maximization deals with revenues, it is a measure of business operations. On the other hand shareholder equity deals with or is responsible for the value maximization and the net present worth, therefore, its goal is to provide
Stuart Hart, in a business article, discusses the tough task for companies to make a sustainable global ec...
Pepsi Cola, which has a broad range of products that it distributes throughout the world, is an oligopoly market structurer that has been in business for years. How was Pepsi Cola established? In which of the four economic market structures does the firm operate? What are the factors that determine the demand and supply for its products? Are there substitutes or compliments for its goods? How does demand for its products perform in terms of elasticity in the short and long run? This paper answers these questions through examination and detailed analysis.
PepsiCo was created in 1989 by pharmacist Caleb Bradham. It was originally named “Brads Drink” but because of the pepsin and kola nut ingredients Bradham decided it would be better to call it Pepsi-Cola. In 1910 Pepsi franchised to 24 states and sold over 100,000 gallons of their syrup annually. In 1923 Bradham sold the trademark to Craven’s Holding Corporation, who shortly after sold it to a New York stockbroker named Roy C. Megargel. Within a few years the company was earning over a millions dollars and was on its way to making history. Pepsi generates over $98 billion in retail sales, and holds 36% of the total snack food market in the United States. Pepsi-Cola’s headquarters are located in New York with nearly 300,000 employees
Although primary objective for managers is to maximise shareholders’ wealth, but many firms are started to focus on other stakeholders’ interests in recent years. Company can prevent transfer the damage of stakeholders’ wealth to shareholders when focus on stakeholders’ interests. In other words, “social responsibility” for the companies is to maintenance stakeholders’ relations in order to provide long-term interests to shareholders. By this way, conflict, turnover and litigation of stakeholders can be minimise. Obviously, company can achieve their primary objective by cooperation with stakeholders instead of conflict with stakeholders (Smart, Megginson, Gitman, 2002).
In the early 1890s, a pharmacist named Caleb Bradham concocted a recipe dubbed “Brad’s Drink” consisting of sugars, carbonated water, rare oils, and a caffeine containing nut called kola. In 1898 the drink was named Pepsi-Cola, incorporated in North Carolina by 1902 and the formula patented by 1903. After two decades of expanding business, Pepsi-Cola declared for bankruptcy and was sold to Roy Megargel forming the Pepsi-Cola Corporation. Less than a decade later Pepsi-Cola declared bankruptcy for a second time. By 1931 this allowed for Charles Guth, a businessman who supplied the syrup used by Pepsi, to purchase the company from Roy Megargel. Initially, Guth did not have success with Pepsi and even offered to sell the trademark and recipe to the Coca-Cola Company. "Coke" refused to purchase the twice bankrupt and struggling Pepsi. This prompted Guth to used the labs, the chemists, and the resources of the Loft Candy Company, his employer, to finely tune the Pepsi-Cola recipe to hopefully improve sales. After some clever price promotions, Pepsi had profits of over two million dollars and was the second largest cola company in the United States. Meanwhile, Loft Candy Company was in a legal battle with Charles Guth for using company resources for his personal benefit thus breaching his duty of loyalty. Loft Candy Company won the legal battle and took ownership of Pepsi-Cola Corporation. The faith of the company now rested in the hands of many savvy corporate leaders.
Companies that refuse to accept that they will face a strict and demanding environment. The most talented human capital companies that do work to care for natural resources, the regulation will raise the cost of not using resources properly, consumers will demand products and environmentally friendly. In short, choosing between sustainability and growth is not an option.
In conclusion, I have to say that there is a solid invisible relationship between impacts of businesses on environments, profitability of sustainable business, and responsibility of business. When one of these ones changes, it will effect to others. When a business adapts efficient and sustainable system, it will reduce negative externalities and increase positive externalities to environment. Once the business adapted efficient business model, it will reduce cost and maximize its profits. Obviously, the sustainable and efficient business model will make the business social more responsible to environments.
A consequences of focusing on organization or company’s stakeholder is that the shareholder value itself can be enhanced and improved when a wider stakeholder group-such as employees, provider or credit, customers, suppliers government and the local community is taken into account (Mallin, 2011). This theory also related to the organization management and business ethics that uphold moral and values in managing a company as it will covers the benefits to the society and other external parties as a whole rather than just for the internal parties.
The sustainability of the ecosystems on which the global economy depends must be guaranteed. And the economic partners must be satisfied that the basis of exchange is equitable” (World). This quote demonstrates the complexities of sustainability. Another thing corporations should focus on when trying to be sustainable is their environmental impact.