And The Global Dimension of Business
Now that we have established a strategic business plan for Marketing, Operations and Human Resource Management for ABC Complete Kitchens, Inc, we must now establish an ethically and socially responsible business climate for our new plant. Another topic we must turn on our focus on is our presence in the global market. Because 20% of our sales are anticipated to be in the overseas market, we must address our international management considerations associated with the international sales of our products.
Ethically and Socially Responsible Business Climate
“Socially responsible management practices are defined as aiming at the achievement of commercial success in ways that honor ethical values and respect people and communities.” In today’s challenging global environment, truly winning businesses not only add value for their owners or shareholders, but also for other stakeholders, including employees, customers, suppliers or society. A widespread assumption in corporate social responsibility is that various types of socially responsible management practices with respect to these interest groups may enhance the competitive strengths of the enterprise and make good business sense. (Hammann, Habisch, & Pechlaner, 2009) Corporate social responsibility means that a corporation should be held accountable for any of its actions that affect people, their communities, and their environment. It implies that harm to people and society should be acknowledged and corrected if at all possible. It may require a company to forgo some profits if its social impacts seriously hurt some of its stakeholders or if its funds can be used to have a positive social impact. A challenge for our management will be the blending of these responsibilities into a comprehensive corporate strategy while not losing sight of any of our obligations. (Lawerence-Weber, 2008) While this business is in the business of making money, and one of our goals is to maximize returns to our stockholders, we have to be held responsible to society in general. Our business activities impact many others in society. We will not choose to be held responsible solely to our stockholders, but our stakeholders as well. A stakeholder is any person or group that affect or are affected by our decisions, polices, and operations. Not just the person or groups that will benefit from high profit. "The purpose of the firm is not simply to make a profit, but to create value for all its stakeholders." Business success is judged not simply by a company’s financial performance but by how well it serves broad social interests. (Lawerence-Weber, 2008) Because we want to achieve this focus, ABC Complete Kitchens will choose to adopt the stakeholder theory approach to our business actions. This simply means that we will choose to serve a broad public purpose to create value for society through a four step process. This process involves identifying the relevant stakeholder groups, determining the stake of each group, determining how effectively the expectations of each group are met, and developing corporate objectives and priorities that consider the stakeholder's interests. Through understanding and attempting to define key stakeholders, our marketing business strategy will be made more effective. We will have a large focus on professional development for our employees and create innovative new products for our customers. (Lawerence-Weber, 2008) As we begin to meet the expectations of stakeholders and society in general. There are many factors that will powerfully shape these relationships. These factors include, changing societal expectations, growing emphasis on ethical actions, globalization, evolving governmental regulations of business, dynamic natural environment, and explosion of new technology. These factors establish the forces in ABC Complete Kitchen’s Inc. will interact with our stakeholders. (Polonsky,...
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