1.) (Strategic)Philanthropy can be defined as giving back to the community (FERRELL, 2011, p. 94). Certain companies that profit from society feel a moral obligation to give back to the people. I believe giving back in the long term is a great idea for business. If done correctly it can be a great marketing tool.
Strategic Philanthropy is a more defined giving back to society. It is mutually beneficial to the organization and stakeholders (FERRELL, 2011, pp. 118-119). For example, take any company that produces alcoholic beverages. Use Smirnoff as an example, if Smirnoff started a support line for alcoholics and/or a path to sobriety. I believe that Smirnoff would be practicing Strategic Philanthropy.
Using Strategic Philanthropy is having an ace up your sleeve. Imagine if Smirnoff was involved in an event that tarnished its image and reputation. A prominent person such as a movie start or profession athlete falls due to alcohol abuse and has a bottle of Smirnoff Vodka in their hand. I feel Smirnoff should offer a way to sobriety considering Alcohol is very abusive.
1.) Sustainability according to the UN Commission on the Environment and Development, sustainable means meeting the present needs without compromising the ability of future generations to meet their own needs (FERRELL, 2011, p. 103). Companies that use nonrenewable resources need to be extremely cautious about how they do business. They need to define very specific questions about the way they do business.
If a company that made plastic pellets used for consumer goods is not a sustainable business. This business eventually will collapse due to depleting resources. This event may take a very long time, but time is against them. A company needs to invest in the future finding more efficient ways to for labor, energy, and minimizing pollution.
This is no easy task considering the world is addicting to oil and other natural nonrenewable resources. The plan should be to slowly eliminate them from use, and supplement less destruction options such as wind and solar energy. Industrial Hemp can be used to create plastics and several other items that mimic oil. What companies are doing now should not be the same in twenty years. We do need change, albeit a much defined change.
2.) Reputation is one of an organization’s greatest intangible assets with tangible value (FERRELL, 2011, p. 41). A good reputation for a business is a must. Organizations have many tactics to convey to the public that they portray a positive stance and practices.
Wal-Mart for example is a very large company that attempts to gain a good reputation. I believe that Wal-Mart has a horrible reputation. However, it does not stop me from shopping there. Wal-Mart is incredibly cheap and offers just about all the products I need to survive. Wal-Mart tries very hard to brand itself as a “good” company”. I look at Wal-Mart as an extension arm for Chinese imports. Consider how employees are treated in China; that is why I look so negatively at Wal-Mart.
I believe that a company needs to make an attempt at a good reputation in order to meet the public approval. Many companies do terrible activity, for example deep water horizon. BP made record profits the following year. They did try very hard to gain a better reputation. On a different note, I also feel that sometimes people believe what they choose to believe. They keep their head in the sand and are mute to reality unless in coincides with their own personal view.
3.) Insider Trading is a big issue lately in the news. To define an insider is any officer, director, or owner of 10% or more of a class of a company’s securities (FERRELL, 2011, p. 83). When an insider trades it can be either legal or illegal; Illegal insider trading is trading based upon information that yet available to the public (FERRELL, 2011, p. 83). Legal insider trading is tricky; an insider must disclose purchases...