Business Law Ans Social Responsibility

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Business Law and Social Responsibility

Introduction

We are living at an age where the customer or the consumer has been brought at the center stage of business enterprises. This consciousness has been necessitated by the rudiments of marketing which stipulate that every product or services should be innovated with the customer in the mind. But beyond providing these goods and service there has also emerged the need to care about the welfare of the consumers in terms of their health, environment, education and general wellbeing. Corporate social responsibility has come up to fill this gap. In this discourse, we are going to look at International Business Machines (IBM) and its social responsibility initiatives.

Social Responsibility

In underscoring the importance of social responsibility Hollender and Breen (2010) point out that in today’s world the society has become a ‘virtual’ licensor for businesses in operation. It has therefore become increasingly important to win the approval of the society: that has become the prerequisite for business survival and therefore a prescription for success since it paves the way for business organizations to begin producing stellar economic and social goods. (p. 9)

The business organizations that that operate with a sense of mission do not only attract the best of human capital but also yield better returns. This is because such organizations inspire people to invest all of their inventiveness to the betterment of their companies. This is best demonstrated by the fact that all most of the business organizations that been entered into the annual Fortune 100 Best Place to Work have a principle purpose that goes yonder than the bottom line. Purpose inspires passion, which is instrumental in the transformation of the desires of the individuals into exceptional corporate performance. (Hollender and Breen, p.8)

The end of the road is not yet reached for corporate responsibility but it is rather evident that the outer reaches of it are currently getting accessed. In the future, corporate responsibility is most certainly going to ‘become a baseline requirement’ for the licensing of every business organization. Besides, consumers are no longer going to merely believe that the reports about corporate responsibility from business organizations indicate greater purpose and/or a higher vision. This means that “a listing in the Dow Jones Sustainability Index or inclusion in the portfolio of a socially responsible mutual fund will be more about doing less harm than about acting for the greater good.” That will bring business organizations into a point of “evolutionary crossroads” or rather then “moment of punctuated equilibrium.” (Hollender and Breen, p.17)

International Business Machines Corp

In this discourse we have chosen to conduct a case study of the International Business Machines (IBM) Corp in regards to the corporate social responsibility. IBM was made into a corporation in 1911 in the state of New York BY Charles Flint. It was incorporated as a result of merger of four companies which included the Computing Scale Company, the International Time Recording Company, the Bundy Manufacturing Company and the Tabulating Machine Company. (IBM, p. 2)

It was incorporated as a Computing- Tabulating – Recording (C-T-R) Company that at the outset engaged in the sale of a broad spectrum of machines such as meat slicers and coffee grinders. The company also provided services such as the tabulation of census data using punched card equipments. Later on, in 1924, the company changed it name to International Business Machine Corporation. Today, the company is known simply as IBM and provides numerous technologies, products and services to customers all across the globe. (IBM, p. 2)

The mission of IBM Is TO become a leader in invention, the development and manufacture of advanced information technologies such as microelectronics, storage systems, computer systems and software....
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