Mt302 Unit 1
Unit 1
Kaplan University
April 18, 2013
Business Decisions
The global recession began shortly after the September 2011 crisis, and quickly claimed many victims to unemployment. This financial and economic crisis triggered output contractions in almost all industrialized economies in the year 2009. As businesses cut production in response to lower demands, workers were let go in large numbers, increasing the unemployment rates dramatically. Aside from job losses the quality of employment also deteriorated. Many employees who did not lose their jobs were forced to work above the level previously expected at the same or lower pay. The increase in job insecurity due to the recession resulted in employers having the upper hand, while employees were subject to deteriorating working conditions; however fear of job loss created an environment where employees did not defend their rights. Many organizations were forced to lay off employees due to the economic downturn, however despite economic times many individual business decisions were made that can explain the deterioration of the workplace aside from the necessity of layoffs. While the economy struggled there still were seen large leaps in the finances of large organizations due to the reduction of labor costs rather than rise in production. Some businesses have chosen profit over people; in a time where jobs are tight the organizations are taking advantage of individuals willing to put in extra labor in order to keep a job, therefore reducing employee numbers without reducing production levels.
While business organizations have a responsibility to both shareholders and employees it seems as though some organizations focus primarily on the shareholders, with employee welfare left for last. Business organizations have a corporate social responsibility, meaning that the businesses must consider all stakeholders in each business decision. The four aspects of corporate social responsibility that each
Kaplan University
April 18, 2013
Business Decisions
The global recession began shortly after the September 2011 crisis, and quickly claimed many victims to unemployment. This financial and economic crisis triggered output contractions in almost all industrialized economies in the year 2009. As businesses cut production in response to lower demands, workers were let go in large numbers, increasing the unemployment rates dramatically. Aside from job losses the quality of employment also deteriorated. Many employees who did not lose their jobs were forced to work above the level previously expected at the same or lower pay. The increase in job insecurity due to the recession resulted in employers having the upper hand, while employees were subject to deteriorating working conditions; however fear of job loss created an environment where employees did not defend their rights. Many organizations were forced to lay off employees due to the economic downturn, however despite economic times many individual business decisions were made that can explain the deterioration of the workplace aside from the necessity of layoffs. While the economy struggled there still were seen large leaps in the finances of large organizations due to the reduction of labor costs rather than rise in production. Some businesses have chosen profit over people; in a time where jobs are tight the organizations are taking advantage of individuals willing to put in extra labor in order to keep a job, therefore reducing employee numbers without reducing production levels.
While business organizations have a responsibility to both shareholders and employees it seems as though some organizations focus primarily on the shareholders, with employee welfare left for last. Business organizations have a corporate social responsibility, meaning that the businesses must consider all stakeholders in each business decision. The four aspects of corporate social responsibility that each