Business Organizations

Published: 2019-07-19
Business Organizations
Type of paper:  Essay
Categories:  Company Management Business
Pages: 5
Wordcount: 1346 words
12 min read

Business organizations operate in an environment where they are constantly interacting with their stakeholders. The interactions involve establishing a smooth working relationship between all stakeholders in their areas of operation. The stakeholders include company employees, customers, suppliers, public figures, competitors and the general public. One of the avenues through which business entities mingle with the mentioned groups is through Corporate Social Responsibility (CSR).The practice stems from the understanding that the organizations do not exist in isolation, and as such, require good partnership with members of its environment. It has become a norm for business organizations to set aside resources for the participation in CSR initiatives. The practice is significant in that it improves the image of the company, fosters employee and customer engagement for relationships, cultivates sound business practices and promotes the conservation of the environment. While participating in the CSR programs, organizations must observe ethical behaviors and ensure that the highest moral and legal standards are adhered to in their areas of business.

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Politics plays a significant contribution to creating an enabling environment for the smooth operation of business enterprises. The government regulates the activities of the business organizations through the enactment of laws that define the business environment. The laws set the minimum standards and behaviors for firms, ensuring that the public interests are protected. The areas of interest for the public may be the environment, product safety, product pricing, and relationships with competitors. Often, company managers employ various approaches to influence the enactment of regulations that protect the interests of their business.CSR in the form of donations to political parties is one of the techniques that are used to lobby for friendly regulations. For the case of CRS Limited, it is important for the company to engage in indirect and direct donations to political parties. Such donations are vital for the development of competitive democracies. Competitive politics allows parliamentary practices that promote the interests of the business community and the general public. For instance, in a political environment where gerrymandering locks out smaller but suitable candidates, funding from corporate bodies in the form of CSR may overcome the problem of electing wrong leaders. Also, the donations promote transparency in the running of political parties and election campaigns, fostering accountability in the political processes of the country. However, the CSR program that has been adopted by CRS Limited is not a sustainable initiative because of the many issues associated with practices of making donations to political parties.

The choice of CRS Limited is not a sustainable initiative because it targets a single group of stakeholders. During campaigns, politicians make good promises but do not honor most of these promises after winning the elections. After taking the instruments of administration, leaders start to come to terms with the grim realities of the economy, posing a challenge to the fulfillment of the promises they made during campaigns. Since there are many interest groups in political processes CRS may end up losing as a result of the negation of the pledges made by politicians during campaigns. Also, leaders change positions and may end backing legislations that make it difficult for the profitable operation of CRS Limited. The above case is prevalent in an environment where political leaders also own businesses that need to be protected from draconian government regulations. These leaders often put their interests ahead of the interests of the business community and the citizens. Furthermore, the donations to the political parties do not affect the common citizens directly. Since the general public is the primary source of clients for most businesses, it is prudent for CRS Limited to channel its resources into areas that improve the well-being of communities rather than funding individuals. As a going concern, it is imperative for the company to channel its resources into CSR programs such as conservation of the physical environment, health care, and charities because such efforts foster long-term interactions that positively impact on the companys profits.

The workplace provides an avenue for close interaction between superiors and subordinates while working as a unit towards organizational goals. In the process conflicts arise, some of which constitute ethical dilemmas. For instance, a manager may a deny a junior employee a promotion because the highest hierarchy of the company is biased against the employee on the basis of his /her gender, race, religion of any other form of consideration that is not pertinent to the job. Disciplining employees may also result in situations of ethical dilemmas. Some managers may receive sexual favors from subordinate staff, making it difficult for the managers to administer, especially when enforcement of punishment is required.

Staff and customers interactions also create ethical dilemmas. Conflict of interest, especially when managers receive kickbacks to make favorable decisions to certain customers, constitutes an ethical dilemma. The manager is torn between making a favorable decision and the right decision. Also, divulging privileged information about customers to third parties creates an ethical dilemma because revealing such information could be beneficial to the organization but injurious to the customers.

Observing ethical standards in the workplace is vital for the efficient and coordinative functioning of organizations. Creating a code of ethics that outlines clear expectations is pivotal for consistent behaviors in the workplace. Employers should focus more on desirable behaviors rather than crafting policies that prohibit certain behaviors at the workplace. Appropriate behavior from the managers also would cultivate a culture for employees to follow and consistently obey the stipulated code of ethics. For instance, managers who seek sexual favors from the subordinates find it difficult to enforce the required standards of behaviors. Immoral behaviors do not provide the right behavior that the junior staff can emulate. Moreover, the top management should design communication structures that encourage employees to report complaints without fear of victimization or retaliation. Given the above, managers should be trained on how to investigate issues once they are reported. After investigations are complete, the punishment should be meted out to the errant employees without discrimination. Disciplinary actions that are pegged on race, religion, gender or other considerations would make employees dissent the code of ethics.

All lobbying of government by business organizations should be outlawed because the practice makes politicians relax in the efforts to serve the people as required by law. Provision of essential services is the primary responsibility of the government. It is also the duty of the government to enact laws that creates an environment for businesses to thrive. A flourishing business environment would create jobs and improve the social-economic conditions of citizens. Therefore, there should not be a scenario where the business community lobbies for favorable operating conditions since providing such business conditions is the primary responsibility of the government in first place. Lobbying also creates unfair competition in the market. Those companies that engage in lobbying may receive preferential treatment from the authorities, making others suffer losses as a result of an uneven playing field in the market. In the same breath, lobbying promotes corruption as some company executives go further by giving kickbacks to government officials so as to receive favorable operating conditions.

Management requires people to have some skills that propagate good relationship between the employees and the managers. Also, managers should strive to create a warm social environment with the customers. Good social relationships are integral in the successful execution of the duties and responsibilities that come with managing people. It is important, for instance, to have a good rapport with subordinates to avoid instances where junior staffs are unable to approach the managers to discuss critical issues affecting the company. Building social relationships with employees would also foster an enabling environment for employees to pass complaints to the management without fear of intimidation. In such environment, the managers can access vital information concerning the working conditions and other experiences that may negatively affect the productivity of the employee. On the customer front, social relationships ensure that customers receive quality service and faster handling customer complaints. If customer complaints are not well handled, the outcome could cost the company profits as a result of a damaged reputation.

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Business Organizations. (2019, Jul 19). Retrieved from

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