QUESTION
HW for Business and Society
NO outside sources allowed. 1) We explored many different viewpoints about the responsibili=es of corpora=ons. Using those arguments and adding your own reasoning, what is your view of the extent and limits of corporate responsibility? 2) What are at least three reasons in support of globaliza=on and three reasons against globaliza=on. You must be specific in lis=ng your reasons. For example, just wri=ng “jobs” would not be sufficient. I would not know if you are saying jobs would increase or decrease or whether you are talking about jobs in the U.S. or jobs in another country or saying something else about jobs 3) List, describe, and provide an example of each of the five types of stakeholder power (vo=ng power, economic power, poli=cal power, legal power, and informa=onal power)
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| Subject | Business | Pages | 4 | Style | APA |
|---|
Answer
Corporate Social Responsibly (CSR)
Question One
The quid pro quo basis is a viewpoint that elaborately explains the need of corporations to engage in corporate social responsibility. Companies cannot operate without society since society is one of their vital stakeholders. For instance, society serves as a company’s customers to convert its services and products into financial returns. Additionally, the society also provides the company with employees who work and help it achieves the set financial objectives.
Furthermore, the society also provides the corporations with shareholders who ensure the company has the needed capital to finance its operations. Therefore, corporations should also thank society, in return, by engaging in corporate social responsibility. The scope of the CSR efforts should depend on the following factors, with the first being the level of benefits the company receives from society. Multinational corporations that make a lot of profits receive immense support from the society. The support is through the supply of labor and loyalty to their products. Such companies should reciprocate by also financing significant CSR projects to tackle the level of interference that activities of the corporation have on the community. An organization whose business activities affect the community should ensure they invest in projects that help nullify their negative effects. For instance, logging companies can engage in reforestation exercises as their CSR.
Question Two
Globalization is a concept that should be embraced because of the following reasons; first, it reduces the cost of production. Due to globalization, companies can source materials cheaply across the globe. Second, globalization boosts business operations by giving business organizations access to new markets. For instance, a car made in japan can be easily sold in Israel. Such international markets would not exist without the concept of globalization. Further, globalization gives companies access to new talent. The success of an organization hinges largely on the quality of its employees. Globalization gives companies access to a wide labor market, thus making it easy to acquired talent. On the other hand, globalization has the various disadvantages, for instance, it leads to the loss of local jobs. Due to globalization, companies can easily relocate their operations to foreign countries that offer a cheaper business environment. Such moves lead to a loss of jobs. Second, it leads to exploitation. The search for lower production cost caused by globalization exposes workers in countries, such as China, to exploitation. Moreover, globalization leads to increased competition. Due to globalization, goods manufactured all over the world meet in the same market and compete for the same customers.
Question Three
Voting power
The power stakeholders have in influencing the company's decisions and future actions is based on their votes. The votes are often proportionate to the level of investments a stakeholder has made in the company. For instance, when deciding whether or not a company should merge with another company, stakeholders decide through casting votes. Stakeholders, therefore, exercise their voting power through voting.
Economic Power
Economic power refers to the power or authority that stakeholders have over companies because of their ability to influence the profits made by companies. For example, banks that lend corporations money have a high economic power since their money is used to finance the bank’s operations.
Political power
Political power relates to the power held by stakeholders, such as the government, because of their ability to influence policies that affect companies' operations. For instance, government taxation policies show their level of political power over businesses.
Legal power
Legal power is the power shareholders have over the company though leveraging the laws of the country. For instance, an aggrieved employee may bring legal power to bear on the company through filing a court case against the company.
Informational Power
Lastly, informational power is the power stakeholders have to make their independent decisions concerning the company’s activities and products. For instance, by leveraging information power, customers can choose whether to consume the company's products or those from its competitor.
References