- The argument on responsibilities and the role of business and purpose of social responsibility is an interesting debate, but the understanding helps mound generational leadership in companies
Milton Friedman discussed that the primary role of operations in it social responsibility is to make the profit and to take care of its shareholders. The executive leadership works for the organization and also the owners. The company undertakes the instruction and directives of the shareholder which facilitate reaching the ultimate goal of making the profit. Friedman point out that if the executive leadership fulfills the laws and culture of the society, therefore it has fulfilled its purpose in the society
Friedman states that it is the duty of government, diverse groups and individuals to take care of the needy in the community and the persons who increase their wealth who include employees and shareholders. They are concerned with the development of the company. They know to sell business products and services. Therefore if a social activity goes against the primary role of business, then the leadership should not consider the decision since it have an adverse impact on the firm also Friedman discusses that if the top leadership were not involved in the social results, then they are unable to verify activity to bring positive change
2. Why business, should not always maximize profits
Friedman argues that even if the company leadership engages in contracts for the proper running of the business, they still have other responsibilities. Therefore it is in the shareholder’s interest to use the profit received for other social function. The government may be unable to fulfill all the societal requirement and therefore the organization help to promote the betterment of the society for a positive impact. Friedman man also states that the team should not incur extra cost on corporate social responsibility rather they should give according to their means to avoid loss.
Porter and Cramer believed that organization has no responsibility to the society and the do it incorrectly due to a misunderstanding of the culture on corporate action and its verification. Therefore the company feels it is not fulfilling its mandate to the community, and this affects its profit and shareholders. They advise the company to a develop a social responsibility strategy for safe usage of their abilities. And they point out that the companies should view it not as a liability but have independence as a business, and this, therefore, bring balance.
Strategic leadership is concerned about a transformation of a firm through its values, culture, climate, system and structure through its strategy through all levels of the organization. This leadership style requires a lot of skill because it is broad in scope due to impact of one system of the body to the next, Also it is future focused therefore there are short and long-term goals to be achieved and is change oriented this is because the organization must change in the cause of time due to its environment. It is a learning process in the organization.
This kind of leadership involves coming up with a strategy, and it involves five elements. First, you assess where you are .it entails interpretation of the information available from the environment, the second enlightenment of who are and where you would like to go. It involves examination of the vision through setting right priorities. The third step is to start .organization come up with sanctions to implement change. Fourth evaluation of the progress, it entails analysis of expected and actual performance of the strategies made.
A strategic leader is a sponsor, the role model the decision maker, the voice, the motivator and enforcer of the proposed policy.
The strategic manager can use several methods to implement strategies which include, strategic thinking it is having vision of the organization and checking the challenges and opportunities ahead, then vital acting, it is the coordinated effort of implementing of understanding from practical view and lastly is strategic influencing it entails creation of synergy, clarity, and commitment to the organization .
For any change executed in the organization, there should be clear communication of the strategy to the employee, and also the leaders must develop the right kind of approach and be able to adjust for the changes that may arise.
According to Cyert, there are several styles of leadership such as that transformative, is the one with the visionary leader who wants to bring positive results the organization then, the skills approach and this involved training on skills and the skills leads the others, situational leadership involves the supportive and directive view to leadership. Behavior plan includes the acts of the leader, and these styles call for a role model. Authentic leadership implies the reality of the heads; Trait leadership means heads with traits for effective leadership, mostly used for charismatic leaders
In both styles of leadership, there is vision casting and communication of the intended way to implement any change in the organization. In conclusion, both Stacey and Cyret argument is valid depending on the circumstances at hand
Globalization is processing of integrating economies and societies through flow of labor, information, finance, products, services through the countries .it can be dated back in 1870 till 1914 for example through the Treaty of Trianon (1920) and General Agreement on Tariffs and Trade( GATT) which was established to minimize trade barrier and enabled international trade .GATT involved different rounds, though in 1995 a deal was formed to introduce World Trade Organization(WTO) in place of GATT.
The following has led to globalization, increasing similarities between states has affected easy sharing of resources .there is global convergence through transport, communication, and technology which has made a global village, reduction and external tariffs across the border has enhanced globalization. Although there are so many advantages related to globalization, there are yet many differences for example in culture, and government regulation has reduced the international trade through trade blocs such as The European Union. Political instability has reduced its effectiveness especially through wars; Different geographical condition such as time zones and climate affects the traders especially due to different seasons experienced and also low waged economies are unable to compete favorably with the high wages ones
There are strategies that states put in place for effectiveness in international trade and include Home based strategy where a nation deals with manufacturing done in mother countries due to their competitive advantage, for example, Toyota sales comes from direct export, but this is not possible to Samsung because they are not favorable to their region. The portfolio strategy and this is setting of operation in foreign countries which report to home base and enhances generation of huge income, But it sometimes takes before the business thrive for example Toyota took much time before establishment in North America due to rivals of that country Hub strategy is building regional hubs to provide services and shared resources for local operations to different countries; it is similar to home-based strategy difference being the localities, Hubs are different from one another according to the requirement of the countries, for example, Ge has a headquarter in Europe
Platform strategy it works as a hub the difference being fixed cost is different, and this enables standardization and specialization, but this has not been so effective therefore companies such as Toyota has reduced its platform from 11 to 6 and has invested in other brands like Corolla. Mandate strategy in this strategy, company’s award particular regions mandate to supply specific products for the whole company, Similar to a platform, the mandated increase as the degree of product standardization increases. For example, Whirlpool sources its small kitchen appliance in India and host some global companies which are broadening their production mandate in China some of the risk involved with this strategy are broad terms don’t accommodate regional and local conditions and also the level of specialization creates inflexibility. A company must decide the needs of a region and then chose the most efficient strategy and then combine with the organization structure, and this will provide a competitive advantage to it by meeting both the local and global needs.
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