Sunday, July 28, 2019
Midterm for Business Law Ethics Term Paper Example | Topics and Well Written Essays - 1500 words
Midterm for Business Law Ethics - Term Paper Example The new policies in the automotive industry require that all companies in the industry comply to these policies, by reducing the level of carbon emissions to the environment. This significantly affects the managerial decisions for the automotive companies in these areas. With the policy change threatening to influence these companiesÃ¢â¬â¢ profitability as well as create new opportunities for these companies, the management has to change their managerial strategies in order to increase on their profitability. However, the influence that this policy has on the shareholding and the investor confidence in the industry is the biggest source of worry for the management of automotive companies. The policy leads to an increase in the invested capital in these companies, therefore increasing their operational costs. With such an increase in the operational costs, there is a corresponding decrease in revenues acquired. Therefore, managers have to look for new ways of achieving investor conf idence in the industry, while at the same time seek for opportunities that increase their profitability levels. Question 2 1. Corporate sustainability as a business approach focuses on establishing and maintaining long-term employee and consumer values through proper relationships. It helps the management in understanding how a business should operate in the social environment with its customers and the society, cultural environment that involves the beliefs and practices of the people it operates with, as well as the economic environment affecting its operations. Among the various advantages of corporate sustainability to the organization, include the increase in the transparency between the organization and other stakeholders like the customers. It also engages all the stakeholders in the operations, especially while drawing policies and finally helps the management in thinking ahead. 2. Ethics play a significant role in the profitability of an organization through high revenue ge neration. The belief that a managerÃ¢â¬â¢s actions should always be in accordance to the set norms of behaviour and objectives as well as the universal statements of belief that are "right" and "just" and "fair", plays a main role in improving their profitability. Since the norms and believes that we all hold to are intuitively determines by our religious and cultural beliefs, they direct us in doing what is right and avoiding the wrong. Therefore, doing what is right in most cases leads to motivating people in the organization, therefore increasing the organizational profitability. Question 3 According to freeman, there are two types of organizational stakeholders. These include groups, which are vital to the success, or survival of the organization and those affected or can affect t the survival of the organization. Owners of the organization have a financial stake in it, in that the success or failure of the organization directly affects them. On the other hand, the employees o f an organization have the responsibility of ensuring that the organization functions smoothly. It is the responsibility of the owners of an organization to provide the workers with good working conditions. On the other hand, the employees hold the responsibility of maximizing the shareholder wealth through diligent working and proper application of organizational resources.