Corporate Responsibility in Globalized Business Environment

Introduction

Globalization has led to the advancement of communication channels as well as technology. In order for organizations to function well, they ought to be aware of the framework in which they operate. Members of the economies should come up with regulations to prevent the rise of conflicts. The paper will look at the repercussions of globalization on organizations. It will also highlight the significance of corporate governance in the organizations. In addition, it will look at the effects of environmental legislation and guidance for organizations. Lastly, it will discuss the social-economic and the moral concerns that have an effect on the organizations.

Effects of globalization on national economies

Globalization can be well-defined as the propensity of technologies and business to spread all over the world. In addition, globalization can also be defined as the correlation of economic, political and social links all over the world. Globalization has proved to be difficult to the statisticians as they cannot place the value of income and production of the national economies (Akram, 2011). For example, multinational enterprises can sell their products throughout the world using the internet without changing the ownership and without moving, this makes it hard for the statisticians to place value over the products.

Globalization has huge social and economic implications for companies. For example, it has greatly lowered the cost of communication and transportation. Trade liberation is another impact of globalization on economies. Globalization has also contributed to change in the way institutions function as they are able to reach a wider market due to the improvement of technology (Intriligator, 2013). This has enhanced increase in productivity and profit.

The impact of global trends on organizational behaviour

There have been huge technological innovations that have great implications on the workers, as well as the human resource managers, for example, the introduction of the human resource manager database. Other global trends in technologies include iPhones and social media sites. These developments affect the way individuals communicate within an organization. In addition, they have a huge impact on how people work and how they are managed within any organization (Preethi, 2014).

Organizational behaviour tries to understand the impact of group and individual behaviour in each and every organization, and the information gathered is used in making an organization function effectively. In addition, the information should be used to make predicaments and control the outcome. It involves different interdisciplinary fields, for example, psychology, sociology, management and communication. The organization is made up of many dimensions that are classified in meso, macro and micro scales.

A key trend that is prevalent in the global world is the increase in organizational networks. A network involves different groups of independent organizations that communicate via advanced technology (Preethi, 2014). The organizations are not limited by space, they utilize all the business opportunities that are available. Global mergers also have an impact on organizational structures. Understanding organizational behaviour plays a significant role in knowing the most appropriate channels that can be used to motivate employees.

In order to understand the global organizational behaviour, it is important to know the different national cultures. In addition, if they are to succeed, they should ensure that their managers are trained and acquired the relevant skills that will enable them to work efficiently. With the expansion of global markets, organizational behaviour cannot be ignored.

Influence of international institutions on organizations

International institutions play a big role in enabling cooperation within states. They facilitate cooperation by enhancing the flow of information as well as reducing the cost encountered during transactions. By reducing the cost, they make it easier for states to come into agreements. They have also instituted patterns that are of legal obligations. International institutions ensure that states abide by the treaties that they sign.

It is, however, important to note that the influence of the international institution on organizations has drastically reduced in the last few years (Crane & Matten, 2010). This is a clear indication that international institutions are very significant when it comes to making sure that there is a cooperation between narcissist states. The cooperation is maintained by reducing the unevenness of the information by ensuring that the available information is accurate; this ensures there is a reduction in uncertainty.

In addition, institutions play a key role in ensuring that cooperation between states is maintained. For example, they solve conflicts between states by giving unbiased information to each and every side. They do this by coming up with arrays of legal liability. They also engage in reducing the cost that is meant to make transactions easier. They also ensure that there is an increase in the amount of information that flows within the member states. This leads to a reduction of uncertainty, hence increasing cooperation.

Role and responsibility of European Union membership on the workplace

The European Union has developed a code of ethics that summarises the ethics and principles that are to be used by professionals that provide employment opportunities. The guidelines are used for self-assessment and to improve the quality of work. General principles that are outlined include professional competence, integrity, social responsibility, opportunity and equity (Crane & Matten, 2010).

European Union membership ensures that professionals maintain high levels of proficiency in their place of work. They are responsible for the development of their professionalism through exchanging information with other professionals. It also ensures that they maintain integrity in their workplace by holding key values such as respectfulness and honesty. In addition, the code ensures that confidentiality is observed so as to protect sensitive information (Solomon, 2010).

The stakeholders and all the individuals are required to come up with laid down outlines that stipulate what is to be disclosed and what should remain private. The code also ensures that the professionals are aware of their obligation and responsibility in the society, for example, they should provide employment to the people in the society in which they work.

Since the formation of the EU act that established single markets, barriers that prevented free movement of services and goods were done away with. This, therefore, means that each and every worker can work in any part of the EU. Hence, organizations had to adapt to the new change, and each and every Human Resource manager had to alter his or her recruitment policies. According to research conducted by the European Commission, this has led to millions of job opportunities.

Meaning of responsible corporate governance in organizations

In general, corporate governance is a system used in managerial activities of all organizations. A good framework of corporate governance should be able to achieve liability between shareholders, senior management and the board.

Organizations that have good governance are able to provide high-quality services and goods (Crane & Matten, 2010). Each and every organization should strive to establish good corporate governance that will promote honesty, openness and accountability so as to ensure that there are public engagement and trust. In addition, corporate governance also focuses on responsibility and the nature of the shareholders that are present in the organization. They also put in place adequate measurements that ensure their welfare is well catered.

Most of the organizations appreciate the importance of corporate governance and risk management in their firms. With the expansion of the global market, many companies are struggling to ensure they maintain the best corporate policies. The firms that adopt good corporate governance remain on top and are successful. However, some companies do not see the need for good corporate governance, hence, they ignore that concept.

This step has a negative impact on the investors as well as the society at large. A good example of a firm that failed due to lack of good governance is Enron. In addition, the BP oil spillage disaster is also a good example. Failure to have good corporate policies can also have an impact that goes beyond the national level to a global level (Adamson, 2011). The global financial crisis is one more example of how failure to adopt good policies can affect a firm. Human resource managers in each and every organization should ensure that they maintain good corporate policies that will facilitate the growth of their organizations.

Regulatory requirements that shape corporate governance

Corporate governance is primarily concerned with ensuring that there is equilibrium not only between the social and the economic goals but also between collective and individual goals. Therefore, the main role of the corporate framework is to make sure that resources are well utilized (Mahar, 1999). In order for the corporate governance framework to be operational, it requires a good institutional base.

The framework also plays a very important role in overcoming all the economic outcomes. All the policymakers in an institution should strive to ensure that the framework is flexible in order to cater to all the corporations that operate in different places (Mahar, 1999). In order to attain this goal, the policymakers should remain focused on economic outcomes. In addition, it is important to note that poor corporate governance can negatively affect the functioning of the firm.

All the firms that have corporate governance must have a board of directors. The board is generally the main governing body of the organization. The board is responsible for the supervision of all the functions that the corporation performs. The board should always act in the ultimate best interest of their firm. They should also ensure that they take an interest in other groups, in the organization, for example, customers, employees, society and the shareholders.

The board is governed by regulations that define their functions and obligations. All the boards of governance should be headed by an executive director. In addition, the board is supposed to make sure that it carries out an evaluation of its performance annually.

Effect of regulatory requirements on corporate shareholders’ interests in an organization

A stakeholder is any organization or a person who is involved in a project. Since they hold shares in the project, they can be affected negatively or positively by the decisions made. The stakeholders can either be part of the firm or from outside the organization. A society can be a stakeholder in a project that is executed at the community level. In such a case, the project manager has to ensure that all the public needs are catered for widely (Mallin, 2009).

The Human Resource Manager should list and pinpoint all the stakeholders involved in the project. In addition, the project manager is obligated to document stakeholders’ information, for example, interest and their expectations of the project. By identifying and analysing the stakeholders, the project manager aims to gain the support that is required to effectively implement the project (Bugrow & Enriquez, 2007). More so, involving the stakeholders ensures that there is an increase in credibility. By involving all the stakeholders, the project manager establishes the organization as ethical, transparent and fair, hence, building trust.

The UK’s set of business policies are more about principles, as opposed to rules. They are also aimed to reduce costs in the procedures that are followed. It is important to make sure that the policies are part of the economic framework. The policies should start by ensuring that there is good corporate governance. The board and the shareholders should participate in the scrutinizing process to make sure that companies are heading in the right direction.

The shareholders should also encourage accountability, stability and transparency so as to enhance growth. More so, the shareholders and the board should engage in dialogue on the corporate governance issues. The shareholders have a right to information as well as the right to vote and can hold the board accountable (Mallin, 2009). With good governance and the shareholders acting as the watchers, the board has the capability to improve the functioning of an organization. The framework that operates in the form of policies is only meant to guide them on how to take their companies to greater heights.

Economics of embracing a policy of environmental awareness in organizations

For the last couple of years, it was never thought that economic well being could be directly linked to environmental well being. In today’s world, it is possible to merge the two interests. In this new millennium, organizations should consider that environmental issues affect the running of the business (Maher, 1999). The organization should react quickly when an environmental issue occurs.

Companies should be aware that the idea of making a huge profit without taking care of the environment is a big crime. Going green can help an organization to retain its employees (Carlson, 2009). Over the years, the effectiveness of green programs to motivate workers has been proven, therefore, ensuring that they stay in the organization for long. In the past few years, consumers’ demands have changed a lot. For example, visitors choose a hotel based on the environmental initiatives of a place.

Adopting a policy that will ensure the construction of green buildings will go ahead in lowering the overall cost of running the organization. For example, by implementing a virtual machine environment, the organization will be able to reduce the use of power that is required for computing. In addition, having a green building will ensure that the cost of paying energy is greatly reduced.

Using natural resources can also go a long way in offsetting the power business use, for example, the use of wind energy to produce electricity. Recycling will benefit the organization to divert its waste. Switching to a paperless method to conduct business can reduce the amount of paper used.

This can be done by use of electronic devices to transact business. Involving its stakeholders in these sustainability efforts will enable them to feel that they are more connected to the organization. These measures do not only benefit the organization alone but create a more appealing picture to customers and investors due to the dedication of the organization to environmental responsibility.

Actions that need to be taken by organizations to maintain the environment

Every organization, regardless of private or public, has a duty to protect the environment and make sure there is environmental sustainability. Organizations need to adopt green energy that is meant to decrease the use of fossil fuels. Examples of green energy include solar energy, wind energy and electric vehicles. Green energy helps the organization save much money because it is cheap to use and maintain.

In some countries, if an organization adopts green energy, the government reduces the amount of tax it is supposed to pay. Another action that an organization can take is to maintain the environment by ensuring there is no waste. Some organizations have been known to produce much waste, therefore, the government is supposed to come up with policies that make people minimize it. Another way of maintaining the environment in the organization is through promotions. These promotions are supposed to create awareness on various environmental challenges. The type of promotion depends on the nature of the organization (Stone et al. 2008).

Organizations need to come up with policies that will enhance good practice. These practices need to ensure that there is an improvement when it comes to the environment. For example, ensuring that there is no leakage, installing hippo systems for toilet and motion taps. On the issue of waste, organizations should come up with a strategy that reduces waste production.

The other action that should be implemented by organizations in maintaining their premises. This can be done through installations of solar panels, ensuring that the buildings are more open light. Hazardous materials are very dangerous to the environment. Organizations need to ensure that there is good maintenance of the storage facilities. The cleaning materials should be provided and preserved at all times.

Finally, on the hazardous waste, the organization should look into whether there is another substitute for the chemicals it uses, that is environmentally friendly. Maintaining the energy consumption in the organization is another measure that can be employed to maintain the environment. By turning off electrical machines that are not being used during weekends and holidays is one way of reducing energy consumption.

Measures that exist to improve workplace health and safety practice

According to Occupation Health and Safety (OHS) Act, it is mandatory for all employers to comply with the act. Every employee is required to be familiar with the potential hazards that are found in the workplace. They include injuries, illnesses and accidents. The following activities have been put in place so that to efficiently come up with an OHS system. The first measure is to implement a training strategy. This strategy should incorporate the management and all the workers in the organization. The next measure is to create an OHS policy that is directly linked with all the programs in the organization.

The other measure is to make up an assessment process that is able to identify the hazards at the workplace. After this, the risk control strategy should be developed. With all this taken care of, a program to maintain and improve these strategies should be created. These strategies are not put in chronicle order, because organizations differ in one way or another. However, it is crucial to ensure that these measures are incorporated into health and safety strategies (Reese, 2003).

Prevention is always better than cure. It is much better if the issue was prevented from happening. The first step that exists to improve workplace health and safety is the identification of the hazard. This is done through inspecting the workplace, reporting of the incidence, registering the individuals, who have been injured, consultation and receiving feedback from the employees. The second step involves risk assessments.

Through this, it will be possible to determine the impact of the exposure to hazards on the employees. To determine the impact of the risk, the following will be considered: the type of hazard and how severe the injury is, the likelihood of the hazard to occur, the age, capabilities of the employee. Risk control is the next step to be taken to improve the workplace and safety. In this step, decisions are made so as to be able to minimize the risks involved (Reese, 2003). However, it is impossible to eliminate all the hazards involved. The measures that have been laid down to minimize the hazards include substituting the hazard, employing engineering technology, and giving out protective equipment to employees.

Responsibilities of organizations in improving workforce welfare

Each and every organization is required to improve the workforce. Culture and ethics have been used to judge the performance of organizations. Employees today want to work in places where their beliefs are respected by everybody. They also want to work in areas where they are able to make sure there is a stability between work life and home life. Companies in Europe are mandated by the EU to provide their workers with a good working environment (European Union, 2014).

By initiating a marketing strategy, the organization is required to hire people from all over the world without discriminating them on the basis of race, gender or ethnicity. So as to suit the requirements of an organization, the management should come up with different management styles, for example, the autocratic style in developed countries. Use of this style of management presupposes that the workforce is given full control. Communication is the other way of managing workforce diversity in an organization (Sims, 2002).

Improving employee benefits will go a long way in improving workforce welfare. Employee benefits include a higher salary, better working conditions, better training outcomes and better job satisfaction. The other responsibility for an organization to improve workforce welfare is through service delivery benefits. The benefits include efficiency that promotes better use of resources, better client outcomes and establishing a sense of professionalism. The final responsibility is through organizational benefits. They include retaining staff and reducing employee turnover. It has also been reported that having a better method to employ highly qualified staff will lead to improved workforce welfare (Reese, 2003).

Compare approaches to the management of diversity in organizations

Due to inexperience among some managers, they are sometimes not ready to tackle the issue of diversity when it arises. To be prepared for this, managers should increase their efforts so as to develop suitable behaviour. The young managers are supposed to interact with the more experienced employees so as to learn more (Amy, 2014). They are also supposed to interact with women, minorities and the disabled so as to understand their needs. Through this, managers will be able to get more information, especially regarding the needs of different groups, which will help them to find out how employees would like to be treated.

The management should use a management style that fits well with each diverse group. Workers should also be given an opportunity that allows them to say how they would like to be treated by managers in the organization. Empathy is directly linked to learning (Kasar & Clark, 2000). Empathy is a crucial perspective to deal with the challenges in the organization since it helps the management to comprehend the perspective of an employee.

As the HR manager of the Merton Campaign Society, I would ensure that promotion and hiring are done according to the performance of an employee. Discrimination of whatever kind will never be tolerated. So as to keep the employees updated on the current issue, the organization has a training program that involves every employee. This training ensures that every employee is updated on ways to tackle challenges that arise due to the diversity in the workplace.

The management of the organization has created an environment where employees feel as if they are part of the team. The management has managed to create trust among employees through team-building exercises. The organization appreciates the efforts of every employee. This will enhance employees’ morale and confidence. In addition, this would help them have respect towards each other in the organization.

One more approach, that the organization has employed to be able to manage diversity at the place of work, is through proper means of communication. The organization gives each and every employee an opportunity to speak their mind. According to labour laws, every employee is supposed to be given a fair chance to speak and be heard (Amy, 2014).

Comparison of organizational approaches to ensure positive policies for workforce diversity

The culture in an organization is mainly outlined through the values, beliefs and culture. Organizations have different approaches to how they involve their employees so as to achieve organizations goals. Some organizations would ensure that their workers are satisfied with their place of business, while others would employ strategies that would retain experienced employees. Different organizations have different ways in which the management communicates with their employees. Some managers would opt to interact personally with people while others use electronic means, for example, sending memo and emails. To ensure that there is the diversity of the place of work, organizations’ different ways in which they select and recruit their employees (Cronin, 2013).

The organization has a different mechanism that ensures there are positive policies in place of work. One positive approach is referred to as organizational frames. HR is required to outline the motives behind their interest in diversity. HR is also supposed to identify the means that will help the organization. However, this approach is required to ensure the following: it should be carried out within the specified law, guarantee that diversity is meant without charging any fee, as well as identifying diversity goals and coming up with more changes that would ensure that there is diversity at the place of work. The above approaches clearly indicate that there is a huge variation within organizations when it comes to defining diversity and the degree in which they play to involve workplace diversity.

Reflective Learning Statement

The main theme of the unit has influenced me in various ways. Firstly, I have learned that the environment is an important aspect when it comes to running an organization. As the head of the institution, I should take note of all the stakeholders, respect their views and include them in decision-making processes. The unit has also helped me greatly in understanding different management tools that are used by various organizations.

At the end of the course, I have acquired the skills that are required in various interdisciplinary studies that help one to understand the relationship between economies and environmental management. Learning this unit has also helped me to understand what corporate governance is and its role in various institutions. Before studying this unit, I did not have the knowledge to tackle diverse issues in an organization, for instance, on conflict resolution. However, after going through the unit, I now can handle any arising issues in my organization.

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