Strong internal controls can also help the organization ensure it serves the public better. The results from the paper have demonstrated that internal controls make a significant contribution to NPO, not only in financial performance but also the financial management processes. But organizations are different and will have varying requirements, so, a best internal control is match each different organization with the objectives and resources. The suitable internal controls will help to make the organization safe and efficiency, thus make the good to the people in whole. References: Chris Jeffrey, “Internal Control at Private Companies and Nonprofits.”, Sep 1, 2008, CPA
Although it is important for business to make a profit and tend to its financial performance, it is also regarded as equally important to tend to the interests of the external shareholders. Primarily to be able to provide goods and services that meet the needs of the customer in a fair manner and also ensure sustainable socio-economic growth in the community or country they are operating
Business operates within a society, therefore any action and decision made by the business should be made considering the impact of economic and social values. Stakeholder approach means better management and a more socially responsible behavior by the firm. The stakeholders approach sees individuals in a business acts altruistically, it is interrelated though independent for self creation and community creation, stakeholders approach addresses both collective and ethical theories, for a collective social demand and the right thing to achieve a good society. Mitchel, Agle and Wood (1997) emphasized on the interests of the stakeholders, Freeman and Phillips (2002) explained the fiduciary duties towards stakeholders. Jeremy Moon (2004) defines CSR as a combination of corporate citizenship, sustainable business and environmental responsibility; it is accountable to social, environmental and ethical issues both in term of corporate and the national environment.
It is the firm’s obligation to evaluate in its decision-making processes the effects of its decisions on the external social system in a manner that will accomplish social benefits along with the traditional economic gains, which the firm seeks. It means that social responsibility begins where the law ends. A firm is not being socially responsible if it merely complies with the minimum requirements of the law, because this is what any good citizen would do.” A firm will not survive without the support of both the stakeholders and shareholders, thus the CSR proposes the indication which states that a firm can never exist In a vacuum (Khalidah et. al.). Volkswagen has Corporate Social Responsibility embedded into its company’s culture and values.
The competition between businesses will ensure better quality of their goods and service they provide. Competition is well known for providing great productivity which leaders to a growth in the economy. Not only can competition improve the quality of work, it can also improve innovation. Innovation is an important quality to have in a company because it aids in keeping products and services fresh. “Economic Influence on Marketing” claims, “To keep current, your business has to adapt to changes in the industry and must always keep its eye out for innovative, cutting-edge technology and product improvements” (Bradley).
Ethical responsibilities pertain to the supply chain. Even though the means may be more expensive when sourced ethically, consumers expect a transparent supply chain and are no longer turning a blind eye to a corporation’s supply chain. The final tier of the pyramid are desired responsibilities which include discretionary/philanthropic responsibilities. Along with maximizing profits for a corporation’s shareholders, acting within legal limits, and have an ethical supply chain, corporations are desired to contribute resources to the community. Philanthropic activities could be held anywhere, even in communities far away from the businesses.
New Belgium’s social responsibilities provide the company serious competitive advantage because consumers have the desire to believe in and have positive feelings about the products they spend their money on (p. 359). The company’s image of being a corporate brand that values responsibility, society, and quality is its most important strength (Ferrell and Hartline, 2014, p. 359). New Belgium sees itself as a caring business with that cares about all stakeholders rather than just a beer company (p. 359). The company’s socially responsible initiatives contribute largely to its success as consumers increasingly support what the company stands for (p. 351). Corporate social responsibility actions help to make corporations/businesses appear concerned about creating a healthy
Business ethics promote ethical behavior to protect business from abuse by unethical competitors. Business ethics also conduct customers to be shown the positively performance of the company, attract customers to the company’s products, which have advantages for sales and profits. Business ethics contribute to the company safety from legal perspectives. It is act as an insurance policy, the high ethical performance also protect the individuals who work in the business, make employees want to work in the business, increase productivity and reduce labor
With good reputation, it helps firms to create competitive advantage in the business environment. Thus, instead of focus on short-term profit maximizing or costs saving, firms should be stakeholder-oriented. A firm which is stakeholder-oriented focuses on the need of their stakeholder such as employees, customers, society and others who have a direct economic link to the firm (Habil, n.d.). Businesses that are socially responsible will avoid actions that may cause detrimental to stakeholders. They have greater concern on stakeholder well –being.
A company must make a competitive return for its shareholders and treat its employees fairly. A company also has wider responsibilities. It should minimize any harm to the environment and work in ways that do not damage the communities in which it operates. This is known as corporate social responsibility, CSR (Businesscasestudies.co.uk, 2015). The coursework