SECTION 2: SHORT ESSAY QUESTIONS Question 1 The business-society relationship ha
ID: 370481 • Letter: S
Question
SECTION 2: SHORT ESSAY QUESTIONS
Question 1 The business-society relationship has undergone many changes over the last few decades. This has no doubt been fuelled by a mixture of unsavoury behaviour by businesses and growing expectations by the public. Managers are now facing greater pressures on their approach in managing this relationship.
a) Discuss the concept of the ‘triple bottom line’ by John Elkington. Provide explanations and relevant examples for each bottom line.
b) Carroll and Buchholtz (2014) identified three (3) attributes in determining a ‘stake’ under its discussion of the stakeholder approach to business. Discuss these attributes and provide relevant examples to better illustrate these interests.
c) Demonstrate your understanding of Immoral, Amoral and Moral approaches to management by briefly explaining each approach and providing relevant business examples.
Explanation / Answer
a) Triple bottom line was first coined by Mr. John Elkington. He specifically mentioned three attributes which a firm should undertake, then only a firm will be said to incur the total cost. the 3 bottom lines are as follows,
1. Profit:
Firm's profit has been a traditional measure of firm's success. Thus a firm should focus on making the firm profitable over a long run.
eg: companies investing in cost-cutting to increase their profits. Southwest Airlines.
2. People:
The second factor is the firms own employees and the way firm's organization is treating its employees.
eg: Perks offered to employees, ESOPs
3. Planet:
Finally, a firm should also focus on the environmental effects and how it is helping keep the environment around it better.
Eg: firms investing in CSR
b) 3 stakeholder attributes are as follows,
1. Legitimacy:
It can be seen as validity or appropriateness of stakeholders claim to the stake.
eg: owners, employees, staff present high legitimacy towards a company.
2. Power:
Power means someones ability to get the work done. more the ability more powerful is the stakeholder.
eg: customers are considered as a powerful stakeholder
3. Urgency:
It means how urgently a stakeholder claim on a business will respond. urgency will consider matters which are critical and needs to be done as soon as possible.
c)
1. Immoral:
It is that management whose decisions. actions or behavior is something which directly opposes a company's value or is against what is considered as ethical.
eg: Agency problem is an example of such management. managers are looking after self-benefits than for the whole firm.
2.Moral:
It is exactly the opposite of immoral management. the management in this style is considered as ethical and someone who will preserve the values of the company.
eg: Managers who gel well with the company's culture. Tata group.
3. Amoral:
Managers who are neither immoral nor moral are amoral managers, though amoral these managers have a sense of responsibility for stakeholder's claims. they are not self-driven neither too much company centric.
Eg: any normal corporate manager in any firm which does not exhibit much of culture. any new venture.
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.