Материал: Management-and-Organization-Behavior

origin, etc. of the product;

ӹӹentering into collusive agreements with other firms to exploit the customers;

ӹӹmaking false claims of being an authorized dealer / importer of certain goods; and

ӹӹgiving misleading names to the products, etc.

Towards Employees

ӹӹproper selection, training and promotion;

ӹӹrecognition of the value of human resource;

ӹӹmaintaining cordial relations with employees;

ӹӹrecognition and encouragement of constructive unionism;

ӹӹfair wage in relation to the cost of living;

ӹӹbetter working conditions;

ӹӹinitiating appropriate measures for the development of human resource;

ӹӹincrease in productivity and efficiency by recognition of merit; and

ӹӹproviding opportunities and incentives for creative talent.

Towards Shareholders

Shareholders are the real owners of a business. In view of the several practical limitations for them in overseeing the day-to-day operations of the business, an organisation must strive to provide:

ӹӹsecurity to their funds;

ӹӹa fair rate of return on their investment;

ӹӹcorrect information about the operations of the company; and

ӹӹproper appreciation of the value of their investment by identifying new opportunities that contribute to the growth of business.

Towards Creditors / Suppliers

Creditors or suppliers provide the necessary inputs to the business. Business has, therefore, certain responsibilities to them. The management can discharge its responsibilities towards this group by;

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ӹӹrealizing the importance of maintaining good business relations with them;

ӹӹmeeting the payment obligations timely;

ӹӹproviding true and correct picture about the financial aspects of the company; and

ӹӹhelping them grow along with the growth of the company, etc.

Towards Government

Government provides various facilities for the development of business. Infrastructural facilities like roads, telecommunication, transport, banking, insurance are some of the facilities created by the government without which no business, worth mentioning can conduct its affairs smoothly. Therefore, business also in turn owes to the government in the following ways;

ӹӹBusiness enterprises should act like law-abiding citizens;

ӹӹTaxes and other duties should be paid timely and honestly;

ӹӹCompliance with the rules and regulations as stipulated by various laws of the land; and

ӹӹSupplementing the governments efforts in the developmental activities, etc.

Towards Society at Large

Any business organisation can exist as long as it enjoys societal sanction. If it fails to safeguard the interests of the society, the pressure from various segments of the society mounts up. Such a situation eventually provokes the government to invoke the regulatory mechanism. That is why, it is always desirable for the business to keep the government at bay. Some managements conduct their affairs in such a responsible way where government’s intervention is not warranted. For instance, the origin of several laws governing the business organizations may be traced back to the failure of business organizations in protecting the interests of the various groups in the society. An organization can act in a socially responsible way by:

ӹӹproperly deciding the product policies in line with the national priorities;

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ӹӹpreventing the creation of monopolies;

ӹӹensuring hygienic disposal of smoke and waste and other effluents;

ӹӹproviding accurate information about its working; and

ӹӹpreserving the national resources of the nation by not indulging in reckless exploitation of the resources, etc.

Review Questions

1.Explain the roles and responsibilities of major stakeholder of a business organisation.

2.What do you mean by social responsibility of business? Do you subscribe to the view that business has responsibilities other than making profit? Substantiate your answer drawing from real examples.

3.Much of the talk about social responsibility is more of rhetoric in nature. Examine the statement and present your views. You are welcome to interact with management personnel and present your viewpoints.

4.Present your views for and against the social responsibility of business.

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Lesson – 4 : Manager And Environment

Objectives

After reading this lesson, you should be able to:

ӹӹUnderstand The Importance Of Environment In Business;

ӹӹExplain The Dynamics Of Environment ;And

ӹӹExplain The Various Forces In The Environment That Affect Business.

Lesson Outline

ӹӹManager And Environment

ӹӹDirection Action Environment

ӹӹIndirect Environment

ӹӹReview Questions

Like human beings, organizations are the products of environment. As explained in Lesson – 1, all organizations whether engaged in business or non-business draw the inputs from the environment, convert the inputs into outputs and send them back to the environment. Thus, every organization has a two-way interaction with the environment.

A business organization is an open system which is influenced by the environment and in turn influences the environment. The environment of the business consists of two components – internal as well as external environment. The former refers to the various systems inside the organization such as, technology, structure, processes and people. As all these aspects constitute the subject matter of this course and are discussed in various lessons, the internal environment, therefore, does not merit a detailed analysis. As such, this lesson focuses on the important variables of the external environment which have a bearing on the successful functioning and survival of the business.

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