business topic 2 (chap 8.7 -9) Flashcards
signs businesses engage in ethical business practices & act honestly and what for
-not engage in misleading/deceptive product descriptions
-safe working enviro for employees
incorporate CORPORATE SOCIAL RESPONSIBILITY
avoid negative publicity & deterioration of reputation
-consumer boycotts
-highexpectations from customers
-managers need high personal and ethical standards so employees perceive importance of ethical considerations
‘cutting corners’
taking shortcuts in the cheapest, fastest and easiest way.
- producing an inferior product not to the industry standard — in quality and work processes.
- costs and procedures that for safe work environment should not be disregarded for profits.
-unethical,unlawful behaviour.
–may gain an unfair advantage over their main competitors.
CORPORATE social responsibility
open & accountable bus actions based on respect for society and environment (social welfare) when making business decisions
-more than simply complying with laws and regulations
-rewarded with improved bus performance
triple bottom line (enviro, social, eco)
-
PROFIT bottom line
-measure traditional ‘profit & loss’ financial bottom line -
PEOPLE bottom line
-measure how socially responsible business been -
PLANET bottom line
-measure how environmentally sustainable bus been
social enterprises
businesses established to achieve social objectives > making profit for shareholders/owners
-pursue endeavors that generate revenues, which fund their social causes
ethical issues businesses regularly have to address in daily operations HRCFT
- fairness and honesty
-obey rules & regulations
-tell truth - respect for others
-treat staff
-expect staff act ethically -
conflict of interest
-one takes adv of situation for self-interest
corruption undermines integrity of bus if unchecked, infiltrates workplace culture
-entrenched** within business, changing attitudes & practices of individuals diff
-if corrupt practices **exposed, reputation damaged
4.financial management
-reflect obj of bus & shareholders
-financial reports regularly audited - truthful communication**
-no false/misleading ads
-unethical
sustainable
account impact bus has on enviro it operates
-contributes to efficiency & effectiveness of bus by ensuring best use of resources, and minimising waste
-^ likelihood of long term survival
-for society, maintain enviro for future survival, deplete less resources
strats for bus to minimise CONFLICT OF INTEREST
- devise corp code of conduct
-set of ethical standards for managers & employees abide by
-provide internal stakeholders with ethical guidelines for workplace behaviour & practices
-need to ensure employees trained & understand values - establish formal proceedings for reporting unethical behaviour in workplace
organisational change
adopt new behaviour resulting in diff in operation of org over time
-moderate corporate culture
-new organisational structures
-recruit employees with new skills
-develop diff work practices
MANAGERS and change (2 internal influences bus need to respond to change)
respondingto unplanned changes requires responsive decision making from management to reduce disruption of business
-push for changes –> better outcomes and achievement of objectives
could restrain change
-hasty decisions, indecisve
-lack experience and skills to oversee transformation**
-unable to deal with resistance from stakeholders in business
eventually cause employees lose confidence in decision making abilities of management
employees and change (driving and restraining)
INNOVAtive enviro where ideas shared and acted on likely driving force for change
-recommend changes to policies, PP, products
-operations, marketing change from employee creativity to develop innovative products
restraining force
-expect to be paid fairly, trained properly and treated ethically in return for contribution to production.
-merge/acquisition could breakdown existing corporate culture
-adapt to new procedures threaten established work routines, need training
externl influences causing change CLTS
competition
tech (self-service checkouts)
social
OR
eco,
financial (IR),
markets
* changes to government policies (inc employment policies)
how can compeititors drive change 4
-open new business competintg with existing one
-undergo change to stay relevant to customers
pricing policies by competitor
-bus adopt similar strat
adopt new tech (production & products)
-competitor change products/processes
advertising campaigns, develop online presence
external change
legislation
new laws pass, must comply with new legislative requirements, change operations
-state gvts (smoking in public)
-local councils(parking restrictions) or federal lol
external change
tech
to be competitive**
-slow to exploit tech –> likely fail bc competitors capture greater market share & develop sustainable competitive advantage
-allows to operate processes more efficiently –> cut costs, improveproductivity
-size don’t matter to ake advantage of it (EFTPOS, self-service checkouts)
external change
social
adapt to changes in society’s attitudes and values
-affecting operations
-increased access to rapid communications made pop more aware of business practices
-pressure forces bus to implement procedures to preserve natural enviro and ensure ethical supply chain
-sell safe products, respect staff,
effective managing change
strategic planning
-ability to manage, adapt change determines bus’ competitive advantage and survival
-successful managers anticipate & adjust to changing circumstances (PROACTIVE not reactive)
-long term survival depends on ability of managers to continuously scan enviro, predict future trends and exploit change
-share vision w/ employees to understand change
proactive approach to change
situations where change planned and occurs before bus affected by pressure in enviro (prepared)
-mor effective, allows bus gain competitive advantage
reactive appraoch to change
unplanned, occurs after bus affected by pressures from enviro
-less effective
-lose productivity/sales from failure to recognise imminent change
-failure to respond immediately lose time as it attempts to recover
how should change be appraoched? what happens if its poorly managed? how can you mitigate this?
thoroughly evaluated to assess impact
-poorly managed –> employee resistance, lost productivity –> decrease profits, unmet objectives
-esp hard when beyond control of manager
-communication, employee involvement in change process, training, support, leadership skills and responsive management structures
access to current and up-to-date info, as this helps them determine what changes, to be made & decision aking + analyse data
why do business fail to manage change
in upheaval of restructuring process, employees (crucial!) often NEGLECTED
-communication channels break down
OMFH
examples of info collecting for change
**OPERATIONS **manager of MANUFACTURING bus collects data abt PRODUCTION COSTS
FINANCE manager collect data abt financial TRANSACTIONS and measure CASH FLOWS
**
HUMAN RESOURCE manager record staff ABSENCES, TRAINING requirements and overtime payments
data and info
unprocessed figures eg. sales, customer complaines
processed data selected, prgamosed for manager
where od managers get info they need to change
business information system BIS
-gathers data, organises & summarises, converts to practical info for managers who use data to make decisions
