This chapter tells about the employees as stakeholders of a company or a business. As stakeholders, employees have also the rights and privileges which are due for them. With this rights they have, some responsibilities are also expected of them as part of the company. In the same way, they also have some employee contract which they know among themselves that guide them as they go along with their routine in their workplaces. It also discusses some ethical responsibilities to employees which are very essential to satisfy their needs and thus, make them as productive individuals.
Every stakeholder of a company has their own rights with corresponding responsibilities. These must be given to them with due respect. It may differ depending on how they function in a company and how they can affect in the company’s performance. Nevertheless, each functions is essential and vital to the company’s operations, thus, each individual must also be given the rights which are really due for them.
In my opinion, learning about employee relationship is the same way of learning how to deal with your employees. It is like knowing what motivates your employees to do well and how will you make them stay. Establishing or building a good relationship is very important in a company because it can greatly the company’s overall performance of the company. If a company has established a good employee relationship and employees has the initiative to do things, then we can say that they are employer of choice. This means they were able to choose correctly who among the employees are best suited in the job and they were able to provide them with benefits which make them stay in their job.
There are many ways to manage your workforce and if situations call for an employee reduction, this means one has to reduce its workforce either because of lessening of needed labor, decreasing the quality of service or because of lack of resources to pay for the expenses. In this way, the company must also keep the good relationship despite the scenario. From employee entrance to exit, a good relationship must be kept.
In general, this chapter is very useful for business people because it tells about another very important stakeholder of a company which are the employees. They are very essential to a company’s operations and transaction. Without them a specific operation will not be done and whether big or small job, it is essential and will have an impact on the company. But, in return the company must protect the rights and ad individuality of the employees. They must be given proper motivation and be compensated with enough benefits which is enough with the type of job they have done. Also, their ideas and privacy must be protected by the company. Whatever their positions maybe, they must be respected and treated fairly and equally. In this way, they can establish a good employee relationship which will be reflected
Chapter 8 – Consumer Relations
Another stakeholder of the company are the consumers. They are the ones who purchase, use and dispose of products for themselves an truly they play an important role in the operations of the company. Just like the other stakeholders, they have the rights and privileges which they should receive from the company. These are the things the company must consider to be able to provide their needs and satisfy their wants as well. As a company, they have some responsibilities to all their stakeholders like the consumer. It is true that fulfilling these responsibilities can make the consumer stay and help to establish a good relationship among them. In the long run, it can develop loyalty among their consumers.
Looking on the economic aspects, it is proven that consumers and the company are connected by an economic relationship. There is a bond between the two which creates a relationship among them. It is money. True enough, money is a vital tool in economic development. Though we may say that it does not measure the economic growth of the country, its circulation creates a great impact in the measurement of growth, which is, still considered with some factors. Also, as a consumer, I expect my money to get the value from what I buy. The company must see to it that they are able to give the value of the money the consumers pay for in exchange of the product or service.
In the same way, it is a relief for consumers to know that there are some laws provided to protect their rights and to attend to their needs when situation calls for it. Like in the Philippines, the Republic Act 7394: The Consumer Act of the Philippines protects the consumer to possible threats like fraud from the company. But, sad to say, even with the existence of this act, there are still some misconducts and mischiefs done by the company. It is unfair for the consumers who become the victim of the company. This is not being socially responsible to as a stakeholder of the company. Some companies try to deceive their consumer by telling false information about what they sell. On the other hand, there are also those who follow the laws like providing warranties and others.
With all these aspects come the rights of the consumers which include the right to choose, safety, be informed, heard, seek redress and privacy. With all these rights, I supposed right which is not fully given to consumers is the right to privacy. With the rise of the new technologies of today, privacy is quite forgotten. Information, ideas, photos, videos, files and others are being stolen by people through technology. It is part of the consumers to have their privacy whether they have given their information to the company. With this, the responsibility has been passed to the company to give their consumer the privacy they want. They should secure the information they have gathered and use it for business purposes in the right manner and with the consent of the consumer.
Lastly, the philanthropic aspects are now given more attention by the company. Social responsibility has been a part of every organization now a days. This increases their attention to choose the company because of the philanthropic activities they are involved in. It attracts the consumer with the mindset that if the join the company or buy in that brand, they can also help the beneficiaries of the company.
Chapter 9 – Community Relations and Strategic Philanthropy
This chapter focuses on another stakeholder which is the community. They are those members of society who are aware of, concerned about, or in some way affected by the operations and output of the organization. They may be the people around which also includes the environment they are living into. All the aspects which are being affected by the company operation directly or indirectly are part of it. These are also affected by several through several aspects in social responsibility. In this generation, there are many issues that concern the community. Issues include mostly of the environmental issue that is caused by the operations of the company. The degradation of the beauty of our mother earth due to some companies is very visible and greatly felt because of those failed to take into considerations the effect to its stakeholders.
Pollution and land use are some of it. Like in Manila, pollution has been a problem for a long time. Many companies are continuously performing their operations without considering its effects to the community. Big factories are some of those who continuously contribute to the pollution. Also, another very popular issue regarding the land use is the reclamation being done for business establishments. Like the SM Mall of Asia. The land used for that establishment has been reclaimed. This is one example of company operations that affect the community.
Philanthropic contributions of the company to the community are very essential for the stakeholders. It affects on how the will brand or see the image of the company. This aspect of the company must be properly planned to achieve what is really wanted. This chapter also talks about how a company can properly strategize for its philanthropic implementation. Through a strategic planning of philanthropic implementation, there can be a higher chances that the actions to be taken are feasible and will work in the benefit of the company. It can be done through a step by step procedure which is research, organize and design, engage and spend. Through this steps, it can be properly executed and will surely help in the operations of the company.
As a community, they always look after the general welfare of everyone who is a member of their community. In that aspect, the company’s philanthropic strategy is very important. Through this, they can address the needs and concerns of their key stakeholders. This is what social responsibility is all about. Taking into consideration all the key stakeholder of the company must always be done. It is important to satisfy their needs and wants so that every aspect of the company can function effectively and efficiently. In this way, all the members of the organization will function well and it will be reflected on the overall image of the company.
Having a positive community relations and a strategic philanthropy can only be achieved if the people behind a company or a business is truly socially responsible. Doing what is right and what is just for your stakeholders like the community is being socially responsible.
Chapter 10 – Technology Issues
Technology has been very evident in every business establishment now a days. Even small businesses are making use of technology like calculator, cashiers, refrigerators and others. All of these things are product of technology and truly, they are a big help in the operations of the business. But, looking on the other side, technology can also cause destruction to a company. For example in a small business like computer shop. When the system or server is down, there can be no operations accomplished or if there is no internet connection. This is one disadvantage of technology. When there is a failure, sometimes it takes time to be fixed or sometimes cannot be fixed. Despite this, people continues to entrust their equities to technology.
Technology helps businesses in their operations in every aspect. It makes the work easier and faster thus, as a result, there is a lesser requirement of manpower. This means fewer people are employed in the company. Let’s take Gardenia for example. They are known for the breads which are untouched by human hands. They made this possible through technology. Machineries take the responsibilities of a worker in the production. Thus, the only person they need is those who will man and control them.
But, in brighter side, there are some new job opportunities due to the rise of technology. Technology is fast changing. In effect, the businesses need to adapt to the changes so that they can cope up with their competitors and provide the changing need of the consumers. Improved products are produced due to this. Thus, a higher standard of living was also set because of technology. These things affect the growth of the economy of the country.
With the rise of the new emerging technology, there came the emergence of the Internet which helps businesses’ transaction. It helps them to have a more targeted market, to have a closer relationship with their consumer and to have a facilitated supply chain management. Despite these things, the internet also made fraud dramatically increase in number. There are many incidents of crime in the cyber space. The most common are piracy and identity theft. The government is taking action to this issue. There are laws which provides protection and assistance to the information sent and received through the internet. Here in the Philippines, the recently passed law on cyber crime provides protection to the people the internet.
In general, technology has many advantages that it can provide to companies and businesses. It is really a big help in their operations and transactions. It also makes the work faster and easier with a better quality produced not only in business aspects but also in all the other transactions in our daily life. Despite the number of advantages, technology has also it disadvantages. It is up to the company or the business if they will use the technology with social responsibility among their stake holders which include the shareholders, employees and consumer.
Chapter 11 – Sustainability Issues
This chapter focuses on a company’s sustainability. It refers to the potential for long-term well-being of the natural environment, including all biological entities, as well as the interaction among nature and individuals, organizations, and business strategies. Right now, companies are having a hard time to sustain a healthy environment for their stakeholders due to the operations they are undertaking. Sustainability includes the assessment and improvement of business strategies, economic sectors, work practices, technologies, and lifestyles while maintaining the natural environment
One very evident issue is on nature. It includes all the resources like air, water and land. The issues are concerning on the destruction of these resources due to the establishment of the companies. Reclamation is now being done very often to pride land for new business establishment like the famous, and before very controversial, Mall of Asia. The land used to build the mall was formerly a part of the sea. It was cover with land and used as a site for business. This is just one of the issues. Other includes deforestation, pollution and development sprawl that affect the other living organisms.
Due to the issues on the environment stated above, some wildlife or living things in the ecosystem are threatened. Their habitats are being destroyed or even the food they eat are being eaten up by the new establishments. In the same way, pollution has also an effect on nature. The clean air that we should be breathing is polluted by the smoke from the factories or the vehicles that we use. These actions can cause destruction to the nature that will hinder us from maintaining the sustainability of a certain organization or a company.
Like in the technological issues, the government is also taking action to the sustainability issues globally. There are some laws and policies implemented for the protection and maintenance of sustainability in the place. Like in the Philippines, There are many organizations specializing in the protection of a certain natural resources. Though there are times that they cannot function well due to the lack of budget, they still do their best to maintain the order in it.
In the same way, the businesses and companies are doing their best to eliminate the operations that are harmful to the environment. One example is the campaign against using plastics in any transaction. Whether in food, clothes or any product. They are using brown bags or ec0-friendly bags to hold their things. This campaign had gone all over the country. It starts from small businesses and to small town then cities and municipalities. I am from Batangas and my city has already embraced that campaign. There are also other actions undertaken like using refrigerators or air cons that do not emit CFC which is harmful for our ozone layer.
Sustainability of a certain place or company is hard to achieve but it is possible with the help and cooperation of all the stakeholder of the family. Also, it can only be achieved if everyone is socially responsible about their actions and how it can affect the other people around them.
Chapter 12 – Social Responsibility in a Global Environment
Due to the fast changing and evolving technological advancements worldwide, the marketplace for companies has also grown globally and thus, the need to adapt to the environment. There is a bigger arena for a larger number of competitors and more stakeholders to satisfy. There are different regions worldwide that has a variety of culture as well. As a company with social responsibility, they must know their culture so that they can provide their need better and with quality. At the same time, they must be familiar with the things that are prone to their culture so that they can establish a better relationship with their customers worldwide. They must gather a cultural intelligence that they can use to gauge how they should treat their stakeholders in all the parts of the world.
Like in SGS, the company where I had my OJT, they have offices from all parts of the world and having Philippines as the back office. Being in this situation, they gather a cultural intelligence from all the countries they have a local office. From China, Egypt, Spain, Chile, Japan, Nigeria and etc. They have hired different nationalities that can help them to gain the cultural intelligence they need to deal with their consumers worldwide. As the back office, the Philippines must know how to understand each office because they are the one dealing with all the other countries and if they need to communicate, everything else will also pass through the Philippines.
Not only with consumers. They must also know how to treat the employees from different culture. An open door policy must be imposed to encourage interaction among them. There might also be some policies or treaties regarding salaries and wages relative to the home country’s standard and agreed upon by both of the countries. Same as with some policies and rules regarding their health and safety.
One possible barrier that can hinder a smooth relationship between the company and its stakeholders is language. Communication is a vital part of an operation or transaction. If there is no proper communication, there could be misunderstanding that will lead to a failure of the business. Also, it can hinder the company from providing what the consumer really wants. Another is culture. If one did something which is against the culture of the other, this might cause a
Despite the cultural differences and diversity of beliefs a company must continue to be socially responsible among its stakeholders. They must not forget their responsibility toward the people around them. Their economic, philanthropic, legal and social responsibilities must always be taken into consideration. In this way, they can have a smooth relationship with their stakeholder and thus, have a smooth sailing transaction across the globe even if it is a different environment.