BUSINESS ASSIGNMENT

Business Assignment

Business Assignment

Introduction

This paper selected cement industry as part of business assignment for the course. The assignment is divided into three sub parts. The first part aims to explain theories related to stakeholder of the industry, while identifying potential conflict areas between various groups of stakeholder. In the second part, the corporate social responsibilities will be discussed in accordance with Carroll's Model. The last part of the assignment will discuss change in demand of cement products in UK market.

Part 1

I have selected the cement industry as cement is a basic component in emerging economies in many countries from Asia to Eastern Europe. Cohesive cement is the basic element for the construction of buildings and roads. This is reason due to which 80% of cement is used for developing countries. There are various primary interests of the stakeholders groups of the cement industry. A stakeholder can be defined as any group or individual who can affect or be affected by the achievement of an organization. A code of good governance and code of ethics includes dealing with all relevant aspects in the more advanced concepts. Poverty indicators in the world, in Latin America, in Colombia have raised special challenges for companies for corporate social responsibility and for the cement industry. Even in countries such as Brazil and Mexico, which are among the first dozen of the world economies have large populations in poverty, and show high levels of inequality. In Latin America for the high concentration of the various stakeholder groups, the cement industry is dominated by monopolies and oligopolies (Zuckerman, 1997). Beyond that feature, a radical factor is that the antitrust laws do not apply fully which aggravates the problem (Clear, 2006).

The structure of the cement industry is oligopolistic in nature. The involvement of stakeholders in the cement industry includes formal and informal ways to stay connected with those who, actually or potentially, feel an interest in a business or have an impact on it (see following figure for stakeholder diagram for a cement industry). It involves understanding and consideration of their views, accountability and timely use of information gathered from stakeholders to foster innovation. Some stakeholders of the cement industry believe that cement industry possesses massive negative impacts to human beings because it exhaust constant emissions of substances that are not fit for human body. Facilities that are present in a cement industry kilns used for cement production process of limestone, others use other aggregates. The raw materials used in the process are limestone, chalk oxide, silica, clay and shale. Kiln technology is used in many countries, specifically near locations where limestone abounds.

Globally, companies in the cement industry rely on the principle that marinating the long lasting and positive relationship with the stakeholders in essential. It is also the basis of the stakeholders and the expansion of the business widespread shareholder value approach. In contrast to the shareholder value principle, the needs and expectations of an organization is in the centre of attention throughout its socio-economic context ...