MANAGEMENT DYNAMICS

Management Dynamics

Management Dynamics

Introduction

This essay is based on 'Stakeholders, Social Responsibility and Ethics' from the Management Dynamics textbook. Social responsibility is defined as the conscious and consistent commitment to comply fully with the purpose of the company, both internally and externally, considering the expectations of the public and other stakeholders.

The analysis of the article revealed that stakeholders are a set of group or people who possess interest within the activities and performance of the organization. Traditionally, it is considered that the primary stakeholders of the project or the company are the people who have direct effect of the outcomes and results of the company such as employees, suppliers, investors and the customers. In the modern business world, there are some external stakeholders who have the association with the company through documentation on the basis of statutes and legislations such as community, government and trading associations. It is commonly observed that different stakeholders have different type of interest level in the company. They may be independent of each other and may serve the company without synchronization (Clarkson, 1995).

Discussion and Analysis

The in-depth analysis of 'Stakeholders, Social Responsibility and Ethics' from the Management Dynamics textbook reflects that corporate social responsibility is a responsible way of the company to act for social, economic, and public solutions and to create a climate of acceptance for the actions, or actions in support of building reputation and creating relevant image. The implementation of CSR programs in the long term should lead to an increase in the value of the company, and thus this will improves its competitiveness.

Moreover, external component of Social Responsibility is the company's relationship with its customers, suppliers, and the communities in which it operates which also includes local, state, and municipal and nongovernmental organizations. Corporate social responsibility promotes ethical conduct toward third parties (stakeholders) as defined in the Code of Best Corporate Practices. Depending on the industry, companies should consider and identify the stakeholders to which must report their activities (Morsing et.al, 2006).

Furthermore, morality and ethics are the basis of the business culture of the organization also known as organizational or corporate culture, which refers to the organization by the management and staff supported which spiritual values. Although many believe that the business culture concerns only the inner life of the collective, in fact, it forms the outer life and the organization (external relations). Business culture of the organization is manifested in the behaviour of employees, their perception of themselves, the organization as a whole and the environment. The centrepiece of the organizational culture take basic values, that is, formally adopted in the organization of a set of the most important and immutable principles underlying the behaviour of employees (Warren, 2008).

It is clear that the basic values ??are the value of an ethical nature. They should be distinguished from the values ??of a particular person (e.g. religious beliefs, and political views) or the universal values ??(such as freedom, tolerance). In the formation of the basic values, organization goes a long way of transformation; as ...