SOCIAL RESPONSIBILITY OF THE FIRM

Social Responsibility of the Firm

Table of Contents

Introduction3

Relationship with suppliers and competitors4

Issues with supplier and competitor relation management5

Recent Example7

Mislabeled Goods8

Malpractice8

Alternatives8

Stakeholder Theories9

The Origins of the Stakeholder Theory9

Problems of Application of the Theory of Stakeholders in the Strategic Management of the Organization10

1. Problems of stakeholder theory to the management company10

2. Assessing the Relative Importance of Requests of Different Stakeholders14

References17

Social Responsibility of the Firm

Introduction

The company is the institution or operator who makes decisions about the use of factors of production to obtain the goods and services offered in the market. Productive activity is the transformation of intermediate goods (raw materials and products semi) final goods with production factors (mainly labor and capital).

Today, transparency and communication between company and stakeholders taken into account and as such important tools for good management and those relating to costs, marketing and loss accounts. Companies are paying increasing attention to issues like climate change impacts in the business, working conditions of employees, or respect for human rights, but CSR has not only taken into account in the core business but at all stages of the supply chain. In a recent article, Journal of Business Ethics examines codes of conduct adopted by the suppliers of the companies within the FTSE 100 stock index, emphasizing the importance of the inclusion of CSR criteria in the early stages of the chain supply. Although Social Responsibility is becoming more and more important, "44% of the companies analyzed by incorporating Journal of Business Ethics-ethical purchasing criteria providers remain the forgotten ones when it reaches the friendly criteria and where there , are often designed only to protect their working conditions, while protecting the environment in supplier plants and economic issues affecting suppliers receive less attention.

Relationship with suppliers and competitors

Maintain fair business dealings and fair with our suppliers and partners. Aspire to build business relationships durable without discrimination and without illusion A market or segment market will not be attractive when suppliers be very well organized union, have strong resources and may impose price and conditions order size The situation will be further complicated if the inputs son claves they provide are key for us, no de substitutes or are few and high cost.

Managing relationships between the companies is complex. It is not enough simply to bring agreement on action plans should continue to promote change. Wheel source demonstrates the complexity of the areas that need to be considered at the same time.

Things and relationships inside a company. Relationship management should not start with changing the way the company manages its suppliers. Start with a way of signing a buyer interacts with itself (internally). It is important that relationships are aligned internally before the attempt was made to change, improve or redirect the existing relationship between the companies.

Building a business model. There must be a business benefit to redirect the participatory approaches. Companies (both buyers and suppliers) to think it is clear that these benefits and, if the cost of obtaining them is higher than real ...