How Companies Should Manage Their Stakeholders for Social Responsibility

Human beings have involved themselves in business activities since time immemorial. Notably, the act of producing goods and services to satisfy the needs of human beings consists of a lot of stakeholders such as the authorities, customers and the entire society at large. The stakeholder plays a very crucial role in influencing the success or failure of any business activity. Importantly, business organizations should formulate and implement their policies in a fair and socially responsible manner. 

Part A 

1. Meaning of Social Responsibility 

Social responsibility is a commitment by the business organizations to its immediate population. The act calls for businesses and other organizations to be actively involved in activities that are beneficial to the surrounding society. Notably, social responsibility is required to enhance a good co-relationship between the business organization and the existing ecosystem. 

2. The significance of Business Being Socially Responsible 

All business organizations should be socially responsible. Businesses have a responsibility of taking care of the interests of its stakeholders (Goel & Ramanathan, 2014). Some benefits of practicing social responsibilities include: 

The business would experience improved sales volume due to increased customer turn out. Arguably, social responsibility enables firms to counter competition effectively and enhances its reputation (Doda, 2015). People would feel part and parcel of a business that is closely linked to them. As a result, many customers would prefer to be associated with a company that is socially responsible, and this would increase the profitability of the business organization. 

Social responsibility might be a powerful compensation tool. Businesses may frequently disrupt the surrounding community in a variety of ways. For instance, a company may be releasing liquid waste into the surrounding environment. As this may adversely affect the water sources, the organization may decide to supply the society with clean drinking water. The beneficial returns act as a compensation (Tai & Chuang, 2014). Notably, the compensation is advantageous to business stakeholders. 

3. Opinion on Values-based Management 

Value-best management is not a do-gooder ploy as many people might believe. As much as businesses would strive to ensure that they have maximized their returns regarding profits, all stakeholders are likely to benefit (Simply Strategic Planning, 2017). To maximize profits, a business would operate with by all existing regulations, maximize on the quality of its products and take good care of the workers. In the end, everyone is likely to benefit while the business realizes its set targets. 

PART B 

Questions to be Asked by the Management to Balance Interests of Stakeholders 

Who are the likely people to be affected by any action taken by the organization? 

How are the stakeholders likely to be affected by the activities taken by the business organization? 

How will stakeholders relate with the business when a section of them feels like this privileges have been undermined? 

How can the business incorporate the needs of each stakeholder in its management activities? 

How Managers Misuse Discipline 

Managers form an integral part in the running of business organizations. Managers are usually in charge of disciplinary measures (Townsend & Hutchinson, 2017). However, managers may frequently misuse discipline in various ways as highlighted below: 

Using discipline for motivation. At times, managers may decide to threaten or encourage workers to perform specific duties in a given direction, failure to which they may be subjected to disciplinary actions. This approach implies that the managers may misjudge the workers, without conducting a thorough investigation. 

Managers can also misuse discipline by being partisan. For instance, managers can rely on emotional feelings, attitude, and history in disciplining workers. All employees in a bad relationship with managers are likely to be victimized for no offense at all. 

The primary objective of many businesses is to satisfy the various needs of its stakeholders. To achieve this objective, companies are supposed to be socially responsible. A socially responsible business has an increased chance of excelling as opposed to socially irresponsible business organizations. Managers have a role in ensuring that the organization entirely caters to the interest of every stakeholder and that discipline is not misused. 

References 

Doda, S. (2015). The importance of corporate social responsibility.  Journal of Sociological Research ,  6 (1), 86-91. 

Goel, M., & Ramanathan, M. P. E. (2014). Business ethics and corporate social responsibility–is there a dividing line?  Procedia Economics and Finance ,  11 , 49-59. 

Simply Strategic Planning. (2017). Value-Based Management. Retrieved from http://www.simply-strategic-planning.com/value-based-management.html 

Tai, F. M., & Chuang, S. H. (2014). Corporate social responsibility.  Business ,  6 (03), 117. 

Townsend, K., & Hutchinson, S. (2017). Line managers in industrial relations: Where are we now and where to next?  Journal of Industrial Relations ,  59 (2), 139-152.