Due to a dynamic business environment organisations must implement strategies to effectively manage changes caused by a number of specific issues. These issues may include:
Corporate Social Responsibility involves managing organisational processes in order to produce an overall positive impact on the community.
It is an important aspect of Corporate Social Responsibility for the organisation to adopt a triple bottom line approach and monitoring changes against this standard. The Triple Bottom Line is the social, economic, and environmental performance of an organisation. The Economic aspect of the triple bottom line involves the areas of profit, maximizing returns for shareholders, cost compared with revenue. The Key Performance Indicators of Net Profit Figures and Percentage of the Market Share can measure this. The Environmental Aspect of the Triple Bottom Line focuses on the impact that the organisation has on the environment, which can be evaluated using the Key Performance Indicator of Level of Wastage. The Social aspect of the Triple Bottom Line involves the organisation’s impact on society and enhancing the wellbeing of society either directly or indirectly. This can be measured by the Results of Staff Satisfaction Surveys and the Results of Customer Satisfaction Surveys.
Ecological Sustainability is an area of Corporate Social Responsibility. It involves ensuring that economic growth meets the needs of the present population without endangering the ability of future generations to meet their needs. It balances the pursuit of profit with environmental concerns.
Business Ethics refers to the application of moral standards to organisational behaviour. Managers should encourage standards of honesty and integrity and expect ethical behaviour from all employees towards other stakeholders.
The Organisation’s Corporate Code of Conduct should guide an organisation’s moral standards. A Code of Conduct is a set of ethical standards for managers and employees to abide by.
Globalisation refers to the process in which an organisation begins to operate within the international market. This typically involves the use of technology and increases the level of international competition. This can require an organisation to make changes to their locations, production, shipping and transport as well as their budgets and costs.
Merger is a combination of two companies to form a new company. An Acquisition, on the other hand, is the purchase of one company by another with no new company being formed. In this event it may be necessary for the organisations to change their policies, practices and induction so as to avoid cultural clash of the employees of the newly formed organisations.
Technological Developments refer to the constant changes and improvements in technology that are accessible by organisations. Employees need to acquire new skills through training and development or may need to manage employees who are made redundant due to the introduction of new technology
Legislative Compliance refers to an organisation ensuring that their activities and operations abide by the current laws of which they are within their jurisdiction. The creation of new laws or new interpretations of laws may require organisations to alter their practices so as that they comply with the current laws.
Privatisation refers to the process of transferring a enterprise, business or organisation from the Public Sector into the Private Sector. This involves a change in the legal and Managerial Structure, Corporate Culture, and size of the workplace.
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