Management Theory And Practices Organizations Obligation

Question: Describe about the Management Theory And Practices for Organizations Obligation. Answer: Social responsibility is the activities that the organization undertakes to facilitate a positive relationship between the organization and its stakeholders. The activities may or may not necessary generate any profits to the organizations. It is also the responsibility or the duty of the company to improve and protect the body welfare and the stakeholders that surround it. Organization must have a good relationship with the stakeholders to avoid disputes arising which may hinder it from achieving its targets (Schermerhorn et al. 2014). The organization do not exist in isolation and therefore, social responsibility looks at the interaction between the organization and its stakeholders. Stakeholders are the people who relate or interact with the team in the process of reaching its set goals or targets. Growth and development of the organization are determined by the interaction with its stakeholders as they indicate its actions, objectives, and policies they make. Active interaction leads to the success of the business while the negative relationship can result in failure of the firm. The business has both internal and external stakeholders. The internal stakeholders include the managers, employees, the board of directors, etc. while the external stakeholders are the consumers, regulators, creditors and the suppliers of the company (Carroll, 2015, pp. 87-96). Social responsibility enhances the business ethics and avoidance of corruption. Business ethics stipulates that business should determine what is good and not good to help in dealing with the stakeholders to ensure that their needs are satisfied. The company should avoid shady deals or engage in illegals business activities to achieve its goals. The managers in the strive to ensure that the organization is competitive they should make sure that they work as prescribed by the laws of business. The responsibility of the company may include its obligation or duties, human reaction, social responsiveness and its proper behavior (ArAs, 2016). Policymaking in the organization by the management should ensure that they make policies which will create harmony between the organization and its stakeholder. Some the things the team should put into consideration are; Ensure equity and transparency when dealing with the stakeholders Protect the rights of the consumers who are the market of the body products. Carry businesses by the accepted market practices in the industry. Ensure that they observe the health and the safety of all the stakeholders. Facilitate Legal and Ethical relationships with the consumers. Have policies which will enhance Community development. Environmental protection and welfare Observe code of ethics which are fair to all parties. Observe Government relations when setting up the business policies. The ethical decision must be made by the organization to ensure that the stakeholder's needs are satisfied and also the organization meets its set goals. Theories have been developed to help the organizations in making decisions (Cornelissen, 2014). They include; The social responsibility curve It compares the objectives of the business and the social goals. These are the objectives of the owners of the business and the objectives of the stakeholders. To explain this adequately, it uses two variables which are egoism and altruism. Egoism states that represents the owners of the business and suggests that a right decision is the one that ensures that the organization achieves its targets and becomes profitable at the expense of the stakeholder or through the exploitation of the stakeholders. Altruism, on the other hand, states that a right decision is the one that ensures maximum benefits to the stakeholders at the expense of the owners of the business. The two variable when used in organizations results to conflicts and therefore, the only possible solution was to ensure that any decision made by the group satisfies both the stakeholders and the interests of the organization without exploitation of any party. The legal and ethical matrix This pattern has four quadrants; legal/ethical, legal/unethical, illegal/ethical and illicit/wrong. The most appropriate quadrant is the legal/ethical. It means that for a decision to ensure good relation between the business and the stakeholders must put into account the accepted standards of the interested parties in that environment and also be by the set rules and regulation. The pyramid of corporate social responsibility This theory stipulates that the business objectives are four. They include; Economic goals- the business core business is to ensure that it means its goal and objectives and make profits. Legal objectives- any organization must make decisions which adhere to the set rules and regulations. Ethical goals- business must make a decision by the norms and standards which are accepted by the stakeholders. Philanthropic goals- businesses have to give back to the society through building schools, hospitals, etc. to help the community as a whole. These are acts of charity by the organization. The above theories explain all the ways the business can make the decision that will make it have a productive relationship with the stakeholders. They ensure no disputes can arise among the speaker and business as the interests of each part are out into consideration. According to Andrews (2016). Achieving the social responsibility for any organization is not easy, and it has a lot of challenges (pp. 9-17). They include; Organization participation in social responsibility is very expensive as it requires professionals to check the relationship between the company and its stakeholders. The main aim of the business is to get maximum profits and thus there is an argument against the company looking after the stakeholders as sometimes it may not benefit. To ensure that the relationship among the both parties is right, it requires constant checking which may make the organization not achieve its goals as it may concentrate more on the stakeholders rather that its core business. Perception of the shareholders may lead to conflicts no matter how the business tries to ensure proper relationship among both parties. The management may just be selfish and focus on its goals and assume the stakeholders, and this can result in conflicts. Organizations may find it very had checking among the stakeholders who benefits than the other and it may cause conflicts of interest among the parties. Decision making by the management is a problem as they fear not to collide with the stakeholders and this may cause failure of the business. Stakeholders must be made aware of their rights and duties from the companies, and this may not be possible, and therefore the firms may use a lack of knowledge by the interested parties to oppress. Dealings between the organization and the stakeholders involve many parties, and therefore conflicts must arise no matter the effort to avoid as the parties have different interests. Finally, the group exist and relates to many individuals in the environment. Decisions made must be done carefully to avoid any disputes that may arise from any part. However, any disputes which might arise the management should take fast actions to ensure they are solved. These would ensure that the business continues with the primary objective of making profits and being competitive in the market (Bowen, 2013). References Andrews, N. (2016). 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