Why Do Companies Are An Integral Part Of A Society
Organisations are an integral part of any society. They use various resources from the society to carry out their operations and make financial profits. They have a responsibility toward the society and all the stakeholders involved. Milton’s statement is definitely wrong. Companies need to understand their responsibilities towards the society and public at the large. Nowadays consumers are very much aware and concerned about the practices that the firms use in their day to day operations. People want to associate with those organisations which are concerned about the environment and society and use sustainable practices. Lots of companies have understood this fact and are using it to create a competitive advantage for themselves. Consumers
…show more content…
There are various stakeholders for whom a firm holds certain responsibilities like investors, employees, customers, environment etc. They have responsibilities towards investors as these are the people who invest in the company and provide financial support. Employees are responsible for increasing production and hence profits. Companies need to take care of their human resources. Customers are also most important stakeholders. They are the one who buys the products and services and contributes to the revenue generation. Companies have certain obligations toward government as well. They need to follow certain conventions, regulations, laws and pay taxes. Businesses are responsible for the local community as well in which they operate. Activities carried out might create hardships for the customers. The environment is one more issue about which companies must be very much concerned. They need to make sure that their activities cause minimum harm to the environment and they compensate for their practices. Finally, companies can contribute to the general public through philanthropic activities, (Akrani, …show more content…
Corporates can create a competitive advantage for their business by social responsibility. For Stonyfield mission is to create a healthy product for healthy people with a healthy planet. Although their main work was a farming school but their organic yogurt was so success that it became their mainstream product. Even 30 years later they have maintained their course of action. They have a presence across the globe that too without the use of any toxic and harmful ingredient. They have a huge network of suppliers with thousands of cows and 200K acre land. They have made their supply chain leaner and efficient resulting in cost saving. They carry out training for farmers and other people to guide them about sustainable practices, (Food, 2013).
Lots of other companies are also involved in socially responsible practices which enhance brand awareness, company reputation and create competitive advantage.
• Nike uses sustainable designs for their products along with a making app which discloses sustainability data to all.
• Coca-Cola has invested in water management and enhanced efficiency of usage of water by 20%
• Ford Motor has laid out the prerequisites for its supplier to align supply chain with environmental and societal concerns, (Confino, 2014).
With increasing awareness among the public, only those companies will be able to grow who will embrace sustainable practices.
There are various stakeholders for whom a firm holds certain responsibilities like investors, employees, customers, environment etc. They have responsibilities towards investors as these are the people who invest in the company and provide financial support. Employees are responsible for increasing production and hence profits. Companies need to take care of their human resources. Customers are also most important stakeholders. They are the one who buys the products and services and contributes to the revenue generation. Companies have certain obligations toward government as well. They need to follow certain conventions, regulations, laws and pay taxes. Businesses are responsible for the local community as well in which they operate. Activities carried out might create hardships for the customers. The environment is one more issue about which companies must be very much concerned. They need to make sure that their activities cause minimum harm to the environment and they compensate for their practices. Finally, companies can contribute to the general public through philanthropic activities, (Akrani, …show more content…
Corporates can create a competitive advantage for their business by social responsibility. For Stonyfield mission is to create a healthy product for healthy people with a healthy planet. Although their main work was a farming school but their organic yogurt was so success that it became their mainstream product. Even 30 years later they have maintained their course of action. They have a presence across the globe that too without the use of any toxic and harmful ingredient. They have a huge network of suppliers with thousands of cows and 200K acre land. They have made their supply chain leaner and efficient resulting in cost saving. They carry out training for farmers and other people to guide them about sustainable practices, (Food, 2013).
Lots of other companies are also involved in socially responsible practices which enhance brand awareness, company reputation and create competitive advantage.
• Nike uses sustainable designs for their products along with a making app which discloses sustainability data to all.
• Coca-Cola has invested in water management and enhanced efficiency of usage of water by 20%
• Ford Motor has laid out the prerequisites for its supplier to align supply chain with environmental and societal concerns, (Confino, 2014).
With increasing awareness among the public, only those companies will be able to grow who will embrace sustainable practices.