Corporate Responsibility in Business

After the crisis emerged, the company needs to establish a crisis communication team first. The team must consist of directors from various departments and high-level executives, especially CEO and crisis management experts. In this team, it is crucial to have a leader who could mobilize resources, make a decision and be responsible for all decisions. Everyone in the team is responsible for a unique issue.

Effective crisis management is crucial in maintaining a healthy organizational culture and maintaining public trust. The way leaders proactively plan for and also respond to a crisis is subject to intense scrutiny by members of the organization and the outside public. Respond to the questions and the posts of at least 2 colleagues.

An external audit examines the opportunities and threats that are available to it within its market and is also the study of other rivals that exist within its environment. It is important to study this when constructing a business plan as it is necessary to know what affects your rivals have on you and the environment you work in as well as the outside factors that affect your environment. An external audit will usually involve carrying out competition and market analysis.

The external analysis provides the company and observers basis to identify threats and opportunities that exist in the outside environment from the company. A basic question to ask is would the threat or opportunity still be there if the company wasn’t and if you can answer that question with a yes answer then you have potential threats and opportunities to consider in the analysis of the company. These items need to evaluate to minimize the threats and to maximize the opportunities. During your analysis you must take a panoramic evaluation of political issues, funding sources, the economy, future trends, and physical environment. These are just some of the areas that you can draw information for making educated decisions for the company.

The external analysis focuses and examines the opportunities and threats that exist in the environment and may be crucial in the decision making about how the business should be set up. In other words the external analysis has ability and intention to investigate the company’s macroeconomic, industrial and competitive conditions in the market.

Crisis management encompasses responding to a negative event that has occurred unexpectedly. In this regard, crisis management requires decisions to be made in a relatively short time frame. In general, there are three elements of a crisis including a threat, surprise and a short time frame for decision making. Dealing with a crisis may be challenging and organizations are required to have a crisis management plan to enable them deal with the effects that unexpected negative events or situations may create. In particular, crisis communication is vital in reassuring the stakeholders and the public of their personal safety as well as the safety of their investment. A crisis can harm a good reputation of an organization and create panic among

Nowadays in the era of economic relations and international trade business ethics plays a very important role. It is of vital importance at any level of activity: corporate, state or international. Questions of corporate social responsibility and business ethics are engaging business more and more - both domestically and internationally (Sims 2006). This

The economist and Nobel laureate Milton Friedman’s article published in The New York Times Magazine in 1970 titled, “The Social Responsibility of Business Is to Increase Its Profits.” (NYTimes, 1970) set tone for companies all across the country and all over the world. Companies start to turn in profits that shattered all charts and stock markets. Beginning in 1960s to 1990s, Capitalism had won the cold war with its arch rival the Soviet Union had withered away into the oblivion and the companies that turned focused in profits could not have been more right, or so everybody thought. With the latest economic recession in 2008, everything came tumbling down on the front door of once Wall Street and brought the world economy to halt. Today the social responsibility of Business is defined by economic development, the environment investment and human rights.

Is the deception of consumers worth making a profit? The Ford Pinto, popular car of the 1970s, made a profit off of a vehicle that endangered the lives of hundreds of people. In his essay “Pinto Madness” Mark Dowie, author and Pulitzer Prize nominee, exposed the unethical decisions made by Ford Motor Company. When it came to their customer’s safety and profit for the company, Ford made a decision that led to consequences their customers had to pay the price for. Should the business be held accountable for these actions? In his essay “The Social Responsibility of Business Is to Increase Its Profit” Milton Friedman, powerful economist, discusses what a business should prioritize in the economic system. Friedman declares what a business is responsible for and the guidelines they must follow. Due to Friedman’s view, he would not have condoned the actions and decisions that the executives at Ford Motor Company took.

The first set of crisis communication best practices, pre-crisis, focuses on prevention—the act of “seeking to reduce known risks that could lead to a crisis”—and preparation—the act of creating training, and testing a crisis management plan and crisis management team (Coombs, 2007). Crisis management plans (CMP) are reference tools (i.e. key contacts information, crisis step reminders, forms, etc.) that save crisis management teams (CMT)—pre-selected members of an organization—time during a crisis. Once created, CMPs enable an organization to react quicker and more efficiently to a crisis. Common members of an organization’s CMT include, but are not limited to: an organization’s CEO, Chief of Public Relations, Vice President, Social Media Manager, legal counsel and Senior Manager in charge of the area involved in the crisis. Collectively, these members will work together to enact the organization’s crisis management plan “in order to facilitate an effective organizational response” (Coombs, 2007a). The members will be charged with gathering facts; identifying specific key publics; preparing and creating key messages (including self-efficacy messages if necessary), preparing and creating media statements and media contact logs; designating and training spokesperson(s); selecting and designating proper channels of

The stakeholders within PharmaCARE are all the individuals and groups that are affected by the company’s decisions. The employees that may suffer from the lack of environmental safety or abuse of the production location allowing the organization to payless to workers for their hard work. The consumers of the organization’s products that may purchase bad goods that cause a negative reaction. The investors and stockholders who will lose any monetary investment due to the company’s loss of profits which would be an effect of inappropriate management of

Corporate social responsibility is no more characterized by the amount of cash an organization adds to charities, yet by its general inclusion in exercises that enhance the nature of individuals ' lives. Corporate Responsibility has come up as a huge topic in the worldwide business group and is continuously turning into a standard movement. There is mounting response of the earth shattering impact the exercises of the private segment have on the workforce, demographic, the general public, nature,

Crisis communication can be described as a special area within communication studies that to deals with the reputation of individuals and the organization. It is always a move that intend to protect the reputation of an organization as well as maintaining its public image. There are different factors that might try to tarnish the image of an organization, for example government investigations, media inquiry or criminal attack.

With the development of economy and society, large corporations not only have responsible for make profit to their shareholders, but also taking environmentally responsible and undertaking corresponding social responsibilities as well as other stakeholders. This point of view could be involve in the corporate social responsibility (King and Lawley, 2013). Additionally, the definition of stakeholders are individuals or groups which affected by an organization and have an interest in its activities (Freeman, 1984). Moreover, Starik (1994) stated that those who potentially have impact on an organization may also is a stakeholder. However, according to Lynch (2006) argued that when a corporation involve many stakeholders, they

ITC Ltd has worked exremly hard to start several procedures that have led to compliance of the standards of social responsibility. ITC’s dealings within the tobacco industry have contributed to the increase in company revenues and the company has worked towards following the triple bottom line and giving back to society. Most, businesses pay little attention to their social responsibilities and make it part of their overall strategy, instead they concentrate more on financial benefits from the sales of products. Consequently, managing business in a socially responsive manner contributes to the best combination of business success and societal acceptance, trust and loyalty. Giving back to the community in ways that benefits only society such as planting trees to curb pollution and help the environment or using biodegradable materials in packaging can reap financial benefits to a company by building loyalty among the community. The notion of business ethics and corporate social responsibility is becoming a defining concept in all industries worldwide. ITC believes in the Triple Bottom Line philosophy where the performance and perception of a corporation should not be judged only on the basis of its financial statements or revenues, but its environmental and social performance as well. ITC is one of the only companies in the world to be carbon positive, water positive, and conduct solid waste recycling. ITC provides water to areas where water is very