Critically evaluate the influence of stakeholders on encouraging Essay

Critically evaluate the influence of stakeholders on encouraging responsible business practices - Essay Example For most businesses, there are values, responsibilities and sustainability issues that are in consideration. As a result of these factors, business management comes up with a variety of ways to ensure responsible business practices as seen in the research study by Olson (2009). The business world has come under criticism that it is to blame for global warming, carbon dioxide emissions, deforestation and pollution. To prove the critics wrong, Cohen (2010) states that the stakeholders having begun a fight to reduce global warming and carbon emissions. The green movement has come in to promote the growth of trees. It also helps in educating the public in regard to emission of carbons. The stakeholders meet annually in Rio de Janeiro for the earth summit. Worldwide campaigns regarding proper business ethics are underway to ensure that businesses reduce pollution and global warming. Apart from the green movement, the stakeholders have stipulated strict rules within their businesses to ens ure that there is proper waste disposal. The stakeholders came together in 1997 to sign the Kyoto protocol so as to control the rate of waste disposal as stated in the research study by Kotler & Lee (2005). Stakeholders are now forming various groups to promote responsible business practices. ... conduct of employees and behaviour expectation, the stakeholders have come up with the code of ethics through a voluntary statement that commits the business entity to its values, beliefs and actions together with setting appropriate behaviour for employees. These codes of ethics have become increasingly common in most organizations, which most stakeholders promote since they ensure responsibility in carrying on their business activities. The codes of ethics are vital than the legal requirements of a business since the code of ethics addresses the need to guide individuals and develop a workplace which has considerable ethics. Responsible business ethics are presented by stakeholders through a statement of rules, a statement of core values and statement dealing with corporate philosophy. To ensure business responsibility, the code of ethics promotes respect for individuals. Respect of individual entails speaking to customers with exceptional terms even when the customer is hostile, t he employee should remain respectful. Fair treatment is also in the code of ethics since the employees do not have to undermine other employees on grounds of sex, gender, age or race. Employees should treat all customers and individuals in the same way. Honesty is vital in every business to ensure that there are no losses arising from dishonest employees. According to Horrigan (2010) the stakeholders especially the management ensure that there are rules and guidelines to promote honesty within the businesses. Through the code of ethics, integrity gets incorporated in the running of the business. Integrity is necessary when dealing with many customers who require fast services since when dealing with many customers there is a lot of money flowing, and employees may face the integrity

What are the problems of Porters Diamond when applied to an Essay

What are the problems of Porters Diamond when applied to an International Business - Essay Example Several problems arise while applying this theory to international businesses. But, before analyzing the problems that are being faced in case of applying Porter Diamond theory, it is necessary provide a brief but clear about this theory. Porter proposed the well-known Diamond Model to assess the level of competitiveness of a nation in the sphere of international business. The thing worth noting in this model is that, the diamond model actually represented quite a different paradigm than what were found in the earlier theories. Smith’s theory of â€Å"Absolute advantage† (Smith, 1776, p. 11) or the â€Å"comparative advantage† theory of Ricardo (Ricardo, 1817, p. 75) put their focus on factors of production of each of the nations – land, labor, capital and natural resources. According to Smith, it’s the total output that determines a nation’s total wealth. Ricardo, on the other hand, argued that instead of productivity of the factors of production, the opportunity cost of the factors determines the advantage that a country enjoys over the other in international business. In 1990, Porter pointed towards a problem regarding the applicability of these two theories in later twent ieth century. When the theories of Adam Smith and Ricardo were proposed in eighteenth and nineteenth century, respectively, only low level of skills were necessary to stand in international competition. During those periods, the principal sources of competitive advantage were natural resources and factors of production. The problem with these theories, as detected by Porter, was that the application of these theories in the modern technologically advanced age of late twentieth century seems to give rise to a number of complicacies. Over the years, technological innovations have taken place in an increasing amount and along with it globalization has also taken place in the markets. As a result, the