LACK OF CSR, A DISADVANTAGE OF GLOBALISATION?

Over the past century,advances in technology especially communication and transportation,methods of conducting business, and production chains have undergone significant changes. Globalisation has made possible the interchange of ideas,views,products and also manufacturing. Production chains including the fashion industry have been heavily driven by consumer demand thereby most major retail companies to go over-seas, opting for global sourcing other than domestic production.These companies whose sole goal is maximisation of profit and efficiency in the supply chain.The developing countries are happy to receive(in some cases invite them) these foreign businesses that come to take advantage of cheap labor and material resources, as such investments could lead to development in the country and also increase GDP.However, blindness towards other factors other than profit has caused some controversial problems.
Corporate Social Responsibility and company ethics are key players in building a company's brand image and giving a reason for consumers to trust and have confidence in a particular brand.As the reputation of a business increase,it reduces its risks.Businesses have a responsibility to the society,employees,consumers,and even the environment.Primark is an example of  a company that had its profit plunged after dealing with child labor issues and other irresponsible behaviours,a lack in its CSR.

Primark is a big retail chain constituting of over 200 stores across Ireland,the UK,Spain,Netherlands,Germany,Belgium, and Portugal.A clear example of Globalisation.Its products includes clothing's and footwear for children,men and women, accessories, lingerie,and homeward,It employs approximately 36,000 people. Primark is well known for selling clothes at the budget end of the market,sourcing cheaply from 600 major suppliers in 16 countries. Its success is based on, most evidently,only making them in the most popular sizes, and buying stock in huge bulks and varieties.Also, to maintain low prices, Primark tries to keep sale volume high, retain margins low,advertising minimal, produce in a lean efficient manner.However, factories supplying Primark in Bangledash have been surveyed to have precarious working conditions and workers being payed an average of £19.6 monthly,less than half of the living wage of around £44.82.Also, the are subjected to working unto 80hours a week which is even against the Bangledashi law.More than 60% of the women surveyed described how they were subjected to obscene and sexually suggestive language in the work place..http://www.telegraph.co.uk/finance/newsbysector/retailandconsumer/10026307/Bangladesh-factory-collapse-Primark-to-pay-compensation.html

Many reports have shown a decline in company's social responsibilities and unethical practices increase in the beginning of the 21st century as this is not just a problem only for Primark.Gap,an American mass market retailer was also involved in a class action lawsuit filed by sweatshop workers in Saipan.The allegations included ''off the clock'' hours,where workers were not paid for working overtime in unsafe working conditions.

Globalisation is meant to boost the local economy and improve the standard of living of people,has lacked in proper controls on manufacturing thereby increasing the rate of poverty and making the poor people poorer.Notwithstanding,everybody would not benefit directly from Globalisation.

CSR POLICIES

Corporate social responsibility is a form of corporate self-regulation integrated into a business model.This policy serves as a built-in mechanism whereby a business monitors and ensures it's active compliance with the law, ethnical standards, international behaviours, and even it's environment.

It is also a process with the aim to embrace responsibility for the company's actions and encourage a positive impact through it's activities on the environment, consumers, employees, communities, stakeholders, and all other members of the public who may also be considered as stakeholders.

The benefits of the CSR depends on the nature of the business or enterprise.This is because the definition and application of this policy varies in every business organisation.

Using easyJet as an example, easyjet is a British airline carrier based at London Luton Airport,operating on over 600 routes across more than 30 countries with over 200 Airbus aircraft.Its corporate social responsibility lies with the safety of their customer's, connection with their staff, and the environment. Their environment policy is governed by these promises:

• To be efficient in the air
• To be efficient on ground
• To lead in shaping a greener future for aviation, for example, shaping aircraft design e.g. the ecojet
• Easyjet high efficiency=lower emission=lower fares.

As a way of going greener,they are said to emit 22% less carbon per passenger km than traditional airlines flying the same routes and aircrafts.
Easyjet sees striving for excellence in environmental, social, and ethnical activities as a key behaviour for a successful and sustainable business.It is positive for their share holders, staff, and suppliers.(easyjet.com).

DEMOGRAPHIC CHANGES

When developing a business,future changes and how the external environment could affect the business should be taken into consideration and strategies put in a place.These external factors could be political,economic,socio-cultural,technological,legal or even the environment.Although there is not much way to change these factors but certain strategies can be developed to enable a business or organisation adapt and strive.

Demographic changes have affected industries today in so many ways.Population's age structure is adjusting to changes in living conditions.People are living longer,becoming more diverse, and even in some cases,much more health conscious.Consequently,there is need for businesses to adopt these changes in their products and services.Demographic change is a global issue.

Saga Group Limited,is a UK company that offers different products and services exclusively for people over 50yrs.These includes insurance,home care,holidays, and monthly best selling magazines in the UK. This company must have appreciated the demographic changes in its environment. It's executive chairman stated that ''most of all our country is increasingly in need of a longterm strategic plan for older people- above and beyond raising the retirement age- lest we risk creating a generation of people who are too young to claim a pension and too old to work''.
It has an estimated 2.7million customers and this company provides 4,000 jobs.If floated or sold on the stock market,it's price is estimated to be about £3billion. There focus is to deliver excellence to every customer.

PLACING ORGANISATIONS IN CONTEXT

When developing business plans and performance,factors that might influence decisions and actions needs to be considered.These factors are the micro and macro factors.Micro factors which are the things within the industry or business, includes finance,people,labour.The ability to cope with these factors will determine the level of influence affecting prices,costs and the ability to meet the needs of the customers.The five recognised forces that affect these aspect of business are-Direct competition,Bargaining power of suppliers,Bargaining power of customers,Threat of new entrants and Threat of subtitute products.These five forces helps us analyse the micro environment.

Macro factor are things that affect all business,they could be the government,taxes,economy or even currency or exchange rates.The government plays an important role in the macro factor affecting businesses.Privatisation which is the transfer of ownership of property or businesses from a public sector to a privately owned entity.It involves handing over control of public funds functions to private companies or organisations.

This act by the government could be an advantage as it promotes the development of private organisations by leveling the play field and ending subsidised competition from within.

ORGANISATIONAL DESIGN AND STRUCTURE

The structure of an organisation is key to its success,however,this depends on the size of the organisation.Structure makes possible the application of the process of management. According to Drucker,it is the correct design of structure that is of most significance in determining organisational performance.Structure in an organisation provides the framework for the activities of the organisation and must harmonise with its goals and objectives.It defines tasks and responsibilities,relationships and work roles,and channels of communication.It serves as a means of improving performance by monitoring the activities of the organisation,coordination,social satisfaction of staff and clear defined roles and objectives.

According to Mintzberg,formal structure is the documented, official relationships amongst members of the organisation and an informal relationship as the unofficial relationship within the workgroup.Lack of clear and defined roles causes confusion who is to do what task in a routine and formalisation of roles enables organisations to reduce,predict and control variability.

Burns and Stalker (1961) proposed a linking relationship between formal structure and organisational performance,arguing that organisations with organic or loosely coupled networks are better adapted to dynamic environment.However,organisations that adapted to bureaucracy(Weber),which means clearly allocating specific roles and responsibilities within a defined hierarchy were viewed as more suitable for static environments.

An organically structured organisation is a flexible network that exists dependently and takes into consideration the needs of their staff.For an organisation to be organic,workers and staff have an equal level of participation and communication is in a free form.Organic organisations thrives on the power of personalities and relationships,lack of rigid procedures and communication,and can easily adapt to its environment or challenge.It is said to be the the most adaptive form of organisation.

An example of such organisation could be said to be Google.Google is the biggest internet search engine, with a turn over of more than $40m.Google has been keeping the pipeline of innovation by tapping its employees and letting ideas percolate up.It is a diversified organisation which means that it has chosen to serve new types of customers in unfamiliar markets and with opposition of new incumbent competitions,all of which tend to increase total risk for the company and placing its core resources under restrain.The companies strategy is to have none and it encourages free thinking and always looks for new ways to empower the members of staff.

ORGANISATIONAL THEORIES

Last week was about organisational structures and its effects on organisational performance.I say it depends on the size of the organisation.Structure in an organisation provides the framework for activities of the organisation and must harmonise with its goals and objectives.According to Drucker,it is the correct design of structure that is of most significance in determining organisational performance.

This week was about management theories.It was a very interesting topic because i got to know and see    different theories from different people and how it applies to business today.It is important because without theories of some sort,it would be difficult to understand what is happening in our world today and how different theories applied to different organisations.

One of the theories i found interesting was that of Mary Parker Follet(1868-1933) whose idea was the self-governing principle that would enhance growth of individuals and the group they belonged to.She believed that strict division of labour devalued human creativity although the mechanical and human side should not be seperated but bounded together.She also saw the need of replacing bureaucratic organisations with networks in which people themselves analysed their problems and implemented their solutions(Boddy p51)

Unlike Max Weber who believed in alocating specific rules and responsibilities to everyone.Rules and regulations had to be adhered to.Although this theory has its disadvantages as there is minimal employee discretion and administrative procedures were not flexible,it worked well in government departments and large public organisations.The right to give instruction was based on a persons position in the hierarchy(centralised system).
Although this theory was written a very long time ago,i still see its application in certain organisations i know like the Nigerian Police Force(NPF).The Nigerian police force is under a general operational and administrational control of an Inspector General(IGP) who is appointed by the president of Nigeria and is responsible for maintaining law and order in the country.The inspector general is the head of each department in the force and all commissioners in each state in the country reports to him and also the deputies in each state reports them.Administrative procedures are not flexible,no encouragement to develop free thinking as a member of the police force as everyone has at every stage has someone to report to and has to follow rules and regulations.Every member of the force has the mindset of ''your job" and "my job".

         

Organisations And Management

This week,i was amazed by all i got to learn about Organisations,its features,structures and meaning,Management and Entrepreneurs.
An organisation is people working with resources available to achieve a particular goal.Charles Barnard  also defined organisation as a system of cooperative human activities.The structure of an organisation creates an effective impact on the performance of such organisation.I also understood that for  the proper function of an organisation,certain roles and responsibilities has to be taken up by people.And managing people effectively,creating good interaction and communication between the people in an organisation is also an important factor.
Management is the organisation an coordination of the activities of an enterprise,guided by certain policies and rules to achieve defined objectives.Mary Parker Follet(1868-1993) defined management as the art of getting things done through people.Management is result oriented,creative,innovative and it is a process.A good manager has to be a leader,spokes person,figurehead,he has to serve as a liason between staff and be able to monitor activities in the organisation.
Also this week,i had a presentation with my group mates.It had to be on an organisation and we chose TESCO.Its one of the worlds largest retailers and operates in 13countries.It deals on fresh groceries,home appliances,entertainment.I know about its organisational structure,how it adds value and its goal.
I also got to know what makes a successful entrepreneur and what drives an motivates them.Some of these qualities and skills i see in me and they are,learning from mistakes,confidence,drive,strong business minded and eager to learn from professionals.I want to be able to face stronger challenges,have power and above all be financially independent......(yessss thats very necessary too)