The chosen article talks about the benefits of the initiatives of social responsibility in promoting ethical relations with the various stakeholders to enhance the overall performance of an organization, as well as generating other benefits from various perspectives. Most organizations benefit directly or indirectly from practicing the aspects of social responsibility. Previous research has also proven the immense benefits of social responsibility from organizations that have implemented such programs and policies. These benefits include: improved efficiency in the operations of the company, improved process of decision making, high levels of commitment from the employees, delivery of products of high quality, improved financial performance, and increased loyalty and trust of the clients towards the company. The companies that implement these policies enjoy the benefits of having an excellent reputation for integrity, trust and quality. These attributes contribute to the success of the company as well as improved financial outputs. However, some organizations view these programs to be costly and yet to not directly benefit the company but the society instead.
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The article also describes the various structures and components that add up to effective program of social responsibility, and resources which can be invested in order to achieve the benefits for the company and its stakeholders.
The key learning points stressed in the article are the importance and application of the various aspects of social responsibility in yielding benefits to the company. These attributes include trust which is a unifying factor for various organizations. It comes out as a source of motivation, efficiency and competency. Customer satisfaction and investor loyalty are some of the factors that determine the success or achievement of a company’s goals. This enhances the relationships with the stakeholders with resultant respect and a respectable reputation of the company, as well as improved service delivery. Commitment and loyalty from the employees also stand out in supporting the objectives of the company. The result of improved financial output in terms of profits is also a benefit of social responsibility alongside valuing the employees and building trust and loyalty with clients and stakeholders.
The article addresses the benefits of social responsibility as highlighted in the lecture notes.
Businesses focus on fulfilling different levels of social responsibility, which include economic, legal, ethical and philanthropic responsibilities involving the stakeholders, and ultimately results into improved performance benefits.
A company must ensure distribution of information to the stakeholders about the firm’s reputation and financial performance, as well as attracting them to their stock.
Companies must continuously develop and provide products that satisfy the needs of customers and keep pacing with their changing.
An organization also needs to provide goodwill, respect and a conducive working environment of its employees in order to enhance their loyalty and support the objectives of the organization.
Benefits of social responsibility include improved trust and loyalty with the stakeholders and investors, high customer satisfaction, a stronger commitment by the employees, and improved financial performance in terms of greater profits.
“Trust is the glue that holds organizational relationships together” thus focusing on productivity, efficiency and increased profits. Stephen Covey indicates that when trust is low, there is a result of decay of the organization and deterioration of relationships.
When a company breaches the loyalty and commitment of the employees, there exists a compromise in the quality and service delivery as well as a decrease in efficiency.
Building and establishing an excellent reputation from exercising social responsibility enables an organization to gain the outcome of business benefits. These programs of social responsibility and expected benefits are explained in this article. In a system or enterprise that has a social responsibility, employees experience high motivation and are more productive as they strive to support the company’s objectives. Improved loyalty and trust to investors and stakeholders also enhance the image of the organization to the general public. Social responsibility also ensures that an organization develops new products and services to satisfy the changing needs of the customers. When the customer is satisfied, there is a reduced risk on the damage of reputation of the organization. The benefits of social responsibility vary widely in an organizational setup with the ultimate goal of improved financial performance. Other benefits can vary from low operating costs and increased sales to customer loyalty and satisfaction with the ultimate result of an enhanced brand image and reputation of the company. Employee valuing leads to the ability to retain employees, greater productivity and quality, which result in improved sales as well as customer loyalty. Improved relationships with investors and stakeholders also result into a stable stock market, easy access to capital and a reduced regulatory oversight that also contributes to the outstanding reputation and image of the organization. Social responsibility also serves to benefit the community as its members enjoy the benefits of product safety, decreased liability and quality services. It is, therefore, clear that the reputation of a company is a valuable attribute that can only be achieved by implementing programs of social responsibility. These benefits are not only limited to monetary value but can also enhance reputation of an organization through philanthropic actions, education programs and trainings, art organizations, supporting charitable causes as well as other initiatives in the community around the business enterprise. These policies can ensure the protection of a company’s brand and intellectual property, failure of which can result in negative media attention and protests thus destroying the reputation of an organization.
Building trust within an organization can be applicable in order to enhance the organizational relationships, reduce conflicts, inefficiency and playing politics within the organization. This aspect, however, takes time and patience but can be achieved through trainings in order to improve the competency of people to the right level of trust. For example, in the case of Bank of Baroda, building trust is highly essential because of the sensitive nature of the operations within the bank. Trust goes hand in hand with employee commitment in order to ensure that employees deliver the highest quality standards in terms of products and services. The bank’s management needs to provide goodwill and respect to the employees to enhance their loyalty. Customer satisfaction is also paramount in the bank so as to achieve the set targets of financial outputs and profits. The bank can ensure that its service is up to standards with the changing financial needs of their clients as well as strive to maintain a long term relationship with the customers. The bank can also work to improve the loyalty of investors and stakeholders in order to increase the purchase of stocks and shares. This shields the bank from vagaries of the stock market and ensures stability and flexibility in the long term strategic planning. here are many benefits in implementing programs of social responsibility, which include greater employee commitment, trust and loyalty of investors and stakeholders, improved customer satisfaction, improved decision making processes and improved financial performance. Such programs are essential in determining the success of a company and should be adopted if the company is to get return on investments, growth in sales and return on assets. The achievement of significant financial performance in terms of profits ensures that an organization can continue to be socially responsible and develop an organization based on positive ethics. Such organizations can report an achievement in customer satisfaction, valuing of the employees, and building trust and loyalty with the investors and stakeholders. Organizations also need to learn that failure of adopting programs of social responsibility can lead to a drop in economic performance. Countries that practice social responsibility have an enhanced environment of productivity since they have put in place the ethical systems that reduce the costs of transactions, and improve the efficiency of competitive processes.