How to Improve the Business Environment

The concept of social legitimacy is based on the premise that business relationships between a company and a particular stakeholder will not irresponsibly damage the legitimate interests of other stakeholders. Legitimate is used in a broader sense than legal. It implies an entitlement which is recognized by others as correct.

Justification

Justification means that the action is acceptable to both affected and interested parties. Very often the affected party is being overlooked.

Confidentiality

Despite the need for openness, in some areas, such as customer data, employee data, citizen data and others, confidentiality is crucial. It is a source of added value to these groups.

Sincerity

Sincerity excludes pretending and leads to doing what is right, not only is what dutiful. It covers also honesty, respect for others and adherence to promises.

The importance of the above mentioned pillars is interrelated and changing in different situations. Within the democratic and market reforms in post-totalitarian countries, these pillars themselves are being built / re-built. In the transition and adjustment periods, there may be tensions or even conflicts among individuals pillars. The most problematic relations are between legality, legitimacy and justification. We may assume that the reconstruction of the entire legal system and functioning of courts is at the core of this disharmony.

Responsibility (accountability) is another related concept which needs further specification. In the context of building the national integrity system we are not concerned with the so called causal responsibility which may be characterized as a relation between one event and another when the former causes or helps cause the latter. We should focus on moral (personal or collective) responsibility when ones role is defined by virtue of moral, legal or some other sort of rules. In business ethics debate, a considerable attention has been paid to the problem whether collectives such as nations or formal organizations may bear responsibility. There are some very influential critiques of collective/corporate responsibility arguing that corporations and other formal organizations are at best legal but not moral entities. They can be held legally liable, but only human beings have moral responsibility. Among the main arguments for the existence of corporate responsibilities the following ones can be mentioned: A firm (an organization) is qualitatively different from an individual and other entity such as community or country. Since the organization makes decisions and takes actions, it can be qualified as an actor. Its actions affect people, and these actions can be evaluated from a moral point of view. A company or organization is capable of moral behaviour and, therefore, has a moral responsibility.

The Federal Sentencing Guidelines adopted in the U.S. A. in 1991 represent an important input into this debate and especially in the cultivation of business practices. This model of good corporate citizenship is designed on the basis of compliance approach and stresses the concept of due diligence. It requires companies set up compliance standards to be followed (communicated, trained, enforced sanctioned).

Personal, as well as collective, responsibility requires two conditions: freedom and intention (awareness of the moral character of an action). Basically, responsibility involves three components: the subject who bears responsibility that cannot be completely determined by rules and laws; for what the subject is responsible (the spheres of responsibility); and the authority to whom the subject is accountable. We have to go further and try to evaluate the degree of responsibility or the kind of the ethical challenge involved. It is suggested in the business ethics literature to distinguish between minimal ethical requirements, positive obligations beyond the minimum, and aspirations for ethical ideals. The first degree includes basic ethical norms such as do not kill, not rob, not exploit, etc. Going further means that it is becoming more and more difficult to find consensus than in the first case. Here is a broad space of freedom and inspiration companies (acting with integrity) can use to define their mission, build their culture and reputation.

Learn How to Cultivate Beneficial Employee Relationships in the Small Business Environment

When you’re running a small business, you are required to operate a ‘tight ship’ so as to succeed. You don’t have the slack – in terms of your time or money – that a big corporation enjoys. Granted that, it is important that you correctly identify and address the various components of the small business environment that influence your bottom part line. Employee relationships are a single this kind of component which we talk about right here.

In the small business environment, employee relationships are much more akin to some family than in the large corporate setting. While you may have several departments, your employees typically know every other fairly perfectly, with typical interaction and an awareness of how their own responsibilities impact the entire group. How your employees relate to one particular yet another so will become more essential for a achievement or failure. Cultivating great relationships between employees and departments can supply an efficient answer to a host of difficulties. Let’s see how this performs.

When hiring new employees, it is likely which you assess personality characteristics as nicely as competence factors to aid assure a very good match between them and other employees inside your organization. Candidates using a positive frame of mind, friendly demeanor and who are teamwork oriented possess qualities you appear for in selecting an employee who will improve your business – and your base series.

Once you’ve display screen new employees for characteristics that suit your business objectives, you are ready to begin efforts to cultivate good employee relationships that stand the analyze of time, gratifying each you as well as your employees. The primary employee orientation aids set the stage for success. Within the orientation phase, employees ought to become familiar with the group, departments, responsibilities and resources accessible to assistance them satisfy firm objectives. Problems associated to compensation, for example spend scale, raises, bonuses and the like should also be discussed throughout the orientation phase. This preliminary introduction for your business goes a long way in the direction of nurturing great employee relations.

Adopting an wide open door policy is definitely an excellent next stage. Employees who know they might resolve disputes using the subsequent degree of administration are hence empowered, knowing they are going to be treated pretty. Ironically, employees in an ‘open door’ environment are likely to be judicious in their use of this vehicle of resolution, making each effort to resolve the problem equitably with their peers or operations prior to going to the following degree.

Playing favorites is one particular way through which you are able to sabotage excellent employee relationships. Be sure your administration staff understands the pitfalls with the favorites game.

Competition could be a two-edged sword in establishing and keeping prosperous employee relationships. A competitive mindset is, for the one hand, necessary in order to fulfill deadlines and obtain company objectives. On the other hand, employees ought to not undercut the initiatives of an additional employee as a way to curry favor for themselves. Using the employee orientation venue to convey this idea aids arranged the proper tone, from the beginning.

Pursuing these summary rules will aid you obtain the numerous benefits of excellent employee relationship

Defining the Business Environment – A Thorough Analysis of External and Internal Environment!

Business firms wishing to adopt an open system of management approach, find it difficult to define the business environment. The management has to limit its consideration of the environment, only to those aspects of the outside world which are of major importance to the success of an organization. The concept of business environment is too broad and it would be hopelessly confusing to consider each and every aspect in it. Customers, competitors, government units, suppliers, financial institutions and labor pool are part and parcel of the external environment, and available resources, be it physical or human, behavior, synergy, strengths and weaknesses and distinctive competence determine the nature of the internal environment of a business firm.

Further, you can divide the business environment into two categories, the direct-action environment, that has an immediate effect and influence on the organisation’s decisions, say, government regulations, labor unions, suppliers, customers and competitors. The other category, namely, the indirect environment does not have a direct effect, but nevertheless influence the operations of a firm. These would include factors such as, technological, economical, socio-cultural and political, to name a few.

Each and every organization is bound to form its own strategies to define the scope or network of operations, in a business environment. What is a general environmental factor, may be specific for another. Precisely speaking, a firm has to consider both the macro and micro environments, that affect its life and development. Corporate strategists must be aware of the fundamental features of the current environment to plan accordingly.

SWOT analysis or environmental scanning, is the basic monitoring system, that helps a firm to compile, process and forecast the necessary information gathered from the external environment. This is also helpful in determining the opportunities available for the success of the firm in the market, and gives a clear picture about the threats to be handled. As the business environment is highly dynamic and volatile, it is inevitable for a business organization to visualize and perceive the opportunities and constraints in store for it.

While swot analysis is a tool that helps in scanning the external environment, using the value chain in internal analysis, proves to be an useful approach to determine the organisation’s strength and weaknesses. It is equally important, that a firm must be competent both externally and internally. Adoption of a disintegrated view of the firm helps in diagnosing a company’s key strengths and weaknesses. The value chain is a framework that disintegrates a firm into its strategically relevant activities, to understand the behavior of the company’s cost and potential sources of differentiation.

A firm gains competitive advantage by performing these key internal factors or strategically important activities, in an efficient manner than its competitors. Identifying the primary activities of a firm such as, inbound logistics, operations, outbound logistics, marketing and sales, followed by service denote the distinct activities that are performed to design, produce, market, deliver and support its product. The support activities such as procurement, technology development, human resource management and the infrastructure of the firm should not be overlooked, since they are the ones that are essential throughout the entire chain of operations.