Tuesday, October 11, 2005

Business socially responsible

                                
Following the  global trend, firms has been changing in Chile the way they face   its internal clients, its consumers and society. This change is explained by a variety of factors. Lets take for instance workers ‘s abilities .In the past century, most of  his  abilities were based on physical strength, discipline and dependency .However ,the twenty one century‘ s worker  abilities endowment,  means a greater autonomy and  self confidence to carry out innovative productive process to deal with the complex phenomenon of  the new information technology applied on business strategic decisions.   On the other hand, reengineering by itself ,is not enough to cope with complex issues such as the organizational values. From the internal point of view, there are new challenges for organizations whose characteristics are a greater horizontality and a higher relational component generating incentives to include  social and private values into the management decisions criteria.-.  
The old paradigm of  Taylor ‘s firms  based on its own profit goal as a matter of reducing cost is  moving away ,  to make room for a  new vision:  The business social responsibility (Corporate Management) .It implies  business management  more linked to transparency, communication, and accountability. This is a new business ethics, which   impact positively on  profits result, just as the traditional  cost reducing approach.-
From the external point of view, the firm is increasingly integrating itself  in a series of  different network .Input Suppliers, services suppliers ,Outsourcing suppliers, Private Banks ,environmental organizations, financial markets , regulatory agencies ,customers needs, government organisms and the like;  shape the way the firm   moves on over competition forces to get profit . It is not just the firm alone facing competition, it is the network competition as a whole. Any wrong doing will affect assets prices and economic value, some times with a devastating effect. Therefore, business failure involves  a broader spectrum of actors, including  not only banks, and owners , but consulting firms, community  needs.-
This new scenario force the firm to identify common values within these networks, otherwise there is no way to get trough to get higher profit.. The markets is watching closely for opportunities, such that business must stay where those opportunities are. Common values reduces the transaction cost for doing business, and get firms and its networks partners, closer to each other allowing more cooperation. Business social responsibility is like a bridge to reach out   those new opportunities.-
From the ethical point of view, this transformation is above the widely known “dualistic ethics approach ”, which means that morality of each business act, is more important and it is before  than the  financial results. The business social responsibility may be an effort to morally justify the legitimacy of profit.  
A different approach ,and confronting the “justification issues”, is related to  the “implementation  issue” . This focus  imply the verification of empirical behaviour and its implications for a community, as a reference to justify its ethical value. Business ethics is more related to real behaviour. Maximization is strongly connected with optimization of resources, such as the environment, and entrepreneurships . Considering these approach, Business social responsibility would mean  the  new business ethic, as long as the community as a whole gives value to it , which  it seems to be the case. More private firms are  trying  to get  considered as “Socially Responsible”.-

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