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”.-