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How might a business benefit when an operations manager acts in an ethically and socially responsible manner? Support your answer with relevant examples - HSC - SSCE Business Studies - Question 21 - 2012 - Paper 1
Question 21
How might a business benefit when an operations manager acts in an ethically and socially responsible manner? Support your answer with relevant examples. Why might ... show full transcript
Worked Solution & Example Answer:How might a business benefit when an operations manager acts in an ethically and socially responsible manner? Support your answer with relevant examples - HSC - SSCE Business Studies - Question 21 - 2012 - Paper 1
Step 1
How might a business benefit when an operations manager acts in an ethically and socially responsible manner?
Answer
When an operations manager acts in an ethically and socially responsible manner, a business can benefit in numerous ways:
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Enhanced Reputation: Ethical behavior fosters trust among stakeholders. For example, a company known for sustainable practices attracts more customers who value corporate social responsibility (CSR).
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Employee Satisfaction and Retention: When employees see their company acting responsibly, they feel proud to work there. This can reduce turnover rates, leading to savings on recruitment and training costs.
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Attracting Investors: Investors are increasingly looking for companies with strong ethical practices. A business that prioritizes social responsibility could attract investment, which can contribute to growth and expansion.
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Risk Management: By engaging in socially responsible practices, businesses can mitigate risks related to regulatory issues and negative public perception. For example, a factory that prioritizes worker safety and environmental standards is less likely to face legal challenges or public backlash.
These benefits create a positive feedback loop, reinforcing the importance of ethical behavior in fostering a successful business.
Step 2
Why might a business be resistant to meeting its corporate social responsibilities?
Answer
Businesses might resist meeting their corporate social responsibilities for several reasons:
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Cost Concerns: Implementing socially responsible practices can incur significant upfront costs. For instance, transitioning to sustainable materials may require substantial investment.
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Short-term Focus: Some businesses prioritize short-term profits over long-term sustainability. This could be driven by pressure from shareholders expecting immediate returns.
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Lack of Awareness: Some firms may not fully understand the benefits of CSR or may be unaware of existing social responsibility initiatives that could benefit their operations.
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Limited Resources: Smaller businesses might lack the resources to adequately address social responsibilities, leading them to deprioritize these initiatives in favor of operational survival.