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The third annual Corporate Responsibility Index, a voluntary survey that measures business performance in areas such as community, environment and employee issues, was published on 15 May 2006 - VCE - SSCE Business Management - Question 5 - 2006 - Paper 1
Question 5
The third annual Corporate Responsibility Index, a voluntary survey that measures business performance in areas such as community, environment and employee issues, w... show full transcript
Worked Solution & Example Answer:The third annual Corporate Responsibility Index, a voluntary survey that measures business performance in areas such as community, environment and employee issues, was published on 15 May 2006 - VCE - SSCE Business Management - Question 5 - 2006 - Paper 1
Step 1
Evaluate the positive consequences on large-scale organisations of having socially responsible policies.
Answer
Large-scale organisations that adopt socially responsible policies can experience several benefits. Firstly, by prioritizing employee welfare, companies tend to maintain higher levels of employee satisfaction, which can lead to lower turnover rates and higher employee retention. This ensures that businesses can retain skilled and motivated workers.
Additionally, such organisations are often viewed more favorably by consumers who are increasingly aware of corporate social responsibility. This positive public perception can result in a larger market share as more customers choose to support businesses that align with their values. Moreover, establishing a reputation as a socially responsible company can enhance customer loyalty and attract new clients.
Furthermore, adopting socially responsible practices can also open up new markets and business growth opportunities, as they may appeal to ethically-minded consumers.
Step 2
Evaluate the negative consequences on large-scale organisations of having socially responsible policies.
Answer
Despite the benefits, there are also negative consequences associated with implementing socially responsible policies. One major concern is the potential increase in operational costs. For instance, improving employee working conditions and implementing sustainable practices may require significant investments, which can impact a company's bottom line.
Moreover, the establishment of these policies can be associated with a learning curve. Businesses may face a startup period during which newly introduced processes and responsibilities are unclear, leading to inefficiencies.
Additionally, there may be resistance within the organisation to changes in work habits or culture, particularly if employees feel overburdened by new policies or if the management fails to communicate the rationale behind such changes effectively. This could, in turn, impact overall productivity.