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‘To prosper over time, every company must not only deliver financial performance, but also show how it makes a positive contribution to society.’ Source: Larry Fink, Chairman and CEO, BlackRock, Inc., 'Larry Fink's Annual Letter to CEOs: A Sense of Purpose', 2018, <www.blackrock.com/corporate/investor-relations/larry-fink-ceo-letter/> Analyse two ways in which corporate social responsibility considerations influence decisions made by managers - VCE - SSCE Business Management - Question 4 - 2018 - Paper 1
Question 4
‘To prosper over time, every company must not only deliver financial performance, but also show how it makes a positive contribution to society.’ Source: Larry Fink... show full transcript
Worked Solution & Example Answer:‘To prosper over time, every company must not only deliver financial performance, but also show how it makes a positive contribution to society.’ Source: Larry Fink, Chairman and CEO, BlackRock, Inc., 'Larry Fink's Annual Letter to CEOs: A Sense of Purpose', 2018, <www.blackrock.com/corporate/investor-relations/larry-fink-ceo-letter/> Analyse two ways in which corporate social responsibility considerations influence decisions made by managers - VCE - SSCE Business Management - Question 4 - 2018 - Paper 1
Step 1
One area of management responsibility is operations.
Answer
Corporate social responsibility (CSR) can significantly influence management decisions in operations. For example, an operations manager must consider how the production of goods or services impacts the local community and the environment. In this context, a manager may choose to source raw materials from local suppliers to support the local economy and reduce environmental impact. By doing so, the company contributes positively to the community, which can improve public perception and potentially lead to increased sales.
Step 2
Another area of management responsibility is human resources.
Answer
In human resources, CSR influences decisions regarding employee hiring and retention. By prioritizing the hiring of local employees, managers can help reduce unemployment in the community. Moreover, providing training and development opportunities can foster a positive work environment and enhance employee loyalty. When employees feel valued and supported, they are more likely to contribute positively to the organization’s goals and overall community well-being.