Why we need Business to be Good Corporate Citizens? “There is no principled way to define it the concept of corporate citizenship and there is no authority to proclaim the correct sense” (De George 2008: 43). Corporate citizenship is not what philosophers would call a natural kind, with a truth or essence out there to be discovered. Companies are influenced to build a corporate image. This will help them to attract the best staffs. According to a new study that discloses the majority of people prefer working with good corporate citizens.
The ‘Passion People’ survey found that 82% per cent of respondents would rather work for a company that supported good causes. Corporate consultants Cavill and Co and employment web site www. seek. com. au, jointly conducted the study by looking at the relationship between a company’s charitable commitments and the impact of this on its workforce. There are few favoured causes that are taken into consideration. Such as: children’s charities (54%), projects assisting the environment (47%), local community project (40%), youth (38%), education (36%), animal welfare (31 per cent), disability (28%) and mental health (24%).
Indigenous and overseas aid causes were the lowest. The survey was conducted amongst 1100 respondents who worked for companies with more than 10 people. Many respondents were unable to name any company that they considered to be a good corporate citizen, and even the top-scoring companies like: The Body Shop, McDonald’s, Hubbard’s (NZ), Warehouse (NZ) and West Pac, were cited by only 178 respondents. Statistically proven that, 76% of Australians prefer to purchase goods and services from a company with a record of good corporate citizenship.
Furthermore, 87% of investors prefer to place their funds with an ethical company and 83% of workers want an employer that does community work. Woolcott Research shows that financial institutions performed the worst when it came to corporate citizenship after researched carried on. For an instance, Bakers Delight is the leader in corporate citizenship, topping a list of industries ranging from airlines, telecommunications and financial organisations.
The independent study by Woolcott Research found Bakers Delight has been recognised by the public for its work with the community on both a national and local level. Bakers Delight’s partnership with the Breast Cancer Network Australia (BCNA) over the past five years by running its website and conducting fundraising activities. Bakers Delight donates $25m in bread each year to various organisations, including the Salvation Army. (Resources retrieved from www. bandt. com. au) What is good Corporate Citizens mean?
There are many ways we can define and show Good Corporate Citizens but the common thread is Corporate citizenship recognizes that businesses have a responsibility to respect the individuals, the community and the environment in a way that when implementing any rightful business strategy they will put up with the laws and regulations, and remain to high ethical standards. Each individual citizen also has responsibilities and rights together with corporate citizens. These lead to a set of social values that provide a benchmark upon which they can perform their respective roles in smooth with the wider community, for mutual benefit.
Good Corporate Citizen Principles: ?Maintaining a high standard of business ethics ?Working as part of the community; ?Protecting the environment; ?Providing good corporate governance; ?Engaging in fair trade and business practices, as well as fair workplace relations. It is necessary to entities that when businesses apply high standards of service, in that way consumers ‘confidence created in their products and services and they ensure that not only will the business succeed in its activities but also that the community as a whole will benefit from the positive effect this has on maintaining vitality in the economy.
For example, Google. com provides some form of equity in the company to all its regular employees, and encourages its engineers to allocate 20% of their working hours to independent projects. Even Microsoft accommodated disabled workers, and for providing restricted stock options to most employees. (Resources retrieved from www. goodcorporatecitizen. com) How to become Good Corporate Citizens? There are many ways to become a “Good Corporate Citizen”. Listed below are the vital components for entities: 1. Maintaining a high standard of business ethics; this is vital to show that you provide a fair and impartial set of standards to all. . Working as Part of the Community: There are very many ways in which a Corporation can give back to the community and it is really a case of finding what ways best suit the company and the community. Such as below: a) Employer Supported Volunteerism An increasing number of companies are supporting and encouraging employee volunteer initiatives in their communities. The most recent statistics on employee volunteerism report that approximately 27% of companies helped their employees volunteer by allowing them to modify their work hours in order to take part in volunteer activity, an increase of 5% over the last three years.
There are other ways for a company and its employees to volunteer or help in the community and examples are as follows: ? Offer to help out at the local food bank ?Start a blood donation race with some other companies and see who has donated the most after a month. ?As a company take part in a sponsored walk or run to raise money for charity. ?Become volunteer fire fighters. ?Gather clothing from your neighbours and donate it to a local shelter, or gather gifts at Christmas and donate them to needy families. b) Corporate Giving: organize charitable giving strategies within the workplace.
The employees can decide on more worthwhile charities and to show their support the company can offer to match dollar for dollar any contributions raised. c) Make Some Positions Available in your Company for Physically Challenged Persons. It can be a hard struggle for those with a disability to find and keep employment so organizations may want to look at ways of creating positions in their companies to enable gainful employment of those with a disability. d) Providing good corporate governance; this governance should be adequate enough to ensure that all their affairs are legally and morally followed.
Current business trends even extremely large corporations can crumble and fall due to becoming embroiled in scandals. Enron as examples fell to the ground and are now non-existent. Besides that, entities are forced to engage in fair trade, business practices and fair workplace relations. Because it is the most prime factors in maintaining any business is being fair to your customers and your employees. (Resources retrieved from www. goodcorporatecitizen. com) 3) Protecting the environment: It is important every corporate entity and also every citizen to do what they can to reduce their carbon usage on the world we live in.
Global warming is the effects on the global climate due to humans putting excessive amounts of green house gases into the atmosphere. The green house gases trap heat and the planet gets hotter and hotter. This is called the Greenhouse Effect. Below are the reason why and how businesses should and can be good corporate citizen: •Organized recycling program, encourage your employer and fellow employees to start one by establishing conveniently located collection sites, providing collection boxes or containers and arranging for pick–ups by a recycling firm. Encourage your employer to purchase and, if appropriate, manufacture products that are less harmful to the environment. •Encourage environmentally safe practices in the storage, use and disposal of hazardous wastes at the work site. •Encourage your building manager to have energy and water audits performed and to develop water and energy management plans. Replacing old equipment with water–efficient and energy–efficient fixtures can significantly reduce operating costs. •Always turn taps off tightly so they don’t drip. Watch for and report drips or leaks to the building manager. Be sure someone repairs them promptly. Watch for leaks from toilet tanks into toilet bowls, at the base of toilets and report them promptly to the building manager. •Produce double–sided documents and photocopies. •Reduce paper usage by using electronic mail. •Collect paper that has previously been used on one side and re–use it for fax messages, draft documents and notepads. Conclusion Business ethics should be applied as compulsory protocol of one’s business and professionals. We must accept that our “social communities” focus our vision terribly while appearing to provide a very clear focus on ever smaller portions of our business life.
Business professionals and business students should study how and why each of us should see ourselves as full human beings in which individual considered, not professional goggles and guide conduct. We are all trying to reach the same point of a secure, productive and prosperous life. Question 6 Short-term credit is taken by companies from external sources for two reasons. The first is growth, this is where the profit simply not optimum enough to keep it up with the rate at which the company is purchasing more assets for business operations. The second reason is, the company prefer to take short-term financing aid from external sources.
This is because; the company would like to make desired purchases rather than waiting to save enough money from the net profit. Clearly, the ability to obtain external financing is crucial for many businesses but they have to, so that the entity can start or sustain their business operations. Two factors influence the duration of external financing. Firstly, it’s the availability because entities prefer short-term financing to use it as a back-p or contingency plans. Secondly is the factor that influencing the length of time that firm finance for is the risk-return, liquidity and trade-off.
To be very precise, consideration that should be included in choosing a source of short-term credit are; ? Nature of assets (short-term and long term) ?Cost ?Availability ?Size and reputation of the firm Besides that, there are few ways of selecting the sources, such as; a)Short-term loans from banks or other institutions; no matter what type of loans like self-liquidating loans and the line of credit the entity taking, however the cost to a borrower is usually measured by the percent of interest rate charged by the lender like effective interest rate and stated interest rate. )Trade credit is where a company purchases materials or supplies on credit instead of paying cash by delaying payment to suppliers. The longer a company delays the payments, the more trade credit the entities tend to be using. c)Commercial paper is another way a firm can sell unsecured notes issued by large. By doing this, firms tend to get cheaper options to obtain short-term loans from banks. (Resources retrieved from http://www. books. google. com. au/books? id)