Photo AI
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 of having socially responsible policies
Answer
One key benefit of adopting socially responsible policies is improved employee welfare. By prioritizing employee satisfaction, organizations can maintain high levels of morale and productivity.
Additionally, being socially responsible can enhance an organization’s reputation. Positive public perception often leads to customer loyalty, potentially expanding market share as customers are inclined to support businesses that demonstrate ethical practices.
Moreover, socially responsible organizations may attract skilled workers, as many individuals prefer to associate with companies that share their values. This can lead to a motivated workforce and reduced turnover costs, ultimately contributing to business growth.
Step 2
Evaluate the negative consequences of having socially responsible policies
Answer
Conversely, there are challenges associated with implementing socially responsible policies. One significant drawback is the potential increase in operational costs. Enhancing employee conditions and adopting sustainable practices often requires substantial investment, which can strain financial resources, especially for startups.
Furthermore, the initial transition may encounter resistance within the organization, requiring extensive retraining and possibly leading to temporary disruptions in productivity. Organizations may also face scrutiny from stakeholders, as not all investors may prioritize social responsibility over immediate profits.