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Archive for February, 2009

Approaching Corporate Social Responsibility

We’ve spent quite a bit of time this week reviewing not only the different types of social responsibility, but how it’s perceived by the public as well. Some people support it and others are against it. We’re going to look at one more aspect of corporate social responsibility before giving it a rest for a bit, and that is how organisations actually approach the issue themselves.

You’re going to find that most organisations take one of 4 approaches. They’ll either:

  1. Obstruct the progress of social responsibility;
  2. Take action to defend social responsibility;
  3. Make accommodations to support social responsibility; or
  4. Take a proactive stance towards the issue.

Companies who stand in the way of, or obstruct, social responsibility are usually those with the most questionable ethical practices. These organisations won’t take responsibility for the harm they’ve caused the environment and might even attempt to bribe others to support them, even if their goals don’t have the welfare of the general public in mind.

Organisations who take a defensive stance will make the smallest contribution to the public or environment that is possible but insist that they are in business to turn a profit, no support others. For example, in the US many casinos place advertisements about the addictive hazards of gambling within their buildings, which shows they care about the public at large. But do they? Those same casinos with buildings in other countries may not be required to place the same signs – so they won’t.

A company that merely accomodates social responsibility will particpate actively, but only when asked. In short, someone from the charitable organisation needs to physically knock on the door, pinpoint a contact, and make a plea. They’ll usually be met with a positive response, but would not have received the same support had they waited for the corporation to act first. In other words, don’t hold your breath waiting for these companies to wake up.

Proactive organisations are the best to deal with. They have strong missions and goals that support not only their own agendas but the public at large. One of the best examples is the McDonald’s corporation and it’s support of the public through the Ronald McDonald House and several other organisations have followed suit.

What type of stance does your organisation take towards social responsibility? As a manager, are you supportive of the stance your organisation takes?

Thanks again,
Sean

Sean McPheat
Managing Director
MTD Manager Training

Click below for a:
FREE email course “Improve Your Management Skills”


The Product S Curve

There are dozens of marketing and management models available for businesses to choose from today. One I find most interesting is the product S-curve model, which became prominent in the 1970s after it wa sapplied in the field of technology.

Of course, you don’t have to be in a technology-oriented business in order to apply the product S-curve to your product or service. The curve is basically used to make evaluate the value of both the research and development of a product in comparison to how productive the product would actually be. In short, it’s used to determine if you’re going to waste your money on the development of a product that has no market value.

The S-curve is frequently used to pinpoint the best time to introduce a product to the market as well. It measures the available market and how long it would take to penetrate a reasonable percentage of the market before reaching a saturation point.

Having a great product idea is one thing, but knowing how to produce it and  then launching it at the right time is an entirely different beast. Have you ever applied the product S-curve in your marketing and development studies? Please share your ideas!

Thanks again,
Sean

Sean McPheat
Managing Director
MTD Management Training

Click below for a:
FREE email course “Improve Your Management Skills”


Category: Management Models | Tags: , ,

Reasons For and Against Social Responsibility

The other day we began discussing social responsibility and the different types of people that an organisation might have to answer to during the course of operation: organisational stakeholders, the environment, and the general public. I hope you really won’t be surprised to hear that while many people support corporate social responsibility, others do not. Let’s take a brief look at why.

Reasons Social Responsibility is Supported

Those who argue that social responsibility should exist are usually advocates for the environment or for society. They claim that many of the problems in the world today are caused by large organisations. Some of these problems include pollution and unemployment. Supporters claim that organisations should be held just as accountable as individual members of society, all of which make contributions to the overall welfare of the public. They also argue that most organisations have a profit margin that puts them in a position to make a larger contribution than the average individual.

Reasons Social Responsibility is Not Supported

Those who are against social responsibility make valid points as well. They feel as though the purpose of a business is to help owners earn a profit and that businessowners should have a choice as to how they spend that money. Others are afraid that businesses, many of which seem to have an incredible amount of power over society to being with, will only become more powerful if they are allowed or forced to make visible social contributions. It’s also unfair to ask a company to make a quality decision about which charitable organisations to support knowing that so many exist.

Do your management training courses cover the importance of social responsibility in the workplace? If not, consider whether or not they should. Your management teams and employees should have a clear vision of your social goals and missions. Having one will make it much easier for them to respond to critiques or questions if a client should ever pose one.

Thanks again,
Sean

Sean McPheat
Managing Director
MTD Management Training

Click below for a:
FREE email course “Improve Your Management Skills”


McGregor’s Theory X Theory Y

Back in 1960, a gentleman by the name of Douglas McGregor published a book known as “The Human Side of Enterprise.” In his book he shared some in-depth analysis of the way human beings behave in the workplace. He developed two distinct models: Theory X and Theory Y.

Theory X states that every one of us inherently dislikes working and will do whatever we can to avoid it. Because of this dislike of work, our superiors feel as though it’s important to control and direct us, sometimes even threating us, before we’ll get anything done. Managers who apply Theory X tend to be tough to deal with because their goals are to take away our options so that we have no choice but to get the job done.

Theory Y managers are a bit different. They understand that working takes a considerable amount of effort, but that work is a natural human attribute – we’re as likely to work as we are to sleep or eat. A Theory Y manager will work to promote a satisfying workplace in which individuals can work together to solve problems, use creative solutions, and seek out additional responsibilities without feeling forced.

Obviously, the attitudes attached with Theory X and Theory Y are completely different. One will promote a nurturing work environment and the other will promote an environment in which people really won’t want to work, but both are important to different workplace environments. A manager controlling a group of employees in a dangerous metal shop may need to stick to a strict Theory X management model, while a manager in an office place with a small sales staff may find the Theory Y style more appropriate.

As a manager you are responsible for delegating authority, making decisions, and controlling your workgroup. You can do so under each theory, but which one is more appropriate for your own workplace?

Thanks again,
Sean

Sean McPheat
Managing Director
MTD Management Training Courses

Click below for a:
FREE email course “Improve Your Management Skills”


Exploring Social Responsibility

Every company, no matter what its size, has a certain level of social responsibility (whether the CEO’s want to admit it or not). Everything you do has an impact on society as a whole, whehter that impact is small or widely recognized. It’s important to understand the different types of corporate social responsibility, of which there are three main categories:

  1. Organisational Stakeholders
  2. The Natural Environment
  3. General Social Welfare

Organisational stakeholders are people, whether individuals or other organisations, who are directly impacted by the actions a company takes. Organisational stakeholders are made up of creditors, suppliers, employees, owners, the government, and a number of others. The actions a company often focus on their main stakeholders and how they would respond. For example, a company that considers their customers amongst their main stakeholders would always strive to treat them as fairly as possible.

The natural environment is another area in which organisations have social responsibility. Responsibility towards the environment pertains to matters concerning pollution, the disposal of waste, and anything else that might impact the world we live in. Many companies now have departments dedicated towards making sure their operations have as little impact on the environment as possible.

There are a few people and organisations who believe that major corporations should be responsible for the general welfare of the community at large. This means hosting events for the public, making financial contributions to charitable organisations, or helping to improve the public education system.

Some of these areas of social responsibility, such as general welfare, are the subject of considerable controversy. In the coming weeks we’ll take a closer look of the arguments for and against social responsibility as well as how companies can approach their goals as they apply to social responsibility.

In the meantime, take a step back and look at your organisation. Are you, as a manager, an organisational stakeholder? What about your employees and customers? Does your organisation take your concerns into consideration? Share your thoughts. I’d love to hear what you think!

Thanks again,
Sean

Sean McPheat
Managing Director
MTD Management Training

Click below for a:
FREE email course “Improve Your Management Skills”


Category: Social Responsibility | Tags: , ,


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