Research Korner: Ethics and Corporate Social Responsibility

Strategic Planning and Implementation of Sony Ericsson

Part 1 Sony Ericsson, its resources and its competencies   In 2000 Ericsson and Sony established a London-based joint venture, Sony Ericsson, to exploit the opportunities of third generation mobile systems, whose implementation had begun in Japan. Ericsson's strategies were broadly emulated by its major competitors in the world telecom industry, including Nokia, the Canadian firm Nortel, the US firms Lucent, Cisco Systems, and Motorola, and Germany's Siemens, all of whom had telecom equipment sales in excess of $22 billion in 2000. These firms all moved, although at varying rates, to outsource production to contract manufacturers. They also progressively outsourced innovation to cheaper locations (Wallach 2005).   Resources Sony Ericsson’s resources come from reliable suppliers and manufacturers.  The materials used in creating the products have to agree with the company’s greenheart process wherein most part of the product should be recyclable or harmless to the environment.   Financial The funds can either come from the parent company or from other sources like investors. The budget will be used to pay for the different expenses of the firm. The budget will be used to pay for the rent expenses, the payment for all the employees, the cost of supplies used in creating the products, the cost of electricity, the cost of office materials and other costs or expenses.   Human In providing excellent service to the clients, a company needs to have a dedicated staff that performs well and knows that the service they give to the client can help the company have a positive or negative image. The staff of the company is well trained to ensure that the best service can be given to the clients. The company makes sure that it hires promising individuals that can assist in the company’s task of reaching their goals.   Skill The personnel of the Sony Ericsson are well skilled in creating and selling their products.  The company makes sure that they hire individuals who are skilled in management, manufacturing or selling.  The company also looks for various activities that will help them improve their skill.   Competencies Core Capabilities   Sony Ericsson’s core competences include its highly advanced product, competitive products and concept of sustainability. Sony Ericsson makes use of its competences to achieve continuous growth and development   Distinct Capabilities Sony Ericsson’s distinct capabilities include its ability to create products that costs lesser than other cell phone.  The company’s product cost less but it is durable like the other company’s products.   Scope Capabilities Sony Ericsson’s capabilities include its use of sophisticated technologies to create the best product. Sony Ericsson has commendable personnel that were well trained to create the best product and provide efficient service.   5m’s Money Sony Ericsson is well funded. The funds of the company come from its profits, capital and from investors. The company makes sure that its finances are well budgeted and will go directly to the division that needs it the most.   Minutes Time is important for the Sony Ericsson. The company gives importance to time just like it gives importance to finances and human resources. The company has organized schedules that will ensure that products can be made at an appropriate time. The company makes sure that every member of the organization has a balance of work and rest.   Materials Sony Ericsson’s materials come from reliable suppliers. The company keeps the materials in reliable storage areas. The company makes sure that its materials will not harm the environment and can still be recycled.   Manpower Sony Ericsson makes sure that it hires the best personnel that have an idea on the cell phones and its related products. The company engages in online recruitment, personal recruitment and the use of third party to recruit and choose the personnel that fit their needs.   The company trains the personnel in accordance with their tasks and role. The company allows their personnel to attend seminars that will increase their knowledge on their forte. The company makes sure that the personnel are given an appropriate compensation based from their role and contribution to the firm. The company makes sure that all social benefits are received by the personnel.   Machines The company makes use of the best machinery to create the products. The company has a research division that searches for the latest technology that will help them achieve efficiency and effectiveness in creating their products.  The machines are well maintained by a special group of personnel. The company makes sure that the machines are regularly checked for problems.   Implications on Management The use of 5m’s makes it easier for the management to operate the firm. The use of 5m helps Sony Ericsson and its management to focus on strategizing and determining what acts will provide benefits to the company.  Through the 5m the management receives assistance in attaining the goals of the firm.   Current strategies of the company The company is focused on the use of sustainable products. Sustainability is said to be the act of maintaining supplies for future generations.  Supplies do have its own limitation; it will run out of stock eventually. Through the use of sustainability companies can make sure that there can be supplies for the present and the future.  Sustainability goes with the need to have green supplies. The company makes sure that it uses sustainable supplies. The company makes sure that its supply will not run out.  The makes sure that the materials they use are recyclable and will not cause damage to the environment. To maintain the sustainability of supplies the firm makes sure that parts can be recycled.   Stakeholders Internal stakeholders The internal stakeholders of Sony Ericsson include the management of the company, employees and creditors. The Stakeholders’ impact on the governance of the firm is it affects the way the company is managed. It makes sure that the company performs well according to the stake holder’s standards.  The management of the firm is a stakeholder because the company’s success or failure is conjoined with the management’s success or failure.  The employees of the firm are stakeholders because the success or failure of the firm will impact their salary and its increase or decrease. The creditors are stakeholders because they contributed a certain amount that contributes to the financial resources of the company.   External stakeholders The government, clients and potential investors are those groups that are external stakeholders to the company. The government is a stakeholder for the firm because they are the ones that checks if the company follows regulations and laws.  The government also observes for any negative effect for the company’s products. The clients are stakeholders because they are the ones that are affected by any changes initiated by the company.  The clients are the end destination for the product, thus they need to know what stages a product goes through before it reaches them. The potential investors are stakeholders because they observe the financial status of the company and use this as a basis for any transactions that they will do with the company.   Stakeholder’s strategy             The stakeholders provide assistance in running the firm. They give a little feedback on how the firm should operate. The stakeholders give their opinion on the company and the condition it faces.   Future strategy for stakeholders The future strategy for the stakeholder will focus on improving their relationship with the company. This can be done through the use of communication systems that will create a greater bond between the firm and the stakeholders. The communication strategy can be in the form of internet or other online system.   Governance Chain Corporate governance is concerned with holding to account the modern corporation, whether it is a large or small holding company and subsidiaries, listed, private, government or non-profit entity. One influential interpretation of corporate governance is to find a way to maximize wealth creation in a manner that does not impose inappropriate costs on third parities or on society as a whole. Corporate governance application requires a system of checks and balances designed to define appropriately the parameters of authority through accountability (Kakabadse 2001). The following presents the governance chain for the company. The key players include the stakeholders, board of directors and the employees. The stakeholders, board of directors and employees are the ones that will be affected by any change in management strategy.  Any changes in management strategy can affect the service given to the stakeholders. Any changes in the management strategy can alter the position and responsibility of the management team and the personnel. The beneficiaries of any change in the management strategy include the clients and the government. The clients are beneficiaries because any change in the management strategy can lead to better service to them and it can lead to the emergence of better products.  The government is a beneficiary of the change in the management strategy because they can now make business dealings with Sony Ericsson. The government can ask the company to make products that fits with their communication needs. This in turn can help the government provide better service to their constituents and deal better with outside forces.   Principal- Agent Theory The management and the employees have a principal – agent relationship wherein the managers give fair treatment of the personnel. The managers make sure that the personnel acts as agents of providing service to clients.   Employee Unions Worker Unions are vital because it gives personnel the chance to express his/her concern to other workers. The union can be used for one personnel to have better benefits and compensation from the firm. The management allows for unions and other groups that intend to unite the ideas and concerns of the personnel. The management makes sure that they respect any union that the employee has formed or joined.   Sony Ericsson ethics and Social Responsibility Corporate responsibility is a pact for the mutual benefit between society that needs business for economic and social development, and business that needs a supportive business environment. It is also a pact between capital and management in modern companies, which has been as shaken up by some recent scandals where management disregarded the bond of transparency with shareholders (Dunning 2003).   a. within Sony Ericsson Sony Ericsson has and believes in corporate responsibility. The company makes sure that it follows all laws and regulations in every country they operate in. It has procedures and processes that make sure that corporate responsibility is implemented not only in internal environment but within its suppliers and trading partners. Sony Ericsson gives much importance to their personnel; the company makes sure that the welfare of the personnel is given appropriate attention.    b. what can still be improved Sony Ericsson can improve its social responsibility by engaging in charitable works such as donation to charity or other non government institutions. They can even create a charity that will focus on a certain market. Sony Ericsson can improve its ethical standards by reviewing its current scandals and adjusting it towards the current situation.  c. alternatives philosophy Aside from the use of corporate responsibility and ethics, Sony Ericsson can make use of the fair competition philosophy wherein the company will make use of strategies that will be just and fair. The company will refrain from committing acts that are demeaning to fairness in the telecommunication industry. The company will refrain from engaging in unwanted acts against other cellular phone companies.   d. Freedmanism Freedmanism is the belief in ideas such as Deontology, Utilitarianism, Teleology, Egoism and Ethical relativism. Deontology is the philosophy that focuses on the rightness or wrongness of intentions or motives behind action such as respect for rights, duties, or principles. Utilitarianism is the belief that the worth of an action is determined by its contribution to overall use of that action. Teleology is the belief that things are designed for or directed toward a final result.  Egoism is the idea that people should do that they think satisfies their self interest. Ethical Relativism is the belief that ethical ideas do not reflect objective and/or universal moral truths. All the ideas under Freedmanism relates to different characteristics of the personnel. The limitation of Freedmanism revolves on the contrasting characteristic of each belief under it. Deontology, Utilitarianism, Teleology, Egoism and Ethical relativism each have a characteristic that contrasts the other, the use of it under one philosophy can create confusion and does not help in making one productive and efficient.   The management strategy that will be changed Expanding into additional segments, after reaching an acceptable market share position in the primary market is a prudent option. The common strategy is to penetrate with either line extensions or technology applications. It is an acceptable and logical move for a market leader particularly in a flat market. It's only advisable though if sufficient resources are available to penetrate the new segment and, providing sufficient management attention and resources are available to vigorously protect the primary segment (Paley 2006). The target market of the company involves almost all sectors of the society. The company aims to provide mobile products to young or old, boy or girl. The company as much as possible aims to reach all walks of life. This target market is a good source of income. The company has different strategies that can cater to the taste and appeal of such markets.  The change in management strategy will focus on increasing the market of the company. In increasing the market the company will need to make sure that the stores where its products are located will be in the most profitable places. The distribution stores for the products should be in places where clients can easily see the store and they can be encouraged to visit the store and buy products.  The distribution store should make sure that competition in the location they want to put up the branch will not be too heavy. The market of the company can still be expanded to accommodate the elder people market. The company can consider such clients as a different segment that should receive a different kind of product. They should also provide a different kind of mobile products for such market.   Part 2 Tradeoffs The change in strategy would help the firm gain more clients and increase its income. The change in strategy would help the firm improve its status in its industry. The potential problem with changing the strategy is a situation wherein the firm would lose control over its current markets. The new market would keep the company busy and may cause it to neglect the older markets.   Nature of People   Purpose Ambitions and objectives are formulated at three levels. For the long term, guiding objectives are important. For the short and medium term, a system of measurable objectives must be created. Finally, the actual missions are the concrete translation of those objectives to the social players involved (Keijzers 2004).  Communication is a key element of establishing focus, because employees usually perform better and accomplish more when they understand their role and how it relates to the bigger picture (Zwell 2000).   In setting the objective a clear picture of the internal and external environment was used by the firm. The environment showed the firm its weak points or problem areas. Through knowing its weak points the company was able to plan for future possibilities and future plan of actions. After the company knew its weak points it was able to create the objectives by determining the weak points or problem areas that should be given top concern and priority.  The company engaged in constant communication to determine what will be their objectives. To further identify the nature of the objective of the firm the lynch polygon will be used. Lynch’s Polygon of purpose Timing Sony Ericsson’s plan for change should begin as soon as it has enough funds and resources to introduce the change. The company cannot wait for too long before it introduces the change because the new strategy might not fight the future situation.   Innovation Sony Ericsson is one company that has proven its innovativeness through combining cell phones with walkman functionality.  The company can use such innovativeness to create more products that will be accepted by the market. Value Added The innovative nature of Sony Ericsson adds value to their products. If the company wants to show that they have value then they need to prove it by creating more innovative products and services.   Survival Survival in the telecommunication industry can be achieved by innovation and the use of appropriate strategies. Sony Ericsson is already innovative, it just needs to make sure that it will use appropriate strategies or make new strategies to continue to survive in a competitive cell phone industry.   Growth One goal of Sony Ericsson is continuous growth. The company has already risen from its humble beginnings but it still wants to reach better heights. To do that the company needs to focus on the new strategy and defend itself against competitive traps.   Brand Apart from each other Sony and Ericsson has created a name for themselves in their respective industries. Together they have become one of the biggest cellular phone companies. With proper use of marketing strategies and the use of unique packaging, the company can still create a more unique brand that can create a huge impact on the cell phone industry.   Leadership Sony Ericsson has good leaders that have guided them from their birth up to this day. The current and former leaders have helped the company make a name for itself in its field.  The leaders of the firm are one reason for its success and they are the ones that can truly guide the company to its objectives.   Stakeholders The stakeholders are a vital group that contributes to the success of Sony Ericsson. Their guidance and assistance have helped the firm achieve its current status. Without the stakeholders the firm will lose its focus and will do things unnecessary for its survival.   Value and Lifestyle The company has achieved its current status because it was able to maintain its value at the same time it introduced new trends that increased its value. The company has achieved a household status and is becoming a need rather than a want.   Knowledge Sony Ericsson values the gathering and use of knowledge.  The company makes sure that through its research and development division it gathers the data that it needs to survive its environment. The company uses knowledge to innovate its products and services. Time Time is of the essence. All planned actions of Sony Ericsson should be implemented so that the company can reap its benefits and initiate changes if there is such a need for it.  The company cannot afford to delay the implementation of the new strategy since the new strategy was only made for the current situation of the firm.   Company Mission   Evaluation An innovative organization must be led by a leader who develops and aligns the organization with the mission and vision, develops and maintains trust, ensures that coordinating and communicating occur, and encourages creativity and learning (Oden 1997).At the heart of the innovative culture lies the vision of the leader. This vision includes the broader sense of who the company is, why the company is doing this work, why it's important, the promises they have made to customers, and the code of conduct (Cook Jr. 2000). The mission and vision should definitely be consistent and supportive, but they will not be exactly alike since they serve two different purposes (Kanji 2002). Sony Ericsson’s mission statement concentrate on making sure that the company will produce the most attractive products.  This mission statement fits well with what the company is doing and showing to the public.  This mission statement can still be used to achieve the company’s overall goals.  Sony Ericsson has partly achieved its mission because it has created a wide array of eye catching products that are globally competitive and full of innovation.   Evaluation of mission statement against the five elements   Innovation   The mission statement of the firm has innovation as its core. The company innovates to achieve its mission. In every aspect of the firm, innovation is the concept deemed as most vital.   Brand The company has made sure that it is known all over the world. The company has established itself on various parts of the world. This coincides with the firm’s mission of having a global identity.   Growth The firm already has fully developed and grown it can be seen through its global brand. Sony Ericsson’s worldwide fame proves that the firm has achieved some basic goals and it has matured from its initial identity.   Stakeholders The company works with the stakeholders in achieving growth and development. The stakeholders boost the company for it to achieve its goals and compete well in its industry.   Value and Lifestyle Sony Ericsson wants to be attractive. They have achieved this mission through producing unique products that catches one’s attention.   References Cook Jr., WJ 2000, The art and science of holistic strategy, Quorum Books, Westport, CT.   Dunning, J 2003, Making globalization good: The moral challenges of global capitalism, Oxford University Press, Oxford, England.   Jones, G 2005, Multinationals and global capitalism: From the nineteenth to the twenty-first century, Oxford University Press, Oxford.   Kakabadse, A 2001, The Geopolitics of governance: The impact of contrasting philosophies, Palgrave, New York.   Kanji, GK 2002, Measuring business excellence, Routledge, London.   Keijzers, G 2004, Government and sustainable development, Routledge, New York.   Nielsen, RP 1996, The politics of ethics: Methods for acting, learning, and sometimes fighting with others in addressing ethics problems in organizational life, Oxford University Press, New York.   Oden, HW 1997, Managing corporate culture, innovation and intrapreneurship, Westport, CT, Quorum Books.   Paley, N 2006, The manager's guide to competitive marketing strategies, Thorogood, London.   Wallach, B 2005, Understanding the cultural landscape, Guilford Press, New York.   Zwell, M 2000, Creating a culture of competence, Wiley, New York.

Strategic Planning and Implementation of Sony Ericsson

Part 1 Sony Ericsson, its resources and its competencies In 2000 Ericsson and Sony established a London-based joint venture, Sony ...

Tate and Lyle PLC

Introduction             Over the past few years, businesses and academic researchers alike have displayed increased levels of enthusiasm for corporate social responsibility (CSR). In particular, recent research suggests that CSR may be an excellent instrument to enhance the legitimacy of the firm among its stakeholders ( 1999) and to develop positive social responsibility images (1997;  2001).             In spite of the many definitions of CSR advanced in past research (1995; 1991), much debate remains as to the exact nature of this complex concept (2000).  (1991, p. 693) integrated much of the previous work in an acknowledged definition of corporate social performance as the "configuration of the principles of social responsibility, processes of social responsiveness, and policies, programs, and observable outcomes as they relate to the firm's societal relationships.(1991) approach has been complemented by advocates of the stakeholder view of the firm ( 1995;1999;  1995) who argue that businesses are not really responsible toward society in general, but only toward their stakeholders. Integrating these two views, we propose that a firm committed to CSR has principles and processes in place to minimize its negative impacts and maximize its positive impacts on selected stakeholder issues. This research essay focuses on the discussion about a multinational food manufacturing company in UK, Tate & Lyle. It would discuss the corporate social responsibility, particularly Tate & Lyle and their ethical business practice.   Company Background             Tate and Lyle PLC is a UK based multinational food manufacturer and is listed on the London Stock Exchange under the symbol TATA. It is the major producer of refined sugar, starches, animal feed and other food ingredients with global operations. The company was formed in 1921 from a merger of two rival sugar refiners, Henry Tate & Sons and Abraham Lyle & Sons. Today operating globally with operations predominantly in Europe, the Americas and Asia, Tate & Lyle provides ingredients solutions and services to food, beverage and industrial customers. Tate & Lyle operating with its purpose to create the world’s leading renewable ingredients business and with its vision to grow uniting businesses and partnerships in creating the world’s leading renewable ingredients business and building a consistent global portfolio of distinctive, profitable, high value solutions in products and services for their customers Tate & Lyle has its roots in a number of well-established companies focused on sugars in Europe and Canada, wheat and corn milling in Europe and corn milling in the US. All of their ingredients are produced from renewable crops, predominantly corn (maize), wheat and sugar, but on a smaller scale incorporating other agricultural products.              Tate & Lyle is leading producer of cereal sweeteners and starches, sugar refining, value added food and industrial ingredients and citric acid. They are the world’s number one in industrial starches and wheat proteins, and the sole manufacturer of SPLENDA Sucralose. They deliver specific functional and taste-enhancing characteristics fundamental to the performance and appeal of customers’ end products. They provide ingredients to almost every famous food and beverage producer in the world and their industrial ingredients can be found anywhere from cappuccino bar to a carpet showroom.             Tate & Lyle operates over 65 production facilities in 29 countries, predominantly in Europe, Americas and Asia. There are 7,000 people employed in their subsidiaries with a further 4,800 employed in joint ventures.   Social Responsibility             Tate and Lyle plays an important role in all the communities in which they operates around the world. Over the years the company developed a Group-wide community involvement that forms one of the core components underpinning their ethical behavior. For the company, effective community involvement is more than about financial contribution but rather a partnership and building strong volunteer network. Healthy and well educated communities produced motivated employees and enhance recruitment, volunteering builds and broadens employees’ skills.     We believe that through partnering with organisations that have insight into local issues we can make a real difference. Education commands the majority of our total community spend with programmes involving working in partnership with specialist organisations, universities, colleges, schools and teachers. Whether mentoring, providing job experience placements, conducting mock interviews or participating in a range of activities, we know that our employee volunteers benefit at least as much as the students they work with.   Community spend by allocation for financial year 2005   Excludes donations made to the Guyanese Flood and Asian Tsunami disaster relief organisations. Community support by region Listed here are some examples of organisations we support in our key regions. • UK: Tate Britain; Community Links; Richard House Children’s Hospice; • Americas: YMCA; United Way; Millikin University, Illinois; • Europe (excluding UK): Oratorio Don Bosco-Saluzzo (community organisation, Italy); Razgrad Special Needs Centre (Bulgaria); Levensvreugde (meaning ‘joy for life’) (Belgium); and • Asia (Vietnam): ‘For the Future’     Business Ethics     Code of Conduct   Scope The following Business Code of Conduct sets out in abbreviated form the Tate & Lyle Ethical Commitments and Policy Guidelines, which were first published in May 2001 on our website.  Tate & Lyle shares the widely accepted view that the greater the level of management control a company has over a set of operations, the greater the responsibility to ensure compliance with Group Policies. The Group's ethical commitments and policy guidelines apply unconditionally to all operating units and subsidiary companies that are wholly owned by Tate & Lyle PLC. The Group will also seek to apply them in those operations in which the Group has a stake of 50% or more. In relation to business operations in which Tate & Lyle has a minority stake, and in relation to suppliers and third party contractors, the Group's policies are made known to these commercial partners and they are encouraged by the Group to adopt them and implement them rigorously. Relationships with suppliers vary from those that are directly with corporate entities to those with growers that are less structured. In other cases, raw materials are purchased via commodity exchanges, state-owned suppliers or under international conventions. Tate & Lyle will use the most appropriate methods at its disposal to ensure that suppliers uphold this Code. At the very least, this will involve making clear where we stand on key issues and offering help in implementing appropriate policies. We will give strong preference to dealing with commercial partners who demonstrate their commitment to the principles of this code by accepting compliance as a contractual requirement and we reserve the right to terminate our contractual relationship with commercial partners that consistently fail to meet the Group's standards.   General Business Practices Tate & Lyle strives towards the highest ethical standards in all aspects of its business in all parts of the world. Good business standards and good management practices are regarded both as ethically proper and commercially responsible. The Group will conform to all laws and regulations of each country where it conducts its business, and act with integrity and responsibility in its dealings with its customers, its employees, trade unions, Government, non-governmental organisations (NGOs), trade associations and the general public. All Tate & Lyle employees worldwide are expected to be familiar with the Company's ethical commitments and policies, and to play their full part in ensuring that the standards they enshrine are lived out consistently in the day-to-day business of the Group.   Health & Safety Tate & Lyle believes that no business activity is of such urgency or importance that it may be carried out in an unsafe manner. The Group target for accidents is to reduce them to zero. The Group is committed to providing safe and healthy conditions for its employees and visitors to its premises, and is committed to continuous improvement of its Health and Safety procedures and performance. Safety Committees comprised of employees work to ensure that safety remains paramount - safety is not just someone else's concern, it is everyone's responsibility. It is an ongoing process, which requires ongoing training.   Environment Tate & Lyle takes environmental issues seriously, striving to be a good neighbour and to minimise the Group's environmental impact. All operations are conducted in recognition of the Group's responsibilities towards the natural environment within which we live and work, and the Group complies with all relevant local laws, regulations and consents. The Group subscribes to the principles of the International Chamber of Commerce's Business Charter for Sustainable Development, and to the popular definition of Sustainable Development as "a better quality of life for everyone, now and for generations to come". Tate & Lyle's environmental policy is supported by written operational and reporting procedures that require the integration of environmental concerns into operating, training and management practices at all levels. Measurement of key impacts such as energy and water usage and solid waste emissions underpin our approach to reducing overall impact. Click here for the Tate & Lyle GMO Policy Statement.           Quality Tate & Lyle is committed to producing quality products and to providing the best possible service to our customers all over the world. The Group's drive to be 'best in class' has seen many of our companies set standards that competitors strive to follow.   Human Rights Having operated in much of the developing world for over 60 years, Tate & Lyle recognises the responsibilities that being a major employer and source of income in those communities brings. Tate & Lyle recognises fundamental human rights and freedoms and strives to reflect these in its business operations. The Group is open to discussion concerning human rights issues relevant to the way it conducts its businesses with Government and NGOs alike. With regard to rare instances of sanctions or embargoes being imposed by the international community on countries where Tate & Lyle does business, the Group takes its lead from the relevant political authorities to ensure that no sanctions are broken and that any trade embargoes are observed. Tate & Lyle reserves the right, where it is able to do so, to withdraw from commercial relations with companies or countries where it is not possible for Tate & Lyle to operate in accordance with its own ethical standards and policies.   Competition and Anti-Trust Tate & Lyle holds the view that profitability is a prerequisite of sustainable development, and the Group takes seriously its economic contribution to the lives of the individuals and communities who are touched by its businesses. The Group is committed to fair and vigorous competition within the regimes and competition frameworks of the countries and trade areas where the Group does business.   Human Resources Tate & Lyle recognises that its employees world-wide are its single most valuable asset, and strives to achieve a 'best in class' position on human resource management in the context of each specific market sector and country of operation. Operating Units should seek to implement human resource policies that compare with those of other reputable employers in the country and industry concerned, while complying with or exceeding local laws and regulations, including any minimum wage requirements.   Equal Opportunities Tate & Lyle is committed to a just and robust approach to equal opportunities in all parts of the business, with people gaining promotion on merit. Tate & Lyle's businesses operate in tough, globally competitive markets which are constantly changing. In order that the Group can meet and overcome these business challenges, improve its performance and promote business diversity, it is vital to recruit, train, promote and retain talented individuals irrespective of sex, age, marital status, disability, sexual orientation, race, religion, ethnic or national origin.   Whistle-blowing Consistent with its commitment to promote an open, dynamic and responsible culture throughout its business operations, Tate & Lyle welcomes the voicing of genuine and serious grievances, or actual and alleged breaches of Company policy, by employees at every level to their superiors. To this end, neither Operating Units nor their management or employees will be criticised for loss of business resulting from complying with the Company's policies. Nor will any employee suffer as a consequence of bringing breaches, or suspected breaches, of these policies to the attention of management, the Executive Committee or the Board. All employees are made aware of their rights in this area, as well as the usual procedures for providing feedback (both positive and negative) to management on Company policies and operations.   Communities Tate & Lyle has a long and respected track record of investment in and engagement with the various communities that it touches around the world. More important than any single initiative, the Group has a business culture that recognizes the need to support the local community if business development is to be sustained in the long term. It is in the Company's interests to operate in strong, safe and healthy communities, helping improve the quality of life for employees as well as our neighbours. Furthermore, the Company believes that levels of commitment and motivation are increased if employees hold Tate & Lyle in high esteem and that new recruits will prefer to seek employment in businesses that have a strong focus on community involvement.   Supplier Diversity Tate & Lyle recognizes the importance of diversity in all areas of our business. As responsible corporate citizens, we are committed to supporting the growth of businesses owned by minorities and women. It is our policy to ensure that all companies, regardless of race or gender of ownership, have the opportunity to earn our business. Tate & Lyle seeks to award business to companies that can meet our needs. Supplier selection is based on a number of elements including quality, price, service, financial viability, technical competence, capability to deliver, and overall risk analysis. Tate & Lyle will select suppliers from those that best meet our selection criteria. Preference will be given to minority suppliers that meet our selection criteria.   Global Purchasing Conditions Long-term, good relationships with our partners and suppliers are very important at Tate & Lyle. For businesses supplying goods and/or services to Tate & Lyle, please click here for our Global Tate & Lyle Purchase Conditions.     Benchmark Performance In September 2002, Tate & Lyle met the entry criteria required to be added to FTSE4Good, the UK-based corporate social responsibility index. We continue to meet those requirements and our inclusion was affirmed again this year.  FTSE4Good's criteria are based on internationally accepted codes of conduct that have been ratified through an extensive global consultation exercise.

Tate and Lyle PLC

Introduction Over the past few years, businesses and academic researchers alike have displayed increased levels of ...

Contemporary Management Issues

Contemporary Management Issues   The major challenges that managers must overcome in order to become competitive includes (1) globalizing the firm (2) leading a diverse workforce and (3) encouraging positive business ethics. Other issues include the ageism of the workforce and the growing demand for a corporate social responsibility. This paper will discuss the above issues citing the example of Coca Cola and Johnson and Johnson. Ageing Population Employment opportunities for individuals are influenced by age. Factors both from inside and outside the organization contributes greatly in the decisions of employers to hire employees. Ageism is one of the factors that lead to discriminatory practices in terms of job employment. Due to the prejudices to an age group particularly of the older workforce, employers tend to refuse hiring them. Indeed, age can be considered as a powerful form of discrimination in the modern society. Age discrimination in the employment are discriminatory practices in personnel decisions which includes, hiring, firing, promotion and mandatory retirement (2006). Thus the assumed characteristics of older workers affect the employer’s decision of employing them. This results to discriminating them on the basis of their age and disregarding their potential and merit. The importance of experience offered by older employees is undermined by the preoccupation with the youthfulness. The older workers are thus faced with the problem of career progression especially in the time of technological advancements where they are seen as less trainable. With the age norms among companies, older workers are likely to be disadvantaged as compared to their younger counterparts. This can be attributed with the stereotyping of older workers as less productive, less flexible, lacking in physical strength and harder to train ( 2005).  The perception held by employers about older workers hinder the career progression at a certain Other evidences of discrimination against older workers include the fact that older workers stay unemployed longer than younger ones. Eventually, they just give up looking for a job after a layoff. On the other hand, those who find a subsequent job suffer great earnings loss. Such discrimination arises from stereotypes that older workers are incapable of producing as much as the younger ones do. Moreover, they are stereotyped as resistant to change and untrainable (1999). Because of this, age diversity in the workplace is encouraged among employers to combat the discrimination on the grounds of age. A mixed-age workforce at all level will allow a wider range of skills and experience that will benefit companies. The experience of older workers along with those starting out will draw greater skills and will bring out the best from them. Lastly, this will have a great impact in promoting economic growth because of the expansion of the labor supply (2006). Social justice will also be fostered as the regulation attacks ageist attitudes and recognizes the individual’s merit rather than focusing on the age prejudices. Part of Coca Cola’s corporate responsibility to the workplace is its principle of eliminating discrimination in respect of employment and occupation. The company’s policy and statement expressed its commitment to the principles of the United Nations Global compact. This voluntary agreement challenges the business to advance human rights and labor standards of which diversity in the workplace is acknowledged (2007). The key to the success of Coca Cola is its commitment to diversity. Its system’s work force is as diverse as the consumer it serves. Diversity is found in terms of talent and strategic thinking of its 26,000 associates worldwide as reflected throughout the global business system of the company. The support of the company of opportunities for individuals of every background be it age or race reflects the ongoing commitment to develop its employees, business partners and communities it serves all over the world (1997). Multi cultural Workforce             Valuing the diversity of the workforce is a value expected of today’s managers. This in part springs from the process of globalization. Top companies all over the world are composed of ethnic and racial make up in their workforce. They are realizing the importance of creating a workforce as a broad and diversified as the customers they have. The globalization of diverse populations requires the intercultural dialogue from the top management tot manage diverse workforce in all areas of the business. Diversity management is a business strategy that emphasized the productivity, creativity and commitment of the workforce while satisfying the needs of its diverse consumers. Some of the global companies that recognize the diversity in their workforce include Coca Cola and Johnson and Johnson.             Johnson & Johnson is one of the companies with trust equity. As with many of its company’s shared values, diversity is included throughout Johnson & Johnson’s culture; not only because of it is fair and ethical but because it adds value to customers and employees. the company recognize that diversity is much more than public relations but it has a big impact in the company’s ability tot innovate and deliver products that meets the needs of the diverse and multicultural public.             The decentralized organization of Johnson & Johnson is diverse in its own right. With 190 autonomous operating units in 51 countries, the company is maintaining a local culture in every workplace. The result is that the environment feels more like of a small company with big impacts and resources that people expects from Johnson & Johnson. It works hard to reflect the broad cultural mix in its hiring practices. Aside from its extensive community programs that support minority education, Johnson & Johnson also supports numerous minority-based professional organizations such as the National Security of Black Engineers, the National Association of Black Accountants, the National Urban League and Able to Work (for individuals with disabilities). Whenever possible, the company lists its career opportunities on association websites it promote employment application from the members.             Coca Cola’s business system and brands reach about 200 countries, thousands of communities and billions of people all over the world. Because of the extent of its operation, the company understands the value of diversity and makes it the top priority of its business. The key to the company’s success is to make Coca Cola and other brands relevant and desirable to each community. This means having a worldwide team that will represent the consumers and are rich in their diversity of thinking, perspectives, background and culture.             Diversity is such a fundamental business imperative and the management compensation is linked to the achievement of diversity objectives. The commitment of the company to diversity is manifested throughout the business system. In fact, it has committed $1 billion over the five years to an Empowerment and Entrepreneurship program that is aimed at increasing the employment opportunities for minority and women-owned businesses to become valuable Coca Cola business partners. Part of the empowerment program is also the establishment of a strong corporate social responsibility with a $50 million commitment to support non profit organizations focusing on scholarships for minority youth, neighborhood revitalization programs and community advocacy which provides educational, social and economic opportunities to all people (2001).             Another unique example of Coca Cola’s commitment to lead diversity management is its Diversity Leadership Development Academy in Atlanta. The program is established with a $1.5 million grant to the American Institute to manage diversity. The academy was created to provide leaders with the skills and capabilities to advance diversity within their organizations and in the larger community. Finally, Coca cola has been committed to build an organizational culture where each individual is respected and valued for their contributions and are offered the opportunities to grow, develop and make a difference(2001). The key to the success of the organization is the special something contributed by each and every individual. Globalization One of the assumptions held about globalization is that the world is becoming a global economy in which the rapid development of transportation and communication makes the territorial frontiers less important. The growing cultural homogeneity is characterized by the major differences between the ‘international’ economy and the ‘global’ economy (1998). According to (1983), technology is one of the powerful forces that drive the homogenization of the market. It allows people even those in isolated places to become attracted with the features of modernity. Consider the case of Coca Cola which is a globally standardized product sold and welcomed by people everywhere. It has successfully crossed a multitude of national and regional taste preferences but is able to be sold well. Almost everyone everywhere else wants the things they have seen or heard through new technologies. This resulted to the emergence of global market that offers standardized customer products (Levitt, 1983). Another factor is the increasing market demand which encourages the producers to go international.             Globalization has led to the emergence of a global village in the economy. As a global macroeconomic village, all firms large and small must become competitive across national boundaries. Coca Cola along with McDonald’s is considered to be primary agents of globalization. Yet only Coca Cola is a truly global MNE. It ranked 129th in the Fortune 500 list and has over 205 of its sales across the three parts of the triad: 38.4% in North America, 22.4% in Europe and 24.95 in Asia. Of its sales in Asia, 745 are in Japan but the company attempts to increase its market in Asia (2004).  The creation of the multinational market raised the issues of coordination in business activities across national markets as well as the issues of integration and the allocation of authority between the home base and its units in other countries. To deal with these complexities, international businesses made each of their national market a separate competitive target that can be handled by their subsidiaries and domestic companies that are familiar with the specificity of each domestic market (1999).             A number of companies including Johnson and Johnson and Coca Cola have their own ‘bibles’ that outline how their products will be distributed and promoted in the local markets (1999). The strengths of these firms depend on their ability to transfer technology and management skills cross boundaries. The subsidiaries enjoy a high level of autonomy but their competitive advantage is derived from the transfer of technology, know-how and brand equity from the parent company. Also, the competition for the limited pool of managerial talent grows as more firms pursue their global strategies. Global organizations must compete for the most important asset-talent ( 1995).             Globalization has widespread social, political, economic and environmental consequences. Critics of globalization assert that it widens the gap between the rich and the poor people. It allows companies to exploit the developing countries while it damages the environment through pollution and global warming. Many global companies are charged with acting outside existing laws using their power and market dominance to the disadvantage of global suppliers, customers and competitors (). In Johnson and Johnson, continuous improvement is the basis of their operations. The company does not settle for maintaining the status quo. Each employee has the responsibility to identify and where possible eliminate hazards to the environment and to the people (2003). In areas where such cannot be eliminated, employees are expected to become aware of hazards and safeguard themselves and the people surrounding them.             As with the safety programs of other companies, Johnson and Johnson management believed that safety is the responsibility of everyone. Employees are expected to become concerned not only with their own safety but as well as of their fellow employees, families, customers, contractors, visitors and the communities from which the company operates. Business Ethics             The issues of company and personal conduct in businesses have seemed to become higher in the public agenda. There are number of reasons for this. First of all businesses are becoming more international. There are strong local pressures to provide instant feedbacks on the actions and decisions of the family. A second reason is the occurrence of disasters. Another is the interest shown by the shareholder groups and by the government in ethical and environmental issues. Fourth are the increasing expectations of the public to the businesses and the growing media interests (2002). All of which pushes the questions of conduct, be it personal or company.             Inherent with business ethics is the challenge for the managers to continuously balance the needs of the organization and its stockholders with the needs of other stakeholders. Managers must also be able to balance their personal needs and desires against those of the organization. To address ethical problems, managers must have to recognize that conflicts of interests exist. One of the most common sources of pressure that compromises ethics is the need to follow the directives of the boss. Other pressures may include the need to meet aggressive business objectives and helping the organization to survive (2005).               Given the ethical problems such as those above, the challenge for the manger is knowing how to resolve them. Developing a business ethics is essential for any manager. For some time now, the ethical behaviors have become the forefront of public consciousness. Creating a company culture that rewards ethical behavior is essential for today’s businesses. Equally important is for managers to exercise good judgments whenever ethical conflicts arise (2003). There are several ways to develop global ethical perspectives among managers. First, managers must help the employees to become ethical in difficult conditions by providing a good corporate ethics program. In addition to this, the employee training programs must be devoted to ethics. At a minimum, this should include the study of the code, review of the company’s procedures in dealing with ethical problems and discussion of the employer and employees responsibilities (2004). For example, Johnson and Johnson values good character, ethical behavior and personal integrity. The company’s credo guides all the employees to do the appropriate things in tough situations ().             The company credits its sixty year old one page statement of values, known as the Credo, in enabling to create the employees’ trust necessary to maintain the corporate value system of the company. The Credo acknowledges the need of the company to make a sound profit while taking into consideration its obligations of providing quality products, treating its employees fairly and with respect, being good corporate citizens and supporting the community where it belongs. The company regards the Credo as the most important thing they have. However, the creation and maintenance of a morally sound corporate culture is an ongoing task at  (2004). The corporate culture plays a major role in allowing conflicts of interest to paralyze ethical decision making. An environment with ethical cynicism convinces the employees that the resistance to bad behavior is at best useless and at worst dangerous. Formal codes of conduct may have little impact if the business practices contradict them. Creating an ethical corporate environment requires more than the creation of new standards and mission statements. It means busting the cynicism that pervades the corporate culture (Vickers, 2005, p. 26). This is an opportunity of the HR in the organization but the environment is mostly influenced by the actions and the attitudes of the business leaders. Also, managers must exercise moral imagination. This means resolving tensions in a responsible and creative way. Coca cola, for example, has consistently turned down requests for bribes from Egyptian officials but has managed to acquire political support and public trust through sponsoring a project for planting fruit trees (2003). Corporate Social Responsibility Corporate social responsibility (CSR) can be defined as the instances where the company goes beyond compliance and engages in actions that appear to promote social cause. These activities may include adding social features to a product, modifying production processes or working closely to the community to ameliorate homelessness and indigence (2006). It has emerged due to numerous demands for corporations to play an active role in the overall welfare of the society.  In recent years, many businesses have given considerable attention to the social impacts of their economic activities. This has led organizations to introduce code of ethics and accommodate the interest of different groups in the society by engaging in social endeavors (1993). CSR includes four kinds of responsibilities or dimensions: economic, legal, ethical and philanthropic. In this model, each dimension of CSR can be examined in relation to the various stakeholders of the organization including owners, customers, employees and the larger community (2001). Generally, managers can undertake environmental initiatives beyond the requirement of regulations. They have the discretion to use the resources of the corporation in means they deem necessary. The practice of environmental responsibility may lead to a good sense of business by reducing the effects of the industry before the restrictive legislations are introduced. Additionally, they may be used to add value to the products and services or improve the image of the corporation in the public. Most companies have their corporate social responsibility (CSR) in which they voluntarily adopt environmental initiatives intended to enhance their image (2005). At best, these initiatives provide a starting point for businesses towards sustainable development. Among the challenges for companies operating under the concept of CSR is the ability to balance environmental responsibilities to its economic responsibility to gain profit. It is therefore important for companies to recognize that the cost of being environmentally responsible often outweigh the benefits. With this, firms will be less willing to implement initiatives. Fortunately, companies are starting to perceive the strategic value of CSR more than a public relations effort (2005). Waste reduction and the improvement of environmental performance are examples of CSR which may cost the company in the short term but will also make it competitive in the long term. Johnson and Johnson Family of Companies is committed to environment excellence through their policies. The company instills high environmental values to all of its employees, utilizes the best environmental practices in all of its products and contributes to global sustainable development. As one of the largest health care companies in the world, the company recognizes the critical interdependence between the human health and the health of the planet. Johnson and Johnson understand the short and long term threats of environmental degradation to human health. Thus, it holds special responsibility for environment protection (2007). Another example of a corporation working towards the environmental sustainability is Coca Cola. Its business depends on the health and sustainability of the natural resources. As a beverage company, Coca Cola focus its environmental efforts in three areas which it has great impacts and thus can do the most good: water use, packaging and energy use and climate protection. In addition to this, the company works towards maximizing recycling and reducing solid wastes throughout its processes. A number of specific initiatives and programs have been developed by the company to align its actions to its aspirations (2007). Coca Cola Company’s corporate commitment involves the responsibility to market their products responsibly, treat people fairly, make a difference in communities where it does its business and protect the environment.  The company invests in local economies through substantive and locally relevant community programs. Wherever it operates, the company works with leaders, businesses and governments to identify the needs of the community. Their partnerships and programs is an important part in contributing to the well being of the communities where Coca Cola operates (2007).

Contemporary Management Issues

Contemporary Management Issues The major challenges that managers must overcome in order to become competitive includes (1) globalizi...

Kimberly Clark Ethics In Business And Society

KIMBERLY CLARK ETHICS IN BUSINESS AND SOCIETY       Nowadays the morality and values of most organization and companies is questioned in their performance that most of the time their purpose is simply for profit and not to serve. There are many companies who exercise deliberate violation in their employees there are cases of overworked and underpaid employees especially the little domestic helper who have been abused in their household job, most mining companies do not adhere to the principles of protecting the environment that they dig into the deepest and destroy the earth and ecology just to get the resources, other industries put their dump on the land that should have been used for agriculture they also liter on the rivers that kills marine life and aquatic resources while most industries continue to produce smoke that deliberately destroys the earth’s atmosphere.       There are many companies who produce fake products most especially software’s, DVD movies, MP3 and other multi- media because it is easy to duplicate. No matter how many laws and limitations about business ethics there is just no stopping this organization in destroying the earth and its society. The ethical principles have been left behind in exchange of industrialization and personal gain while companies continue to operate in this way. These are ethical dilemmas that have been the abuse of power by most organization, sometimes greed overthrown righteousness is mostly exercised when faced with such circumstance. If a company is caught by the government and authorities they can exercise money laundering and corruption to be released from their obligations and responsibilities such conditions is a very inhuman practices.       There are many companies when left with choices between righteousness chooses to cover up for personal gain and this resolve their situations but there are companies who choose to fulfill their obligation for equal benefits to resolve conflicts and this should be the best practice for most companies. Kimberly Clark has been awarded this 2011 for the “Great Dallas Business Ethics Award” for their exemplary ethical business practices their company has reinforced most of their employees to practice good moral conduct by giving them the best privilege in their performance and opportunity to grow. For almost 140 years since 1872 they have provided the best package for their employees when they have the options to delimit them. Most of all they have deliver superior products through recyclable materials in cotton, tissues, napkins and other products although they have been faced with option the earth resources and cutting of trees destroying the forest and digging the land instead they dwell into the decision to be responsible in preserving the trees so they resort in using recyclable materials that makes them the best company in natural resources preservation.       Through these practices sustainability of resources is achieved and nature is preserved according to their Board of Directors sustainability and business ethics should be practiced by all of us. Kimberly has also faced ethical dilemmas when they established their business for expansion in other countries there are many temptations along the way because each countries represent different arguments and legal issues while some supplier and distributor may offer under the table business practices, graft and corruption and other immoral transaction that needs illegal settlement for easy delivery and protection.       Kimberly Clarke believed that they have surpassed this moral standard obligation by living up to their code of conduct. Their code of conduct has been translated into 27 languages so each and every country will understand how the company values transparency and moral ethics, those where the ethical moments of the company that they have lived up their values until today 2011 when faced with ethical dilemmas of the past. They see to it they their day to day business practices reflected their moral standard that they have protected their international image as one of the most important asset in their organizations.       Kimberly Clark is one of the true prides in America to survive most of ethical dilemmas that comes in their way they are committed to their core value of honesty, integrity, innovation and accountability. In 2011 they also receive the award as number 9 for World’s Best Multinational Workplace awarded by the Great Place to Work Institute. Consistent in gathering the award of 100 Greenest Company in U.S. by News Week Magazine, Membership in United Global Compact (UGC) to employ high ethical standard and sustainability. Consistent for the last three years as part of 100 Best Corporate Citizen, Open Opportunities Program for employee’s growth, protecting their employees on a global basis, they have also contributed 78,000 volunteer hours in 2010 and donated almost $25 million dollar in cash. These are some of their common practices and Social Responsibilities that holds out ethics in business and society. References: http://investor.kimberly-clark.com/releasedetail.cfm?releaseid=623744       http://www.kimberlyclark.com/   http://www.kimberly-clark.com/sustainability/products/governance/sustbusinesspractices.aspx   http://atheism.about.com/od/ethicalsystems/a/Deontological.htm

Kimberly Clark Ethics In Business And Society

KIMBERLY CLARK ETHICS IN BUSINESS AND SOCIETY Nowadays the morality and values of most organization and companies is questioned in...