Preparation 20: Social enterprise and the arc initiative

” If  the United Nations was fully funded why would we need the Arc or social enterprise”?

As we know, the United Nations is an intergovernmental organization to promote international co-oparation. Its objectives include maintaining international peace and security, promoting human right, protecting the environment and so on. Overall, it is a huge organization that focus on many aspects of the social problems .

However, the United Nations is so big an organization that they cannot be able to focus on each small area precisely. For example, in the video, the social entrepreneurship pioneers teach the homeless children and hire jobless young people to build houses. The United Nations does not have ability to cover all these small but important things. Also, they are not able to hire so many people working on these areas. Everyday, the United Nations is working with “big staffs” like the Middle East Wars and global warming discussions.

Another piont is that although the United Nations has provided huge amount of fund, food or clothes to the places where the people are struggleing in poverty, it did not influnce a lot on the economy growth of these places. Compare with the United Nations, the social enterprise and Arc play an much more improtant part on the developement of these places. They not only provide them food and clothes to keep alive, but they teach them the skills and tell them how to make a living as well as build a better life.

Small Company’s Human Resource Management

Human resource management is an important part in a company’s system. It manages their workers, creates an organization culture and affects customer services. We have read that how “Happy Feet” treat their employees and improve their customer service. But how can small companies create a better working environment for their workers?

Small companies do not have abundant capital to improve the employees’ wages, or to provide free lunch everyday. They cannot provided everything their employees need like Google or build a golf court like SAP.  Their workers are not well trained, and they can loss skilled and talented workers very easily. Here are some simple but useful tips for smallcompanies. They can be attractive to both existing and potential employees.

  1. Prepare a small room so that the employees can have a nap in it. The only things needed in this roon is couches, blankets and an alarm clock. Some research said that sleep in the day time is a good way to active people’s body.
  2. Reimburese  the membership fee of the gym for the workers. Small companies do not have enough money and places to build a gym inside their company. So, why not let their employees go to the gym and keep healthy without any charge outside their working place?
  3. An online dating company called Zoosk wants to build an enviornment that is friendly to dogs. They think that dogs can make people happy and make an active atmosphere. If you are a person who loves dogs, then go to Zoosk!

Comment on the “Minimum Wage Debate”

https://blogs.ubc.ca/abondar/2014/11/05/minimum-wage-debate/

In this blog, the author hold the opinion that increasing the minimum wage can benifit locals. He argue that although increasing the minimum wage can cause for a lost in many jobs, it in fact, it weeds out many illegal immigrations. I agree that in some extent, it can weed out illegal immigrations, but it also affect many legal citizens who need these jobs to raise their family. After all, There is a large number of citizens that work in these low-paid locations.

I think that there are some disadvantages of increasing the minimum wage. If the increasing wages cannot lead to an increase in the efficiency of labour, the price of services and goods would increase at the same time. This will cause an inflation in the market. Another point is that when the companies decrease the number of people they hire, they have to increase the work intensity of the rest of the workers. So we cannot say that the wage of these workers rise essentialy. Finally, as the tax rate is high, increasing the minimum wage would not have too much influnce on those low income people’s life quality.

However, increasing minimum wage can promote the transformation and upgrading  of enterprises. Some labour-intensive enterprises disappear, others are forced to innovate and improve their efficiency.

The Stratagy of Vera Wang in Chinese Market

Vera Wang is a company which designs and sells luxurious wedding dress. The company was founded in New York, and it opened it’s first flagship shop in Shanghai China on January, 27th, 2013. After that, many Chinese girls bought their wedding dress although the price of their dress is very high. Some Chinese girls even announced that if they could not have a wedding dress from Vera Wang, they would not get married.

How can Vera Wang be so popular among these Chinese girls? I think the most important reason is their bussiness stratagy. When they opened their flagship store in Shanghai, the price of a wedding dress is from 30,000 to 300,000 RMB. The store is about 800 squre metre and has more than 80 sets of wedding dresses. Every customer has to pay 3,000RMB to try the dresses, and they have only one and a half hour to try them. This attracted many bad public opinions for the company, so they stopped charging this fee at last.

However, I do not think it means that the company loss in the battle. In contrast, this can be seen as an advertisement for the brand. After this, Vera Wang became a luxury brand in many Chinese girls’ mind, and the status of Vera Wang was highly improved. Also, many stars had worn Vera Wang‘s wedding dress like Avril Lavigne and Chelsea Clinton. This have attracted more and more Chinese to buy their product. In conclusion, thier stratagy in China is a complete success.

The CSR of Sunrun Inc.

Sunrun is an United State-based provider of residential solar electricity co-founded in January 2007. It pioneered the use of solar leasing for residential customers and, depending on the applicable state law, offers customers either a lease or a power purchase agreement business model.

As global warming and air pollution continuous to grow these days, It is important for people to use renewable resourses like solar, wind, and nuclear power. As a company, Sunrun provided solar electricity that release zero carbon footprint .  They are response to the environment and contribute to the sustainable developement of  sociaty. For the customer side, they help their costomers to save money on the electricity bill. It seems that Sunrun meets the Corporation Social Responsibility.

However, as we know that firm is a self-contained, profit maximizing entity. Many people argue that the purpose of companies like Sunrun is only to earn more money. Government has a 30% federal tax credit for residential solar electricity projects, and the leasing companies are able to sell their tax credits via a tax equity fund. These people said that the government is wasting the tax payer’s money. For me, I think that profit maximizing and social responsibility can coexist. And the solar electric companies will works better and better that at last, they will be able to get off subsidies.