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

Both the United Nations and social enterprises strive to assist developing communities and help them solve global issues such as the violation of human rights, environmental pollution, natural disasters, and wars. However despite their similarities, there is a distinction between the two and a reason for why they both exist. 

As the United Nations is a global organization of a much larger scale, funded by 193 participating governments, its objectives focuses on issues that are of a higher threat level, which usually results in severe global impact if not counteracted. For example, the United Nations was first organised to prevent another world war from happening. Another serious case where the United Nations was involved in was the Rwandan genocide which took place in 2004. If the United Nations has to interfere with an issue, the issue is likely to be very threatening. 

On the other hand, social enterprises operate on a far lower scale than of the United Nations. Social entrepreneurs are constantly involved in using innovation to provide education and improve living standards in developing areas of the world. Social enterprises consists of a variety of organisations, ranging form non-profit to for-profit organisations, creating both social and economic wellbeing. While the United Nations requires the agreement from multiple government parties before action is taken on solving issues, social entrepreneurs utilise their own resources and skills to drive social change. An example of this would be Jim Fruchterman of Benetech, who used technology to improve the reporting of human rights violations. The Arc Initiative at the Sauder School of Business also operates in the same direction, by building internships and workshops at developing countries such as South Africa and Ethiopia, it allows students to not only provide help at the community level, but also share and develop new business skills. These are the reasons why we need both the United Nations as well as social enterprises.

Link: http://articles.economictimes.indiatimes.com/2014-01-03/news/45837273_1_appraisal-managers-hdfc-life

After receiving complaints of unfair appraisal from staff two years ago, HDFC bank has recently completely redesigned its human resource and more specifically, appraisal processes. The controversy began when senior management received a rating of 4 and all junior staff only received a rating ranging from 2 to 3. As a response to this, HDFC now increased its management training program by 15-20% on feedback systems and providing long term performance rewards for staff. Furthermore, an online system was created to ensure managers responded to questions raised about discussions with staff before any rating or feedback is submitted. 

Bias plays a significant role in unfair appraisal, and may seem to be unavoidable. Often, managers are criticised for being either too harsh or too lenient, depending on his/her personality. As human resource management is becoming a more serious concern for businesses, all companies now strive to eliminate any bias that is created in the process. This can be done through training programs and case studies, which will train managers to deal with a variety of situations and act accordingly. 

Link: http://articles.economictimes.indiatimes.com/2014-11-04/news/55757508_1_kpmg-india-ernst-young-richard-rekhy

KPMG, one of the largest professional services companies in the world has recently made changes to its employee engagement programs and performance management methods in an effort to hire and keep the “best” employees. One of the examples is “Higher Purpose”, a business initiative created to encourage employees to share and discuss their experiences in business. Employees are also rewarded with a paid holiday if more than 5,000 stories are shared in the process.

Performance management is becoming ever so important as businesses strive to become as efficient and effective as possible in order to remain competitive. In order to keep employees engaged and focused on the business’s objectives to improve productivity and create a healthy working environment, a proper feedback system is also required. A change that KPMG made to its performance management is the removal of rating systems, and the implementation of immediate feedback and debriefings for every major assignment. Also, they are increasing the bonuses for the  higher performing employees in order to make this group more distinguished. 

I personally believe that businesses should never retain the same performance management practices for a long period of time, but should instead experiment with different strategies to decide which is the most effective. 

Link: http://www.telegraph.co.uk/finance/bank-of-england/11168372/Interest-rates-need-to-rise-says-Bank-of-England-rebel-Martin-Weale.html

Martin Weale, the “rebel” and one of the 9 members of the Monetary Policy Committee of the Bank of England, remains confident that interest rates should be raised, despite the fact that inflation is running well below the Bank’s 2pc target. Although many argue that increases in interest rates should wait, Mr. Wheale believes that it should increase immediately to reduce the risk of having to raise the interest rate even higher in the future to contain inflation. 

Raising interest rates will generate different effects to the economy. Firstly, it will increase the costs of borrowing. Businesses often seek external sources of finance to aid their ventures, and an increase in interest may make them more hesitant to do so. This may also discourage people from saving their money. Secondly, mortgage interest payments will also be increased. A small percentage increase in interest rates can result in a large cost increase and impact on consumer’s disposable income. Lastly, increased interest rates can also lead to higher taxes in the future as it increases the cost of government interest payments. These are the potential effects of raising interest rates that need to be considered. 

Link to Article: http://www.bloomberg.com/news/2014-02-13/coal-burns-brighter-as-utilities-switch-from-natural-gas.html

The price of natural gases has recently risen to a new high in 4 years, causing the the use of coal to generate energy to also reach a new high since 2011. The United States is estimated to generate the highest level of carbon dioxide in the recent 3 years, going against President Barrack Obama’s attempts to reduce pollution levels.

Although businesses may often highlight their sustainability efforts and prioritise it, this is an example of how profit remains to be their number one objective. When the price of natural gases and other sustainable resources were relatively lower, businesses would take advantage of it to ensure groups of their efforts to reduce waste and pollution in their production process. However when the price increases, they will react immediately in an attempt to reduce costs by switching to a more financially profitable method of production, the cheaper alternative that is coal, even if it means increasing their waste levels.

Link: http://www.businessweek.com/articles/2014-11-05/low-cost-inflatable-incubator-for-infants-wins-james-dyson-award#r=hp-ls

James Roberts has recently received the Dyson Award for his invention of an inflatable incubator known as MOM, which can be used to reduce the death of millions of babies each year due to premature birth complications such as hypothermia. A large contribution to the product’s success is its low cost. At an affordable price of $400 but having the features of expensive modern incubation systems, it is accessible even to developing countries, where the majority of these infant deaths occur.

The level of innovation that went into the development of the MOM goes beyond its low price and features. Furthermore, it is also extremely convenient for its users. When the device is not in use, it can be deflated and folded, thus using less space. MOM is able to establish the point of difference of having a low cost, easy accessibility and convenience while maintaining the points of parity of the heating technology, temperature display, as well as hygiene standards. Therefore, MOM can become a strong substitute product for other more expensive incubator systems. As Dr. Bernie Marden, a paediatrician at the Royal United Hospital in Bath said, “Its use needn’t be limited to developing world scenarios. I could see it being used in the UK to support community midwifery units, or following home births.”. MOM is an example of how an innovative product can experience great success.

Article Link: http://www.theglobeandmail.com/report-on-business/careers/leadership-lab/why-are-so-many-managers-useless-as-leaders/article20864299/

Interestingly, before reading this article, I had a discussion with my friend at a restaurant about the topic of managers in a business, and the crucial role they have on the employee’s morale and working attitude. We also came to the conclusion that employees often think that their managers “suck” and are “useless”. However, after reading this article, I was provided with a better understanding of the manager’s role, and how their work differs from before they were promoted.

As mentioned, my friend and I had the initial belief that it is a common occurrence that employees think down of their managers. When this happens, their working attitude and morale drops, which would result in them trying to work around them, or avoid them as much as possible. However, one should take into consideration the idea that the reason for this is because of the drastic difference between their old position and their new role as manager. First of all, the method of defining a manager’s success is not the same. Instead of simply completing your task and receiving recognition for it, the manager has to supervise tasks being completed, and be the one who provides the recognition to employee’s with outstanding performances. Secondly, instead of using the internet and other forms of resources to do research, there are now people who do the research for you. These people are now your resources, and it is up to the manager to decide how to utilise them. Also, as the manager is responsible for supervising the workers, he/she now has to also deal with their personal issues, such as negative working attitudes, sickness, and under-performances. Lastly, the manager also has to experience different expectations, provided from the general staff as well as from upper level management. These are several of the key reasons why managers may often be criticised by other workers.

Article link: http://www.theglobeandmail.com/report-on-business/ford-adds-1000-jobs-at-retooled-oakville-plant/article20869421/

Ford MC is an American multinational manufacturer of automobiles, founded in 1903 by Henry Ford with a headquarters located in Dearborn, Michigan. Ford is also a pioneer in the large-scale production of cars, introducing processes such as assembly line production to the auto motor industry. The article discusses Ford’s recent decision to create 1,000 jobs at their Oakville, Ontario plant to help prepare for the launch of their new model of the Ford Edge. 

Not long before the announcement, the employment level in vehicle assembly was facing an all time low, with a decline of 23% from 64,700 in 2013 to 49,000 in June 2014. One main reason for this drop is automation of the production process, which is the shift from using labor workers to operating equipment and machines in the manufacturing of a product. With new technology developments over time, more and more businesses have shifted to this new system of production. Automation is also more common in the auto motor industry, as the production process involves the moving and manipulation of heavy materials not easily handled by a person. Automation can help speed up the product process and eliminate all human error. However, the risk of machine breakdown exists, employees need to be trained to monitor these machines, and maintenance costs are still incurred. 

Automation has reduced the need for employees in the production process, which has led to a large decrease in employment levels. Therefore, it can be seen that it is rare case for a motor company such as Ford to suddenly create a large number of employment opportunities. 

Article link: http://www.theglobeandmail.com/report-on-business/industry-news/energy-and-resources/canada-risks-being-left-behind-as-green-energy-takes-off/article20714118/

This article talks about the new rising industry that is green energy. Over time, more and more countries such as China and the United States are investing heavily into the industry of sustainable energy. This also includes large multinational corporations such as Google, Wal-Mart Stores, Apple, and Ikea. The benefits resulted from this shift go beyond economical improvement, as it also reduces the pollution and waste generated by these companies, and increases the awareness of the use of sustainable energy. However, Canada did not respond as enthusiastically to this shift to renewable energy. 

In 2014, as more countries go through the process of industrialisation, environmental issues have become more significant than ever, which also means that pressure groups have become more intolerant with corporations who do not put effort into establishing sustainable values. This has forced businesses to look for alternatives to the use of fossil fuels in the production process. As more large-scale corporations invest into the new trend that is green energy, others may become influenced to do the same. This is beneficial especially for countries such as China, where large amounts of pollution are produced due to the numerous factories and manufacturing plants located there. As mentioned in the article, China’s new renewable energy plants have now surpassed its investments in the generation of coal. If the countries that are currently hesitant to invest in the green energy market such as Canada become willing to do so, these will be the first steps that would lead to a more sustainable global market, which will not only create economic gains, but also improve the natural environment. 

Article link:

http://www.csrwire.com/press_releases/35509-Walmart-Highlights-Sustainability-Progress-in-its-2013-Global-Responsibility-Report

Apart from the generation of profit, one of the key points mentioned by R. Edward Freeman in the “What is Stakeholder Theory?” video on preventing a business from entering the stage of decline, is the business’s fulfilment of its corporate social responsibility. One of these responsibilities include establishing sustainable business practices. In today’s society, businesses are often criticised by pressure groups for issues such as high levels of air pollution and the depletion of natural resources. This is most evident during the production process, especially for multinational corporations such as Walmart and Target which utilises large numbers of factories producing insurmountable amounts of waste. 

One business that has focused on becoming more sustainable is Walmart. Walmart is an American multinational retail corporation that owns chains of department and warehouse stores across the world. The article, published in April of 2013, highlights Walmart’s extensive efforts on fulfilling its environmental responsibilities. For example, it focused on using more renewable energy sources, selling more sustainable products, and reducing plastic shopping waste etc. Evidently, Walmart is fulling committed to R. Edward Freeman’s theory of the importance of being socially and environmentally responsible in order to maintain a successful business. Andrea Thomas, Walmart’s senior vice president of sustainability, stated that “the accomplishments we are sharing today represent Walmart’s focus on our customers, our business and our communities.” However, referring to the reading excerpt “The Social Responsibility of Business is to Increase Profits”, one may question whether or not it is optimal for Walmart to be spending its money and resources on these efforts, and whether or not these efforts are purely actions of window-dressing or attempts to deceive its customers.

Bibliography:

CSR Press Release. (2013, April 22). RSS. Retrieved September 11, 2014, from http://www.csrwire.com/press_releases/35509-Walmart-Highlights-Sustainability-Progress-in-its-2013-Global-Responsibility-Report