Organizations are driven by an objective that defines their purpose. Although all organizations expect compensation for their services, be it profits for businesses or salaries for administration of nonprofit organizations, they do have a vision and core values that motivate them to pursue their objectives with effective strategies.

For instance, social entrepreneurs are driven by their social values, the ambition to combat societal issues, and their mission to improve systems. Similarly, the arc initiative is driven by its pursuit of economic well-being and development of business skills through internships, workshops and mentoring activities for young entrepreneurs.These visions, along with strong ambition, differentiate these organizations and their purpose of existence.

Imagine if Salem’s Ethiopia received funding and support from the UN to enhance the business. Would the UN’s support be as effective as the arc initiative’s efforts, with the same passion and dedication? Most likely, the UN would fulfil its responsibility, but it will possibly lack the ambition that drives the arc initiative towards its objective. Likewise, although the UN can have sufficient funding, it can lack the innovation and aspiration that drive social entrepreneurs to improve societies.

Conclusively, different objectives drive organizations towards different journeys. If the UN attempts to pursue all of these objectives, then the outcome could be slow and inefficient. Hence, it would be effective to let ambition and values drive organizations, rather than relying on the UN to solve all of the societal issues.

Work Cited

Performance management is expected to ensure that the labor force has the right incentive to perform efficiently and advance progression of the whole firm. The labor force requires strong motivation through rewards and incentives to enhance the organizational effectiveness of a firm. After all, how will a firm reach its goals if the employees lose their incentive to perform at their best efforts?

To illustrate, consider the example of Air Canada’s new policy that requires its customer service agents to confront passengers and ensure that their cabin bags meet the size limit. Any bag that exceeds the maximum size limit must be checked. This policy has angered many passengers, and their hostile responses have made it difficult for many agents to cope with the job.

Air Canada’s command hierarchy obliges its reluctant employees to perform the duty that they strongly disdain. So, how will Air Canada sustain its demand, after having both, unsatisfied customers and disinclined employees? In order to manage customer dissatisfaction competently, Air Canada should pursue an incentive system to maximize its staff engagement and performance in this job. They should have volunteers, such as beginners in the industry, take such duties, rather than having agents unwillingly fulfill the responsibility.

By not providing the right incentive for the agents, Air Canada can weaken its customer relationship due to its poor performance management and suboptimal costumer services.

Work Cited

Harris, Sophia. “Air Canada Service Agents Call Carry-on Crackdown Too Unpleasant.” CBCnews. CBC/Radio Canada, 31 Oct. 2014. Web. 02 Nov. 2014.

Aditya. “The Notepad.” : How to Deal with Unhappy Employees? N.p., 21 Aug. 2012. Web. 03 Nov. 2014.

Can businesses accomplish their foremost goal of profit maximization by advancing social and economic conditions in the societies in which they operate?  An interesting blog by Rachel Chan discusses the positive societal and economic impacts of the Annual Suit Drive held by Moores Clothing for Men. Moores has created shared value by collecting gently used professional attire from donors to help unemployed individuals look professional for their job interviews and beyond.

Moores has created an opportunity for individuals to help transform their society. As an incentive, Moores offers a 50% discount to its donors on all its products. This stratagem can motivate individuals to donate their professional attires and change the lives of those affected by poverty and unemployment. But how will this help Moores, as a firm, reach its goal of profit maximization?

As mentioned by Rachel, Moores can increase its demand by alluring donors, who were not its customers initially, through its attractive discounts. Also, the firm can gain a positive publicity through its socially-conscious activities.

This strategy can also give Moores a competitive advantage over its competitors, since individuals would appreciate the virtuous approach; the donors would get benefits of discounts; and the brand image of the firm would gain positive recognition. If this shared-value strategy is a success for profit maximization, then this remarkable trend could be pursued by other firms, which would then result in an efficient economic and societal progression.

Work Cited

Chan, Rachel. “Sharing Suits.” Web log post. UBC Blogs. N.p., n.d. Web. 1 Nov. 2014.

“Men Show Some Skin To Help Fight Joblessness.” Moores Clothing for Men. N.p., n.d. Web. 1 Nov. 2014.

Tonge, Garrett. “Moores Canadian Suit Drive 2014 – GTONGE1.” GTONGE1. N.p., 2 July 2014. Web. 02 Nov. 2014.

Why do many businesses collapse while others thrive? What is the core to protecting and extending product uniqueness to increase sales? According to an interesting blog by Sarah Hancock, the success of business marketing is positively correlated to the branding of that enterprise. The author states that a brand classifies a business while making specific promises to its customers.

In all consensuses with the author’s blog, branding is fundamental to the success of marketing and the business as a whole because it delivers the brand message and conveys its value propositions to its customers. In addition, successful branding can connect with the consumers at an emotional level and motivate them to try the brand. For instance, Walmart’s brand promise, “Save Money. Live Better.”, accentuates its cost leadership strategy and highlights the emotional benefits of shopping at Walmart. Similarly, Ernst and Young’s brand promise, “Building a Better Working World”, emphasizes on the firm’s dedication and allegiance towards its primary purpose of conscientious auditing.

In order to develop a successful brand, businesses should first select their point of difference and their best value, and then use that to create a brand message that can differentiate and symbolize that enterprise in the market.

Work Cited

Hancock, Sarah. “Why Does Branding Matter? Because It Works.” Red Rocket. N.p., n.d. Web. 1 Nov. 2014.

“Walmart.” Lippincott: Brand Strategy and Design. N.p., n.d. Web. 01 Nov. 2014.

“Ernst and Young.” Brand New: New Logo and Name for Ernst & Young by BrandPie. N.p., 3 July 2013. Web. 01 Nov. 2014.

Brown, Evan. “3 Steps You Must Take For Branding Your Business – Design Mantic.” Design Mantic. N.p., 23 Aug. 2013. Web. 01 Nov. 2014.

Businesses aim to position their products as “first” in the consumers’ minds by composing and advertising their points of difference. However, due to competition posed by large firms, many small and medium-sized enterprises find it difficult to position and market their products. Even though smaller businesses face a competitive disadvantage from larger corporations, strong marketing stratagems and an inexpensive idea can potentially take these businesses to the next level.

To examine the effect of a strong marketing idea, consider the example of the ALS Ice Bucket Challenge. Before the challenge, the ALS disease was unrecognized by the majority; however, strong marketing tactics, such as celebrity endorsements, viral nomination of friends, and the adventurous nature of the challenge itself, promptly increased the awareness about the ALS disease. Although the ALS only affects a very small segment of the entire population, its marketing success has enhanced its visibility, has accumulated donations of over a $100 million, and has gained worldwide phenomenal support.

A product can either be a success or a flop depending on how well it is marketed and publicized. To market a product successfully, a company often needs to connect with the consumers at an emotional level. In many instances, a distinct and interactive marketing strategy can “enter” a consumer’s mind and leave a positive image about the product and the brand.

Work Cited

Tuchman, Robert. “How Storytelling Can Create Brand Value for Your Business.” Entrepreneur. N.p., 2 Sept. 2014. Web. 28 Oct. 2014.

“Best Free Marketing Ideas | HomeBizIdeas4u.com.” Home Biz Ideas 4u. N.p., n.d. Web. 28 Oct. 2014.

Corporate Social Responsibility is a fundamental element for organizations and stakeholders that ensures meticulous responsibility of businesses towards the environment and society. The CSR has almost become a point of parity in the business world due to the transparency of corporate decisions and activities conducted by various corporations. CSR is essential for businesses as it enhances the brand image and creates social and environmental responsibilities. With CSR, the primary goal of the firms is still to maximize their profits, but with added value.

Despite its significance in today’s world, many companies still breach the CSR to abate their expenses. For instance, Canada’s junior hockey team violated the minimum wage laws and disrupted its social responsibility towards its employees. The Canadian hockey league countered these charges by alleging that their athletes, by contract, are not considered employees; hence, they do not even have to be paid. Even with the legal contract, the hockey league is inconsiderate about its CSR: the players, who vigorously compete for the team, train hard for the league, and help the team earn profits, are not being compensated for their services.

The hockey league’s attempt to minimize its wage expense has violated the CSR and has gained public cognizance. In addition, the league faces serious threats from the pending lawsuits. Conclusively, violating the CSR now poses a serious threat to the brand image and corporate value of the Canadian junior hockey team.

Work Cited

News, CBC. “Canada’s Junior Hockey Teams Violate Minimum Wage Laws: Lawsuit.” CBCnews. CBC/Radio Canada, 20 Oct. 2014. Web. 28 Oct. 2014.

“CSR Matrix – Transfer of Innovation Project.” CSR Matrix – Transfer of Innovation Project. N.p., n.d. Web. 28 Oct. 2014.

The Northern Gateway Pipeline is an essential project for economic development and opportunities in Canada. The Northern Gateway Project team, Enbridge, firmly believes that this project will promote social interest: it will create a plethora of jobs, generate billions of dollars of revenue for taxpayers, and will support skills training programs. However, opposing threats from the First Nations have become a rigid barrier for the success of this venture.

Although 26 out of the 40 First Nations along the route have signed equity with Enbridge, some other north-central and coastal B.C First Nations, like Nak’azdli, have sworn to stop the construction of the pipeline. This is primarily due to the threatening effects of oil spill on sockeye salmon and the Nechako sturgeon.

Enbridge is facing legal and political factors that barricade the success of the Northern Gateway Pipeline. Despite the significance of this pipeline, Enbridge plans to gain Nak’azdli’s consent before initiating the construction.

The construction of the pipeline is vital; however, constructing it without the consent of First Nations would be unethical. The court could overrule Nak’azdli’s concerns and permit the project if it is vital for national interest. However, Enbridge should negotiate and gain Nak’azdli’s consensus since this project directly affects their culture and traditions.

Citations

“B.C. First Nation along Pipeline Route Officially Rejects Northern Gateway Plan.” Warrior Publications. N.p., 11 Apr. 2014. Web. 06 Oct. 2014.

Hoekstra, Gordon. “‘There Will Be No Pipeline’.” Www.vancouversun.com. N.p., 16 Aug. 2014. Web. 05 Oct. 2014.

“Northern Gateway.” Northern Gateway. N.p., n.d. Web. 04 Oct. 2014.

One of the worst forms of corporate frauds that exist is the financial statement frauds. Financial statement frauds present manipulated and distorted financial information to interested external users and stakeholders. However, once unveiled, these scams can devastate an enterprise’s reputation and abate its value.

For instance, Tesco’s distortion of financial records has received cognizance among the public and has become widespread news. Tesco had published its financial statement that displayed inaccurate profits of £250 million. To investigate the matter, the Financial Conduct Authority has initiated serious inspections of Tesco’s records.

As the investigation proceeds, Tesco faces a downfall in the value of its share. Furthermore, such negative headings can darken Tesco’s future and harm its long term value. But then, why would companies even consider committing such fraudulent activities?

Oftentimes, despite knowing the possible consequences, business leaders falsify their financial statements to portray themselves in a stronger position than they actually are. This deceit could occur for numerous reasons, such as economic pressure, overwhelming competition, or simply a need to fulfill the creditors’ requirements.

However, despite any reason, financial statement frauds can cause significant harms to the investors, stakeholders, and even the members of the organization.

Citations

“Forensics Accounting Education.” N.p., 1 Oct. 2013. Web. 4 Oct. 2014.

Polack, Richard A. “Detecting Financial Statement Fraud by Richard Pollack – Berkowitz Pollack Brant Advisors and Accountants.” Berkowitz Pollack Brant Advisors and Accountants. N.p., 21 Dec. 2012. Web. 05 Oct. 2014.

Ahmed, Kamal. “Tesco, Sainsbury’s – the Bad News Just Keeps Coming.” BBC News. N.p., 1 Oct. 2014. Web. 05 Oct. 2014.

Unregulated businesses have greater potentials to thrive, as they did during the laissez-faire capitalism. However, the excess of freedom can also sanction corporate corruptions in societies. Hence, ethical business practices have been imposed on businesses in order to protect consumer rights. Although such laws are essential to the wellbeing of consumers and societies, they are not always fair for some businesses. For instance, Canada’s Anti-Spam Legislation (CASL) illegalized the unwanted and spam commercial electronic messages on July 1, 2014. Furthermore, it obliged businesses to earn legal consent before using any means of electronic media to publicize or promote their products or services.

Although this law is essential to abate, if not eliminate, e-frauds, it still pressurizes smaller businesses more than larger corporations. All the businesses received a deadline of six months to prepare for the execution of CASL. Unfortunately, the smaller businesses lacked the technology and budget required to alter their marketing strategies within that time span. On the contrary, large corporations had better resources available to adjust their strategies parallel to the new regulation.

Conclusively, the impact of business laws could be debatable: they promote consumer rights and endorse fairer practices, but they also give larger corporations a stronger competitive advantage over smaller businesses.

Citations

“New Anti-spam Law.” The Globe and Mail. N.p., 24 Mar. 2014. Web. 30 Sept. 2014.

“The 45-Minute MBA: Business Law.” Margin of Excellence RSS. N.p., n.d. Web. 30 Sept. 2014.

Do ethics really hurt profits, or could they actually help elevate an enterprise’s growth in success and value? An interesting blog, by Farwah Ahmed, discusses whether Corporate Social Responsibility is beneficial or detrimental for a business. In her conclusion, the author states that social responsibility does augment profits. Then, why do some businessmen and strategic thinkers allege that ethical behaviors can abate profits?

Consider Company X and Company Y to be two competitive enterprises, both producing soaps and being equally popular. Company Y discovers a substitute chemical that can substantially lower its production cost; however, this chemical is not too great for one’s skin and could cause skin irritation. Company Y still decides to use that chemical to reduce its production costs, lower its prices,  and to increase its demand among consumers. For a while, Company Y will experience an increased demand, while Company X would suffer a competitive disadvantage despite its ethical production. However, in a longer span, when skin professionals conduct researches and consumers realize the difference in product quality, Company Y can potentially suffer a massive downfall in their profits and value.

Similarly, if any company gets exposed for conducting unethical practices, then they could lose their profits and brand name for good. Whereas, creating trust among consumers can increase a company’s value and its long-term profits.

Work Cited

Ahmed, Farwah. “Corporate Social Responsibility – Beneficial or Detrimental.” Web log post. UBC Blogs. N.p., 10 Sept. 2014. Web. 2 Nov. 2014.

“Building Sustainable Value through Fiscal and Social Responsibility” – Ivey Business Journal.” Ivey Business Journal. N.p., n.d. Web. 16 Sept. 2014.