Week 10

Organizational Purpose:

Organizational purpose defines the presence and sense of identity of an organization. It indicates a firm’s goals, objectives and accomplishments with the mission and vision statement.  It is also the foundation upon which a business is built on. Every business must have organizational purpose for the following reasons:

·       It is organizational comprehension of self knowledge and shared understanding of what it stands for and     where it is going.

·       It helps to choose what to include and what not to include in your business.

·       It helps to how to be different from competitors.

·       It keeps the company on track regarding its mission and vision statement.

·       Everyone will be clear about their company once they are clear about the organizational purpose.

Corporate Social Responsibility:

     “Should have in place a process to integrate social, environmental, ethical human rights and consumer concerns into their business operations and core strategy in close collaboration with their stakeholders” (ec.europa.eu)

      Corporate Social Responsibility refers to the responsibilities of a business firm towards its stakeholders, customers, suppliers, employees, the external environment in which it operates in and the natural environment as well. It is also defined as “corporate citizens” that may involve any profit for the firm but instead helps to encourage positive environmental and social changes.

     Alone with the intention to earn the profit, every firm must be aware of their responsibilities towards their stakeholders.  Companies must focus in how to earn their profit and make the shareholders satisfies. However, simply to earn profit, they must not do any harm towards their stakeholders like the employees and the environment. One must not ruin the image of their company by being irresponsible and once it has happened, then the chances of earning profit will ultimately vanish.

      Similarly, with the increasing number of environmentalist and human activists, the CSR for every companies have increased, one must not take it as a burden but consider is as one of the best way to keep the stakeholders happy and earn profit as brand image can be earned by humanity.

 Providing a local example of CSR, Mr. Min Bahadur Gurung, founder of Bhat Bhateni supermarket has created employment opportunities to the families of political martyrs and indigenous people. Likewise, he has made contributions in the field of hospitals and temples. The customers have direct and positive impact on him and his supermarkets. Thus, this is a good example of direct relationship between responsibility and profitability. 

References: 

Enterprise and Industry, Corporate Social Responsibility [Online] Available at http://ec.europa.eu/enterprise/policies/sustainable-business/corporate-social-responsibility/index_en.htm (accessed on 5/1/13)

Investopedia, Corporate Social Responsibility [Online] Available at http://www.investopedia.com/terms/c/corp-social-responsibility.asp (accessed on 5/1/13)