You are here:

Management Consulting/MBA -HR 2nd year assignment answers

Advertisement


Question
2.1 Organisationsal DEVELOPMENT AND MANAGEMENT OF CHANGE
1)Take an organization of your choice and explain its organizational transformational process.  the functions of organizational development and transformation with suitable examples.
2)Elaborate the contemporary issues involved in the management of organizational development in India. As a chief executive officer of a leading steel production company, how will you apply action research to bring effective organizational development program?
3"Many managers believe the effectiveness of third party peace making intervention rather than comprehensive intervention". Do you agree with this statement? Justify your views.
4)Enlist the potential research areas in organizational development in Asian context. Mention the important functions of any two research funding agencies in Asia which motivate the cross cultural research program.

2.2 TRAINING AND DEVELOPMENT
1."Imparting training is a waste of time and money. Instead experienced persons can be recruited from outside" - Discuss the strengths and weaknesses of this statement. Justify your view.
2.Assume yourself as a CEO of a Yarn Export Company. How will you design effective training policies of your company?  
3.Performance appraisal may be geared to facilitate learning. How can performance appraisal utilizing the MBO approach effectively enhance employee development in terms of the specific learning principles?
4.Explain the merits and demerits of different types of training programs. Discuss their suitability in industries like power generation plant, mines and automobile assembly line.

2.3 LABOUR WELFARE
1.a) Trace out the Implementation of labour welfare practices in India.  
b) What are the role, responsibilities and duties of welfare officer?
2.Discuss in detail the objectives and process of collective bargaining and what is the current position of collective barging in India.  
3.State the objectives of workers education and how will you recommend the National Commission on Labour, Forms and Levels of participation.  
4.In what way industrial hazards can be reduced? Can we prevent accidents by weeding out accident - prone workers? Suggest suitable ways to reduce accidents in factories (choose a industry of your choice).

2.4 INDUSTRIAL RELATIONS
1.Elaborate the scope of Dunlop model of Industrial relations in Indian Business Context with appropriate examples.  
2.Describe the various forms of Industrial Disputes in Asian Countries. Elaborate the preventive and settlement machinery of Industrial Disputes in India.  
3.Enumerate the various factors involved in effective negotiation process. Explain the emerging issues in the administration of Collective Bargaining agreements in global context.
4.Enlist the objectives and aims of International Labour Office. Describe the contemporary issues in the workers participation in management in India.

2.5 WAGES AND SALARY ADMINISTRATION
1.What is understood by National Wage Policy? Does it imply a uniform wage structure or may there be differential wage structure in similar undertakings. Examine the factors determining the fixation of wages.
2.Outline the purpose of a pay commission. How is it constituted? Critically examine the recommendations of any four central pay commissions of your choice.  
3.Examine the changes in the government policy in managerial remuneration and explain the rational of the ceiling on managerial remuneration.
4.Prepare a theoretical paper justifying that compensation is a motivator and not just a satisfying factor.  

2.6 STRATEGIC MANAGEMENT
1.Explain the differences between strategic and non-strategic decisions, and between functional, business level, and corporate - level strategy.
2.a) Discuss the role of Corporate Social Responsibility (CSR) and business ethics in corporate strategy?
b) Explain the element of the strategic management process? How are they interrelated?
3.Identify the five competitive forces and explain how they determine an industry's profit potential. Apply Porter's five forces model for Automobile Tyre Companies.
4.Consider the shampoo market in India. Prepare a table showing the differences between the strategies adopted by top 5 brands. Explain each point.

Answer

HERE  IS  SOME  SOME  USEFUL MATERIAL.
SOME  ANSWERS  HELD  BACK  DUE TO  SPACE CONSTRAINT.
PLEASE  FORWARD  THESE  BALANCE  QUESTIONS  TO  MY  EMAIL  ID   
leolingham@gmail.com.
I  will send  the balance  asap.
Regards
LEO  LINGHAM   
==========================================




Question:   2.1 Organisationsal DEVELOPMENT AND MANAGEMENT OF CHANGE
1)Take an organization of your choice and explain its organizational transformational process.  the functions of organizational development and transformation with suitable examples.
2)Elaborate the contemporary issues involved in the management of organizational development in India. As a chief executive officer of a leading steel production company, how will you apply action research to bring effective organizational development program?
3"Many managers believe the effectiveness of third party peace making intervention rather than comprehensive intervention". Do you agree with this statement? Justify your views.
4)Enlist the potential research areas in organizational development in Asian context. Mention the important functions of any two research funding agencies in Asia which motivate the cross cultural research program.

2.2 TRAINING AND DEVELOPMENT
1."Imparting training is a waste of time and money. Instead experienced persons can be recruited from outside" - Discuss the strengths and weaknesses of this statement. Justify your view.
2.Assume yourself as a CEO of a Yarn Export Company. How will you design effective training policies of your company?  
3.Performance appraisal may be geared to facilitate learning. How can performance appraisal utilizing the MBO approach effectively enhance employee development in terms of the specific learning principles?
4.Explain the merits and demerits of different types of training programs. Discuss their suitability in industries like power generation plant, mines and automobile assembly line.

2.3 LABOUR WELFARE
1.a) Trace out the Implementation of labour welfare practices in India.  
b) What are the role, responsibilities and duties of welfare officer?
2.Discuss in detail the objectives and process of collective bargaining and what is the current position of collective barging in India.  
3.State the objectives of workers education and how will you recommend the National Commission on Labour, Forms and Levels of participation.  
4.In what way industrial hazards can be reduced? Can we prevent accidents by weeding out accident - prone workers? Suggest suitable ways to reduce accidents in factories (choose a industry of your choice).

2.4 INDUSTRIAL RELATIONS
1.Elaborate the scope of Dunlop model of Industrial relations in Indian Business Context with appropriate examples.  
2.Describe the various forms of Industrial Disputes in Asian Countries. Elaborate the preventive and settlement machinery of Industrial Disputes in India.  
3.Enumerate the various factors involved in effective negotiation process. Explain the emerging issues in the administration of Collective Bargaining agreements in global context.
4.Enlist the objectives and aims of International Labour Office. Describe the contemporary issues in the workers participation in management in India.

2.5 WAGES AND SALARY ADMINISTRATION
1.What is understood by National Wage Policy? Does it imply a uniform wage structure or may there be differential wage structure in similar undertakings. Examine the factors determining the fixation of wages.
2.Outline the purpose of a pay commission. How is it constituted? Critically examine the recommendations of any four central pay commissions of your choice.  
3.Examine the changes in the government policy in managerial remuneration and explain the rational of the ceiling on managerial remuneration.
4.Prepare a theoretical paper justifying that compensation is a motivator and not just a  satisfying factor.  

2.6 STRATEGIC MANAGEMENT
1.Explain the differences between strategic and non-strategic decisions, and between functional, business level, and corporate - level strategy.
2.a) Discuss the role of Corporate Social Responsibility (CSR) and business ethics in corporate strategy?
b) Explain the element of the strategic management process? How are they interrelated?
3.Identify the five competitive forces and explain how they determine an industry's profit potential. Apply Porter's five forces model for Automobile Tyre Companies.
4.Consider the shampoo market in India. Prepare a table showing the differences between the strategies adopted by top 5 brands. Explain each point.
1.   Explain the differences between strategic and non strategic decisions, and between functional, business level, and corporate - level strategy.

strategic decisions
Strategic decisions are the decisions that are concerned with whole environment in which the firm operates, the entire resources and the people who form the company and the interface between the two.
Characteristics/Features of Strategic Decisions
a.   Strategic decisions have major resource propositions for an organization. These decisions may be concerned with possessing new resources, organizing others or reallocating others.
b.   Strategic decisions deal with harmonizing organizational resource capabilities with the threats and opportunities.
c.   Strategic decisions deal with the range of organizational activities. It is all about what they want the organization to be like and to be about.
d.   Strategic decisions involve a change of major kind since an organization operates in ever-changing environment.
e.   Strategic decisions are complex in nature.   
f.   Strategic decisions are at the top most level, are uncertain as they deal with the future, and involve a lot of risk.
g.   Strategic decisions are different from administrative and operational decisions. Administrative decisions are routine decisions which help or rather facilitate strategic decisions or operational decisions. Operational decisions are technical decisions which help execution of strategic decisions. To reduce cost is a strategic decision which is achieved through operational decision of reducing the number of employees and how we carry out these reductions will be administrative decision.
The differences between Strategic, Administrative and Operational decisions can be summarized as follows-
Strategic Decisions   Administrative Decisions   Operational Decisions
Strategic decisions are long-term decisions.   Administrative decisions are taken daily.   Operational decisions are not frequently taken.
These are considered where The future planning is concerned.   These are short-term based Decisions.   These are medium-period based decisions.
Strategic decisions are taken in Accordance with organizational mission and vision.   These are taken according to strategic and operational Decisions.   These are taken in accordance with strategic and administrative decision.
These are related to overall Counter planning of all Organization.   These are related to working of employees in an Organization.   These are related to production.
These deal with organizational Growth.   These are in welfare of employees working in an organization.   These are related to production and factory growth.

non strategic decisions
means  >>>Operational Decisions
Operational decisions relate to the daily operations of an organization. The countless interactions that take place on a daily basis represent the result of operational decisions. These decisions, therefore, can bog down an organization and make it ineffective. To prevent this, operational decisions should be consistent with strategic decisions. Good operational decisions will have measurable results such as higher revenues, increased profits, increased productivity and customer satisfaction.
Decisions
A business does not make frequent decisions regarding operations because of constraints of time, resources and the workforce. Instead, a business should make operational decisions after key personnel agree on an overall strategic plan for the organization. In many organizations, operational decisions result from strategy related to production and growth. The operational decisions then help the organization to bring about changes that move the business toward its strategic goals
THE  COMPANY  ANALYSES  THE  FOLLOWING   DATABASE
AND  APPLYS   THE  PROBELM  SOLVING/ DECISION
MAKING   APPROACH   /   FINALIZES   THE  PLAN.


1. External Assessment

Areas for opportunities and threats

* Markets [ what  is  the market  situation, which is forcing the change requirements
*Customers [ how can service the customer -internal / external -better .          
* Industry  [ is  the  industry  trend ]
* Competition [ is  it the  competitive situation      
*Factors of  business [ causing  the change]
* Technology [ is  it  technology  change ]

2. Internal Assessment

Areas  for strengths, weaknesses, and barriers to success

ORGANIZATION DIMENSIONS
*Culture  [ is the  working  culture  change ]
* Organization [  is the  organization  demanding  change ]
* Systems  [ is it  the  systems change ]
* Management practices  [ change in  managemement process]


OTHER KEY DIMENSIONS

*Cost efficiency[  is it for  cost efficiency ]
* Financial  performance  [ is  it for  financial  performance improvement ]
* Quality [ is  it for  quality  performance improvement
*Service [ is  it for  service   performance improvement
*Technology[ is  it for  technology   performance improvement
* Market segments [ is  it for  sales  performance improvement
* Innovation[ is  it for    performance improvement
*new products[ is  it for new product   performance improvement
*Asset condition[ is  it for  financial  performance improvement
*productivity[ is  it for  financial  performance improvement

3. Source  Strategic  objectives  and  programs

The critical issues that must be addressed if the organization
Is  to  succeed



Strengths
Weaknesses
  Opportunities
  Threat

PRIORITY   ISSUES

FROM  THE  ABOVE , DETERMINE   THE  CORE  ISSUES
WHICH  NEEDS  TO  SOLVED  WITH  YOUR  INVESTMENT.

STRATEGIC  PROGRAMS

FROM  THE  ABOVE  CORE  ISSUES , DETERMINE  YOUR
STRATEGIC  PROGRAMS.

 Mission  STATEMENT

VISION    STATEMENT

  Your CORE  PURPOSE  

   Your   CORE   OBJECTIVES
   Your   Core markets;
  Your  CORE  strategic thrusts.
======================================
NOW  THE  QUESTION IS  
-BASED  ON  THE ABOVE  WHAT  ARE
THE  STRATEGIES NEEDED.



  1. Basic question: How is organizational direction determined? Every organization takes on some direction, in terms of what customers/clients it serves and what functions it performs for these customers. This direction is often called its purpose, Mission or realized strategy. An organization's mission is a set of statements that define the exchange relationship between the organization and its stakeholders or claimants. More specifically a mission defines the population served and the function it fulfills or the need it satisfies for that claimant. This direction, or mission, may be the result of a deliberate planning process or it may emerge as the result of a set of incremental decisions.

THIS  ORGANIZATION   Realized Strategies are the result of a combinations of Purely Deliberate and Purely Emergent Strategies.


1.   Every organization takes on some direction, in terms of what customers/clients it serves and what functions it performs for these customers. This direction is often called its purpose, Mission or realized strategy. An organization's mission is a set of statements that define the exchange relationship between the organization and its stakeholders or claimants. More specifically a mission defines the population served and the function it fulfills or the need it satisfies for that claimant. This direction, or mission, may be the result of a deliberate planning process or it may emerge as the result of a set of incremental decisions. Most Realized Strategies are the result of a combinations of Purely Deliberate and Purely Emergent Strategies. Brief descriptions of these two types of strategies follow:
A.   Deliberate Strategy- This process starts with an analysis of a company's current mission and strategies. The most popular tool used in this process is the SWOT (Strengths, weaknesses, opportunities, threats) model. The external environment in terms of opportunities and threats, is analyzed by examining threats to the company's current position and new opportunities (new customers, new applications, unfulfilled customers needs, etc.). The analysis proceeds by examining the company's internal environment in terms of its strengths and weakness. A mission and competitive strategy is formulated that matches opportunities with strengths and plans are made to strengthen areas of weakness. The next step is to develop functional strategies that support the overall business level competitive strategy. Marketing, Human Resource, Financial, Operations, Information Systems, and R & D strategies are developed that support the business unit strategy. Finally, a control system (organizational structure) is designed to insure that operational decisions are made consistent with the business and functional strategies. When every day decisions do not conform with the business and functional strategies, the Intended Strategy becomes an Unrealized Strategy. Many strategic plans have taken this route as they sit on shelves of corporate offices in nicely bound volumes.
B.   Emergent Strategy- Emergent Strategies are the result of incremental decision making that achieve some degree of consistency over time and launch the organization into a direction. When decisions are made or problems are solved, they have potential strategic impact. As you remember from the Political Model of decision making, decision making is, by nature, a political process with various claimants attempting the influence each decision. When there is a strong control system (powerful hierarchy) that insures that decision makers satisfy managerial constraints, intended strategies tend to become realized. However, when other influences are stronger, or there is not clear direction from above, decisions are made without regard to intended strategy and the organization takes on direction that is a result of the combined affect of these incremental decisions.
2.   Levels of Strategy
A.   Mission/Domain- Before identification of strategy can occur, one must clearly identify the mission or domain of the organization.  The domain of an organization consists of the population it serves and the functions it performs (satisfies) for that population.  Sometimes the domain is defined in terms of products or services offered (rather than functions performed), but this tends to be more limiting because it defines the mission more in terms of means rather than ends.  Note: One should distinguish Mission/Domain from a Mission Statement in that Mission statements often contain visions, goals, competitive strategies, and even human resource strategies.
B.   Corporate Level Strategy- For multi-business organizations addresses the question: In what particular businesses or industries should we be operating? What is the purpose of each of these businesses? The following are generic strategies:
a.   Vertical Integration
1.   Forward Integration- Gaining ownership or control over distributors or retailers.
2.   Backward Integration- Seeking ownership or control of suppliers
b.   Horizontal Integration- Seeking ownership or control over competitors
c.   Market Penetration- Seeking increased market share for present products through greater marketing efforts
d.   Market Development- Introducing present products in new markets
e.   Product Development- Seeking increased sales by improving present products
f.   Diversification
1.   Concentric- Adding new or related product lines
2.   Conglomerate- Adding new, but unrelated product lines
g.   Joint Venture- Two or more sponsoring firms forming a separate organization for cooperative purposes
h.   Retrenchment- Regrouping through cost and asset reduction to reverse declining sales and profits
i.   Divestiture- Selling a division or part of organization
j.   Liquidation- Selling off tangible assets, in parts for their tangible worth.
C.   Competitive or Business Level Strategy- How should we compete in our chosen business(es)? Competitive strategies involve determining the basis of costumer or client decision making.  Generally, they are based on some combination of quality, service, cost, time, and quality of the experience.   There are many typologies of competitive strategies. Porter's generic strategy typology has received the most attention
1.   Cost Leadership Strategies- With this strategy you are competing on price. Your various functional strategies all emphasize cost reduction. This is an effective strategy when the market is comprised of many price sensitive buyers, when there are few ways to achieve product differentiation, when buyers do not care much about differences from brand to brand (Coke vs. Pepsi), or when there are a large number of buyers with significant bargaining power. Some risks (potential threats) of pursuing this strategy are that competitors may imitate the strategy, thus driving overall industry profits down, technological breakthrough in the industry by other firms (generally firms pursuing this strategy have low R & D budgets), or buyer interest may swing to other differentiating feature besides price. Firms know for this strategy are Wal-Mart, MacDonald's, Black & Decker, Lincoln Electric, Briggs and Stratton, and 47th Street Camera.
2.   Differentiation Strategies- Differentiation strategies rely on some basis of product differentiation such as flexibility, specific features, service, time and availability, low maintenance, etc. as the basis for competition. Product development and market research are generally necessary components of a differentiation strategy. Generally, a successful differentiation strategy allows a firm to charge a higher price for its product. Organizations generally need strong R & D departments with strong coordination between R & D and marketing departments. Human Resource strategies must place emphasis maintaining a competitive skill base and motivating employees toward the basis for differentiation. Common risks (potential threats) include there may not exist the necessary price/feature trade-off among customers to justify higher prices, development of a quick copy of the differentiating features without the expensive R & D. Firms pursuing differentiation strategies include Dr. Pepper, Jenn-Air, The Limited, Cross.
3.   Focus or Niche Strategies- A successful focus strategy depends upon an industry segment that is of sufficient size, has good growth potential, and it not crucial to the success of other major competitors. Focus strategies are pursued in limited markets in conjunction with cost leadership and/or differentiation strategies. Focus strategies are the most effective when consumers have distinctive preferences or requirements and when rival firs are not attempting to specialize in the same target segment. Risks of pursuing a focus strategy include the possibility that numerous competitors recognize the successful focus strategy and copy the strategy, or that consumer preferences drift towards those of the market as a whole. Customer groups, geographic areas, and specific product lines are some bases of focus strategies. Firms using the focus strategy are Red Lobster, Federal Express, MCI, Coors, and URI (EMBA).
4.   Multiple Strategies- Combinations of the above competitive strategies.
  Functional Strategies- How do organizational functional units contribute to the business level strategies? How can functional strategies be integrated to achieve competitive advantage?
0.   Marketing Strategies- How do we communicate our strengths to the customer? How do we identify customer requirements and changes in customer requirements?
1.   Human Resource Strategies- How do we recruit, train, develop, motivate, compensate, and place employees so that behavior is directed toward the competitive strategy and works to build competitive advantage?
2.   Financial Strategies- How do we secure financial resources necessary to carry our competitive strategy?
3.   Operations Strategies- How do we design our processes to produce products and/or service that meet customer requirements as specified in our strategy?
4.   Information System Strategies- How do we provide decision makers, at all levels, with information necessary to make decisions consistent with strategy?
5.   Technological (R & D) Strategies- How do we develop products consistent with customer requirements as specified in strategy?
  In addition to supporting competitive strategy through the development of the functional strategies, functional specialist also provide tools and information used in the development of strategy? For example a number of marketing tools are used to identify and evaluate opportunities, financial and human resources tools are used to examine strengths and weaknesses.
  Changes in the Strategic Planning Process- Over the years, approaches to the planning paradigm have changed significantly. Listed below are two of these trends.
  Planning as an Event versus planning as a continuous Process. Traditional models of planning consisted of a specific planning cycle with data collection, analysis and decision making taking place every couple of years. The intervening years were periods of strategy implementation. Current thinking views strategy development as a continuous process where systems are put in place to continually monitor the environment and make changes and improvements on an ongoing basis.
  A move from Transactional approaches to strategy implementation to Transformational approaches. Often referred to as empowerment or employee participation, a process of employee involvement in the planning process which attempt to build commitment to the mission and strategy is replacing transactional processes. Transactional processes are typified by planning departments and top management (or consultant) developed plans which are implemented through a reward based control system. Transactional processes tap instrumental sources of employee, while transformational processes are based on Internal and External Self Concept, and Goal Identification bases of employee motivation.
##################################

2. Discuss the role of corporate Social resposibility (CSR)_ and business ethics in corporate strategy?

Corporate Social Responsibility has necessitated companies to initiate steps to increase
their social accountability. Discuss.

Corporate Social Responsibility (CSR) is a concept whereby organizations consider the interests of society by taking responsibility for the impact of their activities on customers, suppliers, employees, shareholders, communities and the environment in all aspects of their operations. This obligation is seen to extend beyond the statutory obligation to comply with legislation and sees organizations voluntarily taking further steps to improve the quality of life for employees and their families as well as for the local community and society at large.
The practice of CSR is subject to much debate and criticism. Proponents argue that there is a strong business case for CSR, in that corporations benefit in multiple ways by operating with a perspective broader and longer than their own immediate, short-term profits. Critics argue that CSR distracts from the fundamental economic role of businesses, others argue that it is nothing more than superficial window-dressing, still others argue that it is an attempt to pre-empt the role of governments as a watchdog over powerful multinational corporations.

Approaching your business aims responsibly, with an awareness of your surrounding social and environmental needs, in order to fulfil stakeholder demands, achieve a profit and remain competitive.
There are several areas that  companies should be addressing in order to become more socially responsible. Many of the issues that are being grouped under the heading of CSR are
already part of the daily work of professionals, but are not being recognised specifically as social obligations. These include Ethics, Human Rights, Community, Environment and Employee
Relations.

The Business Case for CSR: What are the benefits?
The potential benefits of CSR for  companies include enhanced reputation, competitive edge, better risk management and a more committed and efficient work force; all of which could
have a considerable effect on profits. Practising greater responsibility could also have a positive
impact on wider society and the environment.

Implementing CSR: How is it done?
All businesses can benefit from engaging in 'stakeholder dialogue', which means defining and talking
to the groups and individuals that affect, and are in turn affected by, your operations.
Other ways of approaching CSR depend on the size of the  company but include building on existing business aims and policies that demonstrate social responsibility by producing
plans and value statements to show the ways in which you and your staff aim to progress.


The Business Case for CSR:
What are the benefits?
that implementing a CSR policy,
“...can bring real business benefits
-by reducing risk,
-by enhancing brand value,
-by opening doors and creating good will, and
-by improving staff efficiency and morale.
-It can also attract stable and
ethical investment and add competitive edge.”

-the reputation of businesses and the quality of their work is constantly under scrutiny from environmental pressure groups, the media and the public, as well as from potential clients and investors. Having a competitive edge is crucial to the survival of any
firm and the concept of CSR provides  for individuals and companies to demonstrate industry leadership.
It is therefore crucial for  ORGANIZATION  professionals to  realise that CSR does not provide a new set of business objectives to be met.
Rather, identifying CSR objectives for your business will provide you with a fresh approach to fulfil your existing targets and will illustrate to your stakeholders that corporate social responsibility has always been and will continue to be an integral part of your operations.

A more socially responsible perspective can also improve on staff shortages,  has outlined the need for the industry to improve the recruitment and retention of a 'quality workforce'.
Demonstrating your social responsibility could place you higher up on a graduate's list of potential Employers.



This interest in issues of an environmental and ethical nature means that the ORGANIZATION
must emphasise its role in these areas in order to produce the enthusiastic, committed and loyal
workforce that it requires for the future. The social responsibilities of a business must begin at its
core; that is by adapting to values that its employees can relate to.

Finally, the possibility that CSR can lead to financial benefits should not be overlooked by the ORGANIZATION. Running your company in a socially responsible way should be seen as an
investment.

As a result of making social responsibility a fundamental driving force of business, ORGANIZATION  professionals may notice better productivity and quicker completion on site due (for example) to changes in employee morale, better community relations (fewer complaints) and better dialogue with supply chain.



Employee volunteering has benefited  ORGANIZATION.
The benefits of an Employee Volunteer Program are many, and building a strategic program that is integrated with core business objectives and core competencies creates a meaningful and sustainable program. Join this growing volunteer movement and your employees, shareholders, community, and company all benefit.
Benefits to the   Employees
•   Improves performance
•   Increases job satisfaction, attitude and morale
•   Encourages teamwork
•   Promotes leadership and skill development
•   Improves communication between employees and their supervisors, and across departments
Benefits to the   COMPANY  
•   Builds brand awareness and affinity
•   Strengthens trust and loyalty among consumers
•   Enhances corporate image and reputation
•   Improves employee retention
•   Increases employee productivity and loyalty
•   Provides an effective vehicle to reach strategic goals
Benefits to the Community
•   Provides skilled and talented volunteer pool, as employees devote personal and professional skills to community needs
•   Offers direct cost savings for community service organizations in saved recruiting and labor costs
•   Creates quantifiable social impact
•   Helps bring community needs into focus

long-term strategic benefits of the CSR to an organization?
Strategy is the alignment of resources and capabilities to win in the market. The more encompassing, pervasive, and thorough the strategy is throughout an organization, the more effective it should be. Generally speaking, the harder you try to make something happen, the more likely it will happen. The same is true with an organization and its devotion to a particular cause. The more the organization tries to enact a given strategy, the more likely it is to happen.
-Strategic CSR-
Corporate Social Responsibility is a great example of a common category of effort that organizations pursue which has great potential for enabling the organization’s strategy, but often falls very short of realizing the full potential. Often times, companies will have a volunteer day, a cause that it endorses or a charitable organization it helps out.
The effects of corporate social responsibility are many fold. Usually this takes the form of putting in some volunteering hours for local clubs or community efforts. What ends up happening is that the employees help out in the community, some positive visibility to the organization comes through, possibly tax benefits are derived, and the organization’s employees feel that they are making a positive impact where they live, which boosts morale. These efforts are good, but not great. Quite easily, they could be great if channeled and reframed to maximize the potential.
How to do this will depend on what is most needed or wanted in an organization. What you want to do is find out where the sweet spot is with the kind of visibility, networking, impact and so forth you want to make, be known for, or receive. That sets the desired outcome and measures of success, which should align well with the overall strategy an organization is pursuing. Additionally, you would want to pair up the kind of output your employees want to do. That sets your current state and desired approach. The support and channeling is where the magic happens to make the link between the organizational strategy and what activities employees would like to do for their corporate social responsibility projects. In this linkage, look for ways of doing the following:
•   Making a lasting impact
•   Helping out in areas that will set up your organization for increased chances of success
•   Finding areas where a small change can have large benefits to your organization and the organization that you are helping out
•   Making the benefits repeatable and having a cumulative effect
•   Finding areas to get the right kind of visibility
•   Being very certain that the way your employees participate is in tune with their own beliefs/desires because their enthusiasm carries through for impact and quality of time spent
•   Researching and understand where your involvement can make the biggest potential feedback
•   Enabling connectivity to the community, brand recognition and relationship building
An example that comes to mind is an idea I proposed when working at a small consulting firm a few years back. The company wanted to grow and was constantly on the lookout for new business analysts and potential consultants. The firm, being personally and professionally invested in the community, was very much in tune with helping out the surrounding organizations and the city overall. What I suggested was that, as a CSR effort, the company partner with schools or professional organizations to put on case study competitions, business plan competitions, and the like while the small consulting firm would help out in a sponsor/volunteer capacity. What this would do is help out the community by finding ways to improve the quality of business plans, critical thinking and other abilities of those involved. The consulting firm employees would be able to directly impact and enhance the innovation and idea incubation through the competition structure while helping improve the individual’s efforts at the same time. Plus, the consulting firm would gain exposure to new ideas, potential candidates and gain insight into perspective client organizations (particularly through real case studies).

By taking a strategic approach, companies can determine what activities they have the resources to devote to being socially responsible and can choose that which will strengthen their competitive advantage. By planning out CSR as part of a company’s over all plan, organizations can ensure that profits and increasing shareholder value don’t overshadow the need to behave ethically to their stakeholders.
•   Strategic CSR provides companies with solutions for:
•   Balancing the creating of economic value with that of societal value
•   How to manage their stakeholder relationships (especially those with competing values)
•   Identifying and responding to threats and opportunities facing their stakeholders
•   Developing sustainable business practices
•   Deciding the organization’s capacity for philanthropic activities

-Summary-
The difference between ordinary CSR and CSR that brings strategic advantages to an organization is the method and approach behind the CSR. If CSR is approaches as a means to further enact an organization’s strategy, it has the potential for great benefit.

Business benefits
The scale and nature of the benefits of CSR for an organization can vary depending on the nature of the enterprise, and are difficult to quantify, though there is a large body of literature exhorting business to adopt measures beyond financial ones  , found a correlation between social/environmental performance and financial performance. However, businesses may not be looking at short-run financial returns when developing their CSR strategy.
The definition of CSR used within an organisation can vary from the strict "stakeholder impacts" definition used by many CSR advocates and will often include charitable efforts and volunteering. CSR may be based within the human resources, business development or public relations departments of an organisation, or may be given a separate unit reporting to the CEO or in some cases directly to the board. Some companies may implement CSR-type values without a clearly defined team or programme.
The business case for CSR within a company will likely rest on one or more of these arguments:

Human resources
A CSR programme can be seen as an aid to recruitment and retention, particularly within the competitive graduate student market. Potential recruits often ask about a firm's CSR policy during an interview, and having a comprehensive policy can give an advantage. CSR can also help to improve the perception of a company among its staff, particularly when staff can become involved through payroll giving, fundraising activities or community volunteering.

Risk management
Managing risk is a central part of many corporate strategies. Reputations that take decades to build up can be ruined in hours through incidents such as corruption scandals or environmental accidents. These events can also draw unwanted attention from regulators, courts, governments and media. Building a genuine culture of 'doing the right thing' within a corporation can offset these risks.

Brand differentiation
In crowded marketplaces, companies strive for a unique selling proposition which can separate them from the competition in the minds of consumers. CSR can play a role in building customer loyalty based on distinctive ethical values. Several major brands, such as The Co-operative Group and The Body Shop are built on ethical values. Business service organisations can benefit too from building a reputation for integrity and best practice.

License to operate
Corporations are keen to avoid interference in their business through taxation or regulations. By taking substantive voluntary steps, they can persuade governments and the wider public that they are taking issues such as health and safety, diversity or the environment seriously, and so avoid intervention. This also applies to firms seeking to justify eye-catching profits and high levels of boardroom pay. Those operating away from their home country can make sure they stay welcome by being good corporate citizens with respect to labour standards and impacts on the environment.


Critical analysis
CSR is entwined in the strategic planning process of many multinational organizations. The reasons or drive behind social responsibility towards human and environmental responsibility whether driven by ulterior motives, enlightened self-interest, or interests beyond the enterprise, is subject to much debate and criticism.
Some critics argue that corporations are fundamentally entities responsible for generating a product and/or service to gain profits to satisfy shareholders.and others argue that there is no place for social responsibility as a business function.These critics point to the rule of corporate law that prohibits a corporation's directors from any activity that would reduce profits.

Other critics argue that the practice cherry-picks the good activities a company is involved with and ignores the others, thus 'greenwashing' their image as a socially or environmentally responsible company. Still other critics argue that it inhibits free markets or seeks to pre-empt the role of governments in controlling the socially or environmentally damaging effects of corporations' pursuit of self-interest.

=================
Ethics is unique among disciplines in that practitioners often cannot agree on a common definition of their topic. Ethics Scoreboard can't solve that problem, which is many centuries old. Here it attempts to put forth definitions that explain what words mean when they are used on this website.]
Values: Those qualities of behavior, thought, and character that society regards as being intrinsically good, having desirable results, and worthy of emulation by others.
Morals: Modes of conduct that are taught and accepted as embodying principles of right and good.
Morality: A system of determining right and wrong that is established by some authority, such as a church, an organization, a society, or a government.
Ethics: The process of determining right and wrong conduct.
Ethical System: A specific formula for distinguishing right from wrong.
Unethical: An action or conduct which violates the principles of one or more ethical systems, or which is counter to an accepted ethical value, such as honesty.
Non-ethical considerations: Powerful human motivations that are not based on right or wrong, but on considerations of survival and well-being, such as health, security, love, wealth, or self esteem.
Concepts
Non-Ethical Considerations: Defined above, non-ethical considerations are important because they are often the powerful impediments to ethical conduct, and the cause of many conflicts of interest. Non-ethical considerations are many and diverse, and include:
•   The need and desire for shelter, health, wealth, fame, security, self-esteem, reputation, power, professional advancement, comfort, love, sex, praise, credit, appreciation, affection, or satisfaction
•   The desire for the health, comfort, safety, welfare and happiness for one's family, loved ones, friends, colleagues, an co-workers
•   The pursuit of vengeance or retribution
•   Hunger, lust, pain, ambition, prejudice, bias, hatred, laziness, fatigue, disgust, anger, fear
• …and many more
Ethical Dilemma: This is an ethical problem in which the ethical choice involves ignoring a powerful non-ethical consideration. Do the right thing, but lose your job, a friend, a lover, or an opportunity for advancement. A non-ethical consideration can be powerful and important enough to justify choosing it over the strict ethical action.
Ethical Conflict: When two ethical principles demand opposite results in the same situation, this is an ethical conflict. Solving ethical conflicts may require establishing a hierarchy or priority of ethical principles, or examining the situation through another ethical system.
Ethical Gray Area: Gray areas are situations and problems that don't fit neatly into any existing mode of ethical analysis. In some cases, there may even be a dispute regarding whether ethics is involved.
Reciprocity: The ethical system embodied by The Golden Rule, and given slightly different form in other religions and philosophies. It is a straight-forward way of judging conduct affecting others by putting oneself in the position of those affected. Reciprocity should always be available in any ethical analysis, but it is frequently too simple to be helpful in complex ethical situations with multiple competing interests.
Absolutism: Absolutist systems do not permit any exception to certain ethical principles. The champion of all absolutists, philosopher Emmanuel Kant, declared that the ethical act was one that the doer was willing to have stand as a universal principle.
One principle of absolutism is that human beings can never be harmed for any objective, no matter how otherwise worthwhile. Absolutism has the advantage of making tough ethical calls seem easy, and the disadvantage of making debate impossible. One sees absolutism reflected today in the controversies over war, torture, abortion, cloning, and capital punishment.
Utilitarianism: Utilitarianism accepts the existence of ethical conflicts and the legitimacy of some ethical dilemmas, and proposes ethical analysis based on the question, "Which act will result in the greatest good for the greatest number of people?' It entails the balancing of greater and lesser goods, and is useful for unraveling complex ethical problems. Its drawback, or trap, is that utilitarianism can slide into "The ends justify the means" without some application of absolutist and reciprocity principles.
The Gödel Incompleteness Principle: Czech-born mathematician Kurt Gödel proved that at the margins of any large logical system, such as arithmetic, or conceptual construct, such as Newtonian physics, problems would arise that could not be solved without going outside the system itself. If the system were enlarged to include these problems' solution, it would lose its integrity as a system. Hence all systems must be incomplete. In ethical terms, Gödel's liberating discovery means that no one ethical system will work for every problem, and that the fact that such a system does not solve a particular problem does not mean the system is invalid.
Cognitive Dissonance: Cognitive dissonance is a psychological phenomenon first identified by Leon Festinger. It occurs when there is a discrepancy between what a person believes, knows and values, and persuasive information that calls these into question. The discrepancy causes psychological discomfort, and the mind adjusts to reduce the discrepancy. In ethics, cognitive dissonance is important in its ability to alter values, such as when an admired celebrity embraces behavior that his or her admirers deplore. Their dissonance will often result in changing their attitudes toward the behavior. Dissonance also leads to rationalizations of unethical conduct, as when the appeal and potential benefits of a large amount of money makes unethical actions to acquire it seem less objectionable than if they were applied to smaller amounts.
THE PROCEDURE ITSELF
•   Analyze the case.
a.   What are the relevant facts?
b.   Who are the stakeholders?
c.   Isolate the ethical issues.
•   Apply formal guidelines.
a.   Consider common themes from corporate or professional codes of conduct.
   personal integrity and claims of competence
   personal responsibility for work
   responsibility to employer or client
   responsibility to the profession
   confidentiality of information
   conflicts of interest
   the dignity or worth of people
   public safety, health and welfare
   participation in professional societies
   increasing public knowledge about technology
b.   Does the act violate or conform to the Golden Rule?
c.   Who benefits from the action? Who is harmed by the action?
•   Apply ethical theories.
a.   Apply duty-based ethical theory.
   Fidelity: Is there a promise that should be kept?
   Reparation: Is their a wrong that should be righted?
   Justice: Are there goods that should be distributed fairly?
   Beneficence: Can the lot of others be improved?
   Gratitude: Is an expression of gratitude appropriate?
   Non-injury: Can others be protected from injury?
b.   Apply rights-based ethical theory.
   Is the right to know respected?
   Is the right to privacy respected?
   Is the right to property respected?
c.   Apply consequence-based ethical theory.
d.   Apply normative principles.
   Apply the principle of nonmaleficence.
   Apply the principle of informed consent.
•   Apply relevant laws.
a.   Consider laws passed to regulate the information industry.
b.   Beware of the rare law that enforces unethical behavior.
•   Apply informal guidelines.
a.   Recalling your first impressions or reactions, what did your moral intuition say about the action or policy under consideration?
b.   Apply the Mother test: Would you tell her? Would she be proud or ashamed?
c.   Apply the TV test: Would you tell a nationwide audience of your actions?
d.   Apply the Smell test: Do you feel "in your bones" that there is a problem?
e.   Apply the Other Person's Shoe test: What if the roles were reversed?
f.   Apply the Market test: Could you advertise the act to give you a marketing edge?
•   Make a defensible choice.
   This method is most useful when the DECISION-MAKER ...
o   has a working knowledge of several ethical theories [step 3]
o   has high initial sensitivity to relevant ethical "features" [step 1]
o   has plenty of time for investigation and analysis
o   is skilled in causal or consequential reasoning [step 3c]
o   is skilled in the application of general ethical principles to specific cases [step 3]
   This method is most useful in a SITUATION ...
o   that will change little over time
o   where the decision-maker is also a stakeholder
   This method is most useful when STAKEHOLDERS ...
o   share ethical codes or policies [step 2a]
o   share ethical principles [step 4]
o   share laws and legal precedents [step 4]
1. The Facts?
a. What facts make this an ethical situation? What are the significant features of the particular situation which make it an ethical situation? Is there some actual or potential harm involved for an individual or group? Does the situation relate to some basic human goods which are being created, distributed, denied or threatened? Does the situation affect human welfare in some significant way? Does it involve considerations of justice or rights?

EXAMPLE
Health coverage for workers involves deciding how to divide up the goods of the corporation which is not only an economic question of how to maximize the value of the firm but an ethical question of what is the best distribution, the most just distribution, or the distribution which fulfills each groups rightful claims on the value of the firm.

b. What facts are relevant to making an ethical decision? What facts should we know in order to decide how to act in this situation? Steps 1 and 2 are closely related. What facts are relevant will depend on what the ethical issues are and the ethical issues will be determined by the presence of certain facts. Thus the initial assessment of facts will have to be augmented once the ethical issues have been determined.

EXAMPLE
The facts in the Stern case would include: the cost to the company of the various coverage options, the short and long term economic prospects for the firm, worker demographics such as age, health status, level of economic sophistication, availability and cost of individual coverage, the effects of a change or lack of a change in coverage on the employees and the firm.

2. The Ethical Issues?
a. What level of ethical issues are we dealing with: systemic, corporate, or individual? Knowing the level of the problem will help us to decide who will be affected by the decision and will therefore qualify as stakeholders and who will be required to
make the decision--the society as a whole, decision makers within the corporation, or myself as an individual.

EXAMPLE
The Stern case involves corporate level issues, though reflecting on the high number of uninsured persons in the society and how that impacts on the corporation's cost of coverage may prompt the firm to get involved with the issue on an systemic level.

b. What specific ethical issues does this situation raise? Is it a question of how to maximize benefits and minimize harms. Is it a question of whether an action can be universalized? Of whether individuals are being treated as ends and not merely as means? Of whether all rational persons would agree that a particular action is right or good? Is it a question of a possible violation of rights or a conflict between rights? Is it a question of the fair distribution of benefits and burdens? Is it a question of how or whether to apply some specific ethical principle?

The ethical issues could be stated as follows:
(1) What level of health coverage do employees have a right to expect, given the history of the company?
(2) What level of coverage will maximize worker productivity while contributing the most to the profitability of the firm?
(3) Should the firm involve itself in the national debate on health care coverage?
c. What level of generality is required? The ethical issues need to be stated at a level of generality which will allow the issue to be discussed in as broad a terms as possible, so as to see all the possible ramifications, while yet being specific enough to lead to alternative actions in the case at hand.

The issue of health benefits for a corporation's employees should allow reference to the standards of the society as a whole but should refer to a decision to be made by this particular corporation.

3. The Alternatives?
Given the facts and the ethical issues, what alternative actions are possible in this situation? Initially we should state as many alternatives as possible without making judgments as to their plausibility. Having generated as many as possible, the most plausible should be chosen for further examination.
The corporation can provide no health benefits, co-pay with the employee, provide full benefits for the employee only, provide family benefits, open an HMO, and so on.

4. The Stakeholders?
a. Who will be affected by the alternatives and to what degree? We must determine who will be affected to a degree significant enough to include them among the primary stakeholders worthy of consideration. For systemic issues, which individuals, groups, institutions, and aspects of the physical, economic and social environment will be
affected. For corporate issues, who and what inside and outside the corporation will be affected: stockholders, government, society, the environment, suppliers, customers, local community, employees, managers and so on. For individual issues, who will be affected by the decision, both inside the company such as peers, superiors, other departments, and outside the company such as customers and suppliers.

In the health care example, the stakeholders include the corporation as a viable economic entity, the stockholders, the employees, their families and the local community.

b. How to rank stakeholder claims? Part of the decision making process will be to establish how much weight each stakeholder's claim deserves. This weighing of claims is often done intuitively. For purposes of justifying why the decision is the right one, however, the process for weighing the competing claims should be spelled out as much as possible.
c. The firm's claim on resources in order to continue as a viable economic unit would have be given the greatest weight, since without the firm none of the other stakeholders could receive any benefit. The competing claims of stockholders and workers would have to be given the next greatest weight since they contribute directly to the value of the firm and have legitimate claims on that value. Deciding on how much weight to give each group's claims would require and understanding of the capital structure of the firm (debt--equity balance, availability and relative cost of debt financing, and so on) and the history of the firm's relations with the employees (degree of worker contribution to finished product, loyalty and productivity of workers, average length of employment and rate of turnover, and so on). Families and the community would have less weight unless they have made equally important contributions to the firm.

5. The Ethics of the Alternatives?
a. Use ethical principles to decide on the best alternative. The ethics of each of the most plausible alternatives is assessed using ethical principles or rules. For each alternative, for example, we could ask the questions associated with the utilitarian, rights and justice principles to determine how the alternative is rated by each theory. When the alternatives have all been rated as right or wrong, good or bad, the object is to select the best alternative. In the ideal situation, all the ethical principles will point to the same alternative as the best one.
Utilitarian Principle: Given the relative importance of the firm, the stockholders and the employees,
which alternative would provide the greatest benefit to the greatest number? How would costs and benefits be measured in this case?
Rights Principle: What does each stakeholder have a right to expect with regard to health coverage? What alternatives would you not want imposed on you if you were in the position of any of the other stakeholders?
Justice Principle: Which alternative distributes the burdens and benefits most fairly among the stakeholders? Which stakeholders carry the greatest burden under each alternative?

b. How to decide when the theories point to different alternatives. There are situations in which different ethical principles will recommend different alternatives. In a case where the principles provide a mixed recommendation, we must choose which recommendation to follow and be prepared to justify that choice as best we can. Justification can be provided by showing why the theory(ies) indicates that alternative as the best and how this fits better into our conception of what the good life is than the alternatives suggested by the other theories. It may come down to the simple fact that, after inspecting all the alternatives with rationality and respect, I just do value one alternative, or one theoretical approach, or one point of view as highlighted by one theoretical approach, or one state of affairs provided by that alternative, or one value embodied by one alternative more than the others. I may not be able to say why I prefer that alternative except in terms of the way I choose to live my life and what my experience has shown me. Does the fact that I do not have another definite standard to appeal to, if two ethical theories should disagree mean that my decision is irrational or unjustified? The decision is rational in that I have made it on the basis of the careful consideration required by the seven step method and it is justified by showing why it is the best alternative according to at least one ethical theory. To say that I am willing to live by the decision is the only remaining justification.

6. The Practical Constraints?
a. Can the best alternative be put into effect?
Having decided on one alternative, we need to see whether there are any practical constraints which might prevent that alternative from being acted upon. When practical constraints rule out an alternative, we must return to Step 5 to select the next best alternative and subject it to the practical constraints test.
The best alternative may be to pay employees the maximum practicable wages and let them provide for their own health benefits. There may be a state or federal law mandating some level of company provided health coverage which would prevent our adopting this alternative.

b. Distinguish ethical from practical constraints. Ethical decision making involves ruling out alternatives on ethical grounds in Step 5 and on practical grounds in Step 6. In actual practice we often do not bother to distinguish the two different kinds of reasons for rejecting an alternative. It is be helpful to keep them distinct as far as possible in order to be clear as to what kind of reason we are giving. The difference between practical constraints and ethical considerations can best be illustrated by example.
In deciding on the level of health coverage from a rights perspective, we would weigh the competing rights of employees and the stockholders to the benefits of the company's operations. This ethical consideration would be different, however, from asking the
question of whether the stockholders or the workers would agree to accept a particular division of the benefits.

7. Actions to Take?
a. Implementing the best alternative. Having selected the best alternative which is not ruled out by practical constraints, we need to decide on the steps necessary to carry it out.
If a larger co-payment by employees is the best alternative, how will it be implemented?
a. A summary of the justification. We should also be prepared, at the close of this decision process, to provide a justification of why this course of action is the right or good one in this situation. Going through the seven steps justifies the decision in the fullest sense. We should be prepared, however, to respond in some briefer form to the legitimate requests of others--our superiors, our peers, the agents of society--for an explanation of why this alternative is the best approach to this situation. This summary based on the seven steps will also provide us with a briefer account to apply to similar situations in the future. The worst punishment would be to face the full seven step process for each and every ethical decision we make in our lives. We would have no time for living.
###########################
3

Management Consulting

All Answers


Answers by Expert:


Ask Experts

Volunteer


Leo Lingham

Expertise

management consulting process, management consulting career, management development, human resource planning and development, strategic planning in human resources, marketing, careers in management, product management etc

Experience

18 years working managerial experience covering business planning, strategic planning, corporate planning, management service, organization development, marketing, sales management etc

PLUS

24 years in management consulting which includes business planning, strategic planning, marketing , product management,
human resource management, management training, business coaching,
counseling etc

Organizations
PRINCIPAL -- BESTBUSICON Pty Ltd

Education/Credentials
MASTERS IN SCIENCE

MASTERS IN BUSINESS ADMINSTRATION

©2016 About.com. All rights reserved.