Quiz 5: Managing Social Responsibility and Ethics


Mr. K B is an autocratic manager. He has got all the knowledge and required skills to elevate the sales performance to his highest potential. He is the embodiment of P culture. If any of the competitors tries to get any major business, he is able to easily grab it from them. He is a person who enjoys the air of mystery around P. He is the master of all, when it comes to sales. He encourages his staff to follow his way of working. He can never let go of any major account in the market, and he expects the same from his team. He has grabbed the best talent from the best universities and nurtured them to follow his philosophy. He encourages the competition among his team. He always encourages his team to prove their competitive worth at any cost. He encourages his team to develop aggressive business intelligence. The culture at P Technologies is at pre-convention level. Their actions are more dependent on external forces. They are just following the leader and consider it as moral. Mr. K B is doing some favor to them by getting the business by different means and expecting the same in return at latter from them. Their working is based on philosophy "If you scratch my back, I'll scratch yours." The team believes in doing only those things which are in best interest of their own personal goals. His sales team is only concerned with individual task accomplishment. They are least bothered when it comes to interests of others, whether it is their colleagues or competitors. So they are always competing among themselves within the company. They are developing individualism.

T riple bottom line [TBL]: Triple bottom line was first explained by John Elkington in 1997 in his book. It is used for measuring the organizational overall performance- social performance, environmental performance, and financial performance. img img Financial performance can be directly measured in terms of monetary measures like sales growth, return on assets, revenue earned, net profit etc. But measuring social and environmental performance is not a straightforward task. Managers cannot exactly measure their social and environmental performance on the same level as of financial performance. Social performance refers to the impact of an organization on the community. It includes adhering to government laws, customer treatment, employee welfare, charitable contributions etc. Organization impacts on all kind of stakeholders associated with. So the question is, impact on whom is to be measured; suppliers, employees, their families, people surrounding company's building. If the company does not take proper care of its employees, it affects the families of employees. If the organization is donating to some needy, they are helping directly to society and also spreading a good message among employees. Environmental performance refers to the amount of natural resources used like material, water, land and energy. It also refers to by-products of production activities like waste, air emissions, excessive nutrients, chemical residues etc. If the company has taken initiative to plant trees, going for green building, reducing energy consumption then it is a good initiative to be counted. But it is difficult to decide how to count it; in terms of money saving, percentage savings or comparing to other companies in the industry or in the city. If an industry is disposing toxic waste in river, it is more serious and affecting large no of people. This is an endless list of factors. So which priority factors need to be considered for performance measurement is to be decided by the manager, based on specific industry. As profits cannot be earned at the cost of society and natural environment, it is necessary for managers to measure the organization's all three performances, in order to make the business sustainable in long run. One of the methods to calculate the TBL may be in terms of an index, which helps in comparing performance between companies.

Nathan Rosillo being faced with the decreasing government regulations and the dumping of wastes into the Dutch River should choose the first option. He should request to meet with the manufacturing vice president during his next visit and discuss marketing Chem-Tech as a volunteer of reduced pollution partnering. This would give them a competitive edge amongst their customers.

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