Alejandro Colmenares CB311 2017-2018
Discuss and analyse the importance of responsible business management using the academic literature and company examples to illustrate and support your arguments.
Table of Contents:
Responsible business management according to Gildas Yombi an African social enterprise leader ‘means acting socially and thinking economically’ (Wegner 2017). I would define responsible business management as: A manager that makes intelligent business decisions, while obeying the law and behaving ethically.
Management at any level within business, plays a major role in the decision making that ultimately shapes the success and image of a company. However, it could be argued that the value proposition ‘the product/service, its features and benefits or uniqueness vs. competition and the size of market opportunity’ (Blank, 2012) is the most important aspect to a business’s success. With a valuable product or service, the pathway to success and business sustainability defined as: ‘managing the triple bottom line - a process by which companies manage their financial, social and environmental risks, obligations and opportunities.’ (Financial Times n.d.) becomes more achievable.
Then, following value proposition the operational plan including the frameworks, resources, cost structures and the model of a business is the most important aspect to success. After these two aspects, it could be argued that management is the next most important factor to success. Therefore, making management one of the three most important aspects to a successful and sustainable business.
A responsible business manager must act and make decisions considering three perspectives all with variant degrees of importance. Firstly, economic profit, the most important aspect to the success and sustainability of a company. This is the foundation in which all other possibilities for a business are built.
Secondly, the legal perspectives. A business leader must make decisions that obey the law. Not only for the profitability of the business but also to establish a good image. Specifically, when it comes to high ranking leaders in companies such as CEOs as they must be legally responsible with their personal and business finances. Due to their actions impacting all the direct employees, indirect labor, their families and ultimately the end consumers.
Thirdly, there is the ethical perspective. Business ethics is defined as: ‘rules, principles, and standards for deciding what is morally right or wrong when doing business’ (Cambridge Dictionary, n.d.). This is often holds less importance to shareholders and other stakeholders interested in profits. However, it is the most important aspect to the community and the workers impacted by the decisions taken. In recent years, it has become clear that more managers have lost their positions due to social and ethical issues. Therefore, now more than ever busin...