Application of Business Concepts to Improve Companies - Paper Example

Introduction

Business concepts are guidelines for proper management of a business to achieve financial success as well as to ensure the company remains sustainable and can consistently perform over a prolonged duration. The learning and reading that I have done during the term have been related to business concepts that have informed me of brilliant methods of effectively managing a company using the best practices possible. In this paper, I address various concepts necessary to development and sustainability of businesses.

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The concept that I commence with is value creation. It is the company's way of achieving profitability while engaging in activities that benefit the community around it. It is perceived that for the company to make the profit somehow the community around it is losing something to support their gains. However, this could not be farther from the truth. The company profitability is what allows the company to indulge in community development (I. Pies, 2010). Otherwise, the company would not be incentivized to participate in activities aimed at supporting the community at their expense. In essence, the company would have morphed into a nonprofit charity organization and hence deny its investors any value. I believe in partnering with the community in activities as a way of fostering cooperation and positively impacting the community around me.

Management of social relations through the use of tactical and strategical approaches is a concept that is useful in maintaining favorable relationships within a business. The relationships within a company can determine its performance, and definitely, good interactions are the focus here. Learning this skills is invaluable to me as it ensures that my communication with either organization or stakeholders is appropriate and beneficial.

Developing in this approaches assist me to interact accordingly even in situations of pressure and anxiety and develops my patience in times of disagreement which is quite common at workplaces (Lotila, 2010).

Leadership in a business requires a strong personality to absorb the responsibility that accompanies the task. I have experienced challenges in governance, and my situations have helped understand that guiding means being able to make tough choices which have to result in positive outcomes. This means being able to see steps ahead to make critical decisions that protect the future of an organization. Leadership entails possessing the ability to see the future effect of choices you make in difficult circumstances (Amelio, 1999).The company future is dependent on the leaders understanding of the field. A leader needs to consistently educate himself on changes in patterns within the sector and keep up to date with changes and advancements. This ensures that new companies or businesses in the field do not acquire a competitive edge because they introduce new products or services that the management failed to launch. Knowledge on the field allows the leader to take calculated risks that benefit the company (Jolly, 2003).

The respect for civil rights is paramount in the workplace. The employees' feeling respect keeps them respected and this boosts productivity not to mention that respect for others is humanity and a moral issue. Discrimination is fiercely discouraged in all organizations. In fact, it is illegal for an employer to discriminate by racial descent, skin color, religious affiliations, and sex including sexual harassment and pregnancy based (D. Franklin-Thomas). The law protects employees from potential discrimination during hiring and dismissals, compensation, and enjoying the terms, conditions, and privileges of employment.

The employers have a responsibility to impartially treat employees and ensure that for no reason, one employee should have an unfair advantage over the other regarding opportunities. Jack Gross lost his employment in FBL Financial Group and sued based on discrimination. Mr. Gross believes his age was the discrimination factor used to deny him the opportunity in favor of another employee (Biskupic, 2013). He failed to convince the court that discrimination was the basis for loss of his employment. In such a case, age would have been the reason, but the company could hide under the claim of corporate restructuring. However, it is immoral and illegal to discriminate. The respect for laws and civil rights by a business significantly refines its productivity and is a recipe for sustainable success.

Ethics is a concept that is sometimes overlooked or even dismissed with the belief that common sense will prevail. However, its importance needs to be underscored. Companies, leaders, and managers that uphold morality and ethics experience sustained success. The focus on profitability should not erode the respect for morals. The company should never compromise on ethics to gain more profits. This puts the future of the organization at risk as consequences for the breaking of laws could be dire and sometimes result in loss of licenses and closure of the business.

The application of conflict resolution in a business is not an easy task. As a manager, I can be equipped with skills on how to manage disagreements among employees, but the application could require experience by trial and error and also learning from seniors. The best way to manage conflicts in the workplace is not through personal judgments as this could leave one party dissatisfied and feeling discriminated. Use of code of ethics, laws, and consideration of cultural differences.

This allows objective review of the situation and assessing of the offenses and the ensuring the aggrieved party's right are respected henceforth as well as taking necessary action against the offender and informing them of their breach of the law. Further, find ways to foster reconciliation among the parties and support unity among employees.

Sustainable development involves advancements that proceed to the future without depletion of natural resources that support them. This is an area of great focus. The world as it is now has been grappling with issues of exhaustion of resources. The response to this has been campaigning against nonrenewable resources especially those that provide energy. Interestingly, the renewable sources of energy are friendly to our environment and health as opposed to the other sources with the risk of depletion and various hazards to health and the ecosystem. To succeed in sustainable development, advancement of corporate liability and accountability for sustainable development is paramount (Soh, 2009).

Canadian Association for Renewable Energies is one company that has been sensitive to climate change, clean air, water and soil quality. The corporation challenges and champions for the protection of the environment (Shmuel, 2010)). Countries worldwide have taken the issue of conservation of the environment seriously and various treaties have been signed to protect the environment. Some nations have taken radical measures and banned substances used that risk environment. Others have set up laws for the protection of the ecosystem and undertaken ambitious plans to eradicate the use of petrol engines in the near future. All these efforts have the vision to ensure that sustainable development is achieved by using technologies and approaches that have a basis of renewable resources hence eliminate the use of resources that have a risk of depletion.

Corporate culture is a factor in the success of companies. Rules and regulations alone do not ensure a company achieves its goals and maintains its growth and success. The culture within the business or organization is a crucial indicator of a company's chance of success and sustainability. Corporate greed and disregard for ethics are dangerous to a business and even sector as a whole. First, the handling of finances by individuals who have no respect for ethics or laws is detrimental to a company. The company internally will lose funds to theft and corruption and this will slowly kill the company. In addition, the business reputation is going to be tainted and in this age of the internet a company receiving bad reviews is doomed and recovery becomes very difficult as the details of bad corporate governance will always be available on the internet. The illegal activities of the organization will attract very steep fines and even loss of licenses and eventual closure of the business (Kotter, 2008).

Building a corporate culture that respects ethics is a foundation for good governance within the company. Training of employees on the importance of appreciating laws and maintaining high moral standards within the organization improves the companies' culture. Strict laws against illegal and unethical behavior will also discourage poor culture. Good leadership is influences good corporate culture and upholds values that guide employees within the company. This sets standards for employees both recently employed and those with experience in the business. The practices within the company also foster a good culture among the employees. A company that gives back to communities around it and is engaged in charity and campaigns that support the community are more likely to operate under strict ethics and regulations. Employees in these businesses come in knowing what is expected of them within the organization and strive to uphold the practices they find there (Coleman, 2013).

Conclusion

In conclusion, the concepts highlighted are invaluable in ensuring that companies succeed. The approaches applied cover business operations to interaction within employees and further address respect for regulation and adoption of strong values that maintain high standards and ensure that the organizations are sustainable and devoid of issues that derail their development.

References

Amelio, G. (1999). The Case of Bad News. Issues in Ethics, 10(1), 16-17.

Biskupic, J. (2013). High court raises the bar on age-bias lawsuits. U.S. History in Context.

Coleman, J. (2013). Six Components of a Great Corporate Culture. Havard Business Review.

D. Franklin-Thomas, J. S. (n.d.). Employment Discrimination Law and its Application to Common Workplace Issues - Title VII, ADEA, ADA, and Harassment. American Bar Association.

I. Pies, M. B. (2010). Value creation, management competencies, and global corporate citizenship: An ordonomic approach to business ethics in the age of globalization. Journal of Business Ethics, 94(2), 265-278.

Jolly, A. (2003). Managing business risk. Kogan Page Publishers.

Kotter, J. P. (2008). Corporate culture and performance. Simon and Schuster.

Lotila, P. (2010). Corporate responsiveness to social pressure: An interaction-based model. Journal of business ethics, 94(3), 395-409.

Shmuel, J. (2010)). Entrepreneurs flock to cleantech sector; Renewable Energy. National Post. Don Mills, Ontario: Infomart, a division of Postmedia Network Inc.

Soh, M. E.-C. (2009). Pain, Gain, or Shame: The Evolution of Environmental Law and the Role of Multinational Corporations. Indiana Journal of Global Legal Studies, 16(1), 195.