Organization theory and structure Essay Example | Topics and Well Written Essays - 1500 words

Organization theory and structure - Essay Example Some factors that influence organizational structure are size, the products, skills and talents found in the organization and most structures will mainly be based on these factors. Different theories have been placed forth about why different organizations have the structures they do. According to Abraham Maslow, organizational structures mainly depend on their needs. In his works he clearly places these needs in a hierarchy system where the satisfaction of one level of needs leads to the organization striving to fulfill the other levels of needs of the organization. These needs, in order of priority are; physiological needs such as food and shelter, safety needs such as safety in the environment, social needs like love and friendship, esteem needs like self respect and status and at the top of the hierarchy is self actualization which is actually reaching one's full potential. A good organizational structure should be one that aids in fulfilling these needs among employees in the organization in order to maximize output. Herzberg insists that intrinsic factors are related to job satisfaction while extrinsic factors lead to job dissatisfaction. The structure a nd job environment that is positive creates interactions leading to self-esteem that improves quality of work. He insists that factors such as recognition, responsibility, the work itself makes up for some of the motivators creating job satisfaction. The factors that lead to dissatisfaction are supervision, company policy, salary, relationship with peers and subordinates. It is therefore paramount that the organizational structure supports job satisfaction and reduces incidences of job dissatisfaction. An organization should set up a structure that makes employees feel satisfied with their jobs, so that a job is not a task. Frederick Winslow insists on scientific management. His theory puts forth the idea that management of an organization, which largely depends on the structure, can be scientific. This insinuates that it can be put down to an exact science, where the tried and tested ways after years of observation are sure and true to succeed. The four step process is-develop a sc ience for each element of the individuals work, heartily cooperate with workers so as to ensure all work is done and done properly with no grudges or ill feelings, divide work equally between management and workers instead of the old methods where workers would labor while the management did much lesser work and that management should take the work that it's better suited than the workers in order to have a balanced work environment. A good structure should incorporate some if not all of these in order to reach goals, make workers happy and the management satisfied with the output. All these management theories lead to different organizational structures depending on what works best for the organization. Though some theories put forward have been disputed or declared obsolete, this has not meant that some proposed points are not accommodated and incorporated in the making of organizational structures in today's business world. Some of these include matrix method, flat, centralized o r decentralized structure, tall [traditional] structure] and many more (Learning Management2.com 2008). Small to medium sized organizations mostly have the functional and tall structure. This is where there is a clear

Ford Case Assignment Example | Topics and Well Written Essays - 250 words

Ford Case - Assignment Example Demographic circumstances The overall economy was sluggish in 1961 with many consumers having a delay in purchasing in the models that were developed in 1961 and 1962. Social circumstances There was a change in the preferences of customers and in the period, the makers were struggling to find the perfect satisfaction for the consumers. Economic circumstances There was increase in the disposable income to about 5 percent. This was in 1962. There was severe price overlap in the period. Political circumstances There was change in management of the organization with Lee Iacocca becoming Division manager in 1960. There was election of Kennedy as the president. Competitors of the target market The competitors of the target market include Chevrolets, Fords, and Plymouths. There were also bringing out of Pontiacs, Buicks, and Dodges. Needs from the competitors The needs that were figured out from the competitors were the target market that needed the cars. The growth of two-car families was an optimistic factor that was also realized. Development of products Features: the car was compact. The car also had a six-cylinder engine and transmission to the power. Brand name: Mustang Design: sports car Quality level: developed from the existing model Setting of price The price of the car was set at 2368 dollars. There price was set through inviting 52 couples to view the model and quote a price. Keeping the price low The development was kept low through using the models that had been earlier developed.

Corporate Restructuring of RBS Essay Example | Topics and Well Written Essays - 2000 words

Corporate Restructuring of RBS - Essay Example Many organizations these days are practicing corporate restructuring to make the optimal use of their resource. Some organizations have found that corporate restructuring is necessary for enhancing the business profitability, while other businesses have not been very successful in restructuring. This has resulted in debates over whether the corporate restructuring is really beneficial or whether it is only a myth. This paper is going to look at the both sides of corporate restructuring and will conclude with the final word on the impact of Corporate Restructuring on the financial position of an organization. The major objective behind any restructuring program is to achieve the organizational efficiency. Corporate Restructuring schemes are designed keeping in mind the enhancement in productivity of the workers, cost control elements and any other objectives that are going to maximize the shareholder’s wealth. Conventionally it was thought that corporate restructuring improves the performance of a company’s shares on the stock market. This hypothesis was rejected by a recent study. It was revealed that announcements relating to Corporate Restructuring of an organization did not yield abnormal returns for the stockholders. Hence, Corporate Restructuring does not change market sentiments about the organization immediately. The change in financial performance only occurs if it is found that the corporate restructuring has enhanced the organization’s use of resources and there has been an increase in the profitability of the firm. (Bowman & Singh, 1993) Another study done on the group of hospitals revealed that Corporate Restructuring is not positively correlated with increase in financial position and performance of an organization. Other factors such as size of the organization, number of employees and target market are more likely to be the main difference between financially strong and a financially weak organization. The results of this stu dy may lack reliability because it was cross-sectional research containing data of only one year. In the long-run Corporate Restructuring forces might be more efficient and have an impact on profitability of the organization. But to be on the safe side we can say that Corporate Restructuring is not correlated with the profitability of the organization in the short-run at least. (Clement, A'unno, & Poyzer, 1993) The paper is going to examine the impact of Corporate Restructuring on the market of an organization. The results of the studies indicated that the smaller and more centrally concentrated organizations are better in strategic decision making. In the period of 1990s, many organizations with diffused investment subsidiaries and stakes lacked any attention from the investors and hence there was a lot of focus on downsizing strategies during that period. The study also focused that blockholder investment is necessary for the stability of organization and firms with blockholder in vestment are efficiently configured. Hence, it is better for the organizations to downsize and try to maintain blockholder organizational structure in order to safeguard against uncertainty. Many organizations are downsizing because over-diversification is doing more harm than good and investors have realized that the correct way of making money is by investing large sums in a single organization to achieve growth. (Bethel & Liebieskind, 1993) A

Ford Case Assignment Example | Topics and Well Written Essays - 250 words

Ford Case - Assignment Example Demographic circumstances The overall economy was sluggish in 1961 with many consumers having a delay in purchasing in the models that were developed in 1961 and 1962. Social circumstances There was a change in the preferences of customers and in the period, the makers were struggling to find the perfect satisfaction for the consumers. Economic circumstances There was increase in the disposable income to about 5 percent. This was in 1962. There was severe price overlap in the period. Political circumstances There was change in management of the organization with Lee Iacocca becoming Division manager in 1960. There was election of Kennedy as the president. Competitors of the target market The competitors of the target market include Chevrolets, Fords, and Plymouths. There were also bringing out of Pontiacs, Buicks, and Dodges. Needs from the competitors The needs that were figured out from the competitors were the target market that needed the cars. The growth of two-car families was an optimistic factor that was also realized. Development of products Features: the car was compact. The car also had a six-cylinder engine and transmission to the power. Brand name: Mustang Design: sports car Quality level: developed from the existing model Setting of price The price of the car was set at 2368 dollars. There price was set through inviting 52 couples to view the model and quote a price. Keeping the price low The development was kept low through using the models that had been earlier developed.

CW Essay Example | Topics and Well Written Essays - 500 words

CW - Essay Example The management has adopted the digital marketing system in which customers can quickly and conveniently look at all goods available and decide on which ones to buy. The online service launched facilitates this by enabling customers make their orders online and the goods delivered at their door step. This has boosted their sales specifically during the winter seasons in which people cannot move to the shopping center. This, in as much as it boosts the sales, has had its challenge in the expenses incurred during the delivery of small purchases to remote areas. In a bid to control this, the management encourages large purchases by offering promotions such as price cuts on large purchases made. Westfield has further increased its retailers to 140 and having over 300,000 products as a means of providing a variety of products to their customers so as not to allow them seek for other products from their competitors. This has enabled customers to compare a variety of products with those of their competitors in terms of price. The free shipping and returns offers have encouraged customers to shop without fear of having to use undesired goods after their delivery. This has increased their market share in the highly competitive business world. This, however, has called for employment of more staff members and training the existing employees on digital marketing. Westfield has also established a means of getting consumer feedback and desires by coming up with a social site of you-tube and face-book. From a list of 1,450 applicants, they chose an insider whose job is mainly to promote talks about shopping, smart buys, modern trends in fashion and the available offers and lifestyle (Dick & Merrett 2007, 308-318). He also responds to the customer queries and gives them direction on where to find relevant goods. This has enabled Westfield reach even a larger population

The Assessment Process Essay Example for Free

The Assessment Process Essay Introduction Assessment is the process of judging a learner’s skills and knowledge within the work place or training environment, set against the National Occupational Standards. (NOS) These standards reflect best practice in the particular industry. Learners will be assessed as either competent or not yet competent and their evidence will be judged as sufficient or insufficient for them to have reached these standards. see more:identify ways of supporting an individual to make informed choices The assessor will work closely with the learner and work towards a National Vocational Qualification (NVQ) Note NVQs in the UK are now progressively being replaced with the Qualifications and Credit Framework (QCF) NVQ’s are typically arranged in levels which are structured into units each unit carries a number of credits, they are competency based i. e. they require the demonstration of abilities to perform a standard of job, both in skills and an understanding of what the learner does and why. Learners can undertake an NVQ at any time, they will be required to attend an initial induction session within which the learner will choose units to work on. Each unit covers a general area of work and carries a certain number of credits and outcomes. Learners are required to complete a number of mandatory units and then optional units are chosen to achieve the required number of credits. Learners will have regular meetings in the workplace, with their assessor to discuss evidence criteria, progress and set targets. The Assessment Process The assessment process can be broken down into the following sections :- 1 Recruitment, induction initial assessment Once the learner is recruited and inducted into the programme an Initial assessment is carried out. This involves the identification and collection of a wide range of information to enable the assessor to develop an effective, efficient, personalised and positive training programme for the learner. The assessor’s role is to aid the learner to gain an overview of the qualifications he or she hopes to gain and to plan their route to achieving it involving selecting the right units, in the right order and identifying any extra support they might need. Information collected during the initial assessment includes:- * Social/ethnic background. * Learning difficulties, disabilities and health or personal difficulties. * Previous abilities, experience, education, qualifications and achievements (RPL) * Learner strengths. * Areas for development – weaknesses. * Current job role. * Learners short and long term ambitions, goals, needs and expectations. * Time resources. * Available facilities and support. It is the assessor’s responsibility to determine the learner’s attitude and commitment and to ensure that he/she is fully involved in the process. Failure to carry out a thorough initial assessment can result in guiding the learner to unsuitable options, the training taking too long and wasting time, effort and resources, leading to frustrated learners and resulting in a high rate of â€Å"drop outs†. 2 – Planning Before the assessment of a learner begins, it is important to make a plan of how the assessor will carry out the assessment. The overall aim is to plan for the types of evidence needed to inform the assessor’s decisions. A holistic approach is important here i. e. the assessment process needs to be planned around what the learner is doing, then linking these activities to the occupational standards, not the other way round Important for learners in the working environment. Valuable steps for the assessor during planning are to :- 1. Ensure an overview of all the relevant units within the learners chosen path, taking into account the results of the initial assessment. 2. Have all necessary documents concerning the learners existing achievements to hand 3. Gauge the level at which the learner is currently working. 4. List day to day activities, responsibilities and functions and link units to these key activities It is vital that the learner is involved at every step of the process, and crucial that all details are agreed by him/her especially the learning goals and time scales. Assessment plans The results of the planning stage should be recorded by the assessor on a document called The Assessment Plan. Each assessment plan should record :- * Who is being assessed, where and when. * What activity is being assessed, and the units for which the evidence will be provided * What assessment methods will be used, how they will be recorded and where the evidence will be stored after the assessment. * When and how feedback will be given. * Who else needs to be informed of, or involved in the assessment. * What the arrangements are for reviewing progress and updating arrangements for assessment. * Anything the learner needs to bring on the day of assessment. 3 – The fundamental responsibilities of the assessor Good assessment practice relies greatly on an honest and trustworthy relationship between the assessor and the learner, vital for successful and credible results. Credibility in assessment is guaranteed by ensuring that all assessment practices and procedures are governed by the following set of principles :- Fairness, transparency objectivity. The assessor must :- * Give the learner the best opportunity to demonstrate their learning and knowledge and the assessment process must not hinder or advantage the learner in any way. * Consider the needs and characteristics of the learner. * Provide transparency i. e. communicate clearly with the learner to ensure he/she is fully informed about, understands and is able to participate in the process. * Inform of appeal opportunities and procedures. * Not discriminate on sex, race or disability (the equality act 2010) Validity. Validity is a measure of the accuracy of an assessment or is the assessment actually doing what it is supposed to be doing? Each assessment should be designed to allow learners to produce the evidence to show that they have the required knowledge, understanding and skills for the qualification they are aiming for. An assessment is valid when it :- * Is appropriate for the purpose, e. g. a practical assessment should be used to assess practical skills, a written assessment that asks learners to write about a skill rather than demonstrate it would have low validity. * Allows learners to produce sufficient evidence of the knowledge, understanding and skills that are required to satisfy standards of the qualification. * Allows assessors to make reliable assessment decisions for all learners. Reliability Reliability is a measure of the degree of consistency with which a learners responses to an assessment are judged. To be reliable, assessment decisions on learners performance must be consistent across all assessors for all candidates undertaking the same assessment task. In any assessment system, procedures have to be put in place to ensure this. Assessment decisions are reliable when :- * They are generated by valid assessments which are produced under conditions of assessment that are consistently applied. * They are consistent across the range of assessors applying the assessment in different situations, contexts and with different learners. * They are taken on the basis of clearly-defined standards of performance. * The authenticated work of the learner is being assessed. * They are consistent over time. The relationship between validity and reliability Validity and reliability are interdependent. An assessment that produces inconsistent results cannot provide valid information about a learner’s achievement. On the other hand, highly consistent results do not necessarily indicate high validity, since the test may be inappropriate for the competence being assessed. For example, the results of a maths test involving routine calculations may have a high degree of validity for indicating arithmetical skills but a low degree of validity for indicating problem-solving abilities. High validity and high reliability are more likely to be achieved when assessors :- * Measure learners against outcomes of learning which have clearly defined performance levels. * Use assessment instruments that are appropriate to the outcomes. * Minimise subjectivity. 4 Learning and development The learner undergoes training and development over time and :- * Acquires skills and knowledge. * Practises and applies what they have learned. * Starts to perform to the standards. * Consistently performs to the standards under a variety of conditions at work. Assessment for learning takes place at regular intervals to see how the learner is progressing. Learners are given feedback on their performance, targets are adjusted and further training and development are arranged as necessary. Formative Assessment Formative assessment is an informal process used by assessors and learners to recognise and respond to student learning in order to enhance that learning during the learning. It is a method of assessing for learning as opposed to assessment of learning (summative assessment) It takes place during the assessment, is an integral part of the learning process and involves the assessor indentifying the learner’s present standard of abilities and work. It provides feedback which supplies suggestions on how the learner can develop and helps the assessor to modify the learning process to suit the learner on an ongoing basis. Advantages :- * Provides the learner with a â€Å"safe place† allowing him/her to make mistakes and learn from them as opposed to the penalties of summative assessment. * Guides assessor into making decisions about future instruction enabling them to keep track of progress and adapt training to the needs of learners. * Improves learner motivation and achievement. * Engages the learner in self assessment. * Facilitates continuous improvement for both learner and assessor. Summative assessment Summative assessment focuses on learning completed, happens after a learning period and comes in a form of formal testing of what has been learned to produce marks or grades. Advantages:- * It acts as a formal measurement and evaluation of a learner’s growth and achievement after instruction. * Enables learners to enhance their achievements. * Provides rigorous, reliable and valid verification of a learner’s performance. * Develops learners as active participants in their own assessment, enabling them to develop as independent learners and effective professionals. 5 – Assessment methods There are many assessment methods available to the assessor. It is important to choose methods which are fair, valid and most effectively assess the objectives of the unit. See table below which lists the key methods and their application METHOD| DESCRIPTION| APPLICATION| Observation| Watching learners perform in the workplace or simulated environment | To see learners demonstrate their practical skills as they do their job activities. Most standards specify observation as a mandatory method| Examining or evaluating work products| The outcomes or products of a learners work activity or task| In conjunction with observation,questioning or professional discussion – must be the result of real work| Questioning| Using a range of questioning techniques either spoken or written| To find out whether the learner has learned necessary knowledge| Discussion| A conversation in which learners describe and reflect on their performance and knowledge in relation to the requirements of the standards| To test the validity and reliability of a learners evidence. Can often be used to cover a range of work activities and units. An affective way to test deep rather than superficial learning| Evidence from others (witness testimony)| Another person’s account of what the learner has done, usually to confirm existing knowledge from assessors own observation| To support an observation and to confirm consistent performance over time. May be used in conjunction with RPL to verify a learners claim to existing knowledge and skills| Learner statements| The learners account of what they have been doing in relation to the standards to be achieved| To support consistent performance over time. Or for evidence of reflection on, and improvements in, performance | Projects, assignments and case studies| Assessing the outcomes of case studies, projects and assignments that the learner has undertaken as part of their vocational learning against specified criteria| In conjunction with questioning or discussion (although projects and assignments set as part of the learning process provide no evidence of competence)| Simulation| Using a replica of the work environment to assess competence. When it is impossible or unsafe for the learner to perform in a real-life work environment| Skills tests| Formal testing of skills under test conditions| When it forms part of the requirements for independent assessment in certain qualifications. Usually where the learners need to acquire a range of technical skills before they can perform them in the work environment, or safety related knowledge and skill requirements. | Recognition of prior learning| Assessment of a learners existing level of knowledge and skill in relation to the standards| To match prior learning to units in a qualification so the leaner doesn’t have to repeat what they have already learned. Without detailed assessment it can be difficult to judge whether prior claims constitute valid, authentic and current evidence. | 6 – Evidence All the different methods of assessment have one thing in common the collection of evidence. Evidence can be defined as The proof produced by a learner that shows that he/she complies with the requirements of the criteria of the standards they wish to gain credits for. Evidence can come from a variety of sources, it is the responsibility of the assessor to ensure that the evidence collected is valid i. e. is authentic, sufficient and current before he/she can make an accurate judgement of the learners competence. Authenticity of evidence * Can the evidence be attributed to the learner? * Is the evidence the learners own work? The assessor has to verify that the evidence is the learners own work therefore the learner must be able to explain and substantiate the evidence produced. Sufficiency of evidence * Is there enough evidence to meet all criteria needed to judge the learner as competent? * Is the assessor confident that the learner has the relevant level of knowledge and skills and that performance can be repeated? Rather than focussing on quantity of evidence the assessor needs to ensure that assessment decisions are based on quality of evidence that demonstrates the learner is competent. To be sufficient evidence must show that :- * The learner has attained all of the relevant skills and knowledge outlined in the standards. * The learner has shown competence over a period of time. * The learner is confident to repeatedly demonstrate skills and knowledge. Currency of evidence * Is the evidence related to current competence? The assessor needs to judge the evidence as up to date with the latest developments and environmental factors such as legislation and must assure that it is the most recent available, especially important when assessing prior learning.

Effectiveness of CSR in Achieving Sustainable Development

Effectiveness of CSR in Achieving Sustainable Development CHAPTER I 1. Introduction Corporate social responsibility (CSR) is a concept that has acquired a new character in the global economy. â€Å"With the advent of globalization, managers in different contexts have been exposed to the notion of CSR and are being pressured to adopt CSR initiatives† (Jamali and Sidani, 2008; 330). Therefore, even more corporations are increasing conscience about the importance of matching their own interests and the interests of society by taking responsibility for the impact of their activities on employees, suppliers, customers, communities and other stakeholders as well as the environment. Although, this is an obligation that goes beyond economics or law, and in which companies have to act ahead in pursuing long term goals that can also be good for the society and the environment as a whole. Intrinsically related to the topic of CSR is the protection of the environment for future generations through Sustainable actions. Not only because there has been an enormous technological progress that means we are not as much dependent as decades ago of a wide range of natural resources such as air, energy, land, and minerals. On the contrary, driven by the growth of the population and the hectic globalization, competition for those natural resources has been intense. As a result, this competition also brought a powerful driver for both environmental conflicts and damage to our fragile, life-supporting environment. A range of environmental disasters, such as climate change, ozone layer depletion, and soil contamination, have been occurring along the past decades and which turned organizations and society more aware of practice such as recycling, energy consumption, preservation, among others. â€Å"Evolving from an attitude of simply reacting to such disasters and their effects on the physical environment, corporate concerns now include strategic planning and looking at the environment in its multiple social, cultural, political, and institutional dimensions† (Enriquez and Drummond, 2007; 75). Therefore, the instruments of corporative citizenship turned also to the preservation of the environment as a strategic element for enterprises in the whole world. Along with the development for part of the organizations of clean technologies, there is also the concern in getting a green image, which put organizations’ sustainable activities into practice calling for an Ecobusiness. Especially in the past two years, 2008 and 2009, the world was marked by a financial crisis that had an impact in economies of organizations in general. Nevertheless, the financial crisis is not causing firms or governments to abandon sustainable development. In fact, many business and government suggest that a ‘green solution’ can be found to both economic and ecological challenges, creating new jobs and markets by investing in new forms of energy, redesigning or retrofitting buildings and equipment, and managing forests and other ecosystems sustainably. Mineral industries, for example, are using the actual crisis on their own benefit, attempting to identify domains where actions are required and trying to shape a different future to this industry, taking advantage of the actual scenario. To achieve that they make use of available data and information to appreciate the mining sector’s impact, giving support to decision makers in their strategic choices. The actions of Alcoa Inc., for example, are impressive and unique, the company interplays among intangibles as leadership and innovation as well as a strong CSR strategy, wisingly aligning society, workplace and environment, productivity, and financial performance in the context of a traditional manufacturing company. This project research examines the existing literature in an attempt to create a more comprehensive perspective of what has been written about the topic of Corporate Social Responsibility and Sustainable Development. The project’s approach was qualitative in nature and focused on discovering what researchers and authors have explored and understand about this complex subject. Besides, it looks at some of the principal favourable and unfavourable arguments to the social responsibility of enterprises, especially when they are being considered by multinational enterprises interested in initiating activities into developing countries, with focus into Brazil. We also propose some alternatives of acting in the area of Social Responsibility made by Alcoa Inc., considering the current Brazilian reality, with the aim of achieving Sustainable Development. This dissertation is divided in two parts. Part one will be based in secondary data and involves: Chapter II, which comprises the literature review that examines existent work in current trends involving the subject of CSR as well as paradigms as SD in order to help establish what values associated indicators could contain. Chapter III, the explanation of the methodology used along the development of the project. Part two, comprises Chapter IV, which examines factors involving Alcoa Inc., taking into account its current CSR and SD actions and strategies, making use of a questionnaire, answered by some of the organization’s managers, in relation to the issues encountered in the literature. Chapter V, will draw conclusions, make future recommendations and points out gaps for future research. 1.2 Research Title The Effectiveness of Corporate Social Responsibility as a means of achieving Sustainable Development: a case study of Alcoa Incorporation. 1.3 Research Background In the modern complex and dynamic business environment, most organizations are adopting a global attitude making sure that they are geared for being global. Furthermore, it is common knowledge that the world is constantly developing and changing and no change is permanent because any change is about to be further adjusted in the short or long run to suit the environment and the challenges they face. Organizations are now more powerful and have more influence in the society. Therefore, â€Å"The notion of corporate social responsibility today functions as an emblem, that the company themselves rise towards a consensual â€Å"social revolution† that will eventually benefit all the stakeholders of our society† (Habish et al, 2005; 271). Corporate social responsibility intrinsically relates to environmental issues faced globally, especially in the early stages of the twenty-first century and sustaining in a particular industry has become very difficult task for many businesses. â€Å"Employees, investors and consumers are becoming increasingly more aware of the social and environmental impact to people and planet that a company produces, which are both positive and negative. As consumers become even more aware of sustainable practices, there will be even greater demands for business communities to do the right thing, requiring enhanced ethical leadership and CSR to drive profits, and brand loyalty† (Mamic, 2004; Leffel, Sweeney, 2007 cited by Maass, 2007; 36) Alcoa is â€Å"the worlds leading producer and manager of primary aluminium, fabricated aluminium, and alumina facilities. In the framework of sustainability, Alcoa is considered one of the top three companies in the world in terms of commitment to sustainable development and has made use of an environmental strategy associated with a truthful social responsibility in order to gain competitive advantage and success in the marketplace. For example, for three years the Company has been sponsoring the Internethos program, directed at the development of Corporate Social Responsibility for Sustainability (www.alcoa.com). Moreover, â€Å"Recognition from the Covalence Ethical Ranking drives the company to intensify actions of engagement of strategic publics. In 2006, the company was indicated as world leader in ethics, in the mining and metallurgical Industry, according to Covalence Ethical Ranking† (Alcoa annual report, 2006/2007; 41) 1.4 Research Aims Analyse how corporate social responsibility can ensure competitive advantage and success in achieving sustainable development. To explore, analyze and identify the use of environmental strategy as a tool of achieving global success. Analyse the importance of achieving sustainable development in today’s global environment. 1.5 Research Objectives To evaluate, in an environmental perspective, the effectiveness of corporate social responsibility in today’s global business. To evaluate, in an environmental perspective, the effectiveness of corporate social responsibility on achieving sustainability. To establish the feasibility of using corporate social responsibility within the industry to align strategic planning with sustainable development. To analyse and find out the implications of corporate social responsibility in Alcoa’s Inc. environmental management. To identify the extent to which the environmental management is involved in strategic planning at Alcoa Inc. To identify how important is environmental sensitivity to a company that extracts natural resources. To analyse in depth the integration of sustainability to Alcoa’s overall business giving emphasis to Brazil. To investigate practices used by Alcoa Inc. in its implementation of corporate social responsibility as a means of achieving sustainable development. 1.6 Rationale of the project The objective of this project was to gather information that could be useful and benefit different organizations in engaging in environmental strategies by the concept of corporate social responsibility. Moreover, data collected can also guide corporations by providing them with an understanding of sustainable development and the resources they can make use of to establish a sustainable future for society and the environment. The information gathered for this present work was collected through an extensive literature review as well as the use of different sources of information, such as videos. In addition, a questionnaire was used in order to collect insight information on the organization’s management perspectives and its corporate social responsibility strategies for a sustainable development and prosperous business. CHAPTER II LITERATURE REVIEW 2.1 Introduction Social Responsibility actions are examples of a phenomenon of great proportions, which have been taken into more consideration in the business world, and reflect a new world-wide configuration. Historical recent events, in special environmental catastrophes around the globe, developed the academic discussion on the social paper of organizations, public and private, in the construction of the called sustainable development. Investors originated from richest countries have been realizing that economical survival and social balance is a long-term phenomenon more and more dependent of a constant preoccupation with levels of development of the least favoured areas of the globe (Parker, 1998). In the context of globalization, Social Responsibility has started to be understood as an essential instrument to be considered by organizations’ strategists in the sense of paying attention to the social demands of several economical agents involved. Apart from the internationalization strategy adopted, multinational enterprises installed in developing countries are under pressure in adopting an ethical and responsible posture. Meantime, many actions carried out by multinational enterprises, through their own foundations or partnerships with local agencies, have been questioned for disregarding the participation of local actors in the decision processes, in the resource allocation and in the evaluation of results. 2.2 Business Ethics and Corporate Social Responsibility â€Å"Some vigorous critics and Marxists tend to dismiss the link between business and ethics† (Shaw, 2009; 2). For example, â€Å"It was widely assumed that business and ethics were radically different and that ethical behaviour had little or no return on investment† (Brenkert, 2004; 188). However, on current days, ethical issues are being one of the most important subjects concerning organizations across the world, which now view business ethics not only in terms of administrative compliance with legal standards, rules or regulations as they used to do in the past. Some corporations are even creating their own written and formal ethical codes in addition with the use of different systems, like corporate social responsibility, to help them to create and maintain an ethical organization culture. Accordingly, Shaw affirms, â€Å"Business ethics thus involves studying the ways to refine and reinforce the implicit norms of the business system† (Shaw, 2009; 3). Nevertheless, Corporate Social Responsibility is topic of great value in business ethics, as reinforced by Ghauri and Cateora (2006; 468): â€Å"Ethics and social responsibility go hand in hand†. Organizations are increasing conscience about the importance of matching their own interests and the interests of society by taking responsibility for the impact of their activities on employees, suppliers, customers, communities and other stakeholders as well as the environment. Kotler and Lee (2005; 161) argue, â€Å"The first ethical duty of business is to do not harm. Companies are responsible for minimizing stakeholder’s risks. This is the heart of business ethics.† In fact, when ethical issues come to the organization field, a question is raised: â€Å"Of all these stakeholders, which should or will have the most or least influence over the ‘ethical’ rules that will be applied by the organization?† (Buhalis and Laws, 2001; 88) Despite of all the suggestions given in relation to CSR and business ethics, Jones et al (2005; 19) points out the fact â€Å"†¦ whether business ethics will actually make business more ethical.† In a current globalized environment, companies play an important role in the social structure and more than ever before, are being encouraged to improve their business practices by emphasizing ethical behaviour, not only through the development of new technologies but also through social and environmental initiatives. Companies are increasingly being held accountable for their actions, especially with the growth in demand for higher standards of corporate social responsibility. Sims (2003; 8) links the concept of ethics and social responsibility saying that: â€Å"Being socially responsible, ethical, and a good corporate citizen is important to meeting and exceeding the expectations for any organization’s stakeholders†. And affirms: â€Å"Organizational management that truly cares about business and corporate social responsibility is proactive rather than reactive in linking strategic action and ethics†. The structure of society has changed due to globalization changes, and the importance of businesses impact in society forced organizations to rethink their actions towards profitability, also promoting the development of concepts like sustainability. Nisberg (1988; 43 cited by Kilcullen and Kooistra, 1999; 158) gives an important definition of business ethics, which according to the author â€Å"can be defined as a set of principles that guides business practices to reflect a concern for society as a whole while pursuing profits†. However, with the relentless pursuit of profit in this actual globalized situation, how to maximise profit and act as an ethical company at the same time? A good understanding of what exactly is the term Corporate Social Responsibility is essential in order to answer and explain this question through different perspectives and theories. 2.3 History and Definitions of Corporate Social Responsibility The history of Corporate Social Responsibility can be compared as being as old as the history of business; however, its concept has not been fully formulated until now (Asongu, 2007; 28; Crane et al, 2008). May et al (2007; 4) also adds â€Å"Questions regarding the nature, scope and impact of organizations have been present into various forms for centuries ranging across the ‘classical’, ‘medieval’, ‘mercantile’, ‘industrial’ and ‘corporate eras’†. Taking into consideration only the period after the Industrial Revolution, or better saying the 20th century, the first author who directly contributed to the responsibility issue was Clark (1916; 210 cited by Secchi, 2007; 351) when he affirmed that â€Å"The old idea of free will is giving way to determinism, individualism to public control, personal responsibility to social responsibility.† During the period of 1930s and 1940s, called as the ‘corporate period’ references about social responsibility can be found, for example: Chester Barnard’s, ‘The functions of the Executive’ (1938) and Theodore Kreps’s ‘Measurement of the social performance of business’ (1940). (Crane et al, 2008). Murphy (cited by Crane et al, 2008), on the other hand classified Corporate Social Responsibility in four eras as follows: Philanthropic era (up to 1950s), awareness era (1953 to 1967), issue era (1968 to 1973) and awareness era (1974 until now). According to Secchi (2007; 348), however, â€Å"One of the first attempts at classifying theories on CSR (business and society issues) was made by Preston (1975).† This shows that the concept of CSR has been discussed for long but in fact, has not yet been fully understood and placed among organizations. Recently, empirical research about Corporate Social Responsibility and its relation to Corporate Social Performance and Sustainability provokes many contradictions in the literature. Due especially to the occurrence of different scandals among enterprises as well as the movement towards an environmentalist society rather than materialist, competitive labour market and shrinking role of government, there were a rise of interest in Corporate Social Responsibility in the past decades (Carrasco and Yakovleva, 2007; 15-16). Many authors affirm that business and society are interrelated entities rather than being distinctively separated (Kotler, 2005; Wood, 1991 cited by Moir, 2001). According to Watts et al (1998; 3 cited by Yakovleva, 2005; 12) â€Å"Corporate Social Responsibility is the continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well of the local community and society at large†. Corporate Social Responsibility, thus, reflect the responsibility or accountability of organizations in pro not only of its stakeholders but also of its surrounding environment, taking into consideration the various practices that can affect those. Carroll (1979), on the other hand, proposed a four-layered concept, which was the most accepted model, suggesting four corporations’ responsibilities related to their economical, legal ethical and philanthropic aspects. All those four aspects are of great meaning to the CSR concept, however, our current work focuses more on the top of the pyramid, which encompasses the philanthropic responsibilities. â€Å"Philanthropic responsibility: Interest in doing good for society, regardless of its impact on the bottom line is what is called altruistic, humanitarian or philanthropic CSR. â€Å"giving back† time and money in the forms of voluntary service, voluntary association and voluntary giving – is where most of the controversy over the legitimacy of CSR lies† (Shahin and Zairi, 2007; 755) According to Carroll, the philanthropic responsibilities are discretionary being, therefore, less important than the other categories; on the other hand, as said before, is the one that brings the most controversial issues. The definition proposed by Gauri and Cateora (2005) follows the same idea, where the role of a company in the society goes beyond its economic goals. As we can see, definitions relating CSR are various and contradictory among the literature which makes its study more exciting. 2.4 Corporate Governance and Corporate Social Responsibility Governance is defined by Dam et al (2007; 1333) as â€Å"the set of informal arrangements that are used in handling the consequences of these unforeseen states of the world†. As a result of globalization, different global governance structures have emerged, transforming the CSR concept more difficult to be understood. This new global governance brought about the participation by firms in tasks that used to be the government’s domain. (Cutler et al., 1999; Scholte, 2001 cited by Albareda, 2008). Corporate Social Responsibility, therefore, â€Å"can be seen as a new governance arena† (Haufler, 1999; Scholte, 2001 cited by Albareda, 2008; 434). Castka et al (2004 cited by Shahin and Zairi, 2007; 761) proposed a useful framework, based on three major assumptions: â€Å"(1) The CSR framework should be integrated into business systems, objectives, targets, and performance measures. (2) The governance system, whose purpose is to control, provide resources, opportunities, strategic direction of the organisation and be held responsible for doing so, is an integral part of business hence CSR system. (3) Central to the CSR framework is the transformation of stakeholders’ needs and expectation into business strategy, where the organisation has to balance the need for CSR from their key stakeholders with entrepreneurship.† Corporate Social Responsibility is considered deliberate governance, however, influenced directly or indirectly by demands from global civil society, Non Government Organizations, or even the government itself. Thus, Corporate Social Responsibility plays a major role in the global economic and political activities of corporations. â€Å"To exercise this political power in international society, companies as private authorities have adopted different mechanisms. The most important of these have been inter-firm cooperative instruments, fundamentally through the creation of CSR business associations† (Albareda, 2008; 434). The implications of poor corporate governance for people’s lives are tremendous, either in a developed or in a developing country, like Brazil for instance. Most of the Brazilian corporations are still dominated by a family-owned management, who are therefore, the main, if not the only shareholders of the company. This fact can interfere severely in the potential of corporate governance. â€Å"Brazil is a country with strong authoritarian traditions, and inadequate corporate governance laws make it possible to perpetuate authoritarian and concentrated influence over governance structures† (Oman, 2003; 35). Nevertheless, especially in the past decades, there has been intensification of businesses in relation to governance and sustainability in countries like Brazil. Paro and Boechat (2008; 533-534) illustrate it: â€Å"One of the most significant Brazilian non-governmental organizations with the specific mission to mobilize companies around this issue – the Ethos Institute of Business and Social Responsibility, founded in 1998 – had 1,266 member companies in November 2007. Around 74 Brazilian companies have published reports based on the Global Reporting Initiative guidelines (GRI, 2007), and the Sao Paulo Stock Exchange (Bovespa) launched in 2005 its own Corporate Sustainability Index (ISE), which now has 32 companies listed†. Well-managed corporate governance can have positive effects on socio-economic development; it also hence sustained productivity growth and reforms on regulatory practices, although its benefits cannot be taken into consideration without strengthening the examination of business practices and the government environment as a whole. 2.5 Building Corporate Social Responsibility into Strategy Corporate and business strategy according to Foss (1997) has different meanings in relation to the kind of decisions to be made. The first relates to decisions that determines the company’s goals and objectives, the latter though, determines how the company will position itself in relation to its competitors, defining its business and resources. McManus (2008; 1069) affirms: â€Å"The term strategy is derived from the Greek Strategia or generalship, sometimes translated as the art of war. The metaphor of business as war, a competition to be won, is pervasive.† The first author who actually exposed the link between strategy and Corporate Social Responsibility was Michael Porter. He argues that â€Å"corporate social responsibility can be a source of innovation and competitive advantage if incorporated into the framework of analysis that companies use to guide their business strategy† (Porter and Kramer, 2006 cited by McManus, 2008; 1077). Corporations have now added value-creation to their core business always considering its stakeholders’ needs to develop a strategy that is going to keep the company in a competitive advantage position. This is what drives a company to strive in management initiatives, especially if those initiatives are driven towards the achievement of sustainable development. Lee (2008, cited by McManus, 2008; 1075) argues, â€Å"There has been an evolution in CSR from the macro-societal level to the organizational level, with a greater emphasis on managerial, strategic, and ultimately financial issues to the point that the key issue in 2008 is how to integrate CSR into one’s core business.† Organizations integrated to societal aspects are trying to be aware of the implications of the environment they are in and building, therefore, its strategy based in a social/environmental mission and vision. On the other hand, â€Å"recent reports reveal that almost six out of ten organizations have no strategy for CSR while many companies are unclear as to how to adequately anticipate which social issues will affect their overall strategy† (The Work Foundation, 2002; McKinsey and Company, 2006 cited by Galbreath, 2009; 109) The importance of keeping the integration of a company’s core business and its strategy according to the society’s (stakeholders) needs determine the effectiveness of a business and its position in the marketplace. Galbreath (2009; 122) also draws a model of corporate strategy in relation to the society as follows: [image] Figure 2 Source: Strategy in the context of society (Galbreath, 2009; 122). Not only the strategy itself, but also a change on the decision-making framework plays an important role. The use of the classical American pragmatic decision-making is one example. â€Å"The use of pragmatic decision making would inherently lead to the consideration of ecological issues within the decision-making process while fostering competitive advantage† (York, 2009; 102) In conclusion, as McManus (2008; 1068) says, â€Å"Perhaps, the greatest contribution of the mash-up CSR and business strategy will be, not in the details of particular approaches to its realization, but rather the change in consciousness of individual business people its emergence may signal.† 2.6 Leadership and Corporate Social Responsibility The first important point in the leadership context is to understand that ethics is not something we born with. Many authors say that along the years we are taught by the community conventions, norms, and regulations that guide our ethical behaviours (Trevinâ‚ ¬Ã¢â‚¬ ¢o and Nelson, 2004). The same occurs with an organization, where norms, regulations, and values are drawn along the years, guiding their employees and creating its culture, but in this case, the founder has a crucial position, being the one who first underlie most of the organization’s ethics code. Another important issue consists in how hierarchy of power is distributed in the organization; this is explained because the flow of integrity and moral actions always comes from the top to the bottom of the organization hierarchy and this explains why the founder plays a key role in creating the culture and guiding decisions. This relates to the called learning theory, where leaders are perceived as role models. (Hind et al, 2009) Daboub et al (1995 cited by Hind et al, 2009; 8) â€Å"developed a model which suggested a relationship between the characteristics of an organization’s top management team and corporate irresponsibility, even criminality. The model holds that, other variables being equal, the greater the proliferation of formal management qualifications (e.g. MBA’s) in a top management team, the higher the chances of corporate criminality. The implication of this is that management educators do not seem to be addressing the current and future developmental needs of managers who are required to respond to changing social norms for higher ethical, accountable, and sustainable standards in business.† 2.7 Voluntarism and Accountability of Companies There are two contradicting views in the role of voluntarism in CSR: The first view is supported by Carrol and Buchholtz, (1999 cited by Yakovleva, 2005; 14) and suggests that â€Å"CSR refers to both types of corporate operations: operations towards compliance with legislation requirements and voluntary operations towards social benefit not stipulated by law or economic requirements†. The second view, however, suggests that the firm itself should call for the stakeholder’s interest voluntarily and â€Å"considers that CSR starts when law ends† (Yakovleva, 2005; 14). All those contradictions are part of the inconsistency in defining the term CSR. Corporate Social Responsibility according to Keinert (2008) is concerned to how corporations tackle external pressures responding to them accordingly. Moreover, she adds â€Å"It does not question the ‘rightness’ of social expectations from an ethical, theoretical point of view, but seeks way of implementing them† (Keinert 2008; 45) Apart from this point of view, corporations are responsible, nowadays, alongside the government, to the interests of its employees and society as a whole being also accountable for its actions. Thus, accountability is another important feature of Corporate Social Responsibility. Zadek (2007; 10) argues: embracing accountability for their actions, corporations â€Å"contribute to addressing societal needs and challenges in ways that could also deliver economic value and success.† According to the IPEA (Instituto de Pesquisa Econà ´mica Aplicada), â€Å"Social Accountability 8000 is the first norm turned to the improvement of the conditions of work, including the principal labour rights and certifying the fulfilment through independent auditors. The Social Accountability International LEAVES-, a non-government organization created in 1997 in USA, developed it and which has its action turned to the preoccupation of the consumers for the conditions of work in the world. The norm follows the standard of the ISO 9000 and of the ISO 14000, which makes its introduction easier for enterprises that already know this system†Ã¢â‚¬  (www.ipea.gov.br). â€Å"One of the basic propositions from social accountability favourable to the contemporary point of view is based on Keith Davis’ ideas† (apud Certo Peter, 1993; 281 cited by Souza, 2004; 31). According to them, â€Å"enterprises must operate as an opened system with two hands, with information reception from society and opened advertisement about their operations with the public.† (Souza, 2004; 31) In agreement with this proposition, the enterprise must be disposed to hearing the society and working in the construction of its well-being. 2.8 Corporate Social Responsibility and Profitability Whilst some authors defend Social Responsibility as a solution for organizations and society’s sustainability issues in the long-term, others are emphatic, affirming that it is not reasonable to imagine that the