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Is Price demonstrating elements of corporate social responsibility by his actions in this case, or not?
ANS: There are tools used for determining the actions of social responsibilities in corporate life, In corporate life some of the social responsibilities are Providing good Establishing the organization to do good things to society, environment to the employee, being transparent to the Market and non-marketable stake holders, and donating some percentage of money form the net profit. Most of the non profitable organization comes under this category. Which has positive influence in the net growth and business.
Is Price using his corporate power as a CEO appropriately? Is he demonstrating the notion of the Iron Law of Responsibility?
ANS: According to the Iron law, CEO need to take actions by keeping Employee improvements, which will be beneficiary for the long-lasting profits. If he thinks of current profits and if not consider employee improvements, it would not sustain long growth. If he is side of improving employee profits which would build a good stake holder relationship. If any organization which are in rich of stake holder relation ship and good relation ship with employee can sustain even in the times of recession and good for building the company for long time profits.
Is he embracing the responsibility notion of â€œgiving backâ€ to his employees? What principles of corporate citizenship (using Exhibit 3.A) are evident in this case?
ANS: Is he embracing the responsibility notion of â€œgiving backâ€ to his employees? – no
What principles of corporate citizenship (using Exhibit 3.A) are evident in this case?
Because according to corporate principles, user friendly environment, responsible HR(Human Resource), treating all the employees same and providing equal salaries and bonuses, providing good resource for the development of employee. By maintain all above principles, the organization can earn the trust of employees and stake holders which would be good for the organization for long run.
What arguments for and against corporate social responsibility (referring to Figure 3.3) are relevant to this case?
ANS: Trusting the employees in the company can put the organization in the better place, trusting the employees can help the company develop even the company is in critical situation. Trusting the employee helps him boost his confidence and help to increase in performance.
Is Price acting like an executive of a firm that could be certified as a B corporation?
ANS: Taking care of employees in the economic situation helps the company put the things in right places, if company makes sure the employees are good in economic situation, employee helps the company even in critical situations. Being transparent to employee helps them never give up in hard situations.
What stage of global corporate citizenship (using Figure 3.5) is Gravity Payments operating at, and why do you think so?
ANS: Gravity comes under stage 5 operation which is crucial, the company works are little different compared to other companies which help them to increase in the economically.
The major integral and major block of society is Business. The impact it has on society is huge, offering services in exchange for currency or services has been exiting for a long time. Corporations today run most of the major business, so it is important that they have social responsibilities. The law structure is designed in such a way that the corporations are obligated to have responsibility socially and legally. These responsibilities are the major reasons that corporations can exercise influence on the markets.
Big corporations have become a very integral part of our society. Some corporations also control a major part of the market. The advantage of being such large corporations is they can get in more resources and can produce products at a lower cost as they will be producing in bulk. Due to heavy working capital, they have the advantage to produce products for future use as well. One major advantage and disadvantage a large corporation has are they can build up their power to indirectly influence lawmakers. They have the advantage to monopolize the business affecting its competitors and small corporations.
Major players nowadays are so powerful that they influence the people on a day to day basis. This is effect the quality of life of a common person. For example, Apple Inc. has launched an iPhone back in 2007. From 2007 to 2019 at some point in time, Apple has influenced people with iPhone a lot that people started to migrate to iPhones which made the other players run out of business. This is where Iron law of responsibility comes in, if apple in the future do not use the powers it gained in a responsible manner, they might lose it in the future. Price in this case study and followed this responsibility and has gained the loyalty of his employees.
Corporate social responsibility generally represents the way the company should act which always leads to the development/ enhancement of the community. They are also responsible for all their actions. The people working in a corporation have responsibilities which can be represented as the principles of corporate citizenship. The corporate citizens have t makes sure that the business is conducted ethically, they need to be working towards the development of the company, create good relationships with the local communities and they have to uphold consumer rights, provide a good return of investments, have a fair trading policy and develop a sustainable and work friendly environment.
There have been multiple arguments about social responsibility considering different organizations. Some organizations try to uphold a good work-life balance, some companies chase after their financial goals only. Later on, there came a standard or term known as â€œSocial auditâ€. It is basically the audit that reports the social and ethical performance of a firm.
Corporate Social Responsibility at Gravity Payments Study Case Study:
From the case study, Price has been a good and responsible guy who has worked towards the improvement of general public. He has followed some aspects of corporate social responsibilities. Some of the major responsibilities that he followed can be described below:
During the time of recession, Price has lower his own income so that he can save more jobs which shows a commitment towards the people working under him. He has shown true leadership skills in this scenario. He also came up with the plan that made a break-even the situation so that the shareholders did not run into losses.
To support his employees he used his corporate powers to make drastic changes which helped the firm to gain long term profits. This has also helped to gain hos employeeâ€™s loyalty and gain business reputation.
The company Gravity is at Stage 4 of global corporate citizenship. In times of recession, they tried to survive the uncertain environment. They made a good proposition value to both of its employees and shareholders. This has brought stability and assurance amongst the people of the society.