This article discusses the concepts of Cosmopolitanism, Shared Value, Triple Bottom Line, Global Compact and Ethics in Business and how they are applied in Matilda's Clothing.
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1BUSINESS AND SOCIETY Cosmopolitanism Cosmopolitanism is a concept applied in business where distance and diversity in work force and culture is utilized as a core value in both profit generation and decision making. It is in effect the opposite of protectionism.In other words, companies that follow cosmopolitanism believe in the existence of one business continent which does not contain any geographic boundaries (Skrbis and Woodward 2013). In this particular case, it is noted that the raw materials and services are not only obtained from Adelaide but also from Bangladesh. The supply chain being based in Bangladesh, allows for Matilda’s Clothing to obtain products at a cheap rate and generate easy profits. Shared Value Shared Value creation is a new business concept that is being increasingly applied in top companies all around the world. The concept asserts that business goals which are in sync with the social and communal health promote greater economic progress for the firm (Pfitzer, Bockstettand Stamp 2013). In this particular case, the entrepreneurs are concerned with retaining the employees and providing them safe working conditions along with proper pay for maintaining economic viability. They are also focusing on taking service from“Gwendolines”a firm that locally employs people and makes sure that they can work from home itself. The firm also made sure thatlabour standards were maintained in the manufacturing process. Triple Bottom Line Triple Bottom Lineis an accounting concept consisting of three aspects which are financial, environmental and social (Savitz 2013). On considering the financial aspect, it is seen that the firm is very focused on the fact that the supply chain includes“Gwendolines”, even
2BUSINESS AND SOCIETY though the process in which they manufacture is not something Matilda’s would usually take, so that the raw materials and the final products obtained are both cheap and meets their quality standards. They also cater to the environmental standards as most of the products are home manufactured and do not pollute or harm the environment. At the social level, the firm has set up online portals and has extended services to include a bigger cohort of customers and keep the employees safe all at the same time. Global compact Implication of the global compact, involves adhering to the 10 principles laid by the United Nations (UN) which involves human rights, labor standards, environment and anti- corruption (Ruggie 2017). In this case, of Matilda’s Clothing, both human rights and labor standards by making sure that its employees are working under safe conditions with enough pay. Also, no corruption cases have been mentioned in the case study and as it is mentioned that the manufacturing involve the warehouse and the retail outlets and the products are home-made, so it can be assumed that no environmental harm is meted out. Ethics Ethics in business relates to following of certain courteous principles which include respecting co workers as well as clients, adhering to the business principles set at the time of origination of the firm, committing to excel and abiding the laws of the state (Crane and Matten 2016). In this case, the company takes care of employees and customers and tries to excel by including a larger client base and opening an online portal. It also sticks to the rules and principles it set at the beginning of the firm and retains the supplier. Hence, the fact that the firm has a strong ethical base can be claimed.
3BUSINESS AND SOCIETY References: Crane,A.andMatten,D.,2016.Businessethics:Managingcorporatecitizenshipand sustainability in the age of globalization. Oxford University Press. Pfitzer, M., Bockstette, V. and Stamp, M., 2013. Innovating for shared value.Harvard Business Review,91(9), pp.100-107. Ruggie, J.G., 2017. The theory and practice of learning networks: Corporate social responsibility and the Global Compact. InLearning To Talk(pp. 32-42). Routledge. Savitz,A.,2013.Thetriplebottomline:howtoday'sbest-runcompaniesareachieving economic, social and environmental success-and how you can too. John Wiley & Sons. Skrbis, Z. and Woodward, I., 2013.Cosmopolitanism: uses of the idea. Sage.