Business Ethics and Sustainability Essay
11 Pages1475 Words324 Views
Added on 2020-12-31
Business Ethics and Sustainability Essay
Added on 2020-12-31
ShareRelated Documents
Individual essay context ofbusiness
TABLE OF CONTENTSINTRODUCTION ..........................................................................................................................1Micro and macro environmental factors affecting the nature of business ......................................1Need of ethics and sustainability in addressing business issues .....................................................2CONCLUSION ...............................................................................................................................3REFERENCES ...............................................................................................................................4
INTRODUCTION The advanced technological developments have completely changed the global businessenvironment. However, compare to business in local environmental global business experiencesmore challenges in managing macro and micro factors. Along with these aspects ethicalconsiderations and sustainability also influences the business development strategies (Bloom andet.al., 2018). The study will discuss several actors which influences the nature and performanceof business activities. It will also evaluate the importance and necessity of sustainable and ethicalpractices in securing position in extremely competitive and changing global market. Micro and macro environmental factors affecting the nature of business Business and operational strategies are influenced by several factors. These factors can beclassified as micro and macro environment factors. Their impact on the business environment isas follows: Micro factors: These factors can be defined as the attributes which are related to immediate operationaland strategic decisions of the organisation. Micro factors includes: Customers: The products and nature of services as well as marketing approaches are defined asper the needs of customers (Cascio, 2017). Especially in global market where huge cultural andbehavioural diversity is present it is hard for the companies to meet the expectations of theirconsumers. Supply and distribution channel: Within global market to sustain the position companies mustdevelop effective distribution channels so that on time delivery of their products is possible. Forlong term customer retention and success this factor is vital. A minor error or negligence in thisaspect can lead organisation into trouble. Competitors: The business strategies are also influenced by the competitors. For the globalbusiness it is challenging predicting the strengths and weakness of local as well as other foreigncompetitors. Failure to predict this can cause organisation loss of customer base and profits(Patil, Mittal and Jatav, 2016). Macro factors:Macro factors or the external factors are known as the aspects which have key impact onthe business but are usually uncontrollable. 1
Political: These factors influences the economic growth as well as the smooth functioning ofbusiness. Political aspects are closely related to the legal considerations of the market (Xie,Chen and Wu, 2016). A stable political environment also have positive impact on the buyingdecisions of customers. Thus, before entering into any global market companies always assuresthat they have political support or stability. Social: For succeeding in the global as well as domestic market businesses must analyse thesocial structure and needs so that they can provide services accordingly. Economic: Global organisations and their investment is greatly affected by the economicstability. It can force them to change their operational costs as well as profit margins. Technological: This has been key factor which has allowed the huge global expansion of thebusiness (Schuetz,Mair and Schrefl, 2018). However, companies must be prepared to alsoconsider the security threats related to technology so that their operations are not hindered. Environment: Nations are paying more attention to sustainability and thus before expanding thebusiness companies are required to assure that their activities are favourable to environment. Thenegligence to this aspect can cause legal penalties. The lack of unsustainable practices are alsonot encouraged by the people. Thus, for establishing a responsible and ethical service providersbusiness organisations used to consider environment factors such as recyling, waste reductionand other sustainable approaches. Legal: From the global perspective this can be one of the complex factor. Since each economyhave different legal framework it is necessary for the to assure that their functions are incompliance with the legal regulations of the region. Legal factors affects operational methods,employment conditions and terms, taxation policies as well as other trade regulations (Graham,2018). Need of ethics and sustainability in addressing business issues Ethics are defined as the principles which govern or regulate the actions and behaviour ofan individual or organisation so that right and inappropriate concepts can be distinguished. Alongwith the profitability ethical aspects are also important for organisations to address the variousissues (Alfaro, 2016). For instance the environment degradation due excessive industrialisationand utilisation o resources has created threat on the earth. Thus, as an ethical responsibilitycompanies are moving towards the sustainability concept. Sustainability establishes a balance2
End of preview
Want to access all the pages? Upload your documents or become a member.
Related Documents
Micro and Macro Environmental Factors in Global Environment : Assignmentlg...
|8
|1458
|276
Macro and Micro Environmental Factor Assignmentlg...
|6
|1439
|176
Micro and Macro Environmental Factors (Doc)lg...
|7
|1309
|239
Global business environment INTRODUCTION 1 MAIN BODY1 Definition of micro and macro environmental factors that have changed the nature of business organisations working at global levellg...
|7
|1344
|189
Micro and Macro Environmental Factors - Essaylg...
|7
|1539
|435
Macro Environmental Factors of Businesslg...
|13
|3923
|110