Challenges Facing Business Organizations

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This assignment analyzes the evolving landscape of global business and the multifaceted challenges organizations confront. It delves into topics such as profit dynamics, goal achievement, corporate social responsibility, and how these factors influence organizational priorities and operations management. The text highlights the increasing complexity of business structures and the growing importance of ethical considerations in a rapidly changing world.

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Running head: BUSINESS ETHICS
Business Ethics
Name of the Student
Name of the University
Author Note

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1BUSINESS ETHICS
Table of Contents
Introduction......................................................................................................................................2
Operational framework: Organizational Challenges of the contemporary business organizations.3
Challenges in Corporate Social Responsibility...........................................................................3
Challenges faced by business organizations in terms of profit....................................................6
Challenges in organizational goals..............................................................................................7
Conclusion.......................................................................................................................................8
References........................................................................................................................................9
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2BUSINESS ETHICS
Introduction
Over the years, the social, political and economic aspects in the global framework, have
changed considerably, which in turn have significant effects on the overall way of living of
people across the world and on their personal and professional domains. These changes,
obviously have affected the workings and operational frameworks of the business organizations
operating in the global framework, the same facing considerable dynamics over time
(Abouzeedan & Hedner, 2012).
In the last few decades, the business organizations in the international framework have
changed considerably in terms of their objectives, goals, production process, operating
framework, area of operations and others. With contemporary economic and social phenomena
like Globalization, Liberalizations and other similar incidents, more and more organizations and
business enterprises have been going global, by expanding their domain of operations in different
countries and exploring varied opportunities of venturing in different types of markets (Powell &
DiMaggio, 2012). The corporate culture and the work environments of these organizations are
also experiencing considerable changes with the inclusion of multi-cultured and multi-specialty
workforce.
Keeping the above situations in the global business framework into consideration, the
concerned assignment tries to discuss the challenges these contemporary business enterprises
face in the aspect of profit maximizations, their long term and short-term goals as well as the
corporate social responsibility of these organizations (Awadh & Alyahya, 2013). The assignment
tries to highlight the ethical issues faced by these organizations in the aspect of achieving their
goals, profit expectations and I the aspect of corporate social responsibility.
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Operational framework: Organizational Challenges of the contemporary business
organizations
The operational framework of the commercial institutions, showing the overall structure,
strategic framework, productive operations, employee structure and social commitments of the
same, is the backbone of any organization. This is primarily because the sustainability,
profitability and long-term prospects of any organization highly depend on how efficiently the
same carries out its functions and responsibilities. The companies also need to take into
consideration not only the maximization of its profit, but also the maximization of welfare of the
people attached to the company as well as of the society as a whole (Wirtz et al. 2016).
In the earlier periods, the operational frameworks of the businesses used to be simple and
unilateral, with the core objective being maximization of its own profit, by accruing as much
market share and clientele as possible and targeting maximum productivity in minimum cost.
However, with time and an increasingly integrating global business environment and with these
businesses venturing different domains, both geographical as well as operational, their mode of
operations has also been changing significantly (Symon & Cassell, 2012). The business
organizations are no longer viewed as solely profit maximizing institutions but are expected to
fulfill several responsibilities towards their employees and towards the society as a whole. This
in turn, gives rise to several challenges, which the businesses face, in term of Corporate Social
Responsibility, Profits and Goals. These are explained as follows:
Challenges in Corporate Social Responsibility
As discussed above, the global business environment has been becoming more
integrating with more companies venturing into different areas and product and service markets.
The demand patterns of the customers across the world have also experienced immense

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dynamics, much of which can be attributed to the change in the life styles globally. This, in turn
indicates towards the increase in both the demand and the supply side dynamics in the global
commercial scenario. With more inclusion of supply side players, the business scenario has
become far more competitive and dynamic (Tai & Chuang, 2014). On the other hand, there is a
constant increase in the awareness regarding the threats which the environment and societies are
facing, due to the concerning global phenomena like Global Warming, excessive carbon
emission, destruction of natural resources and damages done to mankind as a whole. Much of
these destructions and negative implications on the society can be attributed to the less restrictive
working methods of the businesses in the earlier periods.
Keeping these aspects of competitiveness as well as environmental and social welfare in
concern, it becomes the responsibility of the businesses operating in any corner of the world to
carry out their operations and productive activities, keeping into account their duties towards the
society as well as towards the welfare of the workers and the stakeholders (Schneider &
Schmidpeter, 2012). Thus, the term “Corporate Social Responsibility” refers to the continuous
commitment of the commercial institutions in the global framework, to work towards corporate
sustainability, by contributing to the economic development of itself as well as of the society. It
falls under the Corporate Social Responsibility of the organizations to emphasis not only
increasing their production and profit, but also to do so in an ethical framework, thereby
improving the overall quality of living of the workers and other stakeholders as well as the
society at large.
Thus, it can be asserted that under the corporate social responsibility, in the contemporary
global scenario, the companies not only need to be publicly accountable on their commercial
performances but they also need to be accountable in the social, environmental and ethical
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5BUSINESS ETHICS
aspects too. The companies need to promote sustainable development, human rights, democracy
and improvement in community in their operational framework (Crane, Matten & Spence, 2013).
Among the different responsibilities and challenges falling under the domain of CSR, are the
following:
a) Economic Responsibilities- To produce the goods and services for the purpose of earning
profit
b) Legal Responsibilities- To earn profits within the legal framework
c) Ethical Responsibility- To operated and produce with the goal of earning profit,
incorporating ethical aspects of production and welfare maximization in their operational
framework
d) Discretionary responsibilities- To involve in other philanthropic activities thereby working
for the benefits of those people who are not directly related to the company as a whole
Thus, from the above discussion, it can be clearly stated that in the contemporary
commercial situation, the commercial organizations do not only work for the purpose of
increasing their individual profit but also are bestowed with ethical, social, economic and
philanthropic responsibilities, towards the increase of the greater welfare of the society as a
whole (Brammer, Jackson & Matten, 2012). However, while catering to those responsibilities the
contemporary commercial organizations often face challenges and conflicts in their operational
framework, which primarily includes trade-off between their personal profit maximization and
their responsibility towards the increment of the social welfare, in an ethical framework.
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Challenges faced by business organizations in terms of profit
Given the fact that corporate social responsibility is one of the factors of immense
importance in the contemporary business scenarios, which enforces the commercial institutions
to work in an overall ethical framework, the following are the primary ethical challenges, which
are faced by the firms in their commercial operations. These dilemmas are directly linked to their
profit and the welfare manifested by their actions:
Employee management
One of the primary challenges, which the contemporary organizations face in the global
scenario, is how they need to manage their employees. The fastest way in which any company
can maximize their individual profit is by reducing the cost of production and slashing the
expenses they bear in terms of the maintenance of their employees. The profit of the
organizations can be easily increased by taking away the benefits, which the employees of those
organizations enjoy additionally apart from their salary packages (Lau, 2015). However, if this
measure is undertaken, then this can lead to immense ethical issues by causing poor morale
among the workforces. Thus, the primary challenge, which the company faces in terms of profit
maximization, is the ethical dilemma of sacrificing the welfare of their workers. Thus, in the
contemporary global context, profit maximization strategies of the companies need to
incorporate the ethical issues of employee management also (Ulrich & Sarasin, 2012).
Environmental aspects
Another challenge, which the business organizations across the world experience, in
terms of profit maximization, is in terms of restoration of the environmental aspects. The
production of all goods and services have environmental impacts to some extent, in terms of

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7BUSINESS ETHICS
pollution and contamination of natural resources, which in turn have negative implications on the
society as a whole. However, in order to incorporate environmental sustainability in the
production process, the firms need to incur several costs, which in turn increase social welfare
aspects. However, by incorporating the same in the operational framework, the firms can stay
ethically correct and excel in terms of their social responsibility, thereby gaining positive
popularity in the market and sustainability in production.
Quality Considerations
The most significant trade off which the companies face in terms of profit and social
welfare tradeoff is the quality aspects of their products. While compromising in the quality levels
the firm can reduce cost and increase productivity, however, in the global competitive
framework, the emphasis on better quality can help them satisfy their ethical requirements and
stay ahead of their competitors.
Challenges in organizational goals
From the above discussion, it is therefore, evident that the goals of the organizations in
the contemporary business framework have also changed significantly and there arises several
challenges, which the same face in terms of attainment of those goals.
a) Changing Strategy- In the competitive business framework, the primary challenge of the
organizations is to keep on changing and improvising their strategic framework in order to
compete with their rivals in an ethical framework.
b) Decision making process- The goals of the organizations becoming increasingly complex,
with the incorporation of social welfare along with personal benefits, the business organizations
face the challenge of taking the right decisions, which cater to both the needs (Johnson, 2017).
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c) Perceived priority- The complex and multi-dimensional responsibilities of the business
organizations, it becomes a consistent challenge for the same to decide on their priorities, taking
into account the positive and negative implications of both profit and social welfare
maximizations (Cavusgil et al. 2014).
Conclusion
Keeping the above discussion in consideration, it can be asserted that with the significant
dynamics in the global business environment, the operational framework and the production
process of the business institutions across the world has also been experiencing considerable
changes. The structure of the organizations is becoming complex and multi-dimensional and the
ethical aspects are coming in lime light. The business organizations, therefore, in the
contemporary periods, faces challenges regarding their profit dynamics, achievement of goals
and corporate social responsibilities, which in turn have considerable influences on their
changing priorities and overall operations management.
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References
Abouzeedan, A., & Hedner, T. (2012). Organization structure theories and open innovation
paradigm. World Journal of Science, Technology and Sustainable Development, 9(1), 6-
27.
Awadh, A. M., & Alyahya, M. S. (2013). Impact of organizational culture on employee
performance. International Review of Management and Business Research, 2(1), 168.
Brammer, S., Jackson, G., & Matten, D. (2012). Corporate social responsibility and institutional
theory: New perspectives on private governance. Socio-economic review, 10(1), 3-28.
Cavusgil, S. T., Knight, G., Riesenberger, J. R., Rammal, H. G., & Rose, E. L.
(2014). International business. Pearson Australia.
Crane, A., Matten, D., & Spence, L. J. (2013). Corporate social responsibility in a global context.
Johnson, C. E. (2017). Meeting the ethical challenges of leadership: Casting light or shadow.
Sage Publications.
Lau, K. J. (2015). New age capitalism: making money East of Eden. University of Pennsylvania
Press.
Powell, W. W., & DiMaggio, P. J. (Eds.). (2012). The new institutionalism in organizational
analysis. University of Chicago Press.
Schneider, A., & Schmidpeter, R. (2012). Corporate social responsibility. Verantwortliche
Unternehmensführung in der Praxis, Berlin ua.

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Symon, G., & Cassell, C. (Eds.). (2012). Qualitative organizational research: core methods and
current challenges. Sage.
Tai, F. M., & Chuang, S. H. (2014). Corporate social responsibility. Ibusiness, 6(03), 117.
Ulrich, P., & Sarasin, C. (Eds.). (2012). Facing public interest: The ethical challenge to business
policy and corporate communications (Vol. 8). Springer Science & Business Media.
Wirtz, B. W., Pistoia, A., Ullrich, S., & Göttel, V. (2016). Business models: Origin, development
and future research perspectives. Long Range Planning, 49(1), 36-54.
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