Corporate Strategy and Governance PDF
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Added on 2020-10-05
Corporate Strategy and Governance PDF
Added on 2020-10-05
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Corporate Strategy and Governance1
TABLE OF CONTENTSCHAPTER 1- INTRODUCTION....................................................................................................3Background ............................................................................................................................3Aim and Objectives................................................................................................................4Problem Statement .................................................................................................................5CHAPTER 2- LITERATURE REVIEW.........................................................................................5Introduction............................................................................................................................5Concept of Corporate social responsibility............................................................................5Relationship between CSR and corporate governance .........................................................7Polices and practices of CSR and ethics can be effective for managing sustainable growth.8CHAPTER 3- RESEARCH METHODOLOGY...........................................................................10Research Design...................................................................................................................10Research Philosophy............................................................................................................10Data Collection.....................................................................................................................11Data Analysis........................................................................................................................11Sampling...............................................................................................................................12Access and Ethics.................................................................................................................12CHAPTER 4- DATA ANALYSIS ...............................................................................................12CHAPTER 5-RECOMMENDATION...........................................................................................20Action plan.....................................................................................................................................21CONCLUSION..............................................................................................................................22REFERENCES..............................................................................................................................24APPENDIX....................................................................................................................................262
CHAPTER 1- INTRODUCTIONCorporate strategy is the direction an organisation takes with the objectives of achievingbusiness success in the long term. Recent approaches have focused on the need for companies inorder to adapt to and anticipate changes in the business environment. Growth, stability andrenewal are the main three types of corporate strategies (McCahery, Sautner and Starks, 2016).Corporate strategy is very important for each and every company as it determines the scope of acompany's activities and the manner in which a company's business processes support the goalsof company. Corporate strategy and governance play a crucial role in managing sustainablebusiness performance as it offers different ways of serving stakeholder satisfaction. The system of rules, processes and practices by which an organisation is directed as wellas controlled is called as corporate governance. It significantly involves balancing thestakeholders of company such as shareholders, employees management, suppliers, government,financier and the society. Corporate governance is very important for the businesses as itprovides the proper guidelines or plan as how the organisation can be directed as well ascontrolled like that it can fulfil its gaols and objectives in a manner that adds to the value of theorganisation which is also very beneficial for the all the stakeholders in long term. Corporate Social Responsibility is the based on the principles which is conducting thebusiness with all integrity as well as fairness. They also being crystalline and transparent relatedto all the transactions or written records and making all the essential and required disclosure aswell as decision, complying with all the law of the land, responsibleness and accountabilitytowards the stakeholder as well as commitment to conduct the business in an ethical manner.Basically, there is level of self-assurance that is associated with the organisation that better-known to have bang-up corporate governance (Watt and Schwartz, 2018). It is also well knownto be one of the criteria which foreign institutional investors are progressively depended on whenplanning on which organisation to invest or commit in. In addition to this, corporate socialresponsibility also leads to have an optimistic impact on company's price of shares. Background This present dissertation is context to IKEA company which is a Swedish foundedmultinational retail group that sells as well as design ready to assemble furnitures, homeaccessories, kitchen appliances and other useful goods. IKEA is one of the largest furniture3
company from 2008. It is a private limited company founded in 1943 by Ingvar Kamprad. Theheadquarters of the company is located in Leiden, Netherlands. In 2015, the founder of thecompany Ingvar kamprad was listed as one of the ten richest people in the world. The presentrevenue of the organisation is $40.906 billion. There are 194,000 employees are working in theorganisation. The focus of firm is one managing innovation in wood according to customerexpectation and requirements. It fact that company can not run without contribution ofstakeholders.The business aim at developing new fresh and new furniture designs to transform lives ofbuyers. The vision of the company is to create a life better for many people by offeringinnovative and well-designed furniture and home appliances at low price which become easy forall people can afford it (Miller, and Pisani, 2018). The mission of the company is to maximisethe level of stakeholders and communicate the objectives and goals of company to them. IKEAalso inspires collaboration and teamwork within organisation which is one of the best practicesthat leads the company towards the success. The corporate social responsibility of the companyis also very effective as they are very concern about the environment as well as thereexpectations and needs of stakeholders. Aim and ObjectivesAim“To ascertain influence of corporate social responsibility on sustainable businessperformance: A case study on Ikea”.ObjectivesTo develop understanding over corporate social responsibilityTo assess the relationship between CSR and corporate governance of IkeaTo suggest effective polices and practices of CSR and ethics for managing sustainablegrowth of Ikea.Research Questions1.Explain the concept of corporate social responsibility?2.What is the relationship between CSR and corporate governance of Ikea?3.What polices and practices of CSR and ethics can be effective for managing sustainablegrowth of Ikea?4
Problem Statement IKEA is one the leading retail furniture company in the world. It is a company that sellsas well as design ready to assemble furnitures, home accessories, kitchen appliances and otheruseful good. Innovation is the main emphasize of the organisation in the design and style offurniture as per the needs and expectation of customers and stakeholders. The aim of thecompany is to develop a new and fresh furniture in order to change the living standard of thecustomers (Grant and et.al., 2014). In accordance with the report of the company IKEA, it isidentified that all the activities of management of organisation is fair and legal but organisation islacking in the rendering the employee's satisfaction and motivation. Employees are not happywith the management. Company is putting extra measures on the providing high level ofsatisfaction of the customers such innovation, environment sustainability which in resultcompany is not focusing on the needs and expectation of employees. Thus, implementing thepractices and policies of Corporate Social Responsibility can assist the organisation in managingresponsible practices with regards to the workers which is directly concerned with theimprovement in the productivity of the business.CHAPTER 2- LITERATURE REVIEWIntroductionLiterature review is a summary of previous research on any topic. It is a review of articleregarding the current knowledge and it also includes theoretical and methodological finding onthe topic on which it is being written. An area is determined and selected and report is preparedon the same. The Best articles and journals are used to make a review on the topic on whichresearch is being made. All the key findings and important things are highlighted in Literaturereview so that major highlights can be find out. Thus, Literature review makes it easy tounderstand the topic in detail and find out the key areas of the entire research so that furtherresearch can be conducted easily and effectively.Concept of Corporate social responsibilityAccording to Shamir, (2017) Corporate social responsibility is that part of organisationwhich influence its decision making and behaviour. It is that concept which has arise in 20thcentury. This concept has come because at that tine growing companies were thinking of thecorporate effects on environment. Corporate social responsibility is a concept which is theobligation of every organisation along with the stakeholders to make people understand that it is5
our duty to keep environment clean and pollution free. If an organisation will show Corporatesocial responsibility than it will also earn profits by the same.As per Schwartz, (2017) As customers gets highly attracted towards those organisationswhich take care of environment and show their responsibility towards the same. It is highlyconcerned topic to taken care of and is also comes under the legal responsibility of the companyto behave as per the law and rules and regulation of social responsibility. Every business shouldoperate as per the ethics and is accountable for not complying with the given socialresponsibility. The business has changed its working patterns and started operating outside thecity areas so that it can harm less to people by its pollution. The organisation has to make itunderstand that by complying with the social responsiveness every organisation can react andrespond to social pressures which they need to handle on regular basis. Author stated that, home appliances companies who manufacturers different kind offurnitures are very much involved in cutting the tress for the purpose of woods. This has a greatimpact on environment as the tress are really precious for entire global system. It is the socialresponsibility of such retail outlets to take care of the environment which they need tounderstand and follow all the laws and regulation for maintaining the same. It is the duty of theorganisation to adopt all this perception which affect the environment in some or the other way.Author has also said that there are certain examination made on the past so that relationshipbetween companies and social responsibility can be made. It has also been determined that it costadditional for organisation in maintaining the corporate social responsibility because of thehigher investment that are required to done towards the CSR. One of the most important researchhas said that there are certain advantages of Corporate social responsibility to both the societyand to the company. As per Yakovleva, (2017) it is a concept which is beyond the charity and it needs organisation tothink beyond the legal responsibilities. All the companies are contributing large towards thesociety by delivering best services to then. But of the company will also give their best towardsthe society by fulfilling their obligations. It will help in expanding its operations and crossing allthe boundaries. Other than this, corporate social responsibility is a way by which higher growthand satisfaction of consumers can be achieved. As every company is affecting society at largeand thus it is the responsibility of the organisation as well to keep the environment clean andfollow all the other rules of social responsibility. 6
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