Corporate Social Responsibility and Its Impact

The assignment discusses how corporate social responsibilities play a crucial role in shaping business practices, affecting external factors such as environmental sustainability, economic stability, and employee satisfaction. It also highlights the significance of CSR policies in maintaining transparency and accountability within organizations, leading to improved overall performance and resolving issues like fraud.

ESSAY MICRO/MACRO
ENVIRONMENT +
RESPONSIBILITY OF THE
ORGANISATIONS

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK...............................................................................................................................................1
CONCLUSION................................................................................................................................3
REFERENCES................................................................................................................................4

INTRODUCTION
Micro environmental factors can be defined as those factors that directly affects the
normal course of business activities. These are those areas under which a business performs its
operations. On the other hand, macro environmental factors are those, that affects the
performance of the business. These factors have influence over the managerial activities like,
decision making and development of strategies and plans for the company. The present essay
shows various micro and macro environmental factors that have effect over the nature of modern
business. It also shows a brief description about reason behind management of responsibilities
and behaving ethically towards various social, cultural, economical and environmental issues.
TASK
The overall external business environment can be divided into two broad categories i.e.
micro environment and macro environment. Both the environment includes various factors that
directly or indirectly affects the business operations and the overall performance of the firm as
well. For the purpose of smooth running of the business and gaining its sustainability, a business
needs to change its operations and innovate its strategies as per the change in all kind of
environmental factors.
Micro environmental factors are those factors that have direct effect over the business
operations. Further, being a part of external environment, these factors can not be controlled by
the firm (Wu and et.al., 2015). Micro environmental factors includes suppliers, customers,
competitors, employees, shareholders, etc.
A global business need to take into account changes in all these factors while performing
its business activities. The most important micro environmental factor is customers. Customers
have the maximum amount of influence over the business. Business needs to change its
operations on the basis of change in their taste and preference, as they directly affects the sales
and profitability of the business.
Further, a global business needs to modify its operations on the basis of other factors like
suppliers, employees, competitors, etc. as all these have direct influence over the business
operations (Lasserre, 2017). For example, if the competitors are using some latest technologies,
and more effective business plans, company also needs to innovate its internal business
operations accordingly. Further, for the purpose of making use of the highest efficiency of
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worker, the company needs to provide job satisfaction to its employees. For this purpose, it
needs to innovate its policies as per the change in the nature and preference of employees.
In addition, being a global organisation, an organisation needs to analyse these factors at
global level and frame its policies and procedures accordingly. As not taking into account these
change in these factors can directly effect its profitability and inefficiency of business.
Further, various macro environmental factors like legal factors, economic factors,
technological factors, etc. also have a major impact over the change in nature of the global
business (Głodowska, Pera and Wach, 2016). These factors have effect over the managerial
functions of the company. For example, if the legal policies of any country in which the
company have its business gets change, it has to change its policies for that country's business
accordingly. In addition, due to change in the economic conditions at global level, the managers
need to change their pricing policies accordingly.
Technological factors also have major influence over the business. The company has to
make frequent research over the technological changes at global level. It also needs to innovate
its technology accordingly. As not using the latest technology may result in losing the customers
and enhancing inefficiency as well. Further, making technological changes can lead in changing
the way of performing operations of business and improve its working.
A global company has to make changes in the normal business operations and business
strategy as per the change in the above factors. These changes can result in changing overall
nature of the business. As keep changing the business operations and business plans may leads in
changing the whole nature of the business organisation.
Further, in recent time, due to some legal obligations, each businesses has to accomplish
their corporate social responsibilities (CSR) (Dhaouadi and El Akremi, 2018). Due to these legal
obligations, the company has to make its strategies and plans in such a way so that it can behave
ethically in the market and not harm any social or ethical element as well.
As per the corporate social responsibilities, the company must take care about its
workers, it helps the business in building its image in the society. Further, due to CSR policies,
the business also needs to comply with each legal obligations. It results in maintaining a standard
of working in the business and helps in avoiding legal proceedings over the business as well.
Further, the adoption of CSR policy leads in improving the corporate governance of the
business, maintaining transparency and accountability in the business as well. In this regard, in
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helps in improving the overall performance of company and resolving various economic issues
like fraud in the company.
In addition, the maintenance of CSR policies also results in eliminating damage of
interest of the employees, shareholders and other stakeholders which are the major external
factors of the business (Economic, social, and environmental sustainability in development
theory and urban planning practice, 2018). Due to its clause of following ethical values in
within the organisation. It can eliminate issue of external environmental factors like damage of
their interest in business.
In this regard, it can be evaluated that managing the responsibilities buy the individuals
and organisations can help in eliminating various serious economic and environmental issues.
CONCLUSION
From the study of above essay it can be concluded that both micro and macro
environmental factors have major influence over the business operations and its performance.
Further, due inclusion of major influence, these factors can lead in changing the whole nature of
the business. The study has also concluded that each business has to fulfil its corporate social
responsibilities. Accomplishment of these responsibilities helps a business in eliminating various
environmental and economic factors of the business.
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REFERENCES
Books and Journals
Wu, A. A. and et.al., 2015. Reprogramming the tumor microenvironment: tumor-induced
immunosuppressive factors paralyze T cells. Oncoimmunology. 4(7). p.e1016700.
Lasserre, P., 2017. Global strategic management. Macmillan International Higher Education.
Głodowska, A., Pera, B. and Wach, K., 2016. The International Environment and Its Influence
on the Entrepreneurial Internationalization of Firms: The Case of Polish
Businesses. Problemy Zarzadzania. 14.
Dhaouadi, I. and El Akremi, A., 2018, July. The role of CSR in the politicization of MNCs: The
case of the Tunisian Revolution. In Academy of Management Proceedings (Vol. 2018,
No. 1, p. 16398). Briarcliff Manor, NY 10510: Academy of Management.
Online
Economic, social, and environmental sustainability in development theory and urban planning
practice .2018 [Online] Available Through:
<https://www.amherst.edu/system/files/media/0972/fulltext.pdf>
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