Management Theory and Practices

Added on - 28 May 2020

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Running head: MANAGEMENT THEORY AND PRACTICESManagement theory and practicesName of the studentName of the universityAuthor note
1MANAGEMENT THEORY AND PRACTICESIntroductionIn the current business scenario, business organizations should also look after the socialwelfare also apart from their core business objective of profit maximization. This is due to thereason that, the current business scenario is much more competitive in nature with the presenceof number of players in the same sectors. Thus, in order to maintain and enhance the goodwilland reputation and to stray ahead in the competition, it is important for the businessorganizations to initiate the process of corporate social responsibility (Blomqvist, 2014). Thisrefers to the process of allocation of corporate fund for the wellbeing of the society. In the recenttimes, more contemporary business organizations are initiating activities related to the corporatesocial responsibilities (Zellwegeret al.,2013).Tata is one of the leading conglomerates in the world with their operational facilitiespresent in different locations around the world. They are based in India and have their presencein automobile sector, FMCG sector, fashion sector and steel industries (Tatamotors.com, 2018).This essay will only discuss about the automobile division of Tata or Tata motors. They areknown for their preference for humane approach over commercial approach. In accordance tothat, Tata motors follow extensive approach of corporate social responsibilities (Tatamotors.com,2018). This essay will critically analyze the theories of social responsibility from the perspectiveof Tata motors. Moreover, different management theories will also be discussed for the criticalanalysis.Corporate social responsibility of the Tata motorsActivities related to corporate social responsibility of Tata motors covers different areasranging from health, education and skill development to environment welfare and community
2MANAGEMENT THEORY AND PRACTICESdevelopment. One of the key social activities in the health sector is setting up of communityhospital in Jamshedpur, India along with activities in different locations. However, there arevarious implications on their business operation due to these activities. One of the key aspectsthat should be considered is the stakeholder analysis (Costa & Menichini, 2013). This is due tothe reason that, an organization will have different stakeholders with different interest and theywill have diverse perception in view to the corporate social responsibilities. The interest betweenthe customer and management of the organization will be conflicting due to the reason that, theobjective of the customers will be to have more value creation from the organization. On theother hand, the objective of the upper level management will be to maximize profit by reducingthe unwanted cost.Thus, with the initiation of the social activities, the reputation of the organization will getenhanced in the market. Customers will have more satisfaction by consuming their products. Onthe other hand, initiation of the corporate social responsibility will reduce the profitmaximization for the upper level management. This is due to the reason that, corporate socialresponsibility will incur cost from the corporate fund without having any short term ormaterialistic profit (O’Riordan & Fairbrass, 2014). Thus, it is being considered as an extra costfor the organization by the upper level management. This led to the generation of conflictbetween the key stakeholders including the customers and the management.Theories of social responsibilityThere are various theories being stated by different authors regarding the socialresponsibility. However, two are the most important theories being used in the mainstreambusiness scenario. Classical view of the social responsibility is one of them (Frynas & Stephens,
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