Social Performance of Organizations
Assignment 1: Social Performance of Organizations Due Week 4 and worth 240 points According to the textbook, the current world economy is increasingly becoming integrated and interdependent; as a result, the relationship between business and society is becoming more complex. Use the Internet to research one (1) of the following organizations: De Beers Diamond Company National Football League (NFL) British Petroleum (BP) National Rifle Association (NRA) Write a six to eight (6-8) page paper in which you: 1. Specify the nature, structure, types of products or service of your chosen organization, and two (2) key factors in the organization’s external environment that can affect its success. Provide explanation to support the rationale. 2. Examine three (3) salient stakeholders of the chosen organization based on their key roles and relationships with the company. 3. Suggest five (5) ways in which the primary stakeholders can influence the organization’s financial performance. Provide support for the response. 4. Specify one (1) controversial corporate social responsibility concern associated with your selected organization. 5. Assuming you are the leader of the most influential stakeholder group, outline a plan to form a stakeholder coalition to force the organization to address your chosen controversial issue. The plan should include the key steps that you would take to identify members for your coalition group, the major reasons why you believe that the particular target group can help you to accomplish your goal, and the method you would utilize to foster collaboration among the various groups you target. 6. Assume the role as the leader of the most influential stakeholder group, and indicate three (3) potential challenges that you may face in encouraging stakeholders to form a coalition to help you achieve your goals. Suggest the significant steps that you would take in order to overcome these challenges that you have identified. Justify the response. 7. Use at least four (4) quality references. Note: Wikipedia and other Websites do not qualify as academic resources. Your assignment must follow these formatting requirements: Be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides; citations and references must follow APA or school-specific format. Check with your professor for any additional instructions. Include a cover page containing the title of the assignment, the student’s name, the professor’s name, the course title, and the date. The cover page and the reference page are not included in the required assignment page length. The specific course learning outcomes associated with this assignment are: Analyze the relationship between business and society, and the ways in which they are part of an interactive system. Recommend ways stakeholders can influence the destiny of both business and society. Analyze the various primary and secondary stakeholder groups, their roles, and relationships. Analyze the multiple environments of an organization. Compare and contrast the concepts of corporate social responsibility, citizenship, and global citizenship. Analyze ways ethical challenges affect the multiple functions of business. Use technology and information resources to research issues in business and society. Write clearly and concisely about business and society using proper writing mechanics.
British Petroleum - Social Performance
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BRITSH PETROLEUM- Social Performance
Background
Global organization has led to the need for organizations to augment corporate social responsibility in the course of its operations. A stakeholder is an organization or an individual that is affected by the actions of the company in the course of its production and profit generation mechanisms. The major stakeholders of British Petroleum, BP are employees, investors and consumers as they anchor the ability of BP meeting its social, standardization, and profitability needs. Owing to the changes in economic activity and globalization there has been a change in performance of corporate social responsibility due to the emergence of global citizenship. Global citizenship is the fact that companies have the citizenship in its country of origin as well as globally owing to operations beyond the country of origin. The aim of this paper is to expound on the main stakeholders of BP, the impact of stakeholders on BP's performance and the concern and strategies for group formation in relation to British Petroleum concern.
British Petroleum is a British company with its headquarters in London, England and its operations include gas and power energy, industrial lubricants, liquefied natural gas, MSDS, BP shipping, Asphalt and Bitumen, BP crudes and Air BP, motor oil and lubricants, shipping and petrol stations. BP is multinational oil and Gas Company with the area of specialization as delivering power to consumers.
Two key external environment factors that affect BP's performance include government regulations as it determines the amount of fees that have to be paid as compliant fees in new regions. Since BP is a global organization, it has to comply with environmental regulation policies in various communities and tax payment in countries of operation this affect BP's success (Schwartz, 2011). The other external environments that affect BP are investors who determine the ability of a company to have enough funds to invest in new areas and the ability to augment the economic performance and profitability of BP.
Salient stakeholders based on their roles and relationship with BP
Customers- customers are the main stakeholders of BP due to their influence on the ability of the company to make sales and hence have an impact in the ability of the company to meet its goals. Customers determine the prices to be charged for goods and they have an impact on the long run survival of the company. The main roles the customers play is that they are recipients of products and services made by the company, they consume BP products, they determine the total sales the company can make, they form the main basis for existence of the company and drive the mission of the company of providing power to its clients (Schwartz, 2011).
Investors- they form the main suppliers of funds to the organization through the purchase of company securities. Good governance of the organization leads to the ability of investors to make the decision to support the company leading to a change in the financial position, as the company acquires funds for implementation. The relationship between investors to BP is that they provide funds for implementation of the firm's strategies while the company has a relationship to provide good corporate governance, accountability in finance management, improving the financial position of the investors through dividends, and augmenting revenue (Ihlen et al., 2011).
Employees- employees determine the ability of an organization to meet output and development needs. The relationship between employees and BP is that the employees make the strategies of BP happen. BP has a relation with the employees by providing a safe working environment, training them on their tasks, fair remuneration and fair promotion practices to get them motivated to increase outpour and be loyal to BP.
Primary stakeholders and their influence of BP financial Performance
Customers- good relation between BP and customers are influential in determining the ability of the company to augment services and expand globally as well as make profits. This is because good customer relation leads to customer loyalty, customer referral and the generation of more customers increasing profits. Good customer relation entails high quality production to meet stakeholder needs as the strategy of BP states ensuring quality over quantity (Ihlen et al., 2011).
Employees-employees drive the main goals of an organization, as they are the channels through which company strategies are implemented. Employees when motivated are able to have a good understanding of the job, development of a good attitude towards their jobs, problem solving, and participation in decision-making augmenting their productivity. This leads to an increase in the profitability of the company as well as reduction in hiring and operating costs positively affecting the firm's performance.
Environment regulators- they are the most important stakeholders in BP's business line that has a very high probability of emitting poisonous gas and spillage (Mallin, 2009). The main ways the company can take care of the environment is through being proactive in environmental conservation and operating within environmental guidelines. Owing to environmental conservation efforts, BP will have increased revenue customers prefer products from companies that are participants in environmental conservation efforts. Conservation efforts will also lead to the reduction in the costs incurred from environmental crisis; reduce wastage and reduction in production costs by augmenting efficiency. This will in evidently augment the financial performance of BP as environment regulation has augmented in importance in recent years.
Community- corporate social community in the commu...