Corporate leaders are responsible for setting the firm’s strategies to gain and

Question

Corporate leaders are responsible for setting the firm’s strategies to gain and sustain a competitive advantage. Should managers be concerned only about the company’s financial performance? What responsibility do company managers have for other consequences of their strategies? For example, should Walmart try to mitigate the negative impact its arrival in communities can have on small locally owned stores? Should Apple be concerned about the working conditions at Foxconn (the company that manufactures the iPhone and the iPad in China?) Why or why not? Explain.

Explanation / Answer

The Corporate leaders have targeted towards their revenue maximization and balance sheets profitability only. The strategies are devised from an ME the only approach.

The statistics indicate the impact of Foxconn in China towards their labor and the Wal-Mart towards small businessmen has been a big blow to humanity and anything remotely associated with the well being of the society. These organizations make plans and decisions sitting in their corporate offices far away from reality only number crunching and calculating the profitability statements.

From the perspective of “ Wal-Mart” and “Apple” as only corporate and mechanical behavior, they don’t need care about the impact on local labor or small business. They are here to make profits and they are doing that by undercutting and giving favorable discounts. They state that they are helping the consumer get a better product at a lower price. It is known fact though that Wal-Mart entry reduces the wages and also leads to shut down of small businesses as they following low price entry strategies.

According to me all large corporations are responsible for their actions and should take care of their social responsibility for example when Apple buys from a supplier with other supplier evaluation criteria’s like quality, prices etc they should also study the labor facilities and payments ETC. They should ensure general well being at the supplier point too like safety measures for workers, minimum wages to give, health benefits, ensure good working conditions etc. This is not a big cost implication and can certainly go a long way in promoting the corporate image and the good of humanity.

Further, when Wal-Mart enters any market it should maintain the minimum wages for the local staff and introduce employee welfare schemes. The capitalist organizations will be seen as good for the country and society it would have long-term benefits in the following ways:

To sum it up the corporate have to work in sync with the local community and should look at building welfare from supplier point to the end user. The total welfare integration policy will create a positive outlook for the organization and have long-term profitability also.

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