how have recent scandels affected business climate including

how have recent scandels affected business climate, including any changes in responsiblities and expectations?

Solution

Life goes in circles as they say and it is true even for businesses. In early 1960\'s the focus of businesses was solely on how to help communities to uplift themselves and many measureswere taken to involve the community as a whole and share the profits gained by the organization by direct or indircet means. But this period also saw a lack of strict rules and regulations on administration practices adopted by managers. Moving into the 1970\'s and early 1980\'s, industries suffered due to economic turmoil and caused businesses to focus on sustainment and thus their strategies involved only productivity as a goal. CSR activities took a back seat. Rules of administration came into practice but was often disregarded by managers. Many scandals of fraud, dabauchery, bullying and other forms of malpractices were seen. This led to defamation of brands as well as businesses resulting in huge losses.

In the 1990\'s due to technological improvements as well as increased social awareness, businesses started acting more socially responsible and to bring and maintain ethical practices in the workplace. The need for management training and etiquette was also stressed upon. Managers were also expected to become role models for employees down the line and so the onus was now on the individual performing any role, that of leadership or otherwise, to act socially responsible rather than focussing only the top few in the management. This not only brought out a perceived change in corporate houses but eventually showed up as a positive trend on the profitability index of the business. Many companies set benchmarks for others to follow.

The advent of internet and social media in later years have also exploded the notion of CSR of businesses and so it is taken very seriously by companies who want to remain in business as it gives them not only a competitive edge over other companies but also acts has a motivator as it feels good to play a supportive role in society.

Some companies have set aside a team for the management of these responsibilities as they feel that CSR activities have to be managed similar to any other department for productive and efficient in that area as well. Recent environmental changes and solutions of sustainability has provoked many companies to look for environmental friendly solutions in production.