Assignment -1

2018 spring
1. The term “business” refers here to any organization that is involved in the trade of
goods, services, or both to consumers for a profit. Business and society are highly
interdependent. Business activities impact upon other activities in society, and
actions by various social actors continuously affect business.
2. Promote diversity in hiring by creating policies that require equal treatment for
everyone, and require all new and existing employees to agree to these policies.
Promote your company as diverse in its literature and advertising so all job
applicants know your company supports and encourages diversity.

3. The OECD principles are listed below:

 Ensuring the basis of an effective corporate governance framework
 The rights of shareholders and key ownership functions.
 The equitable treatment of shareholders.
 The role of stakeholders in corporate governance.
 Disclosure and transparency.
 The responsibilities of the board.

4. An activist shareholder is a shareholder that uses an equity stake in a corporation

to put pressure on its management. A fairly small stake may be enough to launch a
successful campaign. In comparison, a full takeover bid is a much more costly
and difficult undertaking.
5. Corporate citizenship refers to a company's responsibilities toward society. The goal
is to produce higher standards of living and quality of life for the communities that
surround them and still maintain profitability for stakeholders.
6. A Type 4 Stakeholder is a mixed blessing, with a high potential for both threat and
cooperation. This stakeholder calls for a collaborative strategy. In this situation,
the stakeholder could become either supportive or non-supportive. This
stakeholder has a low potential for both threat and cooperation.
7. Ethical reasoning is the ability to identify, assess, and develop ethical arguments
from a variety of ethical positions. For the purposes of this application, it may be
useful to think of an ethical reasoning course as one that integrates ethical
questions into the intellectual work required in the course.
 8.

Descriptive ethics Normative ethics

1. Descriptive ethics is the study of 1. Normative ethics is the study of
people’s views about moral beliefs. ethical actions.

2. Analyses people’s moral values, 2. Analyses how people ought to act.

standards and behavior.

3. Describe how people behave and 3. Attempts to evaluate or create moral

what types of moral standards they standards and prescribes how people
claim to follow. ought to act.

9. An ethical audit measures the cultures and behavior of an organization, and

determines the extent to which its values are embedded across its people and
across its processes. Ethical audits can prove to be beneficial in the growth and
sustainability of any Organization. Some of the benefit of the Ethical audit are
Identify potential risks and liabilities and improve legal compliance. Can be key in
improving organizational performance. Improved relationships with stakeholders.
An ethical audit if effectively done can help in building a positive
environment across Organization. It will with all other benefits will promote that the
Organizations concerns for the overall development and conduct of the business not
just achieving some financial targets.

10. Governance gaps exist where transnational companies (TNCs) operate in states that
cannot, or will not, fulfill their obligations to protect the rights of their own citizens.
Multi-stakeholder Initiatives (MSIs) have emerged to address these governance gaps
in specific industries.

11. Stakeholders are individuals, groups and entities affected by the operation of your
business. Fair treatment and strong relationships with your core stakeholders is key
to long-term profit and business success. Common business stakeholders include
customers, communities, employees, owners, suppliers and partners, government
agencies and regulators. Stakeholder relations is the practice of forging mutually
beneficial connections with third-party groups and individuals that have a “stake” in
 common interest. These relationships build networks that develop credible, united
voices about issues, products, and/or services that are important to your
organization. On its own, a single voice can fall flat for many reasons, from a lack of
credibility to a lack of volume. The result can be a failure to elevate the profile of an
issue, sway opinion, or drive action. On the other hand, a chorus of voices can
harmoniously crescendo, reaching desired audiences with the right message at the
right time.
Positive relationships with stakeholders lead to several benefits for a
company, in many aspects of the work place. If positive relationships are maintained
between management and employees in a company conflict can be maintained. If
conflict may arise for example between two employees, managers can resolve the
issue quickly and efficiently without upsetting the employee. The statement “a
business model that values stakeholders may lead to cost savings” is true. By valuing
stakeholders such as customers costs can be saved. By obtaining customer’s
feedback a company is able to get their opinions on your company and what their
problems might be. A company that uses Call Monitoring can effectively obtain
feedback on a regular basis from your customers. Customers are able to openly
express any problems or concerns they might have with the company and the
feedback the company receives from the customer can be used to fix the problem
leading to cost savings. By providing a call center to customers, they are more
confident in purchasing from the company as they know if there are any problems
with a product they can contact the company to get the problem fixed. A company is
going to save the most costs by having good relationships with employees and staff.
A company that provides staff with Performance Reviews is going to lead to cost
savings. Performance reviews allows staff members to receive both positive and
constructive criticism from managers. It allows them to know what they are doing
well and what can be improved. This will lead to happier employees, with high job
satisfaction which will almost always lead to an increased productivity rate, leading
to cost savings. A company that values their employees very highly will always lead
to cost savings. By allowing Employee Feedback.
Stakeholders give your business practical and financial
support. Stakeholders are people interested in your company, ranging from
employees to loyal customers and investors. They broaden the pool of people who
care about the well-being of your company, making you less alone in your
entrepreneurial work.

12. Agency theory refers to the relationship between business principals and their agent.
It is a management and economic theory. Basically, the principal is the stakeholders
 or the owners of the organization while the agent is the company executives hired
on behalf of the principal. Principals delegate power to agents to make decisions. It
is to reduce the complexity of work and to streamline the business operation.
However, in case of a loss or risk, the principal has to bear it. Stewardship theory is a
theory that states employees are intrinsically motivated to work for others or for
organizations to complete the tasks and responsibilities with which they have been
assigned. stewardship theory are corporate governance principals in the modern
business world. Although both theories have distinct features, the ultimate
objective is to improve organizational performance. Identifying the type of corporate
governance is the foundation of a successful business.
Both theories focus on the relationship between two parties: the
owner and the executive. Depending on the executive behavior and the expectations
of the owner, these theories have significant characteristics. Although these theories
have distinct features, the ultimate objective is to improve organizational
performance. Even though these two theories focus on corporate governance and
business growth, there is a significant difference between agency theory and
stewardship theory. Agency theory refers to the relationship between the owner
and the agent, while stewardship theory refers to the relationship between the
owner and the steward. Moreover, the agency theory is based on management and
economic principles, whereas Stewardship theory is based on psychology and
sociology. Agency theory claims that improved performance is due to the
implemented governance structures by the principal to limit the opportunistic
behavior of the agent. However, stewardship theory claims that the improved
performance is due to the principal encouraging governance structure that
motivates pro-organizational behavior of the steward.

In conclusion; agency theory and stewardship theory are corporate governance

principals in the modern business world. However, the key difference between
agency theory and stewardship theory is that agency theory is an economic model,
whereas the stewardship theory is a psychological model.

14. Ethical issues in business can be a difficult challenge to navigate for any business
owner. Though there are laws and statutes that exist to hold workers and employers
accountable, these alone do not entirely deter employees from behaving
unethically. Ethical issues in business encompass a wide array of areas within an
organization’s ethical standards. Fundamental ethical issues in business include
promoting conduct based on integrity and trust, but more complex issues include
 accommodating diversity, empathetic decision-making, and compliance and
governance that is consistent with the organization’s core value.
The major ethical business issues in Nepal are listed below:
1. Sexual Harassment: Sexual harassment in the workplace is an ongoing risk to the
safety of your employees and your business. The implications of sexual harassment
in the workplace have a far-reaching impact on everything from your company’s
bottom line, to employee morale, and to your reputation. Toxic workplaces lead to
reduced employee productivity. When an employee has experienced an incident of
sexual harassment, or worse a steady campaign of harassment, their output will be
affected. Research closely associates sexual harassment with job dissatisfaction and
disengagement. Other ways sexual harassment affects the workplace are tardiness,
absenteeism, project neglect, and employee distraction.
2. Discrimination: Effects are not limited to physical but also mental effects on the
employee include depression, developing anxiety disorders, loss of self control
leading to the employee becoming hostile or even attempting suicide. Perceived
discrimination has effects on both the employee and the work environment.
3. Health and safety: In any organization there must be implementation of health and
safety to their employee and staffs. If there is not implementation of health and
safety they may suffer from different health problems, so that they can't be able to
perform their task easily and smoothly. Implementing health and safety in the
workplace helps to assess potential risks and identify significant hazards. It also
enables you to put measures in place to protect the people and environment in your
organization. These vital steps are essential to reduce the costs associated with
safety failures.
The way to improve ethical business issue in Nepal are:
1. Measure effectiveness of your ethics program. To ensure best practice, organizations
need both to measure their ethical performance and to foster open discussion.
2. conduct awareness programs related sexual harassment.
3. provide sick leave to the employee and staffs.
4. There must be strict rule and regulations in the organizations so, that ethical issues
can be reduced easily.

15. A stakeholder is a party that has an interest in a company and can either affect or be
affected by the business. The primary stakeholders in a typical corporation are its
investors, employees, customers, and suppliers. However, with the increasing
attention on corporate social responsibility, the concept has been extended to
include communities, governments, and trade associations. Stakeholders are people
 or groups that are affected by your company's operations. Shareholders or owners
are a commonly recognized stakeholder group. However, you also need to consider
how your customers, community, employees and business partners impact your
business. A well-rounded approach that shows that includes an understanding of
stakeholder influence normally increases your long-term viability and success.
A small business's success depends on the actions of
numerous stakeholders. Because stakeholders affect the business so greatly, the
business has an ethical responsibility to consider how it affects them. A mutually
beneficial relationship with all stakeholders will generate goodwill toward a small
business, which will lead to lasting customers depend on the company to supply a
product or service. They support the company with every purchase they make, and
each purchase also shows the company what products and services to invest in
further. In doing so, customers help guide the direction of a small business.
Customers also share their opinions and experiences with the customer service
department, and they may directly request changes in products or services. Because
customers often speak directly with small business owners in their community, these
businesses have the opportunity to cultivate a strong understanding of what their
customers need or want.
The business firm are responsible with them by Suppliers provide the
raw materials or components that a company uses to create its products. In some
cases, suppliers provide finished products. A business may depend on one particular
supplier that produces a superior or rare good, in which case the supplier has
heightened importance. A small business with a narrow niche may be particularly
likely to rely on the specialized materials of one supplier. This also increases the risk
to the company and other stakeholders. If the business can't purchase supplies from
this source, it may need to dramatically adapt its offerings.

16. Sustainability means meeting our own needs without compromising the ability of
future generations to meet their own needs. In addition to natural resources, we
also need social and economic resources. Sustainability is not just environmental-
ism. Embedded in most definitions of sustainability we also find concerns for social
equity and economic development. Sustainability is a broad discipline, giving
students and graduates insights into most aspects of the human world from business
to technology to environment and the social sciences. The core skills with which a
graduates leaves college or university are highly sought after, especially in a modern
world looking to drastically reduce carbon emissions and discover and develop the
technologies of the future. Sustainability draws on politics, economics and,
philosophy and other social sciences as well as the hard sciences. Sustainability skills
 and environmental awareness is a priority in many corporate jobs at graduate level
and over as businesses seek to adhere to new legislation.
Sustainability describes the ability to maintain various systems and
processes environmentally, socially, and economically over time. Sustainability
originated in natural resource economics, but has since gained broader currency in
terms of sustainable development and social equality. Corporate Social
Responsibility, or CSR, usually refers to a company’s commitment to practice
environmental and social sustainability and to be good stewards of the environment
and the social landscapes in which they operate. Some companies and economists
rejected the idea of CSR because it implied an obligation to society and future
generations beyond those contained in the binding legal requirements of business.
However, most companies now embrace some notion of CSR. Approaches to CSR
vary. Some companies invest in CSR as reputation management or to sustain the
profitability of a company, and some invest in CSR out of a sense of moral obligation
to society. These resources focus on sustainability and CSR primarily in terms of
moral obligation, and offer insight into ethics concepts relevant to economic
sustainability, environmental sustainability, and social equity. Begin by viewing the
suggested videos for an introduction of concepts that are basic to sustainability and
CSR, such as determining what factors to favor in ethical decisions, the impact of
intangible factors in ethical dilemmas, and best practices for developing ethical
culture in organizations. View additional videos to learn about the ways that
incentives affect economics, how the slippery slope leads to degradation, why
“framing” matters, and the hallmarks of fair and equal representation. Additional
videos introduce behavioral biases that impact ethical decision-making, such as the
tendency to switch values based on our role and the importance of loss aversion in
making moral choices.

Case Analysis

a. The key stakeholders of Kanchenjunga Tea Estate are local farmer of Kanchenjunga
and other employees. Kanchenjunga Tea Estate (KTE) is located at Renita in the
remote hilly region of Panchathare district in eastern Nepal at the foot of Mt.
Kanchenjunga. The enterprise was launched in 1984 by the local farmers on a
cooperative model. Over 100 farmers joined hands, pooled in their marginal land
holding and became owners of the first orthodox tea plantation covering nearly 94
hectares of land. The land which was barely enough to sustain them is now utilized
 to produce high quality organic orthodox tea of Himalayas. It produces and sell
approximately 1,00,000 kilograms of green tea and black tea every year. KTE have
this types of stake.

b. Kanchenjunga Tea Estate and Research Centre was established with the objective of
improving the living standard of the farmers in the remote villages, by increasing
income without exploiting or disturbing the nature. The aim will be further
supported by selling the tea in international niche markets. In addition, KTE will also
play a key role in encouraging the area’s small farmers to grow tea, spices and herbs
organically in their uncultivated land and to:
• Protect land erosion and soil degradation and carbon sequestration through massive
cultivation.
• Practice Organic Agriculture using locally available farmyard manure, green manure
and Ayurveda practices.
• Provide social support to workers/ farmers involved in the venture.
• Supply residue-free products to consumers through specialty tea markets, Organic
dealers and Fair Trade.
KTE has provided free housing to its employee so they don’t have to
worry about the shelter, it has not only save their money for their housing hold but
also their time to save their time to reach office and tea garden. KTE has provided
good working environment. KTE has provided education and place to live, food to
eat and a secure job to employee children. It gives priority to local people,
particularly the women in its employment opportunities. It has now approximately
75% of women employee. KTE is also providing scholarship to the economically
disadvantage children to the local community who can later on join KTE as loyal and
dedicated employee. KTE has also started Cow Bank Project so that hundreds of
small farmer are now able to sell cow milk in the local market to earn their livelihood
and enhance the standard of farmer. These are the responsible business practices of
KTE towards its different stakeholders.

c. Yes, it is really necessary for KTE to fulfil the expectation of different stakeholders. KTE
also have been following this, KTE not only cares about the environment by going Organic
but also its people. KTE, from its establishment has taken responsibility to improve the living
standards of the villagers. KTE remains committed to its promise of maintaining high quality
of life its people by providing various facilities to its workers and the villagers. KTE facilitates
its workers with eco-house with all the basic facilities of sustaining a life. This has proved
highly beneficial to the number of homeless workers at KTE. The provision of free education
to the children of the workers at the factory has served as an example of typical business
venture committed to its people. It even provides a set of clothes to the poor farmers and
their children once every year. KTE even provides the daily food requirements to the
workers at a subsidized rate which prevents them from buying the basic necessities at a
higher price. Commodities such as rice, oil, salt etc. are available to the workers at a cheap
rate through KTE co-op shop. Moreover, the provision of clean and safe drinking water,
electricity and smokeless oven has highly benefited the workers and the villagers. In
addition, the benefits from the cow bank project, Scholarship programs and other schemes
have made the workers and the villagers happy and dedicated towards their commitment
towards KTE, development of organic farming and sustainability of their village itself.
d. The main lesson learnt by this case are every organization or business should also focus
on CSR activities. Corporate social responsibility is a type of international private business
self-regulation that aims to contribute to societal goals of a philanthropic, activist, or
charitable nature by engaging in or supporting volunteering or ethically-oriented practices.
Involving in CSR activity helps to attract customer easily. Organization also need to look
after employee basic needs like food, shelter etc. like KTE has provided free housing to its
employee so they don’t have to worry about the shelter, it has not only save their money
for their housing hold but also their time to save their time to reach office and tea garden.
KTE has provided good working environment. KTE has provided education and place to live,
food to eat and a secure job to employee children. KTE is also providing scholarship to the
economically disadvantage children to the local community who can later on join KTE as
loyal and dedicated employee. Organization should give priority to women too where KTE
gives priority to local people, particularly the women in its employment opportunities. It has
now approximately 75% of women employee.

2018 fall
1. The four factors that shape the business- society relationship are:
• Changing societal expectations.
• Government intervention
• Workforce Diversity
• Globalization
2. The market stakeholders of business are owners, partners, investors and shareholders.
They include employees. All activities are designed to create an economic exchange
between the company and consumers.
The non-market stakeholders are based outside of the organization. These
stakeholders include political groups, the general public and other businesses. All activities
are designed to provide input, facilitate or block the economic exchange between
companies and consumers.

3. Corporate social responsiveness refers to how business organizations and their agents
actively interact with and manage their environments. In other word, it refers to the act of
contributing to the welfare of others.

4. Whistle blowing refers to the act of organization members, either former or current,
disclosing information on illegal and unethical practices within the organization to parties
internal or external to the organization, who can take action. In business ethics, it is
becoming increasingly common as more and more employees speak out about their ethical
concerns. It is an important and valid method of endeavouring to control possible unethical
behaviour by organizations, as well as helping to establish a level of social responsibility.

5. An ethics audit is a comparison between actual employee behaviour and the guidance for
employee behaviour provided in policies and procedures. It is needed in business because
it is an important factor that can increase corporate competitiveness and profit and
reinforce the will of employees to work.
6. The weaknesses of pluralism are:
• It ignores the reality that there are groups which are dominant over others.
• Difficulties in implementation.
• Brings about animosity and suspicion between groups that live together.
7. Benefits of CSR are:
• Improved public image.
• Increased brand awareness and recognition.
• An advantage over competitors.
• Increased customer engagement.
8. Major ethical issues in Nepal are:
• Accounting
• Health and safety
• Social media
• Harassment and discrimination

9. Corporate citizenship refers to a company's responsibilities toward society. It is the term

used to describe the contribution a business or organization makes to the local community
or society as a whole.

10. Shareholder activism is the process by which a shareholder attempts to use his or her
influence to persuade management to implement changes that he or she believes will be
beneficial to all stakeholder.

11. Corporate Social Responsibility is a management concept whereby companies integrate

social and environmental concerns in their business operations and interactions with their
stakeholders. There are four models of corporate social responsibility. They are:
A. Economic model of CSR: It holds that business' sole duty is simply to fulfil the economic
functions businesses were designed to serve. On this narrow view the social responsibility
of business managers is simply to pursue profit within the law because corporations are
created by society and require a stable political and economic infrastructure in which to
conduct business like all other social institutions they are expected to obey the legal
mandates established by the society. This Economic Model of CSR denies that business has
any social responsibilities beyond the economic and legal ends for which it was created.

B. Philanthropic model of CSR: Like individuals, business is free to contribute to social

causes as a matter of philanthropy. Business has no strict obligation to contribute to social
causes but it can be a good thing when they do so. But just as charity is a good thing and
business should be encouraged to contribute to society in ways that go beyond the narrow
obligations of law and economics. This approach is especially common in small locally-
owned business where the owners also often play a prominent leadership role within their
local community. There are occasions in which charity work is done because it brings the
firm good public relations, provides a helpful tax deduction, and builds good will and a good
reputation within a community. From the perspective of the narrow view of CSR only
philanthropy done for reputational reasons and financial ends is ethically responsible.

C. Social web model of CSR: It views business as a citizen of the society in which it operates
and like all members of a society business must conform to the normal ethical duties and
obligations that we all face. Philosopher Norman Bowie has defended one version of CSR
that would fall within this social web model.

Bowie argues that beyond the economic view's duty to obey the law business has an equally
important ethical duty to respect human rights. Respecting human rights is the "moral
minimum" that we expect of every person whether they are acting as individuals or within
corporate institutions. He identifies his approach as a "Kantian" theory of business ethics. In
simple terms he begins with the distinction between the ethical imperatives to cause no
harm, to prevent harm, and to do good. According to Bowie as long as managers comply
with the moral minimum and cause no harm they have a responsibility to maximize profits.
Thus Bowie would argue that business has a social responsibility to respect the rights of its
employees even when not specified or required by law. Such rights might include the right
to safe and healthy workplaces rights to privacy and rights to due process.

D. Integrative model of CSR: Firms bring social goals into the core of their business model
and fully integrate economic and social goals. As a topic within CSR sustainability holds that
a firm's financial goals must be balanced against and perhaps even over-ridden by
environmental considerations. Defenders of this approach point out that all economic
activity exists within a biosphere that supports all life. They argue that the present model of
economics and especially the macroeconomic goal of economic growth is already running
up against the limits of the biosphere's capacity to sustain life. From this perspective the
success of a business must be judged not only against the financial bottom line of
profitability but also against the ecological and social bottoms lines of sustainability.

12. Stakeholder management is the process of maintaining good relationships with the
people who have most impact on your work. It is the systematic identification, analysis and
planning of actions to communicate with, negotiate with and influence stakeholders
Steps of stakeholder management cycle are:
• Identification: This is the critical first step, the methodology suggests that a fresh scan of
the environment is undertaken on a regular basis to understand changes in the overall
stakeholder community. This process can be usefully timed to support a routine risk review.
Identification includes assessing the stakeholder’s needs, perceptions and expectations on
the one hand and what we need from the stakeholder on the other mutuality.
• Prioritization: It ranks the stakeholders based on a combination of power, proximity and
urgency. Power and proximity are associated with the stakeholder’s position and should be
relatively stable. If the stakeholder feels comfortable with the overall running of the project,
these factors are likely to be low. If the stakeholder is unhappy with the overall shape of the
project they are likely to be higher. Managing these perceptions by effective communication
is the core skill in stakeholder management. Effective communication is likely to reduce the
levels of urgency and consequently reduce the stakeholder’s level of prioritization.
• Visualization: The management team is looking for trends and patterns to understand
what’s happening both to individual stakeholders and the overall stakeholder community.
This information feeds directly into the engagement process.
• Engagement: It involves the planning and implementation of the stakeholder
communication process. This should encompass everything from face to face meetings
through to routine reports and newsletters. But the doing of communication is not
sufficient. It is critical that the effectiveness of the communications is monitored in real time
and appropriate adjustments made to the messages and communication plan.
• Monitor: It is focused on providing a continual watching brief delivering short term
feedback to the communication process day-by-day, and a more comprehensive analysis to
the next major review cycle. The inputs to monitoring should include formal assessments
and informal intelligence picked up by different team members as they go about their
business. The core element in this step is the proactive seeking of information and then
putting the information to effective use.

13. Agency theory refers to the relationship between business principals and their agent.
Basically, the principal is the owners of the organization while the agent is the company
executives hired on behalf of the principal. Principals delegate power to agents to make
decisions. On the other hand, Stewardship theory is a theory that states employees are
intrinsically motivated to work for others or for organizations to complete the tasks and
responsibilities with which they have been assigned.
Even though these two theories focus on corporate governance, there is
a significant difference between agency theory and stewardship theory. Agency theory
refers to the relationship between the owner and the agent, while stewardship theory
refers to the relationship between the owner and the steward. Moreover, the agency
theory is based on management and economic principles, whereas Stewardship theory is
based on psychology and sociology. Agency theory claims that improved performance is due
to the implemented governance structures by the principal to limit the opportunistic
behaviour of the agent. However, stewardship theory claims that the improved
performance is due to the principal encouraging governance structure that motivates pro-
organizational behaviour of the steward. Furthermore, agency theory is driven by extrinsic
motivation, whereas the stewardship theory is driven by intrinsic motivation. Therefore, this
is also a significant difference between agency theory and stewardship theory. According to
agency theory, managers have a low level of identification with the organization, thus
allowing self serving-interests to be chosen over owner’s interests. In contrast, according to
stewardship theory, managers have a high level of identification with the organization.
Therefore, high-level identification empowers executives or stewards to work hard, sorting
out problems and finally gaining intrinsic rewards by principals. The key difference between
agency theory and stewardship theory is that agency theory is an economic model, whereas
the stewardship theory is a psychological model.

15. Diversity in the workplace is essential to create a thriving business, especially when it
comes to employee engagement. Workplace diversity encourages creativity and innovation
because every team member, from leadership to frontline employees and mobile workers,
brings their own unique backgrounds, experiences, and perspectives to the table.

Business organization can promote diversity in the workplace by educating managers on the
benefits of diversity in the workplace. The relationship between managers and employees is
a critical one. Most people quit their jobs specifically because of disconnection with their
managers. It is essential to empower managers with the skills necessary to grow and
nurture a diverse team. It is also necessary to assess reporting structures and employee
feedback mechanisms to ensure there is a clear, communication channel between
managers and their direct reports. Business organization can conduct a comprehensive
evaluation of the workplace. For example, when posting job openings, position descriptions
should be tailored to reach broader audiences. It may lead to wider range of job fairs,
community hiring offices, and outreach programs. Business organization should
communicate clearly and create employee-led task forces. Employees should feel
comfortable coming to their managers with any concerns, especially about their treatment
in the company due to their gender, ethnicity, sexuality, age, or other factors. Managers
should feel confident in their internal communication with employees by avoiding making
any assumptions and using inclusive language. This is a great initial way for managers to set
up open and respectful internal communication channels.
16. Business ethics is the study of appropriate business policies and practices regarding
potentially controversial subjects including corporate governance, insider trading, bribery,
discrimination, corporate social responsibility, and fiduciary responsibilities. It refers to
implementing appropriate business policies and practices with regard to arguably
controversial subjects.

In order to improve the existing ethical problems in Nepalese organization, it is necessary to

follow the steps:

• Determine whether there is an ethical issue or dilemma. It is important to identify if there

is a conflict of values, rights, or professional responsibility.
• Identify the key values and principles involved, and the meanings and limitations are
typically attached to these competing values.
• Rank the values or ethical principles as professional judgment are most relevant to the
issue or dilemma, and the reasons that we can provide for prioritizing one competing
principle over another.
• It is necessary to develop an action plan that is consistent with the ethical priorities that
have been determined as central to the dilemma, and determine if it is conferred with
clients and colleagues, as appropriate, about the potential risks and consequences of
alternative courses of action.
• It is important to implement the plan, and utilize the most appropriate practice skills and
competencies. And then determining how to make use of core social work skills such as
sensitive communication, skilful negotiation, and cultural competence.
• It is essential to reflect on the outcome of this ethical decision making process and
determine how to evaluate the consequences of this process for clients, professionals, and
agencies.

17. Stakeholder analysis involves several key elements. The first step is to identify which
stakeholders are relevant to the project. If the organization is familiar, then it will be easy to
identify the majority of stakeholder yourself. The next step is, to access which stakeholders
are the most important and which ones can have the most impact, either negatively or
positively on the project. Those stakeholders with the high power and high interest are the
most important stakeholders to manage. The next is planning. It is important to have a good
planning on how to communicate and what the best methods would be to influence them.
This should be documented in a stakeholder management strategy. After the planning,
executing the activities based on the plan and then assess whether this has gone to plan.
The last step is reassessing the attitudes and position of stakeholders on a regular basis and
updating the stakeholder management plan and approach appropriately.

Method of incorporating stakeholder’s power, interest and coalitions are:

• Data Collection Method: Several methods can be employed to collect data on

stakeholders in a comprehensive and efficient manner. One method of collecting data is to
conduct interviews directly with the stakeholders involved in the specific policy area. The
second method is to interview local experts in the field who are knowledgeable about the
issue and the important groups and individuals involved in the policy area. The content and
questions of the interviews should focus on background information on the policy making
process, information that identifies key stakeholders from a variety of groups in the reform
process, and clarifying assumptions about stakeholder’s power and interest in the decision-
making process.
• Analysing Data and Designing Strategy: Data from interviews including scaled values
assigned to the attributes and relative rankings calculated accordingly are catalogued and
presented in charts. A clear assessment of each stakeholder’s power and likely impact on
the policy making process is conducted through several steps. The first step is to organize
the stakeholder data according to relative power/influence and salience of each stakeholder
to understand their potential support or opposition for the proposed reform. Often, a
matrix is used to organize and classify the stakeholder data. One form is to map interest and
influence on the axes. This matrix provides a shorthand categorization and analysis of which
stakeholders will gain or lose from a proposed reform and whether they can significantly
impact the process.
Case Study

18
a. After studying the whole case, I have found some of the social and ethical issues in this
case. The first issue that I have found is the conflicting issue between Bryan and the
company. Bryan wants the company to reduce the dumping of waste products in the river
because it would hamper the company in the near future. But the company is just
concerned about the current growth and sales, the company is not thinking the negative
aspects of their decisions in the future scenario. Bryan is facing the ethical issues with the
government agency responsible for environmental protection. He is concerned about the
pollution of the river with the Vice President of Operations when he visits the plant, and
have additional recycling process installed to reduce the amount of waste dumped in the
river. He could stay quiet on the issue and enjoy the success of the new product but he is
worried that it will affect on various stakeholders.
b. In my opinion, the ethical issues in this case are of firm because of some reasons. The first
reason is Bryan is just concerned about the obstacles that may occur in the future because
of the firm activity that will pollute the water. He does not want him and the firm to suffer
in the near future so he is just alerting the firm to stop throwing waste materials in the
river. Though he could have earned a lot but he chooses the option where the firm image
and sales would prosper in the significant manner. He chooses to work in the environment
where he and his company would not need to hear the allegation which may hamper the
firm and its reputation in the future. For the firm’s benefits, he also suggested the firm that
it should have added an additional production process which would have reduced the waste
but the company refused to add the extra production process because the company did not
wanted to increase the production cost. Therefore, Bryan is just more concerned about the
betterment of company which is good for the long term growth and prosperity of the
company.

c. The Bill Gates being a plant supervisor, commented that it’s the responsibility of the
government agency to protect the river from the excess waste and the company had to just
meet the agency standard. It’s the engineer and chemist who design a production process
which is too conservative. Therefore, the amount of waste that the company produced
possessed the no threat to the environment. This comment of Bill Gates proves that the
company Gossett Chemical Company is concerned about the society. It shows that the
company is following the corporate social responsibility. The company is successful to
produce a top quality industrial lubricant at significant cost less than those of their
competitor which will benefit the society in terms of low cost and better quality products to
their customers of their society as well as other customers. Therefore, the company is
genuinely concerned about the health of its society members in all the aspects so we can
say that company is really following its corporate responsibility towards its society.

d. Yes, there is the ethical responsibility of the Bryan in this case. He should have trusted
his seniors or the managers of the company. Instead of being suspicious towards the
company manager’s decision he should have gone through the detail inspection which
would have helped find him that whether he is doing right or wrong by suspecting the
company. Bryan also approached Bill Gates in this matter but Bill Gates said that it is not the
fault of company instead he said that it’s the government agency responsibility to protect
the river from excess waste and also said that engineer and chemist designed the
production process by being too conservative in their estimates. But still listening to the
opinion of Bill Gates, he is unsure about the company decision regarding this matter. Being
a part of Gossett Chemical Company he did not trusted the company’s decision which shows
that he is not following the ethical responsibility which a employees should have followed.
Therefore, he should have trusted the company and its decisions.

2016 spring

Group A

2. Benefits of CSR are as follows

• Better brand recognition.
• Positive business reputation.
• Increased sales and customer loyalty.
• Operational costs savings.
4. Drivers of CSR are as follows:
• Government legislation.
• Customers expectations of firms.
• Consumer lobby groups.
• The extent of costs involved.
 5. Stakeholders’ Coalition is a growing group of interested parties committed to work
together to achieve an age-friendly European Union by 2020 where everyone is
empowered to play an active part in society and enjoy equal rights and
opportunities in all stages of their life regardless of age, sex, race.

6. Internal stakeholders are people whose interest in a company comes through a

direct relationship, such as employment, ownership, or investment.

External stakeholders are those who do not directly work with a company but are affected
somehow by the actions and outcomes of the business.

7. Cause of ethical problem are:

• Lack of Integrity
• Organizational problem

8. A code of ethics is a guide of principles designed to help professionals conduct

business honestly and with integrity.
9. Agency theory is a principle that is used to explain and resolve issues in the
relationship between business principals and their agents.

10. The overall status of CSR practices in Nepal is above the moderate level. The most
common CSR practices in Nepal relate to corporate governance as well as
customers whereas the least common CSR practices include environment and
community related activities.
Group B

11.Business Today is arguably the most dominant institution in the world. The Term
“business “Refers here to any organization that is involved in the trade of goods, services, or
both to consumers for a profit. The most common forms of business ownership are: sole
proprietorship, where the business is owned by one person and operates for profit.
Partnership, where the business is owned by two or more people. Corporation, where the
business has a separate legal personality formats owners. Corporations can be either state-
owned or owned by individuals and may operate either for profit or for non-profit.
Corporation is owned by its investors and shareholders, who elect board of directors for
policy orientation and hire managerial team and workers for execution of its vision and
mission. A corporation cane either privately held by a small group of individuals, or publicly
held, with publicly traded shares listed on a stock exchange. Business, therefore, is an
ongoing activity. For example, businesses recruit workers, buy supplies, and borrow money;
they also sell products, and pay taxes. Business and society are highly interdependent.
Business activities impact upon other activities in society, and actions by various social
actors continuously affect business. To manage these Interdependencies, managers need an
understanding of their company’s key relationships and how the social and economic
system of which they are apart affects, and is affected, by their decisions.

11. When it comes to investing in a corporation, there are shareholders and

stakeholders. While they have similar-sounding names, their investment in a
company is quite different.

Shareholders are always stakeholders in a corporation, but stakeholders are not always
shareholders. A shareholder owns part of a public company through shares of stock, while a
stakeholder has an interest in the performance of a company for reasons other than stock
performance or appreciation. These reasons often mean that the stakeholder has a greater
need for the company to succeed over a longer term.

Key difference in the shareholders and stake holders are as follows:

Shareholders are always stakeholders in a corporation, but stakeholders are not always
shareholders.
Shareholders own part of a public company through shares of stock; a stakeholder wants to
see the company prosper for reasons other than stock performance.
Shareholders don’t need to have a long-term perspective on the company and can sell the
stock whenever they need to; stakeholders are often in it for the long haul and have a
greater need to see the company prosper.
For example, if a company is performing poorly financially, the vendors in that company’s
supply chain might suffer if the company no longer uses their services. Similarly, employees
of the company, who are stakeholders and rely on it for income, might lose their jobs.

14. Core elements of ethical characters are as follows:

Trustworthiness
Trustworthiness, which includes honesty, reliability and loyalty, is a core element of ethical
character for managers. If a manager is honest, he will not lie to employees, customers or
vendors nor will he condone others doing so. For example, he will not change the numbers
in his sales report to make it appear that his team is performing better than it is, exaggerate
claims about his product or persuade customers to buy more product than they need.
Reliability means keeping commitments. Loyal managers keeping information confidential.
Leaving your company and taking proprietary technology with you, even if you helped
invent the technology, would be disloyal.

Respect for Others

While a manager may not always like everyone, she respects everyone. Following the
Golden Rule of “do unto others as you would have them do unto you” is a core value.
Respect prohibits humiliation, coercion and exploitation and encourages decency. It
requires charging a fair price for products and treating employees with dignity, for example.
Responsibility
Responsibility is a core value that encompasses accountability and the pursuit of excellence.
Accountability means accepting responsibility for your own decisions and mistakes.
Responsibility also includes doing your best, persevering despite challenges and avoiding
making excuses for mistakes, such as “that’s not my job” or “it was legal.”

Caring:
Caring also is a core element of ethical character. Managing a business without hurting
anyone’s feelings is difficult if not impossible. However, a caring manager feels an emotional
response to both the pleasure and pain of others and consciously seeks to cause no more
harm than is necessary in carrying out his duties. If you must reprimand or fire an
employee, find a way to protect her dignity.

Concept of whistle blowing in an organisation is when a former or the existing employee of

the organization raise his voice against the unethical activities being carried out within the
organization is called as whistle blowing and the person who raise his voice is called as a
whistle blower. Those who become whistle blowers can choose to bring information or
allegations to surface either internally or externally. Over 83% of whistle blowers report
internally to a supervisor, human resources, compliance or a neutral third party within the
company, with the thought that the company will address and correct the issues. Externally,
a whistle blower can bring allegations to light by contacting a third party outside of the
organization such as the media, government, or law enforcement.

15.Corporate Governance may be defined as a set of systems, processes and principles

which ensure that a company is governed in the best interest of all stakeholders.

Scope of corporate governance are as follows:

 1. Good corporate governance ensures corporate success and economic growth.
2. Strong corporate governance maintains investors’ confidence, as a result of which,
company can raise capital efficiently and effectively.
3. It lowers the capital cost.
4. There is a positive impact on the share price.

5. It provides proper inducement to the owners as well as managers to achieve

objectives that are in interests of the shareholders and the organization.
6. Good corporate governance also minimizes wastages, corruption, risks and
mismanagement.
7. It helps in brand formation and development.
8. It ensures organization in managed in a manner that fits the best interests of all.

A company which applies the core principles of good corporate governance; fairness,
accountability, responsibility and transparency, will usually outperform other companies
and will be able to attract investors, whose support can help to finance further growth.

16. Despite the fact that corporate social responsibility (CSR) is increasingly regarded as one
of the mainstream business agenda these days, governemnt can also play a vital role in
promoting CSR. Against this milieu, this study assesses the role of government in promoting
CSR in Nepal and suggests the way forward for government and policy makers. To this end,
relevant data were collected from structured questionnaires as well as semi-structured
interviews with executives & managers of listed companies of Nepal. The data were
analysed by using descriptive statistics as well as qualitative content analysis. Results
indicate that the role of government in promoting CSR in Nepal is inadequate particularly in
endorsing, collaborating and assisting responsible business practices. High degree of
convergence was found between the results of structured questionnaire and semi-
structured interviews regarding the executives & managers’ suggestions to the government
& policy makers for promoting CSR in Nepal. The main suggestions include ‘giving tax
incentives for designated CSR activities’, ‘formulate clear & adequate CSR act and
regulations’, ‘create awareness on CSR’, and ‘reward & duly recognise socially responsible
firms’. It implies that not only sticks but also carrots and sermons are important to promote
CSR in Nepal.
17.For the last few years, the corporate governance has been a matter of growing academic
interest in the policy studies. Given the infant stage of securities market development and
gradual transformation of the external sources of corporate finance from bank to market,
Nepal is passing through a transitional phase of institutional and governance reform. The
high concentration of corporate ownership structure and dominance of family business
groups in corporate affairs have become major constraints in exercising good corporate
governance. Nevertheless, a number of governance reforms are underway and some
positive symptoms have been observed in the banks and financial institutions. To ensure a
good corporate governance in Nepal requires a joint effort of the investors (promoters) who
need to be more transparent, responsible and socially accountable; the shareholders who
must actively participate in their corporate affairs to help prevent any fraudulent and
insider practices and; the regulatory authority that should effectively enforce rules and
regulations in order to protect the rights of all stakeholders and create favorable
environment to enhance good corporate governance culture. This article presents an
introductory overview of the policy framework, enforcement mechanism, compliance
practices and main features of corporate governance in Nepal.

Group C

a. Clients, Employees, Investors, Business partners, Social environment, Regulators and

Market Supervision and the Natural Environment are the stake holders in this case.

Primary stakeholders are: employees, clients, owner

Secondary stakeholders are: shareholders, society, creditors, media.
Internal Stakeholders
The performance of a business directly affects the pocketbooks of internal stakeholders,
and management must consider the financial effects of its activities on this group. Poor
decisions hurt profitability, which reduces an owner’s interest, employees’ opportunities for
raises, bonuses and increased resources, board members’ liability and partners’ workloads.
An owner must take into account the reaction of his staff before he increases working
hours, passes the work of a terminated employee onto remaining staff, reduces benefits,
ends telecommuting or takes other actions that change his staff’s situation. Board members
give management broad goals and strategies and require the company’s leadership to run
key decisions by them, including those concerning financial goals, brand management, new
product lines or acquisitions.

External Stakeholders
Members of the business and local community want businesses that benefit them to
succeed. A business will be less likely to ship jobs out of town if it means less cooperation
from local and state governments when it comes to zoning requests or tax breaks. Company
management will continue to support local charities if those non-profits promote the
business and refer business. Local and trade media are more likely to give a business
favourable media coverage if that business buys advertising, provides information and
sources for articles and supports local charities.

b. If INB decided to Close one or both of it’s branch then RELATIONSHIP BETWEEN
BUSINESS, GOVERNMENT AND SOCIETY came in to the play by the ways described,
Business, government and society are fundamental in this world. Business satisfies
human’s needs by providing them products and services in exchange for profit.
Government is a structure and process that authoritatively makes and applies
policies and rules. Society is a network of human relations composed of ideas,
institutions and material things. They all mutually collaborate, interacting and
influencing each other’s similar goals and objectives. One most understand that a
successful business must meet all of its economic, social, and environmental
objectives. Business and society, thus, form an interactive social system. Each needs
the other, and each influences the other. They are entwined so completely that any
action taken by one will surely affect the other.
 c. I think closing one branch can be economic from the bank point of view. But from
the local community point of view closing of one branch will effect the community
very much. As the reputation of the company there is proper community
involvement and social financial performance this closure activity is going to effect
the company reputation very much. As in both locations there is no other branch of
any bank which may lead to harden the banking process more to the local old age
people’s as well as low income people of both the society. So from my point of view
Amy miller should not recommend to close the branch in order to save the bank
reputation.

d. The steps that the bank should take in order to soften the impact of closing are as
follows:

• Bank transection should be technology driven.

• E-banking most be introduced.
• Using more amount of digital money.
• Bank should start investing at homes, in people and in technology.

2019(spring)
Group A

Very Short Question Answer

 1) Primary stakeholders are those who are affected either positively or negatively by
the results of a project, plans or action.

Secondary stakeholders are those who have marginal effect on the results of a project, plan
or action.

2) Corporate social performance (cps) to the principles, practices, and outcomes of

business relationships with people organization, institutions, communities, societies
and the earth, in the term of the deliberate actions of business toward these
stakeholders.

3). Stakeholder activism is a way in which stakeholders can influence or corporation

behaviour by exercising their rights into invests/ lobbies

4)Whistle blowing means. Calling attention to wrong doing that is occurring within an
organization. The four way to blow the whistle are:

• Reporting wrongdoing or violation of the law to the proper authorities.

• Such as a supervisor, a hotline or an inspector general.
• Refusing to participate in wrong place wrongdoing.
• Testifying in a legal proceeding.

5). Corporate governance is the collection of mechanism, process and relations used by
various parties to control and to operate corporations.

6) Corporate social responsibility is a type of international private business self regulation

that aims to contribute to societal goals of a philanthropic activist. List any of two
challenges are:
• Pressure from investors.
• Corporate culture and differing priorities.
7) Any two corporate efforts to promote diversity are:
• Leverage diverse job boards.
• Highlight diversity on your career site.

8) The two differences between shareholder stakeholder theory are:

Stakeholders theory: on the other hand, notes that its business manager ethical duty to
both cooperate shareholders and the community at large that activities that benefit the
company don’t harm the community. Shareholders theory: It claims corporation managers
have a duty to maximize shareholders returns.
9) A stakeholder is a party that has an interest in a company an can either affect or be
affected by the business. The primary stakeholders in a typical corporation are its investors,
employees, customers and suppliers.

10). Business ethics refers to implementing appropriate business policies and practices with
regard to arguably controversial subjects. Some issues, that come up in our discussion of
ethics include corporate governance insider training discrimination social responsibility.

Group B
Descriptive Question Answer

12). Social responsibility is a means of achieving sustainability. The elements of social

responsibility are:

• Internal Assessment: Before designing a CSR strategy it is often helpful to

access your current CSR activities looking at the whole picture what CSR
policies, program and structure are already in place and where the gaps are.

• Put it in writing: Ensure that your company creates a separate CSR statement
or embeds its CSR commitment within the company mission or values
statement, code of conduct or other appropriate company policy.
 • Embed CSR into the company planning and budget processes: the ultimate
goal of creating a CSR management system is to ensure that CSR
considerations are a part of all business decisions.

• Develop processes for employees to raise CSR issues and concerns to

appropriate decision makers an advocated: an open environment is one of
the easiest ways to solicit valuable feedback on CSR issues and problems.

• Create CSR accountability at all employee levels: Build CSR responsibilities

into the job descriptions and performance evaluations of employees at all
levels.

14). The ethics training program is to enable employees to identify and deal with ethical
problems developing their moral intuitions, which are implicit in every day Choices and
actions. Some elements of ethics training programs are:

• Standard, policies and procedures: An organization should have an

established set of compliance standards and procedures. These standards
should not be a paper only document, but a living document that promotes
organizational cultural that encourage ethical conduct and a commitment to
compliance with applicable regulations and laws.

• Compliance program administration: An organization should have the

appropriate high level personal overseeing the compliance and ethics
functions, with a specific executive give an overall responsibility. This
compliance personal should have accountability as to the success or failure
of the compliance an ethics program.
17). Corporate citizenship involves the social responsibility of business and the extent to
which they meet legal, ethical, and economic responsibilities as established by
shareholders. The five stages of corporate citizenship are defined:

• Elementary: It is the stage, a company’s citizenship activities are basic an

undefined because there are scant corporate awareness and little to no
senior management involvement. Small business, in particular, tend to linger
in this stage. They are able to comply with the standard health, safety, and
environmental laws, but they do not have the time nor the resources to fully
develop greater community involvement.
• Engagement: In this stage, companies will often develop policies that
promote the involvement of employees and the managers in activities that
exceed rudimentary compliance to basic laws. Citizenship policies become
more comprehensive in the innovative stages, with increased meetings and
consultations with shareholders and through participation in forums and
other outlet that promote innovative corporate citizenship policies.
• Integrated stage: In this stage, citizenship activities are formalized and blend
in fluidly with the company’s regular organization or operations.
Performance in community activities is monitored, and these activities are
driven into the lines of business.
• Transforming Stage: In this stages, they understand that corporate
citizenship plays a strategic part in fueling sales growth an expansion to new
markets. Economic and social involvement is a regular part of a company ‘s
daily operations in this stage.

15). In the stewardship theory the manager is motivated by the human need for intellectual
growth achievement and self actualization. But in an agency theory the power is
institutionally directed while in the stewardship it is based on personal ability and power to
run the particular organization. Transaction cost theory states that a company has number
of contracts within the company itself or with market through which is creates value for the
company. There is cost associated with each contract with external party, such cost is called
transaction cost. If transaction costs of using the market is higher, the company will
undertake the transaction itself. Difference: Agency theory argues that shareholder
interests require protections by separation of incumbency of roles of board chair and
stewardship argues shareholder interests are maximized by Shared incumbency of these
roles.
16) The following things should be done for improving ethical business and governance
system in Nepal are as follows:

• Long run business needs to have based corporate culture. Value based
corporate culture is good practice for corporate governance.
• Those companies which really need progress, have high ethical values.
• Nepal’s judicial system through having performed salutary role all these
years, certainly are becoming of obsolete and outdated over the year. There
is necessity of just judicial reform.

The role of Nepal in promoting CSR:

Promoting corporate social responsibility (CSR) by the government has become
popular these days and it is likely that this trend will continue to grow in the coming years.
Government can play a key role in defining and promoting responsible business behaviour
so as to address governance gaps and create a win to win situation between business and
society. Government can use legal instruments, fiscal-economic instruments, and
informational instrument for promoting CSR.
As a developing country Nepal is a facing problem toward maintaining the good
economic status in the country people are not aware of CSR activities. Educated people are
going abroad and other peoples are don't have any idea about CSR activities.

Group C
Cash Analysis:
18. a.
Answer: As I have studied this case, one of the relevant ethical issues is their labour
practices. There are several violations against the company regarding wages and work hours
of its employees. The W al-mart Company has been accused of paying wages so low that
workers cannot live off them, making employees work ‘off the clock’ without overtime pay,
paying few and low benefits, and taking advantage of illegal immigrants. The health and
safety measures at its workplace were very poor. There was the difference in wages to the
male and female, and some of the internationally pro claimed human rights are not
properly respected. These are the relevant ethical issues in this case.
b.
Answer: Before 2005, the CSR practice of W al mart was been criticized. It was criticized by
many groups and individuals, such as labour unions and small-town advocates, for its
policies and business practices, and their effects. The criticism includes the charges of
gender discrimination. Male workers were paid more than the female workers. There was
difference in the wage rate. There were no health and safety measures at the workplace.
Criticism also includes the foreign product sourcing. W al mart charged so little for its
products purchasing cheaper foreign goods to sell and paying the employee wages rate
below its capacity. The company had to suffer from various criticisms. So, I will evaluate the
CSR practice was not good before 2005.

c.
Answer: In the recent decades, the CSR practices and priorities of W al mart was very
strong. To strengthen the company sales and growth, the company took steps to strengthen
its worldwide labour inspection program to help the business social responsibility a non-
profit organization to engage with other organization. It also set up consultation groups
with its major suppliers to look at how to make its supply chain more responsible. The
company also turned the garbage in to an asset, waste food in to compost and energy
through anaerobic digestion. The company was successful to setup the sustainability goals.
d. Yes, there is gap between projected philosophy of Walmart vis-à-vis CSR and its actual
CSR practices. Walmart CSR strategy rely on the following three principles;

1.Creating economic opportunity for our employees, suppliers and people who work in
retail and retail supply chains beyond Walmart.
2. Enhancing the sustainability of operations and product supply chains for people and the
planet
3. Building strong communities where the retailer operates.
Before 2005, the CSR practice of W al mart was been criticized. It was criticized by many
groups and individuals, such as labor unions and small-town advocates, for its policies and
business practices, and their effects. The criticism includes the charges of gender
discrimination. Male workers were paid more than the female workers. There was
difference in the wage rate. There were no health and safety measures at the workplace.
Criticism also includes the foreign product sourcing. W al mart charged so little for its
products purchasing cheaper foreign goods to sell and paying the employee wages rate
below its capacity. The company had to suffer from various criticisms. So, I will evaluate the
CSR practice was not good before 2005. But later the CSR practices and priorities of W al
mart was very strong. To strengthen the company sales and growth, the company took
steps to strengthen its worldwide labour inspection program to help the business social
responsibility a non-profit organization to engage with other organization. It also set up
consultation groups with its major suppliers to look at how to make its supply chain more
responsible. The company also turned the garbage in to an asset, waste food in to compost
and energy through anaerobic digestion. The company was successful to setup the
sustainability goals.
Walmart’s aims to achieve the following 3 aspirational goals;
1. Supply the company with 100 per cent renewable energy.
2. Create zero waste.
3. Sell products that sustain people and the environment.