Unit VII Final Project

Unit I Assignment

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Unit I Assignment

Nescafe is a company that produces coffee brand called Nescafe. It is was established in 1938 and it is in Switzerland. The company has grown significantly over the years it has been in existence. The company now has offices and production units in various countries today.

Illustrating the concept and application of social responsibility

Nescafe usually act in a manner that benefits the society. The company therefore positively contributes to the welfare of the environment and society through its activities. Social responsibility takes on different meanings within companies. Nescafe has integrated social responsibility into the core of its operations. For instance, the company usually buy raw coffee to manufacture its product (Nescafe) and actively support sustainable coffee farming in the countries where they purchase coffee. The company also donates funds to communities in which the company operate. This also include education grants. 

The company embraces social responsibility through philanthropy activities, environmental change, and promoting volunteering. The company also manage its negative environmental impact by reducing the level of pollution it emits into the environment. There is also the social responsibility of ethical practices for employees. This means that the company is offering a fair wage and salaries to its employees.

Explaining the benefits of social responsibility

There are several benefits of social responsibility to a company. They include better recognition of brand, positive reputation of business, increased sales and customer loyalty, reduction in operational costs, better performance financially, greater ability to attract talent and retain experienced staff, growth of the organization, and easier access to finances.

Social responsibility can help the company to build a reputation (Ferrell, Thorne & Ferrell, 2016). This can in turn lead to the company to have a competitive advantage in the industry. By reducing the level of pollution through reduction in emissions and wastes, the company will have a positive impact on the environment and save its finances. The company will therefore be able to lower its utility bills and save a lot. By being responsible, Nescafe Company make it easier to recruit new workers or retain the existing ones. Employees will be motivated to work for the company for a long period of time. The rate of turnover for the company will be low. This will eventually be reducing the costs that are associated with recruiting new employees. Another benefit of social responsibility is the growth of the company due to increased volume of sales and the number of customers.

Social responsibility is of great benefit to the society. The welfare of the society will be improved for example when the company finance some development projects such as roads in the regions it operates. The needy students in the society will be able to continue with their education after being given education scholarships and grants. As outlined above, most of the social responsibility activities benefit the society.

Applying the four Is of the non-market environment to my selected company

The four Is of the non-market environment include Issues, Interests, Institutions, and Information. Issues are the basic unit of analysis and the focus of non-market action. The key non-market issues in my selected company is the formulation of regulatory policies for manufactured coffee. Some of these regulatory policies potentially have negative consequences on the operations of the company. Interests of the non-market environment comprises of groups and individuals that have certain preferences concerning the non-market issues. Nescafe Company, activists and other interest groups may be concerned about coffee manufacturing policies that are likely to be implemented. Institutions of the non-market environment consist of the “rules in the society that shape interactions among individuals,” and these institutions offer platforms in which interests seek to impact the outcomes on issues. Some of the institutions that are likely to impact on the issue at hand include Governmental institutions (regulatory authorities and agencies and legislature), and non-governmental institutions (media, etc.). Information of the non-market environment concerns what the interests and institution officeholders believe or know about the issues at hand. In my selected company, the information may pertain to the risk that is associated with the products manufactured by the company and the technology used. The information may be provided by activists, firms, media, and government institutions.

Identifying the non-market influences and impact on my chosen company

The non-market environment consists of social, political, and legal regulations (Baron, 2013). The non-market influences have an influence on various aspects of my chosen company. The legal regulations that are in place compels the company to manufacture products that meet the required health and safety standards. The legal regulations also stipulate on the maximum amount of wastes that can be released into the environment. This will impact on the activities that the company will engage in to ensure environmental protection. The company will therefore devise new ways of reducing the level of pollution thus protecting the environment.

The international trade policy and regulations guide the volume of manufactured coffee that the company should release into the global market. The company will therefore not produce beyond the level it is required to produce. Legislative policies and regulations may impact on the operations of the company. Some of the legislative regulations that will impact on the company include minimum wage requirements. Social policies are likely to impact on the corporate social responsibility activities of the company.

References

Ferrell, O. C., Thorne, D., & Ferrell, L. (2016). Business and society: A strategic approach to social responsibility & ethics (5th ed.). Chicago, IL: Chicago Business Press. 

Baron, D. P. (2013). Business and its environment (7th ed). Upper Saddle River, NJ: Prentice Hall.