Assignment: Week 10

1. In your own word and using referenced quotes describe what is meant in strategy by "Organizational Purpose" and describe what is meant by "Corporate Social Responsibility".

• 'Organizational Purpose' refers to the primary reason why the organization is in existence. The organization should be able to point out its reason of existence in no more than two lines clearly stating its roles in the aid of humanity and the environment.

• 'Corporate Responsibility' refers to the commitment made by the organizations to its workforce and their families along with the society to behave ethically and improve their quality of life.

2.Should organizations focus more on profit and shareholder satisfaction or responsibility and stakeholder satisfaction? Discuss your own thoughts but try to support your ideas with theory or examples.

Responsibility and stakeholder's satisfaction are equally important as profit and shareholder's satisfaction. Government, employees, customers, suppliers, creditors, trade unions fall under stakeholders where as shareholders are the individuals or the organizations owning shares of a particular company.

I believe organizations should give equal importance to profit & shareholder's satisfaction and to      responsibility & stakeholder's satisfaction. Without gaining sufficient amount of profit the organization cannot function and satisfactory dividends and returns have to be given to the shareholder's in order to ensure investments from their parts. Similarly, the organization has to fulfill its responsibilities towards the society, government, environment and its stakeholders to operate smoothly.

Thus i believe the organization must carry on its functions maintaining a balanced equation between the shareholders and the stakeholders.

Reference

1.      B.Mallen.(2004) Corporate Social Responsibilty(online) http://www.mallenbaker.net/csr/definition.php (Accessed on March 6, 2013)

2.      Online library (2013) Organization Purpose (online) http://smallbusiness.chron.com/difference-organizational-purpose-objectives-36051.html (Accessed on march 5, 2013)