Discuss whether shareholders are prepared to sacrifice short term dividends for developing products or services that have longer-term beneficial social or environmental advantages
Shareholders are the owners of a business and are the ultimate decision-makers on the direction of a company. While the management of a company has the day-to-day decision-making power, shareholders guide the strategy, financing and selection of management of the firm. In many cases, shareholders are the management of the firm. Shareholders also receive the benefits of dividends and the appreciation of the company's value.
The socially beneficial actions may reduce a firm’s business expenses by an ...view middle of the document...
This three-dimensional view of a company’s performance has come to be known as its “triple bottom line”: “the traditional bottom line of financial performance (most often expressed in terms of profits, return on investment of shareholder value)” plus two additional bottom lines reflecting the business’s environmental and social performance.
Discuss the extent to which it is possible to collaborate with pressure groups that seek to change the approach of the business to social and environmental matters.
A pressure group may be defined as any organisation which seeks through a variety of methods to influence public policy and decisions at local, national, European or international levels, usually within a particular, quite limited sphere. We may note also that many pressure groups may in some circumstances seek to defend their member’s interests or to advance their particular cause via appeals to the Court. Pressure groups are organisations set up to try to influence what we think about the business and its environment.
A pressure group can challenge and even change the behaviour of a business by: writing letters to local MPs, contacting the press or media, organising by marches and running campaigns.
Pressure groups have been classified in a variety of ways such that we may distinguish in principle between the following different kinds of pressure groups;
* Primary pressure groups and secondary pressure groups
* Sectional pressure groups [sometimes called interest groups or protective
* And cause or promotional pressure groups and hybrid groups
* Insider pressure groups and outsider pressure groups
* Peak or umbrella organisations
* Local, national and international pressure groups
* Permanent and temporary pressure groups
And there is organisation like Primark responsible for social and environmental, and their pressure comes from two main sources:
* Internal to the business.
* External to the business.
Internal pressures are the most important ones in driving change for organisation like Primark. The decision-makers in Primark ensure it works towards sustainability and its corporate social responsibility (CSR) stance and Primark has initiated a programme of activities which supports its corporate social responsibility (CSR) stance and ensures that its trading meets the company’s values and ethical standards. The HERproject in Bangladesh is an example of how Primark is actively seeking to make positive changes in the lives of its supplier workforces with local communities. Another internal pressure comes from the company's aims to attract and retain the services of the most appropriately skilled individuals. By showing it behaves responsibly with regard to the environment and the communities it works in, it can attract the widest range of people to the organisation, like In Bangladesh, over 50% of the manufacturing workforce is made up of women. The jobs available to women in garment factories...