Submission of Summative Assessment

Assessment Detail

Module Code and Tittle HR5066NP Organization Design and

Management
Course Tittle BA (Hons) Business Administration
Level 5
Cohort Spring 2023
Credit Semester Long
Component Comp 001
Weight 30%
Assessment Tittle Individual Written Report (1000Words)
Module Lecturer Mr. Jeevan Pahari

Submission Detail:

Student’s Name/s University ID

Anish Bhandari 22015997

Date of Submission 16th March 2023

Words Count 675
1. Research the two theories of business ethics - shareholder and stakeholder, and their
impacts on a business organisation.

Business ethics refers to a set of moral principles and values that guide the behaviour of
individuals and organizations in the business world. It provides a framework for
conducting business activities that are fair and just, and that take into account the
interests of all stakeholders. There are two main theories of business ethics:
shareholder theory and stakeholder theory.
Shareholder Theory
According to shareholder theory, a company's main goal is to maximize shareholder
value. This argument contends that a corporation's sole duty is to maximize profits for
its stockholders, and that any conduct that does not directly further this objective is
immoral. The company's owners are its shareholders, who invested their money in the
enterprise with the hope of making a profit.

The impact of shareholder theory on a business organization is that it focuses on short-

term profits and ignores the interests of other stakeholders, such as employees,
customers, and the community. Companies that adhere solely to shareholder theory
may engage in unethical practices such as exploiting workers, cutting corners on safety
regulations, and damaging the environment, as long as it benefits the shareholders.

Stakeholder Theory
Stakeholder theory, on the other hand, asserts that a business has a responsibility to
consider the interests of all stakeholders, not just shareholders. According to this theory,
a company should create value not only for its shareholders but also for employees,
customers, suppliers, and the community. These stakeholders are affected by the
company's actions and have a legitimate interest in how the business operates.
The impact of stakeholder theory on a business organization is that it promotes long-
term sustainability and ethical behaviour. Companies that adopt stakeholder theory are.
Companies that adopt stakeholder theory are more likely to create value for all
stakeholders more likely to prioritize the welfare of employees, provide high-quality
products and services to customers, and contribute positively to the community and the
environment. This, in turn, can lead to increased customer loyalty, brand reputation, and
profitability in the long run.
Conclusion
In conclusion, both shareholder theory and stakeholder theory have their own impacts
on a business organization. While shareholder theory focuses on maximizing profits for
shareholders, stakeholder theory promotes a more holistic approach that considers the
interests of all stakeholders and promote ethical behaviour, leading to long-term
sustainability and profitability.

(Cragg, 2002) (Valentinov, 2022)

2. Examine the concept of CSR and its relationship with staff engagement.( internal
environment )

A company's obligation to conduct business in a way that benefits society, the

environment, and its stakeholders, including employees, is known as corporate social
responsibility (CSR). Due to increased consumer, investor, and employee awareness of
how businesses affect society and the environment, CSR is a crucial idea that has
attracted a lot of attention in recent years.

Any organization's performance depends greatly on the level of staff involvement.

Employees who are actively engaged are more creative, innovative, and dedicated to
the company's objectives. Through the creation of a feeling of purpose and connection
with the company's values and objectives, CSR may significantly contribute to
increasing employee engagement.

Companies that prioritize CSR initiatives and communicate the impact of their efforts to
employees are more likely to see increased engagement and loyalty from their staff. For
example, a company that focuses on sustainability and environmental responsibility can
engage employees by offering recycling programs, reducing waste, and promoting
sustainable practices.
Additionally, companies that give back to their local communities through volunteer
programs, charitable donations, and social initiatives can also create a sense of pride
and engagement among employees. By demonstrating a commitment to social
responsibility, companies can attract and retain top talent who value working for an
organization that aligns with their values.

In conclusion, CSR and staff engagement are closely related concepts. Companies that
prioritize CSR initiatives can increase engagement and loyalty among employees by
creating a sense of purpose and alignment with the company's values and mission.

As a result, CSR can have a positive impact on both the company's bottom line and its
social and environmental impact.
(Buchanan & Huczyncki, 2017)

CORPORATE SOCIAL RESPONSIBILITY (CSR) is a business model by which

companies makes