The concept of Corporate Responsibility has been defined as 'An Essay

The concept of Corporate Responsibility has been defined as 'An umbrella term embracing theories and practices relating to how - Essay Example The society plays a very important role towards the success of a given business. The goods and services provided by a given business organization will be of value to the organization if they can be marketed within the society. The economic status of the society will determine the types of businesses that are likely to prosper in the area. The extent to which a given society reflects what is observed in the international market will influence how a given organization can adopt the international standards. Origin of corporate responsibility The market is characterized by high level of competition with the needs of customers constantly changing. Successful organizations are those that continuously monitor the changing market trends and making the adjustments as they are observed (Zadek, 2004, p.1). As a way of gaining competitive advantage, a business organization would be prompted to develop its reputation within a given society by giving back to the society (Warburton, 2004, P.2). The organization can decide to initiate charity programs aimed at social development like providing some free education scholarships or providing healthcare services to some vulnerable community (Metaxas & Tsavdaridou, 2010, p1). The views of every stakeholder in the organization need to be sought in developing these adjustment mechanisms. These are then applied towards the general development in the society. The contributions that a business organization has towards the improvement of the society have been a point of concern for the scholars, politicians and the common person in the recent years. Over a long period, ideas had been developed by businesses that suggest a need for them to contribute to the development of the society. Various organizations had opted to use their assets to improve the living standards of their employees (Blowfield, Blowfield, and Murray, 2008, p.12). These initiatives generated a mixture of views relating business to the society. It was acceptable that the businesses operated to generate profits by meeting the customer demand. However, it was noted that there would be lack of control over the amount of profit to be gained and the quality of the products given by the businesses (Blowfield, Blowfield, and Murray, 2008, p.12). Issues arose concerning the prices of goods and even the wages for the employees of an organization as to who should be responsible for setting the standards. There has also been a question as to whether the business should actually give back to the society. An attempt to derive a solution to these conflicting issues called for what we term as corporate responsibility. This involves the participation of various parties in ensuring that business activities are carried out in a manner that does not violate the rights of the individuals in the society and that it contributes to the general wellbeing of the members of the society (Taming the Corporation, 1998). The government is one such party that intervenes to enact legislations that govern procedures like wage and price establishment by the companies (Tuccille & Stone, 2003, p.6). The kind of management and leadership in the organization and specifically the roles of the leaders in the business are then important issues to be addressed. The overall responsibility of the company/organization is also considered in examining what constitutes corporate respon

Risk Management College Essay Example | Topics and Well Written Essays - 1000 words

Risk Management College - Essay Example When the market goes up by 10%, stock B goes down by 3%. A combination of the two stocks will reduce total potential returns (since stock B is under-performing), but also reduce portfolio viability as compared to market changes. Whereas the two stocks are influenced by the market (which is the very definition of systematic risk), they change in opposite directions, which will reduce total portfolio risk. No, portfolio diversification to betas cannot entirely remove potential market risks. While unsystematic risks are eliminated in a larger portfolio, market risks still that affect most of the assets/stocks in a portfolio are not. Even entirely diversified portfolio stocks are vulnerable to market changes. Furthermore, beta coefficients are more reliable for short-term risk-assessment and can be misleading in the long-run. This is so, because beta coefficients mostly reflect past price movements, and are not reliable indicators for assets/stocks with no or recent price history (McClure, B., 2004) IPO, or the Initial Price Offering is the process of bringing private companies to the public market for the first time. The IPO represents a significant stage in the growth of a company, because it provides access to public capital markets and increases company credibility and exposure. Companies usually decide to go public because they need access to additional capital to implement long-term business strategies or use funds for acquisitions. Furthermore, this is capital that does not have to be repaid and does not involve interest payments. IPO also gives opportunities for new future stock offerings. Companies go public also to get media attention. Nowadays IPOs are used as marketing instruments to increase public awareness, and enhance brand name recognition. In other cases companies may go public to change management style and settle managerial problems using the challenging approach of capital restructuring. Task 4: What Steps Are Involved With Taking A Company Public When a company wants to offer their stock to the general public for the first time, the first step is the announcement of its intent (1), and then it usually asks an "underwriter"(2) - usually an investment banking company - to undertake this operation - in return for a fee. The underwriter agrees to pay the issuer a certain number of shares at a certain price, and then resell those shares to buyers. The underwriter and the issuer set a tentative date, and issue a preliminary prospectus (3) is with financial and business information about the issuer. The underwriter then gives presentations to people from the brokerage industry (4) to present good investment opportunities. The issuer then releases the stock to the underwriter (5), and the underwriter releases the stoc