N221 Business Management : Managing the Risks of Organizational Accide

A mind map is a visual representation of knowledge. The central point in the map should be a chosen company which you will discuss and represent in the mind map in relation to the two issues that arose such as Ethics and CSR, and Organisational Culture. You need to find your own company from any recent media sources (January 2016-May 2017). The map will demonstrate your knowledge of the maximum of two theories related to these ideas. This mind map will form the basis of your plan for the second part of your assessment.

Answer:

Business ethics and Corporate Social Responsibility (CSR) as well as Organizational Culture are considered as the pillar of the brand image of any given organization. The theories of ethics and CSR as well as organizational culture are capable of determining most suitable and ethical approach of business operation. It helps to maintain an ethical business pathway for every business organization. In this context, the current report is focused on identifying how the theories of ethics and CSR help to analyze their business operation and assist to adopt most ethical business operation. Moreover the organizational culture theory has the ability to direct the organizations to adopt most suitable organizational environment and operations within as well as outside the organization. In this context, the business operations of Well Fargo will be analyzed in the light of principles of ethics and CSR as well as organizational culture theories. It will help to attain greater insight on the implementation of the theories of ethics and CSR as well as organizational culture. In order to reflect the relationship between these theories with the business operation a mind map has been depicted below:

Organizational Ethics and CSR plays a significant role to maintain a successful and smooth business pathway for the organization (Weiss 2014). According to the theory of ethics and CSR there are several principles, which determine the ability of the organizations to perform successfully. These principles are divided in two parts which are mentioned below:

• Effective Business ethics
• Effective Corporate Social Responsibilities

The business ethics help the organization to make moral judgment regarding its business operation. It also influences the organization to attain greater leadership capabilities and employee cooperation. The business ethics are also directly related to enhanced profitability in both of the long and short term (Bowie 2017). The business ethics is also a paramount factor for establishing the reputation of the business from the individual investors, other businesses as well as surrounding community. Considering the business operation of Well Fargo it has been identified that the organization has a very poor ethical consideration within their business activities. The organization is highly focused on its profitability and business growth. In order to achieve this growth, the management incorporates severe work pressure to its employees. Few days back the employees were forced to participate in scam activities for showing the business growth to its central management. This particular event is considered as the most scandalous failure of the business ethics of Well Fargo.

On the other hand, corporate social responsibility focuses on various business activities, which are aimed to improve the condition of employees as well as communities (Carroll 2015). In this context, the organizations are noted to partake in various social welfare activities. It has been also identified that majority of the organizations concentrates on satisfying the employees as an activity of CSR. In the contemporary world the CSR approach defines the level of brand image for any organization. Lots of organizations also use CSR activities as a mean of advertisement, as it creates greater popularity and brand awareness within the populace. There are several branches of CSR approach, which is crucial for incorporating greater structure for business operation (Pedersen 2015). These branches are mentioned below:

• Sustainability
• Self-Policing
• Long Term Planning
• Market Knowledge
• Organizational Resources
• Business Goal
• Management Sincerity

It has been identified that Well Fargo has been adopted a high poor sustainable business structure. In the competitive market the organization has created an immense pressure to meet the non-achievable target. The pressure and authoritarian attitude would never help the organization to continue its business operation in the further future (Carroll 2015). Therefore, it can be easily understood that the lack of sustainability immensely affects the brand image of the organization. In addition to that, the organization has also failed to police its business activities. Recent scandal of fake account creation in the name of existing customers has prove that self-polishing is an imperative factor for creating an impressive brand image. In this context, it has been also identified that the lack of sustainable approach has also hindered the planning for long term (Pedersen 2015). However, it cannot be refuted that the organization has tremendous market knowledge. The management body of the organization has greater experience in the banking as well as finance sector. Despite of the fact the organization has not been able to provide greater financial security to its clients. Well Fargo has greater pool of physical, financial as well as human resource. The adequate resource helps the organization to attain most effective brand image among the populace. On the other hand, the management body of Well Fargo does not have a sincerity to maintain a proper structure and activities of CSR.

The organizational culture is also an imperative factor for the success of any given organization. It is most essential to promote a friendly as well as professional business environment within the organization (Alvesson and Sveningsson 2015). The organizational culture is also crucial for enhancing the production as well as profitability of the organization. The organizational culture is highly depended on the organizational values, which define the actual focus of the business strategy (Schneider et al. 2013). The values are directly linked with the organizational ethics. Given the focus of the organization is acquiring business growth at any cost, the organization incorporates authoritarian management. It has been critical for hindering the Well Fargo’s ability of creation. It limited the ability of the organization to administer innovative ideas into business (Hogan and Coote 2014). The organization adheres to aggressive cultural profile, which put high emphasis on the monetary profitability. Well Fargo does not incorporate demonstration strategy to enhance the understanding of business focus. It creates confusion among the management as well as employees (Reason 2016). However, the attractive campus and building design provides greater sense of precious artifacts to its employees. The organization also has a greater ability to incorporate change in the organizational culture. The dictating management strategy helps the organization to force the employees to adopt cultural change.

Reference:

Alvesson, M. and Sveningsson, S., 2015. Changing organizational culture: Cultural change work in progress. Routledge.

Bowie, N.E., 2017. Business ethics: A Kantian perspective. Cambridge University Press.

Carroll, A.B., 2015. Corporate social responsibility. Organizational Dynamics, 44(2), pp.87-96.

Hogan, S.J. and Coote, L.V., 2014. Organizational culture, innovation, and performance: A test of Schein's model. Journal of Business Research, 67(8), pp.1609-1621.

Pedersen, E.R.G. ed., 2015. Corporate social responsibility. Sage.

Reason, J., 2016. Managing the risks of organizational accidents. Routledge.

Schneider, B., Ehrhart, M.G. and Macey, W.H., 2013. Organizational climate and culture. Annual review of psychology, 64, pp.361-388.

Weiss, J.W., 2014. Business ethics: A stakeholder and issues management approach. Berrett-Koehler Publishers.