The Dynamics of Social Responsibility


The various stakeholders of a firm can be divided into inside stakeholders and outside stakeholders. The insiders are the individuals or groups that are stakeholders or employees of the firm. The outsiders are all the other individuals or groups that the firm’s actions affect. The extremely large and often amorphous set of outsiders makes the general claim that the firm be socially responsible.

Perhaps the thorniest issues faced in defining a company mission are those that pertain to responsibility. The stakeholder approach offers the clearest perspective on such issues. Broadly stated, outsiders often demand that insider’s claims be subordinated to the greater good of the society; that is, to the greater good of the outrsiders. They believe that such issues as pollution, the disposal of solid and liquid wastes, and the conservation of natural resources should be principal consideration in strategic decision making. Also broadly stated, insiders tend to believe that the competing claims of outsiders should be balanced against one another in a way that protects the company mission. For example, they tend to believe that the need of consumers for a product should be balanced against the water pollution resulting from its production if the firm cannot eliminate that pollution entirely and still remain profitable. Some insiders also argue that the claims of society, as expressed in government regulation, provide tax money that can be used to eliminate water pollution and the like if the general public wants this to be done.

The issues are numerous, complex, and contingent on specific situations. Thus, rigid rules of business conduct cannot deal with them. Each firm regardless of size must decide how to meet its perceived social responsibility. While large, well-capitalized companies may have easy access to environmental consultants, this is not an affordable strategy for smaller companies. However, the experience of many small businesses demonstrates that it is feasible to accomplish significant pollution prevention and waste reduction without big expenditures and without hiring consultants. Once a problem area has been identified, a company’s line employees frequently can develop a solution. Other important pollution prevention strategies include changing the materials used or redesigning how operations are bid out. Making pollution prevention a social responsibility can be beneficial to smaller companies. Publicly traded firms also can benefit directly from socially responsible strategies.

Different approaches adopted by different firms reflect differences in competitive position, industry, country, environmental and ecological pressures, and a host of other factors. In other words, they will reflect both situational factors and differing priorities in the acknowledgement of claims. Obviously, winning the loyalty of the growing legions of consumers will require new marketing strategies and new alliances in the 21st Century. Many marketers already have discovered these new marketing realities by adopting strategies called the “4 Es.” 1) make it easy for the consumer to be green, 2) empower consumers with solutions, 3) enlist the support of the consumer, and 4) establish credibility with all publics and help to avoid a backlash.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, Line of Sight

Balancing Positive and Negative Motivational Considerations


If a strategy implementer’s motivational approach and reward structure includes too much stress, internal competitiveness, and job insecurity, the results can be counterproductive. The prevailing view is that manager’s push for strategy implementation should be more positive than negative because when cooperation is positively enlisted and rewarded, rather than strong-armed by a boss’s orders, people tend to respond with more enthusiasm, effort, creativity, and initiative. Yet it is unwise to completely eliminate pressure for performance and the anxiety it evokes. There is no evidence that a no-pressure work environment leads to superior strategy execution or sustained high performance. There is a deliberate policy to create a level of anxiety. Winners usually play like they’re one touchdown behind. High performing organizations need ambitious people who relish the opportunity to climb the ladder of success, love a challenge, thrive in a performance-oriented environment, and find some competition and pressure useful to satisfy their own drives for personal recognition, accomplishment, and self satisfaction. Unless compensation, career, and job satisfaction consequences are tied to successfully implementing strategic initiatives and hitting strategic performance targets, few people will attach much significance to the company’s vision, objectives, and strategy.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, Line of Sight

Social Butterflies as Connectors


Connectors are people who have a large number of social connections. They are individuals in the organization who seem to know everyone. In management jargon, they are well-networked individuals who have contacts with people from a variety of backgrounds.

 Connectors are pretty unique individuals. Not everyone is a connector. Connectors have a large number of acquaintences, not necessarily their close friends. These are what are known as ‘weak ties’—friendly yet casual social connections. In an organization, connectors wield enormous influence and clout because of their contacts—both within and outside it. This is what makes connectors crucial in change management. If connectors become convinced about the change effort and are enthusiastic about it, they will pass on their enthusiasm to all their contacts, thus spreading the message of change very effectively. Therefore, an organization needs to identify its connectors first, and enlist their support for change.

 My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, Line of Sight