Social Performance of Organizations
The purpose of this paper is to study relationship correlations between business and society as in an interactive system. Develop and recommend to stakeholders’ impact of the end-goals of business and society at-large. Evaluate techniques all stakeholders use to determine the roles and responsibility of each party comprising the stakeholders. Compare and contrast the different ideals of corporate social responsibility and citizens. Scrutinize ethical issues that can affect the various levels of a business.
Social Performance of Organizations
Nature, Structure, and Services Offered by the Company
Kroger Company was founded in Ohio by Barney Kroger in the year 1883. He opened a grocery store which was located at 66 pearls at the cost of $372 of his life savings. The Kroger Company developed from one store to over 3000 stores selling various products (Sias et al. 1). Currently, it is one of the largest drugs and food retailers in the US. The Kroger Company has grown to be one of the best retailer stores in the country dealing with food and pharmaceutical products. 14 boards of directors govern the company. The Board appoints the chief executive officer and top managers to run the day to day operations of the company. Kroger run of the hierarchical management style where each manager is assigned to manage a given department and is answerable to the CEO, who is answerable to the Board (Sias et al. 1). The company is a leader in corporate social responsibility through observing environmental awareness and creating social awareness. The company is committed to meeting its client's preferences and demands focusing on business growth and building diversity among his employees.
External factors contributing to the success of the business
Various factors affect the external operation of an organization. At equal measures, external factors can also contribute to the success of a company. The external factors mostly include economic and political factors (Cooper & Stuart, 45). Adverse economic factors interfere with the daily operations of an organization. In this regard, the Uber Kroger's groceries Nike have external factors that contribute to its success. The company over the years has had an increase in their product owing to the favorable economic and political environment in the country. This has helped the company to expand its operations to every corner in the state. The company has over 3000 stores in the U.S only (Sias et al. 1). This is credited to the favorable policies put in place that favors business operations including production and sales. With the reduced cost of operations and increasing insurance cover in the U.S through universal health coverage, people can pay for healthcare services and pharmaceuticals, and this acts as a boost to the company. Consequently, the company has managed to reduce bad debts, increase its supply as well as its market share. On the contrary, increased business rates are detrimental since customers incur extra cost thus reducing their purchasing power. Kroger’s groceries have marked an increased number of clients making orders from its stores due to favorable economic conditions. This has helped the business grow over the years.
The other factor that has influenced the success of the business is the political factor. The Uber Kruger’s groceries Nike get supplies from different countries. In the case of political instability in the countries where the Kruger’s groceries import their products, it implies that the performance of the organization will be negatively affected (Rott and Vibe 415). Consequently, the company will not have products to supply to its customers. Also, this will adversely impact the relationship between the company and the clients which may reduce the preference on the Company’s products and services. Moreover, the organization also faces some of the political pressure within the United States.
In the year 2010, the United States government banned the importation of some of the products that unfortunately Uber Kruger’s groceries Nike deal with in its chain stores (The Kroger Co 12). It was argued that some of the products from outside countries were not fit for consumptions. Consequently, such factors affect business negatively. As such, the organization was forced to come up with an alternative way of getting different products to satisfy the needs of their customers.
Influence of Primary Stakeholders to the Organization
Primary stakeholders play an important in the running of an organization. The stakeholders influence the company's financial performance using the powers bestowed in them. To this effect, stakeholders impact the day to day operations of Uber Kruger’s groceries in different ways including:
Customers. Long term customers and those that are satisfied by the quality of services offered by Kruger’s groceries have enabled a conducive environment for the business. They contribute towards business portfolio through profits gains and allowing its sustainability in the market (The Kroger Co 5). Kruger's groceries have devised a method where they use the customer’s management relations to come up with data that shows customer’s purchasing behavior. This helps the organization to target satisfied customers in the market hence; creating room for efficient while marketing and selling its products (The Kroger Co 5). Moreover, it helps to determine and understand the kind of customers they are dealing which helps to meet the demands and needs of the organization (The Kroger Co 5). As an organization, Uber Kruger’s groceries have developed habit-forming long-term relations with the customers since they are the key stakeholders.
Government and social responsibility. For any successful operations, the government needs to come up with strong leadership and policies that govern the activities of business such as coming up with clear objectives and visions of the organization (Gössling and Tobias, 78). The Kruger’s groceries over the years have increased their profits by developing a method of balancing environmental and social responsibilities. The company uses benefits achieved to come up with better plans of operations thus, creating a better image in the eyes of the customers. Kruger’s groceries have developed active roles with the communities to help other people in need as this will support the organization to address itself in the context of the community.
Employees. The employees in an organization also are essential stakeholders. The employees must be treated as an asset and always involve them when making important decisions in the organization (Gössling and Tobias, 83). Employees that are still motivated and appreciated by their employers will work towards satisfying customers and creating a better relationship with the customers. The employees will also work towards realizing the success of the organization. The support from Kruger’s groceries will create a better working environment and come up with different strategies.
Decisions made by the organization affect the local communities where it carries out its operations. The management of organizations always needs to make decisions that will favor the community. Kruger's groceries need to make decisions that will affect people positively and directly. Such choices may include coming up with charity programs, scholarship, environmental cleaning campaigns among others.
Business associate. Supply chain management includes different players in a business that has collaborated for the better experience of the customers. The Kruger’s groceries need at all times to keep a close relationship with other players who distribute the groceries to them. Valuing other organizations will put them in a position where they will be able to gain a competitive market advantage.
Controversy Corporate social responsibility
Corporate social responsibility stipulates how the business should handle its surround community and the environment in which it operates. Depending on this response, the company can either gain a positive or negative reputation regarding how they handle their day to day activities. The community at large is also be affected by the decisions that the company makes either directly or indirectly. The reception of the company by the customers also depends on how it brands its designed to reflect corporate social responsibility (StachowiczStanusch 145). For instance, the company may brand the product in a manner that the customers will not like it thus affecting its acceptability in the community.
One of the controversial issues that came up sometimes back with the Kruger’s groceries was the wrong rebranding of the products. The marketing team misled the customers by posting the wrong items on their website that was purchased by the clients. When the marketing team realized that they had deceived the customers, it became hard for them to tackle the issue since they anticipate potential product recall. Moreover, it was during peak hours, and the customers were expecting timely delivery of their products. In response, the team had to come up with different ways on how to handle the customers including; sending them a message informing them that they had marketed the wrong items (Epstein & Marc, 67). The customers were upset, and they asked for a refund while others commented negatively on the Kruger’s groceries website. This created a negative reputation on the company and consequently lost existing and potential customers coupled with a decline in the profit margins. The company had to come up with different means to convince the customers and build a better reputation. It is therefore essential for the organization to keenly follow their website post. This is because it potentially affects the company either positively or negatively. The company had to set on a new journey to convince customers to buy their products.
Cooper, Stuart. Corporate Social Performance: A Stakeholder Approach. Taylor & Francis, 2017. Pp 45
Epstein, Marc J. Making sustainability work: Best practices in managing and measuring corporate social, environmental and economic impacts. Routledge, 2018.67
Gössling, Tobias. Corporate Social Responsibility and Business Performance: Theories and Evidence about Organizational Responsibility. Edward Elgar Publishing, 2011. 78
Rott, Peter, and Vibe Ulfbeck. "Supply chain liability of multinational corporations?." European Review of Private Law 23.3 (2015): 415-436.
Sias, Matt et al. "Corporate Profile: Advanced Analytics At Kroger - Analytics Magazine." Analytics Magazine, 2018, http://analytics-magazine.org/corporate-profile-advanced-analytics-kroger/.
StachowiczStanusch, Agata. Corporate Social Performance: Paradoxes, Pitfalls, and Pathways To The Better World. IAP, 2015.pp 145
The Kroger Co. "Kroger Fact Book." 2015, http://ir.kroger.com/file/4004136/Index?KeyFile=1500086312. Accessed 7 Feb 2019.
The Kroger Co. "Notice Of 2018 Annual Meeting Of Shareholders 2018 Proxy Statement And 2017 Annual Report". 2018, http://www.annualreports.com/Click/23196. Accessed 7 Feb 2019.
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