IB Business management example essay, Essays (high school) of Business

Download IB Business management example essay and more Essays (high school) Business in PDF only on Docsity! Evaluate the usefulness for Texas Instruments of having ethical behavior as a key objective at all levels of business. [10] Texas Instruments also known as TI, is an American company that manufactures a diverse range of electrical products including calculators and military equipment. It is a very big company since it employs 30,000 people in 30 countries. One of its key objectives at all levels of business is ethical behavior. Ethical behavior is basically when a company operates according to fair and transparent standards not just complying with legal rules or regulatory requirements but going above and beyond to ensure decisions through an ethical lens. This type of business is also known as CSR or corporate social responsibility. However, there are many advantages and disadvantages to having a CSR business such as the Texas Instruments. One of the advantage is that being a CSR business improves staff morale and motivation to work. For example, Texas Instruments always helps employees make tough but appropriate decisions quickly by providing a variety of tools. However, it is a limitation that we do not know what kinds of tools from the text which makes it hard to analyze if these are useful to the employees or to what extent it is helpful. This is important to analyze how ethical the company is towards its employees and if there is any greenwashing. The tools make sure they have a clear understanding of global rules and the company's ethical regulations, ethics, values, and principles. It also motivates them to work harder as the company has ethical behavior, which allows the employees to have a stronger sense of identity with their company when they believe the company is socially responsible. Employees will be pleased to be on the job and feel a stronger connection to the task they are performing. This will increase the productivity of the employees in general leading to higher output levels which in turn leads to the company reaching all its goals and creating more profit. Another advantage is a better corporate image of the business in general. Corporate image also known as brand image is the set of beliefs, attitudes, and perceptions the public has about the company or brand. Essentially, how the public interprets the set of signals coming from the products, services, and communications emitted by the brand. For example: Texas Instruments is known to have ethical objectives and follow them earnestly. This creates an ethical corporate image that may be perceived as remarkable by the public since its values and beliefs are claimed to be ethical. Due to this, their sales can be increased as the customers might want to help or buy from a company with such ethical values. This will also help them to stand out from their competition and it will also make customers trust the business and identify with it. This is very important as it also adds to the value of the brand in the eyes of the product which can create more profit for the business. One of the disadvantages is that products are more expensive compared to the competitors. For example in the case of Texas Instruments, due to extra cost going into having an ethical office with an ethics director and staff, the cost of operating increases which in turn increases the price of their calculators and military equipment. This is bad since it can discourage customers from buying products from a business, causing a loss in sales. Even if the profit and revenue goes up as a result, fewer sales can cause disruptions with staff as a business may be overstaffed after the change for example. It can also cause the business to review negative emotional feedback or negative feedback online which can prevent new customers from coming in which results in lower sales as well. Another disadvantage is that a CSR business has to maintain its image otherwise customers will scrutinize it. For example, if the feedback collected by Texas Instruments is rumoured to be biased due to asking only specific shareholders for feedback, might tarnish their cooperate image which they built by following ethical principles for years, and may also reduce the sales overall. Most importantly, nowadays consumers are much more conscious about the social and environmental impact of companies they support or buy products, and incidents like this may break their trust in the company reducing the amount of loyal customers and negative feedback. They can translate to reduced market share and lower profitability due to customers moving to competitors. Additionally, it would have been nice if the case study had information about the image of the company to analyze how much of a risk this con is currently for the company and if any major competitors are threats currently. By comparing the pros and cons, it can be seen that Texas Instruments being a CSR company or a company with ethical behavior as a key objective can serve as an advantage more than a disadvantage as such a company is better for the earth as it is more sustainable and for the people living in it. Some advantages are that it can improve staff morale and also provide a better corporate image. This can in turn boost the company's profits and sales. However, there are also disadvantages such as the products might be more expensive and the company has to be very careful with it image. This is important to understand as understanding the pros and cons before taking a step in a company is very important to understand if it is beneficial for you in general and in the long term.