Consider these arguments in terms of culture, motivation, and Essay

Consider these arguments in terms of culture, motivation, and strategy, and comment on their substance. You should also reflect - Essay Example The paper also seeks to reflect on how power is exercised in organisations in relation to moral values. The paper begins by explaining the concept of culture in view of the arguments raised by Stiglitz. The paper will also critically analyse how motivation of the people as well as the strategy implemented have a bearing in the way financial institutions are operating during the contemporary period in USA in particular. Culture is the most basic cause of a person’s wants and behaviours. â€Å"This is commonly referred to as a set of basic values, perceptions, wants behaviours learned by a member of society from the family and other important institutions,† (Kotler & Armstrong, 2004). For instance, the following values are given priority in the United States of America: achievement and success, activity and involvement, efficiency and practicality, progress, material comfort, individualism, freedom as well as humanitarianism. The success or failure of a given organisation can be attributed to this concept of culture. However, Stiglitz argues that individualism and market fundamentalism have eroded the sense of community and have led to exploitation of the ordinary people. ... In actual fact, the approach taken by the banks is that which advocates the survival of the fittest. Whilst the free market concept posits to the effect that the market forces should shape the standards expectations especially of financial institutions, it can be argued that the conditions set are favourable to the business organisations which leaves the ordinary people exposed to manipulation by these big businesses. The aspect of materialism has increased dramatically in the operations of financial institutions and this has posed a serious challenge to the ordinary people who end being victims especially during turbulent periods that can be attributed to the strategies implemented by the financial institutions. Whereas marketers in the other industries worry about the impact of culture on their strategies, financial institutions in USA are primarily concerned with entrenching the aspect of individualism in their operations (Kotler & Armstrong, 2004). Stiglitz argues that rugged ind ividualism combined with a high degree of materialism has led to loss of trust among the members of the society and different financial institutions. The aspect of culture and moral values can also be attributed to the concept of ethics. Business ethics loosely refers to values, principles and standards that operate within a particular organisation which attempts to make a distinction between something that is morally good from bad (Rossouw, 2004). The concept of business ethics therefore derives from the value system that is used by a particular organisation to shape its operations. To reinforce this assertion, DesJardins (2006, p. 5) describes values as the â€Å"essential and enduring tenets†

Corporate governance and social responsibility investment Essay

Corporate governance and social responsibility investment - Essay Example It is conceivably foreseeable that crises lead to calls for improved regulation of business actors, such as the debate over the world economic predicament. Nevertheless, such methodical crises are unusual. On the other hand, company failure following a wrongdoing is a more frequent occurrence. For illustration, Maxwell and BCCI in the UK, WorldCom and Enron in the United States and Bayerische Hypo- und Vereinsbank of Germany are examples of corporations that have collapsed as a result of wrongdoing. Such corporate scandals have resulted in the establishment and improvement of company governance codes, which are put in place to monitor corporate conduct generally, and act of corporate directors in specificity (London stock exchange, 2012). The codes are either wholly voluntary such as the financial reporting council of 2008 in the United Kingdom, or a mixture of legal and voluntary elements like the 2008 German code. As thus, they may be taken as apparatus of flexible law or a mixture of soft and inflexible law. Within the code elements, individual rules might be flexible or rigid. Advocates of flexible law of explanation assert that it has fundamental flexibility, which is not present in rigid laws and the aspiration to conform to societal norms yields indisputable observance. Flexible laws are the rules of conduct that have no lawful obligatory force, which may have practical upshots. Though corporations and their directors may opt to conform or not match flexible law, a generally held supposition is that actions are more likely to be consistent with codified regulation and declarations of best practice. Since flexible law is not lawfully obligatory, its execution has to solely rest on the goodwill of those agreeing to and affected by it. Apparently, where such goodwill is not present, flexible law may result in flexible observance. Where benevolence and the aspiration to conform subsist, conformance may not be the most practicable alternative for corporations and their directors. They may set out that the doctrine supporting a specific regulation on bets practice will be best served by non-conforming. In addition, they might be safeguarded from conforming for reasons beyond their control (The European voice of directors, 2012; Australian council of super investors, 2010). The use of prudence to establish conformance or non-conformance may be helpful to both regulators and the regulatees. Comply or explain may assume several forms. Compliance means severe observance to every detail of the rule or to the primary rule, or both. Germany advocates the formation of an audit committee to act as the oversight of the entire audit process in a large company. Non conformance is commonly warranted by the resort to firm-or industry level specifics, or against the judgment of definite code terms. The flexibility of the laws, that is, â€Å"explain† might lead to corporate scandal and eventual collapse. For illustration, the yearly report by th e Hypoereinsbank (Germany) vindicated its non-conformance (explain) with the certain rules necessitating that directors’ and officers’ responsibility insurance has a deductible with the plain statement: â€Å"responsible act is an understood obligations of the members, no deductible is needed for that. In the same