Corporate Social Responsibility and Governance- myassignmenthelp

Question: Discuss about theCorporate Social Responsibility and Corporate Governance. Answer: Case background Byte products limited is company operating in the computer hardware industry and is currently facing a supply demand problem in the country. They have 32% market share in the industry. The existing three plants of the company are not efficient enough to meet the market demand target. Therefore, the company CEO Mr. James has came to conclusion to source a plant in Plainville for 3 years. However, one of the Board member is strictly against of the decision. Case issues and objectives The argument of the two board members is over that they are going to commit a irresponsibility toward the people who will gather in Plainville attracted towards job opportunities they will find in the factory hardware. The objective of the case is to analyse the level of corporate irresponsibility they will perform while taking the plan to action and the legal aspect of the decision (Esposito 2012). The ethical values of the companies; facing similar situation and impact of the strategic decision in the future employee and the people of the town. The corporate governance in action power of negotiation backed by strong values and insights Problem statement analysis The dilemma of the case lies in the decision of expanding the business in Plainville where there is a old non functioning factory to use. The only concern regarding the decision is of Mr Williams who points out that the company is side stepping its corporate social responsibility while divulging in the decision (Rahim 2013). After building the plant in Plainville, they will attract 1200 people and 4000 more including the family of the labours. However, the decision is very risky to stay in Plainville for more than 3 years. In addition, the board members have agreed this plan is temporary to stay in the area. After 3 years they will uproot their business from the plant while setting the plant elsewhere, where their will not be any sacrifice in cost and profitability. The CEO of the company does not want to take the decision further if there is any chance of unrecoverable risk factor involved. Theories and application of corporate legality vs. corporate responsibility Forecasting the strategic decision taken for the sake of the future employees will give the CEO an insight to the profitability decision. The lack of planning has pushed the company to face the dilemma of the current situation they are involved. The stopgap solution has some risk involved as having the high labour cost, new warehouse cost, and presence of strong union in the territory can bring down the forecasted profitability (Brammer Jackson Matten 2012). Having known the job is temporary can involve apathy among the labour, which can lead to low quality products and high turnover. Not knowing the temporariness of the job can lead to bigger legal problem in the future for the company (Lanis Richardson 2012). Employee relationship will be difficult to manage in the current business scenario. That is why the Board executive Mr. Williams opinion and views regarding the scenario needs to be taken into account while taking the final decision and forecasting any the reverse opportunity. Recommendation Opening a new temporary plant is needed to extend the capacity. Opening the temporary plant in the Plainville, while seeking other permanent option is also suggested. The responsibility of the company will be to offer an alternative job opportunity at the new permanent plan. That way they can ensure the prospective reputation of the company remain intact. This will also increase the CSR value of the company. Reference Brammer, S., Jackson, G., Matten, D. (2012). Corporate social responsibility and institutional theory: New perspectives on private governance.Socio-economic review,10(1), 3-28. Esposito, R. T. (2012). The social enterprise revolution in corporate law: A primer on emerging corporate entities in Europe and the United States and the case for the benefit corporation.Wm. Mary Bus. L. Rev.,4, 639. Lanis, R., Richardson, G. (2012). Corporate social responsibility and tax aggressiveness: An empirical analysis.Journal of Accounting and Public Policy,31(1), 86-108. Rahim, M. M. (2013).Legal regulation of corporate social responsibility: A meta-regulation approach of law for raising CSR in a weak economy. Springer Science Business Media.