Defines Social Reporting As an Important †Myassignmenthelp.Com

Question: How To The Defines Social Reporting As An Important? Answer: Introduction Kaur (2016) defines social reporting as an important part on of a business enterprise activities that have a social influence. It involves reporting of internal and external information which elaborates the impact that a business organization has on the society. According to The Social Report (2010), the social report uses applies statistical indicators to assess the changes in major social aspects of the lives of the people to get a clear understanding of the progress towards attainment of improved social status. The aim of social reports is to measure the benefits of an organizations business activities to the business and on the society. Social reports are beneficial to the internal users of the organization that is, the management and the external user who comprises of the investors and the shareholders and also have an impact on the prices of the shares. Social reports included the net income and contributions of the organization, human resource contribution, the impact of the organization to the public, contribution towards environmental conservation and the product or service contribution of the company The company selected are PepsiCo Food and Beverage Company and Microsoft Inc. which are based in America. These companies are recognized for their social responsibilities. Companies identified and their countries of operation PepsiCo Inc. Background information PepsiCo is a food and beverage company based in America. The company has its headquarters in New York. The founder of the company was Caleb Bradham who was a pharmacist. Bradham came up with the recipes for soft drink Pepsi in 1880s. He named his drink Pepsi-cola in 1898, and it gained a lot of popularity, and in 1902 he established Pepsi Cola Company. The company was declared bankrupt in 1931, and Charles Guth purchased the company. Guth was also the president of Loft In. which was a leading candy manufacturer. Loft Inc. sued Guth for his 91% shares in Pepsi-Cola, Loft Inc. won the case, and absorbed Pepsi-Cola in 1941 and formed Pepsi-Cola Company. In 1965 the company merged with Frito-Lay Inc. and changed its name to PepsiCo Inc. According to PepsiCo (2014) since 1965 the company has expanded its range of its food and beverage production and has merged with several other companies which include Tropicana Products and the Quaker Oats Company which has increased the variety of products of the company. The company markets its products in more than 200 countries and has maintained a good reputation all over the world. The company has employed close to 300,000 employees. Microsoft Inc Background information Microsoft was founded by Bill Gates and Paul Allen in 1975. The company is based in the United States of America with its headquarters in Redmond, Washington. The company is known for products such as Microsoft Window operating system, Microsoft Office, Xbox, and Bing. The companys operations include developing, manufacturing, licensing and supporting a variety of software products for computing devices. Microsoft and IBM formed a partnership in which Microsoft would install its operating systems in all IBM computers, and they would pay loyalty to Microsoft on every sale they made. The two companies agreed that Microsoft would write a new operating system for all IBM computers which was called OS/2. However, Microsoft continued selling their operating system which competed with OS/2 and gained much popularity in the market and made more sales than OS/2. In 1990s Microsoft innovated several versions of Microsoft Windows, and they gained 90% of the market share of the worlds personal computers. Differences between the PepsiCo and Microsoft regarding the range of issues the dealt with in their social reports. The social reports of the two companies have put into consideration their stakeholders who include customers and consumers, community, employees, investors and the government. The two companies have tried to address the issues that have an impact on any of the listed stakeholders. Their social reports primary focus on governance, management, sustainability and environmental protection, quality of their products, workplace safety and practice, human rights, compliance and ethical issues and community practice. Sustainability and environmental protection The sustainability approaches of the two companies are quite different PespsiCo Company sustainability policy focus on supporting institutions with programmes that aim at conserving the environment and also the company has invested in recycling and waste management programmes. Microsoft, on the other hand, has adopted the use of renewable materials in the production of its products as well as using renewable energy sources in its production. PepsiCo Further helps in managing environmental disasters that affect the people through donations. Considering that Microsoft is a technological company its main aim is to advance technology to ensure that the environment is conserved while PepsiCo Inc. is a food and beverage company and its main aim is to ensure that it protects the consumers by making sure that its products are environmentally friendly (Werther Chandler,2010) Quality of products PepsiCo Inc. approach to ensure that its products are of high quality is different from that of Microsoft Inc. PepsiCo tests and consumes its products and then endorses their quality. Microsoft, on the other hand, manufactures computer hardware and software and sells them to the consumers. The make their improvements based on the reports that they acquire from the customers. The quality of the products that PepsiCo produces is aimed at ensuring that the consumers health is well protected while the quality of the Products that Microsoft produces is aimed at ensuring that the products that the consumer enjoys efficiency in the use of computers through effective software and hardware. Communities PepsiCo Corporate social responsibility approach towards the community. The company values the community as their second most important stakeholder since they believe that the community influences the perception of the employees and the customers and consumers of the company. According to PepsiCo Foundation, (2010) the company has established a foundation that deals with various problems affecting the community. The company supports institutions that focus on environmental conservation such as The Earth Institute's Columbia Water Centre. PepsiCo Foundation has also participated in disaster relief and humanitarian support programmes by donating their products to the families and the communities in need, supporting the NGOs and employee contributions. Since 2013, PepsiCo Foundation has been part of the American Red Cross Annual Disaster Giving Program. According to PepsiCo Inc. (2015). PepsiCo also participated in helping the communities affected by the following disasters. Hurricane M atthew in the Caribbean and Southeast U.S., October 2016, Earthquake in Ecuador, April 2016 and Water Crisis in Flint, MI, 2016 among others. On the other hand Microsoft corporate responsibility on the community, they have given the community the lower priority compared to PepsiCo. Microsoft community programs include providing discounts to some customers while PepsiCo does not. Compliance and ethical issues PepsiCo Inc. and Microsoft Inc. operate in different industries, and therefore they have different compliance and ethical issues to comply with. Why the differences exists between the PepsiCo and Microsoft The issues discussed in the social reports of the two companies is largely due to the differences in their industry of operation. The two companies operate in the United States, but their focus is different. PepsiCo is a food and beverage company which markets its products in many countries in the world the countries have different regulations regarding the manufacture of food products and beverages, so the company has to adjust its production process to observe the regulations of different countries. Its approach corporate social responsibility aims at ensuring that the consumer and the community maintain a good perception of their products so that they can maintain their customers. The company also focuses on the better health of the consumers and therefore, its production is mainly aimed at ensuring that they produce healthy products for consumption. Food and beverages consumers have different tastes and preferences and therefore, thinned to have different products in the market. On the other hand, Microsoft is a technology based company, and the regulations that govern technology industry are different. Unlike the food industry technology industry is faced with stiff completion on the advancement of the products, to remain competitive in the market the company needs to keep on innovation better technologies. Thats why Microsoft prioritize their employees that the community. This is because their employee helps in innovation and thus help the company maintain a competitive edge over other companies. The main of Microsoft is to advance technology through continuous innovation of computer hardware and software. The use of software does not change anywhere in the world, and therefore, the Microsoft innovations are aimed at improving the existing software to improve its effectiveness and efficiency (Microsoft, 2017 c) Zadek approaches The social reports of both PepsiCo and Microsoft a common focus on stakeholders. The two reports address the needs the consumers, the community, employees, investors, and the government. The reports address the practices that the two companies that ensure that the needs of the listed stakeholders are met to ensure that remain satisfied. Both companies have used social reporting to transform the perception of the readers as well as the perception of all the stakeholders of the company. By changing the perceptions of the stakeholders, the company experiences a positive impact in its decisions, activities, and results. Transformational reporting has helped the two companies to drive changes in their organizations since every stakeholder takes the responsibility to commit to the report. The companies have engaged different stakeholders in their reports which is referred to as innovation in stakeholder engagement. The companies have used their social reports to communicate with different categories of stakeholders. The reports by the two companies are aimed at creating assurance to the public and to create trust in all stakeholders of the companies. Creating assurance helps in improving internal learning, skill development, and effective decision making. The extent to which the values of PepsiCo and Microsoft reflect in their reports According to PepsiCo Inc (2014), the company operated under the following principals Caring for their customers and the world- Besides being driven by a strong competition spirit the company looks forward to benefiting the both the company and its constituents. The company ensures that it has a better understanding of its customers needs as well as their communities in which they operate. PepsiCo is dedicated to selling products that they are proud of- the company tests and consumes its products to approve the credibility of the products they sell. By doing that the company has confidence in its products thus they ensure they maintain the quality of their products from the production to the consumption of their products. The company ensures that it speaks with truth and sincerity- the company communicates openly to be understood by people of all backgrounds. To ensure that it is well understood. This boosts innovation and also helps the company in identifying new markets. Considers both long term and short term benefits and risks this helps the company to embrace relevant ideas that will help the company sustain its growth both now and in the future. PepsiCo ensures that it respects others and they can share their success- the company does not only believe in individual excellence, but they value the contribution of teamwork in attaining its goals. In this report, the company stated that Human beings, the environment, and talents are the major pillars that facilitate its growth. The company aims at improving the nutritional value of its products to ensure that the consumers fully enjoy their products and they attain good health conditions. This meets the companys goal of ensuring Human sustainability. The company also makes sure that it applies production mechanisms that will minimize environmental impact and also take part in programs that aim at conserving the environment thus the company ensures environmental sustainability as one of their values. The company aims at empowering people and in this regard the company has developed a culture of engaging people from different regions and respects every stakeholder in the supply chain. PepsiCos report has reflected its values in its 2014 CSR sustainability report. According to Microsoft Inc (2016), the company reported that by 2016 the company had made the following progress. The company had established the energy goals which would include the use of renewable energy such as the wind, solar and hydroelectric power in its data centers. Accommodating ideas while designing their products and services thus building and inclusive culture. The company has enhanced the privacy of its customers by providing privacy statements that help protect the customers data thus ensuring that right to privacy is observed. The company also ensures that suppliers are held accountable for human rights, labour health, and safety, business ethics which are listed in the companys supplier code of conduct. The company has committed to donate to philanthropies for three years to expand economic opportunities in every part of the world. The report by Microsoft Inc. fully reflects if the value that aims at ensuring that the company meets its responsibility for addressing social, environmental and economic issues. The company also has shown proper coordination with all its stakeholders in their efforts to advance and develop communities through technological advancement. From the discussion by the group, we focused on the values, approaches to social responsibility and reporting using PepsiCo In and Microsoft Inc. From the discussion, it can be concluded that the values of a company fully guide its operations. Company values are important in ensuring that the company achieves its goals and objectives. When a company complies with its values, then it creates a good public image that ensures that maintains the loyalty of its customers. The company is also able to maintain the quality of its products and also and also improve where necessary because it gets positive responses from the consumers. It is evident that the core value of the company should be focusing on satisfying the needs of the consumers, community, employees, investors and the government. If the company can address all the needs of these stakeholders, then it has a high chance of succeeding. The two companies have observed their values, and they a have tremendous development and growth i n the market and their products have been recognized worldwide. Their operations are focused on ensuring that they not only benefit the organization but also benefits the consumers, employees, communities, investors and the government. This ensures that the companies enjoy sustained growth over the years. Application of GVV framework According to Zemanta (2009), values of a company refers to the philosophies or principles that the company follows in its internal and external activities. The values of a company guide its conduct and also its relation relationship with the society. According to Gentiles (2010) Giving Voice to Values (GVV) is an approach that aims at adapting a value driven leadership in business education in the workplace. GVV does not act on ethical analysis but focuses on what a person can say or do that would be effective while observing his or her values. GVV aims at ensuring that companies, employees, and their stakeholders would act on their values despite the pressure they may face from the external pressures. GVV equips students, business leaders, employees and other stakeholders with different ways which they can use to voice their values at the workplace. GVV trains people to act on their values in an effective and successful way. Unlike other ethical courses that focus on teaching studen ts on how to make decisions by considering what is right or wrong GVV focuses on teaching students on how to speak through their actions. According to Neureuther et al., (2013), studies have shown that traditional ethics course has failed to increase the ethical sensitivity of the students. Beggs (2011) notes that ethical education should focus on equipping students with the capacity to act effectively when faced with ethical dilemmas rather than sensitizing and making them aware of ethical issues. Companies are met with ethical dilemmas since they fail to address the issue their challenges in an effective manner. GVV is a tool that enables the involved parties to speak their minds. GVV is founded on the belief that each person has moral values and thus when faced with the morally challenging situation one can express his or her values. In the presence of challenging situation, many people tend to remain silent instead of acting and to make their concerns known. This has resulted in failure in many organizations. People remain silent because they lack confidence and a sense of personal responsibility. GVV approach aims at building confidence in individuals and so that they can raise their voices and express their ethical values (Heath, 2008). GVV provides students with an opportunity to practice their moral values by providing practical platforms which enable them to develop decision -making skills. Pillars of GVV According to Gentile (2010), GVV approach has seven principles which are action oriented practices and teaching methods. Values GVV approach utilizes language to involve peoples motivations and goals. For instance, shared values such as honesty, respect, responsibility, and fairness. These values are essential in having ethical conversations. Choice GVV focus on empowering people to make decisions on whether to act on their values or not. By identifying factors that call for action or inaction assists people to make appropriate choices. Normality GVV people perceive conflicting values and ethical conflicts as normal occurrences. Thus is enables them to make decisions on different issues and identify values as a normal aspect of their normal values. Therefore, people are prepared to face any challenge and make decision appropriately. Purpose GVV allows individual develop a deep sense of purpose and thus as a professional one is more aware of their responsibility and helps one to relate well with others in the workplace. Self-knowledge, self- image, and alignment Solving ethical issues require a sense of self-knowledge and also one needs be aware of his strengths and have effective communication and interaction skills. This enables one to develop an image based on good values is important for every person and organization that want to achieve long term goals. Voice In an organization, every person should have their ways of dealing with challenges that they face in their daily activities. Voice allows individuals to express their values through their actions. Rationalizations Always individuals will give reasons why they acted in a certain way. However, if the reasons and arguments fail to consider values, then they become rationalizations. Through arguments and reasoning, individuals gain confidence to act in an effective manner. GVV process The GVV process involves five phase with different interrelations and sequences. The first step is to admit that value conflict exists. Be aware of your purpose. Involve the stakeholders. Come up with an effective response. Script and practice enabling practices. The phases in GVV process aid in ensuring that individuals and organizations make effective decisions. GVV and sustainability According to Porter Kramer (2011), sustainability is one of the biggest challenges facing businesses today. Unsustainable business activities have the negative impact on the environment. There is a need for companies to adopt approaches that will ensure both environmental and sustainability issues are considered. GVV approaches are effective in facilitating conversations at all levels ranging from personal to global levels. According to Edwards et al. (2012), GVV can be used at the multinational level in two ways that is by individuals expressing personal values by giving their opinions and by groups expressing their values to plan on what actions they want to take. PepsiCo Inc. Script on an ethical issue Robert is a Purchase manager at PepsiCo Inc. He was approached by the marketing manager of a company that manufactures packaging material for food and beverage products. The marketing manager of the company has approached Robert since the company is interested in getting a contract to supply PepsiCo with packaging materials for its foods and beverage products. The company has also been involved in several unethical issues related to environmental pollution. It had been reported earlier that the company had been disposing of its waste products without treatment. There were allegations against the company that it does not observe safety measures in the working place and this has made some of the employees develop health problems, and on top of that, the company has not been compensating its employees fairly. This could have a negative impact on the environment as well as the community. Also, the companys products are not recyclable though they are being sold at a lower price and if use d they would reduce PepsiCos cost production significantly. The company does not also use non-renewable energy in its manufacturing process. The marketing manager promises Robert that he will make sure that he also benefits personally if he awards the company the contract to supply PepsiCo with packaging materials. Robert understands very well that PepsiCo highly considers environmental sustainability in its production process and also values its employees as well as the community. PepsiCo also ensures that it complies with the rules and regulation of the government. Lastly, the company advocates for transparency in all its transaction so as to address the interests of the investors as well as interests of other stakeholders. Roberts feels that the decision that he will make will have a great impact to the company, consumer, Community, employees, and investors. His decision should, therefore, ensure the wellbeing of all the stakeholders. Robert declines the offer and uses PepsiCos values to make the decision. Robert openly tells the manager that the PepsiCo cannot get into a contract with the company because PepsiCo is considering environmental sustainability. PepsiCo is currently adapting the use of recyclable packaging materials for its products in its effort to ensure that its production processes conserve the environment. Therefore, PepsiCo, would not purchase the companys product despite having lower cost that would also reduce the production cost of its product as this would be in conflict with its values. PepsiCo also values the community and has given the community the second highest priority. PepsiCo has been involved in community welfare program. However, the company releases untreated waste products to the environment which can also have a negative impact on the community. Being an environmentally responsible organization PepsiCo engaging in a contract with the company would be against the community and en vironmental values of the organization. Robert further elaborates that PepsiCo also values its employees and thus ensures that its employees are fairly compensated, and also they provide safe and healthy working conditions for its employees. PepsiCo will, therefore, not get into business relations with a company that does not value its employees as this would ruin its reputation in public. Robert as an individual also understands the professional value that guides his actions and decisions. Despite the promised personal gain that he would get had he offered the company the contract chooses to observe personal values as well as PepsiCos values. PepsiCo values transparency and accountability in all its transactions. Robert decides to forego personal benefits for the benefit of the whole company and all it stakeholders. Robert explains that it would be unethical if he got involved in deals that would have a negative impact on the company. He also knows that getting involved in transactions that are not transparent would have negative repercussions on him. Robert demonstrates a strong will to ensure that he protects the companys values as well as his personal values. GVV gives a person the ability to make independent decisions despite the pressure from external forces. For instance in the case presented Robert makes an effective decision that will ensure that PepsiCo does not go against its values and also he does not agree to forego his personal values for financial gain promised by the marketing manager of the other market. If Robert had feared expressing his values as well as PepsiCo values to the marketing manager he would have made a decision that would have negative results the company and its stakeholders. From this script, the students can also observe that GVV gives an individual confidence to make decisions without fearing what the other party will think. GVV can help the learners understand the underlying values that helped Robert come up with a strong response while observing personal and professional purpose. In his decision making Robert could encounter the following arguments from the marketing manager: I think our companies conduct will not have a negative impact on PepsiCo reputation if we shall engage in a business contract. Dont you see how our products are cost-effective and would reduce PepsiCos production cost which would benefit your organization? Consider the personal gain that you will get once you agree to award us the contract. Am not losing even if agree to award the contract to the company. By engaging the company in business will not affect the initiative of PepsiCo Inc. to conserve the environment as well as ensuring that the welfare of the employees and the community is taken care of. With these arguments, it would be difficult for Robert to make a strong argument that will ensure sustainability. GVV equips the students with skills and abilities to come up with strong counter-arguments that will help them respond effectively ethical challenges that they are likely to encounter in the future. Conclusion GVV is helpful in teaching students to solve issues in a way that ensures sustainability and also face ethical challenges with their core values. GVV helps an organization to identify ethics as an essential factor to consider while making decisions. The ability of individuals, groups, and organizations is essential while developing sustainability policies and also helps them to gain confidence to act and express their core values. GVV is an approach that has changed the traditional ethical education approaches as it includes value- based conversations which improve reasoning and encourage arguments related to sustainability and ethical issues. This approach will contribute greatly to the improvement of ethical education since it does provide not only theoretical knowledge but also provide practical opportunities that help students develop a better understanding of ethical practices. Core values help leaders to develop skills that enable them to hold effective conversations and take t he appropriate actions which are essential in ethic education and programs that help business organization experience sustainable growth and sustainable communities. References Beggs, J., M., (2011). Seamless Integration of Ethics. Marketing Education Review, 21 Bellis, M., (2017). History of Microsoft. 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