Business Questions About Fair Trade And Risk Management (Coursework Sample)

[BUSINESS QUESTIONS 1-4]
By
Insert Your Name
Institution Name, Location
Department
University
Presented to
Instructor’s Name, Course
Table of Contents
 TOC \o "1-4" \h \z \u  HYPERLINK \l "_Toc355791704"
Qn 1. Introduction  PAGEREF _Toc355791704 \h
3
 HYPERLINK \l "_Toc355791705"
Discussion  PAGEREF _Toc355791705 \h
3
 HYPERLINK \l "_Toc355791706"
Reasons why companies that practice CSR cannot be profit maximising.  PAGEREF _Toc355791706 \h
3
 HYPERLINK \l "_Toc355791707"
Additional costs  PAGEREF _Toc355791707 \h
3
 HYPERLINK \l "_Toc355791708"
Reduced competitive advantage  PAGEREF _Toc355791708 \h
3
 HYPERLINK \l "_Toc355791709"
Focus alteration  PAGEREF _Toc355791709 \h
3
 HYPERLINK \l "_Toc355791710"
Reasons why companies that practice fair trade can be profit maximising.  PAGEREF _Toc355791710 \h
3
 HYPERLINK \l "_Toc355791711"
Improved customer relationships  PAGEREF _Toc355791711 \h
3
 HYPERLINK \l "_Toc355791712"
Motivated work force  PAGEREF _Toc355791712 \h
4
 HYPERLINK \l "_Toc355791713"
Enhanced public image  PAGEREF _Toc355791713 \h
4
 HYPERLINK \l "_Toc355791714"
Conclusion  PAGEREF _Toc355791714 \h
4
 HYPERLINK \l "_Toc355791715"
Qn 2.Introduction  PAGEREF _Toc355791715 \h
4
 HYPERLINK \l "_Toc355791716"
Discussion  PAGEREF _Toc355791716 \h
4
 HYPERLINK \l "_Toc355791717"
The steps in risk management  PAGEREF _Toc355791717 \h
4
 HYPERLINK \l "_Toc355791718"
Risk identification  PAGEREF _Toc355791718 \h
5
 HYPERLINK \l "_Toc355791719"
Risk estimation  PAGEREF _Toc355791719 \h
5
 HYPERLINK \l "_Toc355791720"
Risk management or treatment  PAGEREF _Toc355791720 \h
5
 HYPERLINK \l "_Toc355791721"
Responsibility for risk management in the organisation  PAGEREF _Toc355791721 \h
5
 HYPERLINK \l "_Toc355791722"
Importance of risk management  PAGEREF _Toc355791722 \h
5
 HYPERLINK \l "_Toc355791723"
Effective governance systems as a remedy for a poor risk management strategy  PAGEREF _Toc355791723 \h
5
 HYPERLINK \l "_Toc355791724"
Conclusion  PAGEREF _Toc355791724 \h
6
 HYPERLINK \l "_Toc355791725"
Qn 3.Introduction  PAGEREF _Toc355791725 \h
6
 HYPERLINK \l "_Toc355791726"
Discussion  PAGEREF _Toc355791726 \h
6
 HYPERLINK \l "_Toc355791727"
Factors that contribute to fraud  PAGEREF _Toc355791727 \h
6
 HYPERLINK \l "_Toc355791728"
Rationalization, Motivation, greed and organization culture  PAGEREF _Toc355791728 \h
6
 HYPERLINK \l "_Toc355791729"
Case of Enron  PAGEREF _Toc355791729 \h
6
 HYPERLINK \l "_Toc355791730"
Opportunity, public, stakeholder, and shareholder expectation  PAGEREF _Toc355791730 \h
7
 HYPERLINK \l "_Toc355791731"
Case of Enron  PAGEREF _Toc355791731 \h
7
 HYPERLINK \l "_Toc355791732"
Conclusion  PAGEREF _Toc355791732 \h
7
 HYPERLINK \l "_Toc355791733"
Qn 4.Introduction  PAGEREF _Toc355791733 \h
8
 HYPERLINK \l "_Toc355791734"
Reasons why a voluntary system would be more effective  PAGEREF _Toc355791734 \h
8
 HYPERLINK \l "_Toc355791735"
Flexibility  PAGEREF _Toc355791735 \h
8
 HYPERLINK \l "_Toc355791736"
Growth and deeper organizational engagement  PAGEREF _Toc355791736 \h
8
 HYPERLINK \l "_Toc355791737"
Financial implication  PAGEREF _Toc355791737 \h
8
 HYPERLINK \l "_Toc355791738"
Reasons why a voluntary system would be less effective  PAGEREF _Toc355791738 \h
8
 HYPERLINK \l "_Toc355791739"
Culture  PAGEREF _Toc355791739 \h
8
 HYPERLINK \l "_Toc355791740"
Established markets and players  PAGEREF _Toc355791740 \h
9
 HYPERLINK \l "_Toc355791741"
Conclusion  PAGEREF _Toc355791741 \h
9
 HYPERLINK \l "_Toc355791742"
References  PAGEREF _Toc355791742 \h
10

CORPORATE SOCIAL RESPONSIBILITY
Qn 1. Introduction
Corporate Social Responsibility, refers to the initiative taken up by an organization with respect to making an assessment and then taking up the responsibility that the company has with regard to the effects that the organization has on the environment, as well as the social welfare of the community in which it runs its activities or the clients that it serves (Wan-Jan, 2006). The term generally applies to company efforts that go beyond what may be required by regulators or environmental protection groups. Basing on this, this section of the paper will critically make an analysis regarding the practice corporate social responsibility and profit maximization.
Discussion
Reasons why companies that practice CSR cannot be profit maximizing
Additional costs
Considering that CSR is intended for organizations to indicate a sense of responsibility to all the stakeholders other than the shareholders, such as the suppliers, communities, employees and customers, the shareholders tend not to be comfortable with the idea of increased costs on the operations of the company such as the hiring of more staff members to enact these CSR related initiatives, with hope of long term gains that cannot be immediately accounted for or estimated (Jeurissen & Rijst, 2007).
Reduced competitive advantage
A company that takes most of its resources into CSR activities, cannot be compared to another one which decides to divert the funds which would otherwise have been used in CSR in order to pursue other business pursuits (Jeurissen & Rijst, 2007). Thus, without strict adherence industry wide, some companies argue that they cannot fall behind by putting money into CSR programs.
Focus alteration
In order to maximize profits organizations are expected to concentrate on the customer. This includes aspects such as continuously seeking better ways of attracting as well retaining the current and new clients (Jeurissen & Rijst, 2007). However, with CSR, organizations tend to abide by the CSR guidelines and funds have to be redirected in efforts such as human rights, development of the community as well as environmental sustainability, giving very minimal attention to the customer.
Reasons why companies that practice fair trade can be profit maximizing
Improved customer relationships
Through fair trade practices such as taking part in CSR initiatives enable organizations to prove their worth to clients thus establish long-term, relationships due to the impact of their activities (Jeurissen & Rijst, 2007). In addition the community which constitutes the immediate local market is connect to easily by the organization thus the affiliations created boost the organization and event attracts new clients.
Motivated work force
The employees of an organization are considers as one of the most valued fundamental assets (Jeurissen & Rijst, 2007). This stakeholder group in CSR, aids in profit maximization when the group is well motivated. Through fair trade practices, the organization treats the employees respectfully and avails the relevant as well as conducive work environment. Through properly established hiring as well as promotional practices.
Enhanced public image
Through practicing fair trade practices, the organization, tends to enhance its public image and as such obtain better qualified employees, access to the money markets and a greater client base (Jeurissen & Rijst, 2007). Through the pursuit of social goals via CSR, the organization obtains a public image that is favorable public image by pursuing social goals.
Conclusion
From the discussion, it is evident that CSR related activities in relation to fair trade practices, has its benefits as well as downfalls with respect to the maximization of profits. However, due to the legal requirements as well as the immediate impact the firm has in the immediate community as well as the perceived long term benefit of the relationship created through involvement in CSR activities, the aspect of profit maximization is more significant through the involvement of an organization in fair trade in terms of CSR activities.
RISK MANAGEMENT
Qn 2.Introduction
Risk Management is a process which entails, identifying, analyzing, and then making a choice on the best approach as regards the control of the risks that have been assessed through mitigating, avoiding, transferring, minimizing or accepting, the perceived risk as part of decision making process in any establishment (Culp, 2001). All these is done in an effort to ensure that the adverse effects of loss as a result of such risks are handled in the best possible way. Corporate governance entails the laid down system as well as strategies through which a firm is controlled and directed in order to adequately balance the needs of all the stakeholders. Basing on this background, this section of the paper in light of the recent financial crises the paper will critically discuss the role of risk management in corporate governance.
Discussion
The steps in risk management
Risk identification
This entails establishing the risks and then categorizing the risks that could have any form of effect in the organization with respect to nature or impact (Conrow, 2003). The classification aids cut back on redundancy and also give room for easier management of the same. This can be done through both observation as well as consultation.
Risk estimation
This includes the expression of the time span, impact, and magnitude as well as the extent of the perceived consequences of the risks identified in measureable terms (Conrow, 2003). It also gives an estimate of the probability that a given risk will or will not have an adverse effect on the organization of it occurred.
Risk management or treatment
This procedure entails the selection as well as application of significant...