Socially Responsible Business

Socially responsible business is that business that manages all its activities and makes profit which also benefits the society. In aims at developing a business in such a way where society is maximum benefitted. It creates a positive relationship with the society where it operates its activities. It is a profit venture that aims at maximizing the profit shares for its shareholders by making valuable contributions. Those business which are highly involved in socially responsible business works on the financial aspect as well as for the well-being of the society. Socially responsible business gets involved in voluntary initiatives and also works on improving the several areas of the society from many aspects. In such business, they involve themselves in in the voluntary initiatives and tries to improve the several areas of the society from many aspects (Awaysheh & Klassen, 2010).

SBR is very similar to corporate social responsibility because they both have the common goal to serve the society and make positive contribution by reducing the number of hazardous effects. The example of the social responsible business is the partnership between Motorola and Environmental Protection Agency. Motorola being a US MNC has voluntarily participated in EPA Waste wise projects. Another example is the famous brand Body Shop which deals in the cosmetics and beauty products has collaborated with several non-profit organizations to serve the society (Crane, Matten, & Spence, 2013).

Demonstrates a balanced and very high level of detailed knowledge of core concepts by providing a very high level of analysis. Utilises current, appropriate and credible sources.

Demonstrates a balanced and high level of knowledge of core concepts by providing a high level of analysis. Utilises mostly current, appropriate and credible sources.

Demonstrates a good level of knowledge of some of the core concepts by providing some level of analysis. Utilises some current, appropriate and credible sources.

Demonstrates limited knowledge of core concepts by providing a limited level of analysis. Utilises few current, appropriate and credible sources.

Demonstrates little, if any, knowledge of the core concepts with extremely limited, if any, analysis. Utilises little, if any, current, appropriate and credible sources.

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Examples of Socially Responsible Business

Some problems with sentence structure and presentation Frequent grammar, punctuation and spelling mistakes. Use of inappropriate language.

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The assessment presents a detailed and focused summary of the ideas presented; drawing clear and well thought-out conclusions.

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Answer: Grameen bank is a perfect example of socially responsible business. In 2006, the founder of Grameen Bank, Muhammad Yunus was awarded the Nobel Peace Prize for the voluntary work done by him.  Yunus lended money to the poor who cannot afford to set up business and yunus helped them to get out of the poverty. Yunus served the needy and also aimed at solving the problems that is related to society. The main vision of this bank is that it serves the socially responsible business and works at par with excellence.

Grameen bank conducted several programmes to help poor like Micro edit programme which created hope for the poor. This programme encouraged and motivated the borrowers’ social development in order to achieve some desired goals in education or health or other many areas where they think they can best perform. Grameen bank is also highly involved in providing the skills training and development programs and many more awareness activities where they motivate people to take part in society activities and other income generating activities as well. Nowadays, they are also involved in decision making functions where women are given an opportunity to implement their ideas (Yunus, Moingeon & Lehmann, 2010).

Demonstrates a balanced and very high level of detailed knowledge of core concepts by providing a very high level of analysis. Utilises current, appropriate and credible sources.

Demonstrates a balanced and high level of knowledge of core concepts by providing a high level of analysis. Utilises mostly current, appropriate and credible sources.

Demonstrates a good level of knowledge of some of the core concepts by providing some level of analysis. Utilises some current, appropriate and credible sources.

Ethical Dilemma

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Quality of writing at a very high standard. Paragraphs are coherently connected to each other. Correct grammar, spelling and punctuation.

Quality of writing is of a high standard. Paragraphs are mostly well structured. Few grammar, spelling and punctuation mistakes.

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Some problems with sentence structure and presentation Frequent grammar, punctuation and spelling mistakes. Use of inappropriate language.

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The assessment presents a detailed and focused summary of the ideas presented; drawing clear and well thought-out conclusions.

The assessment presents a fairly detailed and focused summary of the ideas presented; drawing fairly clear and well thought-out conclusions.

The assessment presents a somewhat detailed and focused summary of the ideas presented; providing some evidence of conclusions.

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Answer: Ethical dilemma is the situation or the condition where one has to make a choice between two options available but none of them solves the problem in an ethically way (Braswell et al., 2017). It basically involves three major situations in it. First one is an individual must take a specific decision among all the options available. Second one is there must be several courses of actions involved so that best options can be chosen and the third one is no matter whatever option is chosen, some ethical principle is always compromised (Shapiro, 2016).

An example of ethical dilemma can be drawn here. Tom has many friends like Frank and Harry. Frank is in a relationship with a lady named Rosy. One day, Tom saw Frank and Rosy in a café and he realized that Rosy is the wife of Harry. Now, when Tom decides to make a call to Frank and tell him that Rosy is already married, he gets a call from Harry saying that he has a doubt on his wife and asks Tom is he has heard anything for his wife. Now this is the situation of an ethical dilemma because no matter who Tom tells, he is definitely going to end up hurting one.

Examples of Ethical Dilemma

Another example of ethical dilemma in the management context is also mentioned. A manger in a firm assigned roles and responsibilities to one of the leader in the team. The leader further divided the task into subordinates. Later, it was found that the task was not completed on time but leader cannot be blamed because of the mistakes done by the subordinates. Now this is the situation of ethical dilemma because though leader is not responsible for uncompleted task he has to face manager. Here, the manager does not hear any excuse but wants the completed task.

Demonstrates a balanced and very high level of detailed knowledge of core concepts by providing a very high level of analysis. Utilises current, appropriate and credible sources.

Demonstrates a balanced and high level of knowledge of core concepts by providing a high level of analysis. Utilises mostly current, appropriate and credible sources.

Demonstrates a good level of knowledge of some of the core concepts by providing some level of analysis. Utilises some current, appropriate and credible sources.

Demonstrates limited knowledge of core concepts by providing a limited level of analysis. Utilises few current, appropriate and credible sources.

Demonstrates little, if any, knowledge of the core concepts with extremely limited, if any, analysis. Utilises little, if any, current, appropriate and credible sources.

Quality of writing at a very high standard. Paragraphs are coherently connected to each other. Correct grammar, spelling and punctuation.

Quality of writing is of a high standard. Paragraphs are mostly well structured. Few grammar, spelling and punctuation mistakes.

Quality of writing is of a good standard. Few grammar, spelling and punctuation mistakes.

Some problems with sentence structure and presentation Frequent grammar, punctuation and spelling mistakes. Use of inappropriate language.

Quality of writing is at a very poor standard so barely understandable. Many spelling mistakes. Little or no evidence of proof reading.

The assessment presents a detailed and focused summary of the ideas presented; drawing clear and well thought-out conclusions.

The assessment presents a fairly detailed and focused summary of the ideas presented; drawing fairly clear and well thought-out conclusions.

The assessment presents a somewhat detailed and focused summary of the ideas presented; providing some evidence of conclusions.

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Importance of Social Responsibility in Business

Explain the ethical dilemma considering the accusations of a financial impropriety and so claimed highest interest rates charged by Grameen Bank.  

Answer: There exists a huge discrepancy in quoting Grameen Bank’s interest rates. It has quoted its interest rate to 30% rather than quoting it to 20%. Every bank computes its interest rates based on several factors and several methods used to compute it. The idea behind charging the 30% interest rate is based on the formula which assigns 10% to borrowers’ transaction costs. Since, the borrowers of Grameen bank needs to attend meeting at the local offices once in a week. That cost transportation cost and some additional costs as well (Deheiia, Montgomery & Morduch, 2012). The reason behind charging 10%extra interest rate is assigned to time and money amount by the borrowers because they can invest that time and cost in other activities that could benefit them. Though it is not the right way to compute interest rate because there is no value for the transaction cost. Thus, the above-mentioned interest rate formula manipulated by the Bangladeshi economist appears as follows: IR = 9.0 % + 5.5% + 0.5 % + 0.5% + 4.5% + 10% = 30%.but this method was misguided and several ethical dilemmas was involved in it. Nevertheless, if inflation rate comes down by 5% then GB’s lending rate should also come down to at least 15 per cent since at lower inflation operational costs will also take a cut. Thus, this concept created an ethical dilemma because people started thinking that it’s the Grameen bank that sucks blood of the poor by charging higher interest rate rather than inflation and other different factors (Mallick, 2012).

Demonstrates a balanced and very high level of detailed knowledge of core concepts by providing a very high level of analysis. Utilises current, appropriate and credible sources.

Demonstrates a balanced and high level of knowledge of core concepts by providing a high level of analysis. Utilises mostly current, appropriate and credible sources.

Demonstrates a good level of knowledge of some of the core concepts by providing some level of analysis. Utilises some current, appropriate and credible sources.

Demonstrates limited knowledge of core concepts by providing a limited level of analysis. Utilises few current, appropriate and credible sources.

Demonstrates little, if any, knowledge of the core concepts with extremely limited, if any, analysis. Utilises little, if any, current, appropriate and credible sources.

Quality of writing at a very high standard. Paragraphs are coherently connected to each other. Correct grammar, spelling and punctuation.

Quality of writing is of a high standard. Paragraphs are mostly well structured. Few grammar, spelling and punctuation mistakes.

Quality of writing is of a good standard. Few grammar, spelling and punctuation mistakes.

Some problems with sentence structure and presentation Frequent grammar, punctuation and spelling mistakes. Use of inappropriate language.

Quality of writing is at a very poor standard so barely understandable. Many spelling mistakes. Little or no evidence of proof reading.

The assessment presents a detailed and focused summary of the ideas presented; drawing clear and well-thought-out conclusions.

The assessment presents a fairly detailed and focused summary of the ideas presented; drawing fairly clear and well-thought-out conclusions.

The assessment presents a somewhat detailed and focused summary of the ideas presented; providing some evidence of conclusions.

The assessment provides limited detail with no clear summary of the ideas presented; drawing limited conclusions.

The assessment fails to provide any clear evidence of the ideas presented; drawing no clear conclusions.

Outline the political governance system in Bangladesh and then assess how it impacted on the institutional governance of Grameen Bank after the spate of ethical dilemma as discussed in Part A.  

Answer: Brief outlines of the political governance system that exists in Bangladesh.

Bangladesh is known to be one the most successful developing countries. It is considered to be same in terms of accelerating growth, creating growth for poor and needy and improving the indicators of social and economic progress. Bangladesh is the country which emphasis on helping the poor and improving their economic health condition by providing them health benefits and other additional benefits as well.

In the last 10years, Bangladesh has successfully able to manage and make significant progress in all the governance indicators. Global indicators are those indicators that emphasis on the nation’s health by making comparison between various areas, regions and nations. Global indicators focus that governance must be improved and it should remain as a key priority in terms of development (Datta & Jones, 2012).

Bangladesh has faced several challenges and issues but despite of its challenges and issues, it has proved itself and ranked to be resilient. It has also proved itself to achieve human development gains as well. The CPF i.e. country partnership framework has refocused WBG i.e. World Bank Group strategic direction. It reduced all the issues and obstacles that took place in the growth of the economy or an individual. It has implemented a portfolio for the factors that are involved in human development which is further identified by systematic country diagnostic. Moreover, it will also keep focusing on the growth of health, education and financial support. CPF basically has three major criteria: consistency with the government’s seventh five-year plan to ensure strong country ownership, alignment with the indicators and all the priorities which are identified by SCD in order to reduce poverty, and taking the advantages of WBG which has been provided by different development partners (Sama, & Mitch, 2013).

The political governance of Bangladesh has affected the institutional governance of Grameen bank. Grameen bank seems to be outdated in Bangladesh which are responded by maximum number of citizens of Kosovo that created a major challenge in the leading range of people living there. There was a major problem in the credit methodologies and loan products and their interest rates (Khan, 2010). As discussed earlier, the ethical dilemma faced by Grameen bank is that it has increased its interest rate from 20% to 30% which also includes several reasons to justify it. The citizens are highly affected by this because they think the hike in the interest rate is a way to get more benefits from poor rather than providing them benefits. Although it mentioned and clarified all the reasons behind it. But it did not work successfully (Haque, Arun, & Kirkpatrick, 2011). The political governance of Bangladesh is still Woking for it. Grameen bank is highly involved in socially responsible business and contributing a lot to the poor. The political governance of Bangladesh has also helped Grameen bank in collaborating with several NGO’s and contributing to the economic improvement of the country.

Demonstrates a balanced and very high level of detailed knowledge of core concepts by providing a very high level of analysis. Utilises current, appropriate and credible sources.

Demonstrates a balanced and high level of knowledge of core concepts by providing a high level of analysis. Utilises mostly current, appropriate and credible sources.

Demonstrates a good level of knowledge of some of the core concepts by providing some level of analysis. Utilises some current, appropriate and credible sources.

Demonstrates limited knowledge of core concepts by providing a limited level of analysis. Utilises few current, appropriate and credible sources.

Demonstrates little, if any, knowledge of the core concepts with extremely limited, if any, analysis. Utilises little, if any, current, appropriate and credible sources.

Quality of writing at a very high standard. Paragraphs are coherently connected to each other. Correct grammar, spelling and punctuation.

Quality of writing is of a high standard. Paragraphs are mostly well structured. Few grammar, spelling and punctuation mistakes.

Quality of writing is of a good standard. Few grammar, spelling and punctuation mistakes.

Some problems with sentence structure and presentation Frequent grammar, punctuation and spelling mistakes. Use of inappropriate language.

Quality of writing is at a very poor standard so barely understandable. Many spelling mistakes. Little or no evidence of proof reading.

The assessment presents a detailed and focused summary of the ideas presented; drawing clear and well thought-out conclusions.

The assessment presents a fairly detailed and focused summary of the ideas presented; drawing fairly clear and well thought-out conclusions.

The assessment presents a somewhat detailed and focused summary of the ideas presented; providing some evidence of conclusions.

The assessment provides limited detail with no clear summary of the ideas presented; drawing limited conclusions.

The assessment fails to provide any clear evidence of the ideas presented; drawing no clear conclusions.

Applying your knowledge of corporate governance principles and ethics, what would you suggest for improvement of the political governance systems in Bangladesh and institutional governance in Grameen Bank?

Answer: There are several problems that exists in the political governance system of the Bangladesh. Some of them includes corruption, interference of politics in administration, inefficient work done by bureaucracy, unnecessary use of resources and improper observance of the laws.

Suggestions required for the improvement of the same are listed below:

1) Role of parliament: Parliament must play a major role in promoting the corporate governance. In a democratic system, parliament is responsible for all the activities required to improve the corporate governance. The parliament must exercise its power over the government and control it. All the ministers that comes under the government must ensure to the parliament about all the activities that takes place and also ensure the transparency and accountability of each transactions. The parliament must plan their actions and plans accordingly and justify their decision whether they are effective or not (UKESSAYS, 2017).

2) Role of Civil society: Civil Society plays a very major role in the democratic systems because it ensures the proper management of the public services. When it comes to country like Bangladesh, the civil society is declining day by day which must be protected. People must be focused about the political culture and their rights and responsibilities and it should focus on interference of politics in administration (Hasab, 2010).

3) Bangladesh is considered to be overpopulated country because of which there is lack of resources. The resources are limited but the population is increasing so, it is very important to reduce the population to fulfil their basic needs. In order to do this, government should take and strict actions.

4) Red tapism of bureaucracy is one major obstacle in the good governance because it decreases the efficiency of the government officials and they cannot work properly. So, solve this issue, the rules and several procedures should be implemented which will give opportunity to the people to attain services on time.

In terms of the governance systems in Grameen bank, there are few recommendations if followed can lead to better growth.

1) Grameen bank should focus more on providing online platform to its potential customers. Digital platforms play a vital role in the modern society. Since Grameen bank is highly involved in the socially responsible activities, it should start helping people by providing online digital platform which will helps them to identify their need by reducing the cost and time as well (Alam, 2012).

2) Political interference in the Grameen bank is also a drawback which causes sufferings to the people who cannot access the services easily. Citizens find difficulties in accessing their services and thus corruption takes place. So, Grameen bank should highly avoid involving in political factors because it lowers the image of the services provided by it in the minds of customers (karim, 2010).

3) Grameen Bank should focus on improving and strengthening its laws and regulations and should work as an independent factor. It should start updating its regulations that has been used since years and motivate people to adopt their services. People get bored when using the old services repeatedly and daily. Grameen Bank should start launching some services that will attract the potential customers and also encourage them to use their products and services quite often.

References:

Awaysheh, A., & Klassen, R. D. (2010). The impact of supply chain structure on the use of supplier socially responsible practices. International Journal of Operations & Production Management, 30(12), 1246-1268.

Crane, A., Matten, D., & Spence, L. (2013). Corporate social responsibility in a global context.

Yunus, M., Moingeon, B., & Lehmann-Ortega, L. (2010). Building social business models: lessons from the Grameen experience. Long range planning, 43(2-3), 308-325.

Braswell, M. C., McCarthy, B. R., & McCarthy, B. J. (2017). Justice, crime, and ethics. Taylor & Francis.

Shapiro, J. P., & Stefkovich, J. A. (2016). Ethical leadership and decision making in education: Applying theoretical perspectives to complex dilemmas. Routledge.

Dehejia, R., Montgomery, H., & Morduch, J. (2012). Do interest rates matter? Credit demand in the Dhaka slums. Journal of Development Economics, 97(2), 437-449.

Mallick, D. (2012). Microfinance and moneylender interest rate: Evidence from Bangladesh. World development, 40(6), 1181-1189.

Khan, M. (2010). Political settlements and the governance of growth-enhancing institutions.

Haque, F., Arun, T., & Kirkpatrick, C. (2011). The political economy of corporate governance in developing economies: The case of Bangladesh. Research in International Business and Finance, 25(2), 169-182.

Sama, L. M., & Mitch Casselman, R. (2013). Profiting from poverty: ethics of microfinance in BOP. South Asian Journal of Global Business Research, 2(1), 82-103.

Datta, K., & Jones, G. (2012). Housing and finance in developing countries. Routledge.

Alam, M. J. (2012). E-Governance in Bangladesh: Present Problems and Possible Suggestions for Future Development. International Journal of Applied Information Systems (IJAIS), 4(8), 21-25.

Hasab.B, (2010), Good Governance in Bangladesh: Problems and Prospects, viewed on 10^th February, 2018. Available on: https://www.uits.edu.bd/research/journal/v3i2/03-Good.pdf

Karim, M. A. (2010). Digital Bangladesh for good governance. In Bangladesh Development Forum (pp. 15-16).

UKESSAYS, (2017), Good Governance in Bangladesh Problems and Prospects Politics Essay, viewed on 10^th February, 2018. Available on:  https://www.ukessays.com/essays/politics/good-governance-in-bangladesh-problems-and-prospects-politics-essay.php