Implications for managers
Previous modules have made reference to important themes that permeate multiple aspects of modern
management practice. Prominent amongst those themes are the emergence of a more inclusive concept
of what is meant by organisational stakeholders, an increased emphasis on ethical and socially
responsible corporate behaviour, and a growing recognition of both the benefits and the costs of adopting
rapidly developing technology.
In this Essay you should consider the impact of new approaches to the implementation of change on the
attitudes of firms to those themes.
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A number of organisational owners would recognise the fact that they are managing in
periods of turbulence and accelerating change. In addition, there is a consensus about the forces
and patterns that are challenging their outdated perception of competitiveness and profitability.
This essay discusses the effect of new approaches to the implementation of change in the
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attitudes of firms to organisational stakeholders, an increased emphasis on ethical and socially
responsible corporate behaviour, and a growing recognition of both the benefits and the costs of
adopting rapidly developing technology.
New approaches can cause negative or positive effects when it comes to implementation
of change. For instance, technology can be important in the implementation of change, such that
it is transforming not just markets, but improving burdensome roles, customize production while
leading to significant labor displacement. Modern technology facilitates decentralisation of
decision making without necessary losing ‘control’ and introducing flexible and less hierarchical
arrangements (Majumdar 2014).
On the other hand, ethical and socially responsible corporate practices, dictates every
organisation to respond to change in its own way based on the main competencies and interests
of stakeholders ( Balmer & Burghausen 2015). Ethical and socially responsible corporate
practices is a vital principle regarding the linkage between the wider community and the
business, which requires a firm to not just implement it but also sustain it for a long period. A
number of firms are remarkably making changes in their ethical and social practices. Whether
due to changes in customer behaviour, pressure from different interest groups or liberal
organisational managers, companies are becoming more liable. The changes typically start with
transforming the manner in which organisations are managed. This can lead to effective ethical
and socially responsible practices.
In most cases, it is regarded as an investment rather than an expense, similar to quality
management. Moreover, ethical and socially responsible practices are associated with
profitability. That is there is no effective ethical and socially responsible behaviour without
returns. A main social responsible practice many organisations do is being profitable (Roshan,
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Owen & Brooks 2014). Profits are important for various purposes including rewarding investors,
providing sustainable employment opportunities, pay decent salaries and taxes; development of
new brands, and contribute to the success in the communities they operate (Martí-Ballester,
For many years, ethical and socially responsible corporate practices can generate huge
profits. However, it should be integrated in such way that management aims at achieving
maximum balance in a bid to meet the different requirements of interested parties and
stakeholders. The integration of societal requirements this approach assumes that the
organisation has ethical and socially responsible corporate practices (Popa & Salanta 2014). As
business environment changes, so do the need for prosperity and competitive advantage. Due to
such changes in the market, developing a deep and strategic association with organisational
stakeholders, corporate structures can be key places of competitiveness and survival. Such
relationships can be the basis for new, progressive and individual-centered strategy that attack
sources rather than signs of difficulties companies face currently.
By and large, modern management practices involve various themes including
organisational stakeholders; ethical and socially responsible practices; rapid technology among
others. These factors play an important part of investment choices of different investors. The
pressure can exercise extreme effect as rapid technological development on the performance of
firms. For that reason, they are important things for firms to take into account when
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Balmer, J.M.T. & Burghausen, M. 2015, “Introducing organisational heritage: Linking corporate
heritage, organisational identity, and organisational memory”, Journal of Brand
Management, vol. 22, no. 5, pp. 385-411.
Martí-Ballester, C.P. 2015, “Investor reactions to socially responsible investment”, Management
Decision, vol. 53, no. 3, pp. 571.
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Majumdar, R. 2014, “Business decision making, production technology and process efficiency”,
International Journal of Emerging Markets, vol. 9, no. 1, pp. 79-97.
Popa, M. & Salanta, I. 2014, “Corporate social responsibility versus corporate social
irresponsibility”, Management & Marketing, vol. 9, no. 2, pp. 137-146.
Roshan, B.B., Owen, C. & Brooks, B. 2014, “Organisational features and their effect on the
perceived performance of emergency management organisations”, Disaster Prevention and
Management, vol. 23, no. 3, pp. 222-242.