society and Ethics Organizations

The study presents an overview of Berkeley Holdings Plc, and the organization’s ethical difficulties will be emphasized. For every organization to be successful, numerous appropriate strategies must be implemented. Corporate Social Responsibility can also help a company acquire a competitive advantage over its competitors in the market. As an Ethics/CSR consultant for Greenleaf consultants, I will undertake an in-depth examination of Berkeley’s responsible human resources and sustainability. It is the responsibility of businesses to provide a workplace climate in which employees may easily fulfill their established goals and objectives. Implementation of a diversified workforce, for instance, can be vital in reducing conflicts among workers, thus an increase in their productivity.

The sustainability team of the Berkeley Corporation is responsible for ensuring that there is efficiency in the organization’s business operations. It has specialized in commercial buildings and residential works. The move by the company, paying its attention to large-scale urban development in the London area, has been on the forefront in promoting its financial growth. It has an understanding of the risks in the industry, and its focus in carefully allocating resources to the right projects has been pivotal to reduced costs of production and improved revenue generation.

Responsible management and Corporate Social Responsibility

Responsible management

Responsible management is vital for any organization that aims at meeting its goals. An organization that effectively manages its operations ensures that there is efficiency in its planning as well as aids in the development of superb controls. Such an organization will set up measures aimed at ensuring that its staff members are involved in the decision-making process and that their morale is always at its peak. An increase in workplace motivation contributes to an improvement in the performance of the firm.

It is the role of the departmental heads to come up with a workplace where all employees are treated equally and that recognitions are dependent primarily on individual effort. Responsible management also entails implementation of a diversified workforce where persons from various cultural and ethnic backgrounds feel appreciated and as a part of the organization (Drucker 2016, p.56). Moreover, it is the role of the Human Resource Department to enforce gender inclusivity which plays a pivotal role in bolstering social interactions that convert to an improvement in productivity.

Responsible management plays a critical role in ensuring that it encourages workers to commit to the goals and objectives that are put in place within an organization. In every department, tasks are effectively handled, and employees focus on delivering the most suitable results (Felfe and Franke 2010, p.14). As a part of the leadership culture in most industries, staff members are allowed to freely interact and offer suggestions or raise any grievances.

Benefits of Corporate Social Responsibility

There are various benefits that come along with the decision by an organization to embrace Corporate Social Responsibility. Firstly, it plays a critical role in the enhancement of a firm’s reputation and this in return contributes to a better brand recognition. A positive CSR is essential in the improvement of an institution’s public image and the relationship that it has with the customers. Usually, when a company such as Berkeley Holdings engages in activities such as communal youth empowerment and environmental conservation, its image is boosted and it at the same time attracts the attention of various stakeholders such as investors, potential buyers and actual consumers. It is through publicizing of the efforts by firms such as engagement in philanthropy and monetary donations among others, that several companies have in the past decade enhanced their chances of being favorable in the eyes of the customers (Gond and Moon 2012, p.86). On several occasions, individuals prefer shopping in those companies that regularly support communities.

Corporate Social Responsibility is pivotal in attracting and retaining investors to an organization. Shareholders that pour their money to a given firm will always want to know that their funding is being used appropriately. Companies that show their commitment not only to their employees but also the community will on several occasions provide a suitable platform where investors will channel their investments. Such corporations enjoy a competitive advantage over their rivals in the market as a result of their bolstered capital structures. Additionally, they have sound financial and budget plans, and this gives them the ability to mitigate various risks and challenges that may come up in the future. The ease of an institution such as Berkeley in accessing capital from banks will also enhance, especially if they post a positive community enhancement initiatives track records.

Instillation of a strong culture of Corporate Social Responsibility incorporates a positive workplace environment. Employees will always feel engaged when they work in a firm that values communal support and improving the lives of society members. An organizational culture where all workers are made aware of their essence in caring about people beyond the Corporation’s perimeters will always benefit regarding a significant enhancement in their productivity. It should also be noted that the move by a firm to embrace CSR as a part of its culture will always foster innovation and creativity among its employees and this creates a set up where goals are easily met (Kielmas 2017, Web). When organizations show that they are dedicated to boosting the surrounding communities through various corporate giving programs, their ability to attract and retain talented staff will also improve immensely.

Organizations that incorporate Corporate Social Responsibility as a part of their culture enjoy an improvement in their financial performance, regarding increased revenue generations and profits. A firm’s community philanthropy contributes to an enhancement in its market segments and consumer base, and this contributes to high revenue generation rates and profitability levels. Additionally, the firm enjoys strengthening of its customer loyalty (Sprinkle and Maines 2010, p.76). Subsequently, this contributes to the organizational growth and its ability in tapping into the untapped markets in various regions or around the globe. It also forges corporate partnerships that make it easier for companies to cut on their operating costs and in return focus on bolstering their productivity.

Drawbacks of Corporate Social Responsibility

One of the major disadvantages of Corporate Social Responsibility is that it comes along with huge costs of production that may end up impacting an organization’s financial performance negatively. Companies are required to set aside funds that will be essential in the financing of various community awareness programs and projects, and this is usually reflected as an increase in the expenditure that is translated to prices of commodities and services. Rather than maximizing its profitability levels, a firm may end up incurring massive losses in the name of enhancing its brand through CSR.

Incorporation of Corporate Social Responsibility as a part of an organizational culture may lead to issues of competitive disadvantages. Challenges of a reduction in a firm’s market share arise when its costs of production increase significantly compared to those of the rival firms that hardly involve in community philanthropy initiatives. In such a case, a company may find itself in a situation where it fails to meet its financial objectives, thus lagging back regarding its performance with the competitors (Trong Tuan 2012, p.17). Its capitalization may also decline significantly as a result of inefficiencies in departmental operations due to huge expenses that are brought about by some of the societal programs pushed by an institution.

Some critics argue that Corporate Social Responsibility is an exercise in futility and that it may barely have positive long-term effects on an organization. A company is mandated with the role of ensuring that it meets its shareholders’ interests, but this may be a taunting task especially when much of its attention is directed towards ensuring that it changes the lives of persons in the community. Firstly, it may be hard for a firm that engages in CSR to enjoy a significant rise in its profitability levels thus making it hard to yield high shareholders’ returns. Most firms are faced with challenges of balancing between enhancements in their financial performance and discharging of services that aim at benefiting communities thus placing them in risky positions.

Values underpinned by Ethics

In the quest for the integration of responsible management, it will be essential for the Berkeley Corporation to rely on ethical theories such as Utilitarian and Virtue theories. Both concepts will play a critical role in ensuring that the firm’s management sets up a positive working environment where all employees irrespective of their gender and cultural backgrounds will be granted equal opportunities, thus an enhancement in job satisfaction levels. It is the role of leadership of a company to ensure that all its workers are a part of the decision-making process and that corporate values are also enforced (Kundu and Gahlawat 2015, p.76). In so doing, this leads to an increase in the productivity of the staff members as well as its financial performance.

According to utilitarianism, the best action is one that is capable of maximizing utility. Apparently, this implies that in an organizational set-up, implementation of suitable measures and models will always play a key role in the enhancement of its performance. Additionally, they maximize happiness and satisfaction levels among the workers. The Human Resource departments of companies such as Berkeley Corporation have to ensure that the morale levels of their staff members are bolstered. They do so by coming up with sustainable recognition and rewards systems. For instance, workers will have to earn promotions based on their performance and not favoritism. Additionally, the inclusion of more financial and non-financial rewards may also be critical in the enhancement of employee-satisfaction levels. Implementation of inclusivity in a workplace may also help in improving social interaction and mitigating instances of conflicts. Such positive work environments will always be geared towards enhanced performance and happiness levels of the staff.

Virtue ethics theory emphasizes the essence of individual character as an instrumental element in the decision-making process. It focuses on morality and individual character. The concept is vital to any organizational set up in that it helps in the prevention of instances of fraud and greed and instead instills morals (Hardy 2017, Web). A company that embraces virtue theory will always come up with rules and regulations that all its workers will have to abide by as ways of improving its reputation (Duarte and Neves 2014, pp.76-78). Moreover, such a firm also enjoys an increase in its financial performance and productivity. First and foremost, the firm abides by the accounting principles set by bodies such as GAAP or IFRS and in the process reduces instances of misappropriation of funds. Employees in such organizations are also made to understand that it is essential for them to strive towards meeting the set goals and objectives without having to engage in corporate scandals. Staff members need to be made aware of the significances of integrity and honesty in their everyday handling of tasks within a firm. Those found going against the set laws have to be slapped with punishments that range from demotions to lay-off. It is a high time that companies such as Berkeley embraced virtue concepts, and in so doing, this may result in an enhancement in its workplace relationships.

Exploration of the issue

Responsible Human Resources is an ethical issue that is instrumental to any organization. The HR is tasked with the roles of ensuring that employee-relations are enhanced and that work structures are regularly updated. Other roles entail recruitments, planning and conducting job evaluations. Incorporation of an organizational culture that focuses on performance management and workplace diversity is a part of ethical, responsible human resources and it ensures that a company is aligned to its visions (Mayhew 2017, Web). Many HR departments are also tasked with the provision of leadership and professional training and developments. Maintenance of employee benefits programs is vital in that it helps in the enhancement of job satisfaction levels and morale.

Integration of Responsible Human Resource in an organization is of great importance. Firstly, it contributes to an enhancement of the workplace productivity that in return leads to an increase in its financial performance. A good reward and recognition system, for instance, is a creation of the Human Resource department, and this helps in ensuring that workers’ are motivated and that their morale levels are enhanced (Alderson 2017, Web). Another significance of the ethical issue is that it helps in ensuring that all staff members comply with the set rules and regulations and this contributes to efficiency in operations and the ability of a firm to deliver positive results. Additionally, it ensures that workplace diversity is enhanced by hiring workers from all gender and cultural background. In the process, this leads to an improvement in the ability of the staff members to meet both short-term and long-term organizational goals. Companies that have embraced responsible human resource management enjoy a competitive advantage compared to their rivals in the market.

Based on Berkeley’s 2017 annual report, it is evident that one of its primary focuses is to provide a healthy and supporting workplace environment to all its employees. The company has in the recent years launched several new initiatives, and this led to its recognition as the 2016 most improved workplace during the Vitality’s Britain’s Healthiest Workplace Awards. Berkeley’s HR has been on the frontline in the development of a highly skilled workforce that handles various tasks within the organization (Berkeley Group Holdings PLC 2017, Web). It also retains the most talented employees, and this has been vital in the enhancement of its financial growth and ease in making its visions a reality. Every member of staff is encouraged to contribute annually to the Berkeley Foundation. In the quest for the provision of healthy workplaces, the company aims at ensuring that the quality of life of its employees, satisfaction and productivity levels are enhanced significantly. The firm is also in the process of investing in training and development through its talent management initiatives, and this will be instrumental in the provision of opportunities to all staff to grow and flourish.

Berkeley is committed to operating a work environment that is free of injuries and accidents to its employees. In the past decline, the company has witnessed a decline in Accident Incident Rate (AIR) with 2017 experiencing a 24% drop. The incorporation of graduate scheme has been vital in the enhancement of the productivity of its workers. In the year 2018, based on the annual report, the company will welcome 30 new graduates that will help in enhancing their experience (Berkeley Group Holdings PLC 2017, Web). The human resource department for the company believes in inclusivity and has a total of 2500 employees a third of which are female and a quarter works in the capacity of senior management and board of directors. The company also supports a diverse workforce, and this aims at promoting the breadth of roles available in the sector. Corporate governance is spearheaded by the board of directors and the senior management, and they are mandated with the roles of ensuring that organizational productivity is enhanced and that all workers feel like a part of the company’s decision-making process.

Berkeley Group Plc abides by the Responsible Human Resource ethical issue and ensures that it’s committed to maintaining high standards of corporate governance. The sustainability section of the organization reveals that the corporate board of directors is mandated with the role of ensuring that the firm meets its operational goals and reviewing the independence of the non-executive directors. It has a responsibility of promoting the long-term success of the firm in sustainable manner thus creating shareholders’ value. Additionally, through progressive reviews and implementation of policies, organizational leadership and management ensure that performance levels of firm are kept above the industrial average index.

Google Inc. is one of those companies that have embraced responsible human resource management. The organization carries out regular training programs that focus on improving the skills of its workers. Through its ethical conduct measurements and contributions to aspects of innovation it ensures that its workers are enjoy increased job satisfaction levels and that they paying their full attention to its productivity. The HR department of the firm has also been pivotal in cultivating a positive workplace environment thus making it easy for employees to meet their full potential. British Gas Company, using its volunteering strategy that emphasizes on community support has also been on the frontline in boosting its public image and financial performance (Simons 2011, p.76).

Failure by the Berkeley Holdings to effectively manage Resource Human Resource ethical issue may negatively affect some of its stakeholders. Investors, owners, consumers, and employees will be impacted by the issue if the staff members are not effectively managed. Subsequently, this will lead to a decline in the firm’s performance as well as deterioration in its reputation. Customer loyalty may also weaken, and this will result in a reduction in the revenue generation by the firm.

Advice to the company

There are various measures that Berkeley Group will have to embrace with the aim of enjoying a healthy workplace environment and an increase in its financial performance. It will be advisable for the company to cultivate a performance enhancement organizational culture among all its staff members (Mitchell, Obeidat and Bray 2013, pp.820-830). Additionally, the Human Resource department will have to ensure that during recruitments, inclusivity and qualifications are a priority. Diversity in the workforce will entail ensuring that individuals from different genders and cultural backgrounds enjoy equal opportunities within the firm (Newman, Miao, Hofman and Zhu 2015, pp.440-445). Berkeley, as a part of its talent management, will have to come up with a variety of training programs where workers will be equipped with skills in various fields, thus contributing to an improvement in their productivity. Integration of suitable reward and recognition systems will also be essential in increasing the corporation’s ability to attract and retain the most qualified and talented employees.

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