Business responsibilities have shifted considerably over time. Previously, firms were focused on increasing shareholder value. Although it is still an essential matter for organizations, shareholders’ interest is not the only aspect to take into consideration at the time of consolidating a business strategy. Nowadays, consumers’ growing awareness of sustainability issues, rapid changes in resources and supply chains, and social and ethical issues have shaped companies’ missions toward a community-minded perception.
These external variables have significantly influenced how we do business nowadays. Non-financial measures such as corporate governance and corporate cultural responsibility have emerged inside organizations to have a positive influence on communities. Similarly, financial strategies such as innovation and supply chain management have been designed to maximize profits while minimizing environmental damage.
Corporate governance has become a much more stakeholder-focused concept. The idea of developing sustainable business practices, not just to address environmental challenges, but also to take into account ethical principles and socio-cultural dimensions of the marketplace, has been shaping the way organizations regulate themselves. As a result, instruments such as codes of conduct and regulatory frameworks have evolved to have a beneficial influence on social, environmental, and cultural elements, because businesses are viewed as active members of communities that must accept responsibility for their societal implications.
Similarly, culture has become increasingly important in business. Companies have received criticism over time for their unsuccessful attempts to adapt to cultural differences since organizations were focused on massively manufacturing goods for a homogeneous globe. Consumers’ growing knowledge of cultural significance has caused businesses to totally rethink their approach to new markets. Manufacturing innovative goods that meet cultural needs and embracing indigenous values are two examples of ways businesses have attempted to address and respect the cultural values of many groups throughout the world.
Changes in business responsibilities, on the other hand, have had also an influence on innovation and supply chain management. Over time, innovation has pushed businesses to maximize output while lowering costs. However, it has harmed natural resources and individual well-being. As a result, nowadays, businesses are more conscious of their responsibilities to society, prompting them to invest not just in increasing organizational efficiency, but also in developing sustainable practices that allow firms to have a positive influence on communities. Despite the cost of innovation, corporations have recognized that they must play a proactive role in addressing externalities as well as their obligations in a changing society.
The growing duties of organizations have also altered supply chain management. Companies are no longer only accountable for how things are done at their headquarters; they may also be assessed by how things are done across their whole supply chain, including the acts of their suppliers. As a result, firms have moved toward a shared accountability scheme with suppliers, and these growing consensuses have had a good influence on communities, such as improving work conditions regardless of where the product is manufactured.
It can be concluded that since business obligations have changed over time, organizations have been compelled to adjust the way they govern and develop in order to effectively adapt to a changing society. Changes in financial measures such as innovation and supply chain management, as well as non-financial measures such as corporate governance and corporate culture, have had a positive impact on communities since businesses are playing an active role in society not only to ensure the welfare of communities but also to ensure their own long-term survival. However, there is still much to be done.
This article is a brief version of a major research conducted while undertaking my studies in Applied Management. Please, feel free to contact me if you need full access to the paper.