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Pro 1: Social Responsibility and Customer Relationships
One of the foundational elements of CSR is that it causes companies to reason beyond basic ethics to consider the benefits of active involvement in communities. In his article "The 7 Principles of Business Integrity," business strategist Robert Moment argues that 21st-century companies must prove themselves to customers to build long-term, trusting relationships. They must also get involved in the community to give back. This community connection endears your company to the local markets in which you operate.
Employees are a company's most valued asset. This is the premise of a company's obligation to this key stakeholder group with regard to CSR compliance. This means treating employees with respect and offering fair working conditions. It also means establishing fair hiring practices and promoting a non-discriminatory workplace. This improves morale within the workplace and encourages teamwork. Additionally, a writer on the As You Sow website stresses the importance of managing a diverse workplace so that you can benefit from a variety of backgrounds and life experiences.
The main reason any company would object to participating in CSR is the associated costs. With CSR, you pay for environmental programs, more employee training and efficient waste management programs. Proponents of CSR agree that any expenses to businesses are ultimately covered by stronger relationships with key customers. However, David Vogel indicates in his Forbes article "CSR Doesn't Pay" that investment in CSR programs may not necessary result in measurable financial results.
Another challenge for companies when considering CSR is the possible negative perception of shareholders. Historically, publicly-owned companies had a primary focus of maximizing shareholder value. Now, they must balance the financial expectations of company owners with the social and environmental requirements of other stakeholder groups. Some shareholders are happy to invest in companies that operate with high integrity. Others may not approve of the aforementioned expenses of operating under CSR guidelines.
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ADVANTAGES 1) shares are being sold to the general public via stock exchange, therefore there is an incentive to raise capital. 2)THere is a limited liability- if business… fail to pay off its debts, then debtors could not force them to sell their private possessions. 3)the load of work is being divided among the shareholders DISADVANTAGES 1) Accounts of the business would not be kept secret. for example Accountant could know about the company's trading methodology. 2)If a company becomes too large, the chances of bankruptcy would increase because management may loose control.
The advantage of physical punishment is that it is very convincing; if you wish to inspire fear, this will do it. The disadvantages are that it is also emotionally scarring an…d may lead to life-long resentment or hatred, and in addition, it could lead to charges of child abuse if children are the object of your punishment, or charges of assault in the case of adults, if the punishment is too severe. Also charges of murder, if the punishment proves to be fatal. The events at Abu Ghraib prison in Iraq, under the Bush administration, are a cautionary tale. 8D
Disadvantages Resources are limited financing available for growth is not sufficent Advantages Resources areused efficently adopts new tehhnologies quickly
One advantage to forming a corporation is the fact that you aren't exposed to personal liability. One disadvantage is the fact that it can be expensive to start one compar…ed to starting a proprietary business.
A tired corporation is at a disadvantage because productivity can greatly drop within a short time. One advantage is that employees may suggest ideas that will make some p…rocesses less tiring.
One advantage to having a modern corporation is the fact that they can better manage their costs and employees based on information from research. A disadvantage to having… a modern corporation is the fact that they generally aren't socially responsible.
Advantages of corporation include protected assets and heightened credibility. Disadvantages include loss of a personal touch, and ongoing expenses.
The advantages and disadvantages are pretty much the same, only the perspective changes. For example: A company that manufactures things in multiple countries is able to capit…alize on the cheaper sources of materials, labor, distribution, etc and in turn sell a cheaper product at a higher profit margin. However, if you happen to live in the country with higher costs, you're going to lose out. One modern example of this is out-sourcing of manufacture from the U.S. It is cheaper to procure materials from China, manufacture in Mexico and then sell in the US where people have more money (generally speaking). In this scenario, Americans spend money but only employees in Mexico and China actually make money. This causes the loss of American jobs on the production side but still takes adavantage of American economic policies to maximize profit. Great for the consumer (lower prices), great for the laborers (more money than native companies), great for the company (higher profits) but bad for American workers. Of course this is true of all transnational companies. If you're based out of Korea, but Tawainesse labor's cheaper, of course you're going to limit how many Koreans you have to higher.
The advantages of a closed corporation include it is affordable to establish, there are very few legal complications, and the business income is often exempt from income t…ax. There are also disadvantages including a limited number of investors allowed, personal liability, and banks may require financial audits. A close corporation can't make a public offering of its stocks. The shareholders have a great deal of control over who can buy into the company. As a result, it's very difficult to gain control of a close company via a hostile takeover.
One advantage to having a corporation is the fact that it is its own entity. This means that the business managers aren't liable for their decisions.
Advantages: you need this type organization where people come together to create something like an automobile, and not fear the loss of personal assets in case the enterprise …fails. Corporation allows to take on risks, which would not be taken by anyone personally. Disadvantage stems from that same idea of risk. Risks that corporation takes do not go away, they are more or less shared by other parties: customers, creditors, and others who deal with a corporation. There is also a legal notion that corporation is a person. And can be sued. So directors of a corporation often make collective decisions that may negatively affect the rest of society, in order to make profit for shareholders. Collectivism is a problem in corporations just as it is in Socialism. Individually directors and other officers would not make decisions they otherwise make in a corporation. So you could say incentives are different.
corporate governance advantages and disadvantages
Advantages: Pollution can be kept away from cities and large power stations can be built (more efficient Power can be diverted to where it is needed, if there is high demand… or a breakdown Surplus power can be used to pump water up into reservoirs to be used to generate hydroelectric power when there is a peak in demand. Disadvantages: Power is wasted heating the cables Overhead power cables are an eyesore Smaller generating projects such as wind turbines and panels of solar cells have difficulty competing with large suppliers
The advantages of statutory corporations are as follows:- (1)Formation: Formation of Statutory Corporations is easy. It can be easily formed by passing Special Act, either at… Legislature Assembly or at Parliament. (2) Autonomy: Statutory corporations can have its own working pattern. There is no political interference in day to day working of corporation. (3) Flexibility: Statutory corporations enjoy full flexibility in its operations. It is free to take any decision relating to capital collection. Investment, market, production, recruitment, planning, accounting & the decision once taken can be easily changed. (4)Capital Raising: Government contributes the capital at large for statutory corporations, but statutory corporations are free to collect capital from general public. (5) Quick Decisions: Quick decisions are possible because all policy decisions are taken by the Board & board can implement these decisions easily. There is no interference of government in any type of decisions. (6) Staff Members: Statutory corporations is free to have its own recruitment policy. It can recruit, promote, and transfer any employee / officer as per its requirement. (7) Economies of Scale: Statutory corporations operates on large scale & enjoy the economies of large scale operations. (8) Separate Entity: Like joint stock company, statutory corporations enjoys separate legal status. (9) Self Accounting System: Statutory corporations is free to have its own accounting pattern. It need not follow Budgetary Accounting & Audit Control of government. It is free to prepare its own budget. (10) Social Welfare: The main object of statutory corporations is to provide necessary services at a lower price. It works for protecting the interest of common people. Hence society at large is benefited. The disadvantages of statutory corporations are as follows;- (1) Difficult Formation: It is very difficult to form statutory corporations because it requires lengthy documentation, complicated formalities & passing of statue. (2) Rigidity: The policies once approved, the statue once passed cannot be changed easily. It can be done by the parliament only & this is very time consuming. (3) Political Interference: Statutory corporations are subject to political interference & this affects the efficiency of the corporation. (4)Suitability: Statutory corporations is suitable only for giant size business but is not suitable for small size business. (5) Inefficiency: Statutory corporations always lacks efficiency. This is because of rigid policies of management or the government. (6) Monopoly: Statutory corporations enjoy total monopoly & private sector cannot compete with it. This encourages monopoly & defeats the motive of statutory corporations. (7) Wastage of Resources: There is often wastage of physical, capital and manpower resources in several cases.
It's labor intensive . So when you sell your produce , you make sure that you are not in the mercy of the hands of big traders who control the price of your crop , and end… up in the red because of the high cost of salary . High cost of farm maxhineries .. Etc ...
Owning a Canon digital camera is the definition of punishment. It is not only cruel, but also inhuman to inflict such hardship upon another human being. Obviously, the disadva…ntages of such punishment as using a Canon digital camera are many. Most notably the regret for not owning a fine Nikon photography instrument! This can lead to years of pain and self-loathing. Along with punishment must come reward. When the pain becomes too hard to bear, it is highly advised to reward the individual with something that will relieve the pain. The simple act of puchasing a new Nikon camera will sooth anyone's feelings and result in an abundance of joy and wonderful photographic experiences. In the final analysis, it is better to avoid the punishment of Canon ownership from the start by obtaining the best photographic tool money can possibly provide. Just by a Nikon and you will be eternally rewarded.
Lalit Mohan Rana From Sapnawat Village of Distt Ghaziabd Says - Corporate Hospitals In Health Care Employees Health Check-UpPaediatric Work-UpGynaec Work UpDiabetic Work-UpR…enal Work-UpCardiac Work-UpChest Diseases Work-UpOncology Work-UpOrthopaedic Work-UpGeriatric Work-UpDiagnostic Facilities HOSPITALS RUN on commercial lines with profit as the primary objective, and of course listed too -- corporate hospitals -- are a couple of decades old in India. The unmet demand for good healthcare in India coupled with the growing opportunities to raise resources through the capital market set off a few hospital projects in the last decade. A few years and many disappointments later, there are questions if a hospital run on purely business lines will survive at all. One success story is Apollo Hospitals Enterprises. But its success has come in the backdrop of failure of a few other high-profile projects. Barring a couple of smaller hospitals and those that are a division of multi-business companies, the prognosis is bad. To take a look at the viability of corporate hospitals and their investment prospects, it may be necessary to draw lessons from the projects that disappointed. The potential The marginal presence of the government in healthcare leaves the door open for alternative suppliers. India spends about 0.7 per cent of its Gross Domestic Product on public health against an average of 0.9 per cent of GDP for low-income countries. The world average is 3.2 per cent of GDP. Financial distress seems to be the dominant theme in any discussion on the state of government finances, and with dramatic changes unlikely in the foreseeable future, private healthcare organisations are bound to grow. Other than the cold fact of marginal presence in healthcare delivery, government centres are anyway not the people's choice. Whenever possible, patients seem to opt for private healthcare providers. Corporate hospitals, with their high-profile and profit-driven approach, are located mainly in urban centres. Another dimension of the urban areas is the relatively high incidence of institutional support for an individual's healthcare needs. Apollo, for instance, has tie-ups with a number of corporates to take care of the healthcare needs of their employees. And the advent of private health insurance companies is likely to be biased towards urban areas, at least initially. These factors suggest that there is space for different types of private healthcare providers in India. Technology in medicine and cost factor Over the last couple of decades the progress made in information technology and imaging has had a major impact on medicine. Advanced diagnostic equipment are available that greatly help doctors assess ailments. Diagnostic equipment such as CT scans (computed tomography) that combine IT with imaging technology have become commonplace. Dr P. C. Reddy, Executive Chairman, Apollo Hospitals Enterprises, estimates that there are about 2,000 CT scans in the country from none two decades ago. CT scans are now to be found in large numbers even in smaller urban centres. Sophisticated diagnostic equipment have had a big positive impact on the practice of medicine, though the cost of installing them is fairly high. And given the rapid progress in technology, the likelihood of obsolescence is high. The cost of constantly upgrading diagnostic equipment is heavy -- a factor that appears to have a played a role in pushing corporate hospitals floated in the last decade into heavy debt. Heavy debt, in turn, leads to a vicious cycle of hospitals charging heftily for diagnostics to cover the interest cost. But this may affect the frequency with which these diagnostics are used. The outcome is that the income generated may simply not be enough to cover the cost of loans. For instance, a couple of years ago, Tamilnad Hospital -- located near Chennai -- had to pay an interest charge of Rs 14 crore when the total income was Rs 11 crore. Other disappointments Diagnostics are an expensive affair, but that has not been the only reason for hospital projects turning unviable. Another failing has been the illegal diversion of funds. This problem has hurt a number of companies that raised public money in the early 1990s with a specific objective. At times, the money was diverted to other uses and on occasions to pay for inflated project cost. An industry observer suggests another reason for hospital project failing: Objectives in conflict with the principle of a commercial venture. Corporate hospitals that were promoted to fulfil a grand vision and merely because some had a dream and a piece of land, but were not backed by careful planning, have failed. Debt, the crucial ingredient A look at the financial statements of corporate hospitals indicates that the common problem was the high debt component. Hospitals are long-gestation projects. Therefore, the right mix of debt and owned funds is critical to their success. The ideal mix is anybody's guess. An industry observer feels that if more than one-third of the hospital project cost were to be funded by borrowings, as against owned funds, the viability would be in doubt. A look at Apollo's funding pattern is interesting. In the early 1990s, it borrowed Rs 2 for every rupee of owned funds. At the time, the company's interest payment was about 13 per cent of its income, far higher than the top-rung companies across other sectors. By 2000, Apollo had reduced its borrowed capital to 50 paise for every rupee of its owned funds. Simultaneously, the interest cost had fallen to about 6 per cent of its income. If Apollo had not controlled its borrowing, the company might have gone the way of other disastrous hospital projects. Are corporate hospitals viable? The unpleasant experience investors may have had with a few corporate hospitals promoted in the last decade could well provoke the question. Financial institutions seem to be thinking on the same lines -- ICICI is believed to have stopped lending to hospital projects. And not just investors, a doctor running a successful community hospital asks the same question. The reasoning being that in the Indian context -- looking at the patient's ability to pay, and other costs -- the need to include repayment costs to borrowers in the hospital's charges may render the project unviable. Apollo may be an example of a corporate hospital that has succeeded. It is, however, a moot point if Apollo's success will be replicated. There are a few striking similarities between corporate hospitals and other businesses promoted at the same time by raising public money. The most obvious ones are poorly conceived projects based on unrealistic assumptions and a lack of accountability. The story was repeated in other sectors, notably steel. Many dotcom ventures may go down the same path too. Take away these common shortcomings, corporate hospitals may not be an unviable proposition if they are based on sensible assumptions and are managed rationally. If there is no internal impulse to do so, there may soon be some from outside: Private health insurance companies. Implication of health insurance The low level of health coverage in India suggests that insurance companies have enormous potential. The success of insurance companies will hinge on keeping a tight leash on the cost of healthcare delivery. Such a tight check is likely to propel corporate hospitals towards more efficient functioning. By their ability to command or distribute big business, insurance companies are likely to have the clout to nudge hospitals into running a tight operation. As the experience in the US shows, the growing importance of insurance or Health Maintenance Organisations (HMOs) does not necessarily guarantee a system free from trouble. These organisations seem to create a unique set of problems. But what appears almost certain is that the advent of private health insurance will tighten the screws on corporate hospitals and thereby nudge them towards greater efficiency. Till such time, investors may consider avoiding an exposure to corporate hospitals.