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The main goal of a business is to utilize resources available to make profits for the business owners and to remain competitive, firm must have strategies that will enhance their performance

The main goal of a business is to utilize resources available to make profits for the business owners and to remain competitive, firm must have strategies that will enhance their performance.  To be sustainable in terms of market competitiveness, the strategies formulated must produce superior value and at the same time containing the costs involved (Rothaermel, 2015).  Still, with profit in minds, organizational leaders have to learn on how to attain a balance between the shareholders and the responsibilities to the societies in which they operate.  The major social responsibility for a firm is to use resources through engagement with activities aimed at maximizing profits but at the same time articulating the set social values and behaviors expected by the society.  It is important for managers at Merck to always uphold the social concerns and understand that the business’s operations are not carried out in a rational market since many a times; the perception of the public is real.  The firm needs to operate in such a way that, the strategy adopted creates superior value for shareholders (Rothaermel, 2015). The provision of drugs to high end market and using the resources to cater for medical needs of the impoverished people should be balanced.  This is because in the present times, choosing to blindly pursue profit maximization only will ultimately lead to poor performance, but a focus on social responsibility must not override the shareholders interests.

 The firm managers should be smart and consider what impact their strategic decisions will have on the organization.  The firm has to adopt a new game plan that will allow it to be intelligent in navigation of the present market place (Corkery, Mikalsen & Allan, 2017). To balance the two tradeoffs, Kersck managers should consider the effect of negative publicity brought about by a focus on shareholders only.  While focusing on the affluent customers in the, market may make sense, in terms of shareholders’ value, any arising negative publicity may lead to demonization and hence the destruction of long-term value for the firm. The shareholders would be served effectively by leaders who consider the nature of the present market and make strategic decisions on the basis of such information (Corkery, Mikalsen & Allan, 2017).  The consideration of the poor in the community can also work to the advantage of the firm since it will influence the perception of the public about the brand. In cases where the affluent market segment cannot access the disadvantaged in the society, the public is likely to associate themselves with the philanthropic activities that Merck engages in and therefore, enhance its image.  The firm needs adopt a social purpose that is sustainable and which is inherently linked to the major objectives that have been set.

Sustainability is important because for an organization to continue with its activities related to social needs; their operations must provide enough resources that are needed to provide the social services (Corkery, Mikalsen & Allan, 2017). This means that profits earned should be enough to cater for the social need activities that a firm engages in. The profitability should be sustainable so that enough resources are attained to continue with Merck’s programs of providing drug donations to people who cannot afford.  The strategy that the firm should implement must align the social purpose with the interests of shareholders. The social purpose must be credible, and brands should consider how skills and values can cater for the society needs and at the same time, ensuring that the idea us economically sustainable. The major driver for the social purpose must be a strategy that also acts as the brand’s purpose pillar and the entire business unit should be built on it.  The strategy will provide a reason for consumers to believe in the brand and this belief will largely create powerful advocacy and loyalty (Williams & Scott, 2012). Merck will demonstrate a connection that is emotionally weak and one that is more resilient to the market competition.

 

Having a social purpose offers an integral and more beneficial basis of existence, and the leaders business organizations can avert the need for defensive and create public trust. By doing this Merck will have taken important steps towards enhancing profitability of the firm and avoid any cases of conflict with authorities or the community.  The strategy for social purpose should find a balance in meeting the needs of customers and shareholders and engaging in a course that will make the world a better place especially for the vulnerable members in the society.  Companies that enjoy the biggest success in terms of longevity and profit sustainability are those that realize that profitability and a purpose other than shareholder interest are absolutely necessary (Williams & Scott, 2012).  Understanding the strength of this relationship is important for managers.  The understanding involves a focus on social responsibility has a long-term bearing on the financial success of the firm and leaders have communicate to the shareholders and other stakeholders about the strategy.  A gap should not exist between understanding the need for a social purpose and real action on the same (Williams & Scott, 2012). Sustainable profitability should consider a culture of social giving that is put into actions.

Bible verses

 There are four Bible verses that highlights the need for taking care of the poor in the society and that promises great heavenly awards on those who do so.  Ephesians 4:28 indicates the need for a person to engage in honest work so that he may have smoothing he can share with those in need.  The work one does must be honest so that one has no qualm giving out (The Holy Bible). Having an honest income allows a Christian to freely share their earnings with people who are not able to support themselves or provide their own basic needs (Smith, 2013). Though the verse immediately addresses people who steal, the advice by Paul is applicable to every Christian. By working hard, a Christian is able to earn enough resources to help those in need regardless of the means (Smith, 2013). The main message highlighted in the verse is that main reason Christian should work is not only to care for them, but to meet the needs of others who are not able to work, or whose work does not sustain them.

Proverbs 19:17 highlight that those who generously provide to the poor lend to God and they will receive repayment from him for their actions (The Holy Bible).  Christians have the obligation to help the poor and this will receive Divine acknowledgment. Any help that is genuinely offered to those who are needy is a load to God and He will surely repay it (Smith, 2013).  This verse is corroborated by Luke 6:38, where Jesus teaches that the measure one gives with will determine how much he will receive from God.  For those who give more, a good measure will be used to determine their blessings so that they overflow. Those who want to succeed in various aspects of life must learn to give genuinely. In a society that makes people to be self-centered and to be in constant pursuit for personal gain, it is easy to be insensitive to people who are less advantaged and unable to meet their basic needs. Humans live in a social union state that makes it necessary to offer mutual assistance. They can easily be entangled in self-interest and self-absorption especially in their trading activities or commerce that they neglect their fellow humans who are really suffering due to poverty (Craig, 2008).

 A person who is open to the needy will find others who will deal well with them especially in cases where they are in need. A person with no kindness as his or her character will find it hard in his endeavors to attain what he want by dealing with others. The clowning Verse is Hebrews 13:16 that reminds Christians no to neglect good actions and sharing what they have since these sacrifices pleases the Lord (The Holy Bible).  Christians must use their financial power to meet the necessities of human’s bodies and soul’s, and such will be accepted by God with much pleasure.  It calls for liberality to people who are in want and deciding not to forget that this is their duty responsibility.  Humans are constantly prone to considering their individual interests or those of their businesses and forgetting the responsibility to alleviate the suffering of others (Craig, 2008).

Christian perspective of ethical issues

In line with what is expected of Christians, businesses or companies must provide an account in the society especially in regard to dealing with those who are less fortunate. Merck decision to provide drugs to those in the society who cannot afford is a major step towards fulfilling their duty to the poor. The social responsibility of the company should stem from the understanding their role in relation to the larger community and the understanding that shareholders expect good performance or returns (Rumambi, & Marentek, 2015).  The basic point to note in this case is that for the firm to be able to give to the society, it must have sufficient resources that will cater for the shareholders interests and care for the needy.  This is in line with Ephesians 4:28 that call for engaging in honest work to earn something with which to help others in the society.  The strategy adopted by leaders should ensure that the performance of the firm in terms of profitability is enhanced.  The strategy should be based on the need for solidarity, where the firm will be devoted to the common good of each party, the shareholders and the community in which it operates (Rumambi, & Marentek, 2015).  There should be humanism in the entrepreneurial operations of the Merck, in that while focusing on provision of drugs to the affluent in the society, a focus on the poor should not be viewed as a departure from the organizational goal. The need to ensure the interests of the owners are prioritized cannot be overstated, but ignoring the plight of the society goes against the Christian spirit of giving to the needy and accepting nothing in return.

The shareholders are people who have been blessed with an opportunity or position for creating social benefits and hence, as Christians they should consider the plight of the needy and poor members of the society (Rumambi, & Marentek, 2015). The role of the Merck leaders is to communicate to shareholders about the need to uphold their need to share the profits of the organization with the poor people, who lack the opportunity to earn sufficient income to afford the drugs. As a Christian entrepreneur, the owners are called upon to actively be engaged in activities or initiatives that are aimed at improving the welfare of the poor especially their health.  The benefits of engaging in such initiatives will be achieved if they are carried out genuinely and while they may not be quantified in terms of money, the image of the organization will be enhanced among other public members. The impulse behind such actions will be in line with Biblical teaching of lending to the poor , which means lending to the lord , and benefits will be gained in due time.

The true aim of having a social purpose in business strategy should maintain in view; not the establishment of a better kingdom in this world, but to strive in integrating Christian values in business. Through this, one is not promoting a kingdom not of this earth by making authentic contribution towards alleviating poverty or mitigating it to say the least and build a better world (Teck Hui, 2008).  The philanthropic activities of a business based on Christian values should not follow the pattern of secular humanism so as not to lose touch with the basic Christian faith. The plan should be practical and even though it may appear rather negative or pessimistic, it is done with the understanding that only God truly lift all human from poverty.  With the understanding that sustainability of a firm’s profitability is essential to serving shareholders interests, working towards maximum performance of the firm should be emphasized (Young, 2013). The improved performance of the firm is the major goal of any organization, but the efforts directed at this cause should consider that biblical teaching of receiving with same measure that a person uses when giving to others. To provide for the poor in the society, consumption of resources by business owners should be limited to what is necessary so that resources are availed to fulfill the duty of serving the needs of others. Having a social purpose requires restraining the impulses to recklessly pursue individual sensory gratification, so that one can get the power and freedom to sacrifice resources for a social course. Pursuing good works for the society requires sacrifices for the business owners or shareholders (Teck Hui, 2008). Of more importance is seeking to cure the root cause of poverty and suffering of the needy, empowering them so that they can fend for themselves.

Therefore, from a Christian perspective, balancing the shareholders responsibilities and donation for treating river blindness among the poor African communities requires a departure from solely focusing on profitability.  While a focus on affluent society segment of the market will improve the profitability of the Merck, ignoring the plight of the sick and poor communities will against the Christian spirit of caring for others. Giving from a Christian perspective is genuine if it is not done while expecting worldly payback. Having a strategy integrated with a social purpose will enable the firm attain the right balance and solve arising challenges. 

References

Rothaermel, F. T. (2015). Strategic management. McGraw-Hill Education. 9

 Corkery, J., Mikalsen, M., & Allan, K. (2017). Corporate social responsibility: The good corporation. Centre for Commercial Law.

 Williams, D., K., Scott , M., M., (2012).It’s Time to Balance Profits and Purpose. Havard Business Review. Retrieved from: https://hbr.org/2012/09/its-time-to-balance-profits-an

The Holy Bible: Containing the Old and New Testaments

Smith, J. W. (2013). The Blessing of the Lord: Riches, Wealth and a Life of Abundance. Cork: BookBaby

Craig , C., M., (2008).Divine Design for Discipleship.Xulon Press.225- 228

 

Rumambi, H. D., & Marentek, S. A. (2015). A Human Dignity Perspective: Exploring The Implementation Of Corporate Social Responsibility. Procedia-Social and Behavioral Sciences, 211, 127-134.

 

Teck Hui, L. (2008). Combining faith and CSR: a paradigm of corporate sustainability. International Journal of Social Economics, 35(6), 449-465.

 

Young, L. M. (2013). Socially Responsible Investing from a Christian Perspective.

 

 

 

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