Stakeholders scrutinize business
activity. Corporate transparency is changing the face of
business. Consumers are now armed with new tools to uncover information about
business firms on matters important to them. Corporations have no choice but to
rethink their values and behaviors. Several factors drive this
trend. ·The success of market economies and globalization: As
market capitalism grows globally, the competitive success of firms and nations
depends on genuine performance. ·The rise of knowledge work and
business webs that depend on openness and candor regarding business and
production matters, as opposed to firms' knowledge, which remains in employees'
brains and resources. ·The spread of communications technology,
especially the Internet, which challenges traditional business hierarchies by
making information pervasive, immediate, and impossible to control.
·Demographics and the rise of the Net Generation: Young people today are
more aware of the world around them and have a stronger sense of civil values
than previous generations, mostly through technologies like the
Internet. ·The rising global civil foundation: It's becoming
more difficult to get away with bad behavior. The corporate
world is responding by behaving more responsibly; business integrity is on the
rise-and not for just legal or ethical reasons. It makes economic sense. Firms
that exhibit ethical values, openness, and candor have discovered that they can
better compete and profit. Furthermore, firms can't hide their secrets, thanks
to information and communications innovations. Firms are transparent whether
they want to be or not, and many are opting to make themselves transparent to
better serve their shareholders and the public. The
international banana company Chiquita is a firm that has benefited from this
transparency. Chiquita saved itself from bankruptcy by becoming a transparent
organization with more open, honest, and straightforward communications with all
its stakeholders. Furthermore, a dramatic change in the company's image
occurred: Chiquita has won several awards and is widely cited as a leader in
corporate responsibility. Transparency has resulted in a
network of stakeholders who scrutinize firms, with or without their knowledge.
Firms that don't pay attention to this network open themselves to attack and can
be devastated or destroyed. Those that stay aware of constituent and community
values and behave accordingly can develop sustainable business models.
Other benefits of transparency include more successful business
partnerships and improved employee trust, resulting in lower costs, improved
quality, better innovation, and loyalty. Transparency will also bring about a
new breed of executive, one who has integrity, who leads by example, and who has
the courage to do the right thing. Transparency demands that the corporation
change, from paternalistic, inward-looking, and self-indulgent to engaged,
stakeholder focused, responsive, and responsible. Mark each
statement as either true (T) or false (F) according to the passage.
填空题
Corporate transparency is changing how business looks.
填空题
Nowadays young people sense less acutely than previous generations
填空题
Transparency influence a company in terms of human resources
填空题
Firms with ethical values, openness, and candor have found that they can better compete and profit.