Business Management

1. From Chapter 3, social responsibility refers to the obligation of an organization to pursue long-term goals that benefit the needs of society as well as itself. Please discuss at least two of the arguments for businesses assuming social responsibilities and also two arguments against businesses doing this. Also, please be sure to use examples of one or more organizations ("real-life" orhypothetical) in your discussion of the "pros" and "cons" of this issue.
Social Responsibility does not only mean doing the right thing, it also means behaving responsibly, and getting sure that suppliers do the same. There are varying opinions about if it benefits or harms more a company but what everyone can agree on is that social responsibility has positive and negative outcomes for a business.One of the most important benefits of being social responsible is in the increase of corporate reputation; people tend to see companies who give back to society as superior companies, and as consequence a respected brand name is created and more long term benefits are acquire, a good example of this is Star Buck, which only buys coffee from intermediaries that respect the rights of workers and whoprovide documents that proof that producers are receiving a fair price from the intermediaries.
One of the disadvantages of Social Responsibility comes in hand with the Starbuck example, a decrease in short term profitability. Since Starbucks is only buying from supplier that fulfill this requirements, coffee will be more expensive than if buying it from a company who does not fulfill these andrevenues will be smaller.
Another benefit that social responsibility can bring to a business is good publicity, let’s say that there is a marathon organized in DC to raise money for a children hospital, and there is this a small healthy snack company which just opened a shop in town, if they also raise money by selling cheap snacks and giving the money to the hospital, they might not bring anybenefits that day, but good publicity have been done and as we know that is never free.
One last disadvantage that many companies see in applying social responsibility is the discontent that many shareholders will have, they have put their money into your company and instead of having 200,000 shares at $5.76, they have them at $5.25 because the company decided to only work with supplier who payfair amount to producers and who respect their right. Even though it seems like being social responsible is the right thing to do, many people do not see it that way, especially when their benefits and money are on the line.

2. From Chapter 8, please discuss several important differences that you see between the rational and bounded rationality views of the decision-making process. Which oneof these views do you think would typically be used by a "real-world" manager ? Why do you think this ?Also, please use one or more examples to illustrate how the type of decision-making that you selected might be used by a "real-world" manager.
As we know, rational and bounded views are completely different from the begging of the decision making process, identifying a problem. With the rationalview, an important problem is identify no matter what the problem is but under the bounded view a manager can choose not to see a problem that exists because it does not benefit the company.
A second one big differences that I see is that the rational view works under the assumption that decisions are made by people who know all possible actions to solve a problem while the bounded viewexpresses the idea that it is never possible for manager to know all possible actions to solve the problem.
A third difference related to the second one is that under the rational view, decision makers are able to accurately and completely evaluate each one of the alternative to solve a problem; but the bounded view states that decision are made under pressure, limited time and knowledge what keeps...