Introduction
Major Facts of the Situation
The major situation that IBM intends to deal with is critical social responsibility for the company. One of the facts of the situation is that apart from doing business to make profit, companies should fulfill certain social responsibilities since they exist for the benefit of their customers and the society in general.
As a result, IBM should conserve the environment to achieve sustainable development through different strategies. At the same time, it should give back to the community by establishing special programs that benefit community members as well as supporting corporate social issues.
Giving back to the community involves engaging in activities that ensure a company does not focus on making profits only, but also endeavors to use its resources to make a positive impact in the lives of community members.
The other important fact of the situation is that the company should establish social responsibility programs in order to outdo its competitors in the market. Unless it develops such programs, then it would be difficult to deal with its competitors. The last fact of the situation is that IBM should deal with many competitors in market because it does not operate in a monopolistic environment.
The Major Parties Involved in the Situation
There are two major parties who are directly involved in the situation. The first party is the company itself because it has a duty of engaging in social responsibility actions in order to increase its popularity among its clients. It would achieve this by developing programs that would ensure that environmental protection is achieved as part of social responsibility.
The second party that is directly involved in the situation is the clients. All social responsibility programs that IBM intends to develop are aimed at benefiting the company’s clients. For instance, they would not be affected by harmful environmental activities. As a result, the clients are among the parties who would be directly involved in the situation.
Parties Affected Indirectly
Apart from individuals who would be affected directly by the situation, there are others who would be affected indirectly. The first individuals who would be affected indirectly are potential clients. This is because they also live in the same environment hence they would be indirectly affected by programs that IBM would develop. The other group that would be indirectly affected is competitors in the market. These include rival companies that IBM should outdo.
Analysis
The problem
The problem being addressed in the situation is that IBM is faced with different social responsibility issues because of the nature of the business and its customer focus. For instance, it is a multinational company with branches in different parts of the world. This implies that it should maintain its international reputation.
A company that has an international outlook is different from companies that operate on a small scale. IBM should ensure that it does not encourage environmental degradation through its business activities. As a result, the company should conserve the environment and that ensure sustainability is achieved (The Importance of Social Responsibility 5).
Reasons that Make the Situation a Social Responsibility
The most important reason why environmental conservation is a social responsibility for IBM is the fact that environmental degradation is a major problem that clients face, as a result of activities carried out by different companies. The ultimate goal of IBM is to become a global leader in provision of computer and consultation services.
To achieve this goal, the company should deal with its competitors to ensure that they do not gain competitive advantage. The most effective way of outdoing its rivals is through implementation of different social responsibility programs. This would enable IBM to convince its clients that it is concerned about their welfare.
Social responsibility programs would improve the lives of the clients and ensure that they are not affected by environmental issues that result from different activities that companies perform. Clients would therefore build trust and confidence in IBM and help it to increase its performance.
Wider Issues at Play
There are three major wider issues at play in the situation. The first issue is that IBM should create competitive advantage in order to outdo its competitors in the market. The second issue is that the company would like to ensure that there is no environmental degradation that is caused by different activities that companies engage in, while the third issue is that the company should build trust among its clients in order to retain them (Taylor 3).
Ethical Underpinnings of the Situation
There are different ethical underpinnings involved in the situation. The first one is the critical values that IBM holds in order to ensure that it makes virtuous decisions. The second ethical underpinning that the company holds revolves around its principles or code of conduct that it follows in its decision making processes.
Ethical considerations are crucial in any organization since they make it possible for the organization to serve its clients effectively. For instance, the ethical underpinnings at IBM enable the company to differentiate between good and bad habits with regard to social responsibility. The company sets various standards that uphold social responsibility for the benefit of its clients. As a result, ethical underpinnings play an important role in ensuring that IBM’s customers are provided with quality services (Szymanski 30).
Recommendation
Things to be done by the Organization
There are several things that IBM should do in order to ensure that the company improves the lives of its clients and achieves competitive advantage. This is because social responsibility aims at impacting the clients positively by doing things that benefit them (Williams, 56).
The first thing that the company should do is to set aside a certain amount of money to facilitate different community projects aimed at conserving the environment. For example, the company can support garbage and waste collection to ensure that the environment is kept clean. The second thing that the company should do is to ensure that it provides high quality products that serve the clients well.
How the Proposal Would Address the Situation
In order to address the situation, my proposal would highlight different ways through which companies can undertake social responsibility. Some companies have the desire to engage in social responsibility but lack the knowledge and expertise required. The proposal would also provide insights on how social responsibility programs should be implemented in order to benefit clients. In addition, it would present ways of attaining competitive advantage in the market.
Lesson Learned in the Case
The major lesson learned in the case is that companies should engage in social responsibility programs because they have a duty to improve the lives of their clients. Their main focus should not be profits alone. In addition, the case shows how companies can create competitive advantage by engaging in social responsibility programs, hence it is an important thing for them to do.
Works Cited
Szymanski, Aleksander. IBM and the business ethics. London: GRIN Verlag, 2011. Print.
Williams, Chuck. Management. Mason, OH: South-Western Cengage Learning, 2009. Print.
Taylor, Dianne. 2009. Why Social Responsibility is Important to Your Business – Good Things Do Happen to Good People! 2009. Web.
The Importance of Social Responsibility. 2009. Web.