Academic journal article Management : Journal of Contemporary Management Issues

Standards of Socially Responsible Management - Impact on Sustainable Development of the Organization, the Social and Natural Environment

Academic journal article Management : Journal of Contemporary Management Issues

Standards of Socially Responsible Management - Impact on Sustainable Development of the Organization, the Social and Natural Environment

Article excerpt

1. INTRODUCTION

Each standard is a good international practice, which is as a rule comprehensively and systematically applied by organizations that are considered more successful and more responsible within the context of the social environment and as such demand more respect. The already established standard of socially responsible management provides for a more efficient management of business processes of organizations in terms of meeting the requirements and expectations of customers, as well as every other affected part within a social environment. Because of this, the integration of current management standards which apply to an organization may serve as a one-of-a-kind opportunity to expedite the fulfillment of an organization's mission as well as its aims and objectives (Alic and Rusjan, 2010; Bukovec and Markic, 2008; Rusjan and Castka, 2010).

Furthermore, socially responsible operations of an organization may prove to be socially beneficial and are also simultaneously the basis for a long-term development and growth of an organization, as well as the extended social and natural environment. The paradigm of social responsibility is becoming the focal topic of the global social environment with the responsible and ethical operations of organizations and behaviour of individuals (Avolio and Gardner, 2005). For an organization to achieve business success within a social and natural environment, there is an emphasis on the continuous adjustment in accordance with the demands of the market (Amabile and Kramer, 2007; McAlister, Ferrell and Ferrell, 2005), new technological discoveries and promotion of creativity, innovations and sustainable development. The continuous development of the requirements and expectations of customers, as well as the demands from employees in such organizations to continuously adapt to the situation within the social and natural environment call for increasingly more innovative approaches in the development of operations and generating added value for every participant (Jeston and Nelis, 2008; Kaplan and Norton, 2006; Markic et al., 2012).

Due to the present economic situation, the European Union has pointed out that socially responsible operations of an organization are not considered merely a single or self-sufficient incentive aimed at modifying the business environment. Instead, they are considered the most appropriate tool to resolve the critical social and economic issues within the society (Zenko, Hrast and Mulej, 2013). The principles and assumptions of socially responsible operations are defined in ISO 26000 as the guidelines on social responsibility associated with management principles of the European excellence model. Since each business activity is undertaken by suitably qualified and motivated employees, this is particularly important for the effective provision of market services. That is why, in the long run, mutual trust, personal and professional respect as well as ethically and morally indisputable operations of an organization and its employees are considered to be the basis for the positive performance of an organization, the co-dependent development of the social environment and the preservation of the natural environment (Bavec, 2012; Celinsek and Markic, 2008; Windsor, 2006).

In well-developed economies, services constitute the largest and fastest growing economic sector in terms of employment, social capital and added value, which is why the competitiveness of the services sectors is the key determinant of growth and well-being of modern organizations. What is more, services connected directly to products also play an important role in ensuring the competitiveness of the industry sector. The increasing job potential in the services sector began to shift in the early 20th century when 25 OECD member states employed half of all the workers in the agriculture sector and a quarter in the industry and services sectors each. Already by 1950, the share of individuals employed in the agriculture sector dropped to 28%, industry employment rose to 34%, while the biggest increase in employment was noted in the services sector, recorded at 38%. …

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