managing corporate responsibility

7/28/2019 managing corporate responsibility

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IntroductionIn this assignment we need to find out details of how the corporateresponsibility work in a world recognizes organization. Here we have toidentify the global impact on the industry we have chosen. The impact on how

they have contributed to the society and the internal workers as well.We have taken consideration in to the organization is call NEXT. The world'srenowned brand name in clothing and also they have diversified in to so manyareas in business. They also are a giant organization in retail industry as well.Here we have to study how the globalization effect on the economies in UKand also the international brands. Firstly we need to discuss the influence thatglobalization doing in the clothing industry. And we also need to understandthe internal welfare activities and how they have effect to the organization.In this report we also aim the corporate governance and how they have workfor the organization. Here also look for the health and safety of the workers as

well.

About NEXT PLCNext PLC is a clothing retail company situated in UK. It is a large retailer in thecountry having over 500 stores in all over the UK. And also there are morethan 50 franchises branches in around the world. They have now entered in tothe online shopping as well.The Next Plc has many varieties of cloths for all the categories in the society.They have separate divisions for children's, women's, men's, and many

variety of shoos as well. And they have retail goods that include electric items.In the beginning they have sold only the brand name with NEXT, but now theyare selling some branded items such as GOLA and Morphy Richards.Recently the company has network with the most popular underwear brandCalvin Klein.NEXT is distributing a Magazine call "The Faith Restorer", here they haveinclude the new reports of their products and all.

NEXT have more business areas as follows,

Lime - selling stocks in UK. The shops are located next to NEXT.Next Clearance - in here they sells the previous cloths in lower prices thanNEXT original shops.

NextSourcing

Venture


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Lipsy - retail shop for Women's Fashionwww.branddirectory.co.uk - outlet for youths' consider their fashionable brandnames.The NEXT is having discount sales times for 4 times in a year. This is somuch popular in the UK so the people wait in the doors to open awaking

overnights some times.

Effects of Globalisation on National EconomiesGlobalisation makes the markets so competitive than ever. So the Clothingindustry is also facing many globalisation issues. Globalisation changes ourlives and the way things happen in the world. The globalisation factors are the

political, economical, social and technological factors.Globalisation creates the worlds markets, individual jobs and the economicboom helper. Globalisation challenges the wages of the peoples in differentcountries. It will take the wages in to lower stages where most of thecompanies fail to survive because of this. We need to identify the successfullyresponding organizations for the globalisation.The technology and the working methods can destroy any organization in aminute. So it is so much careful of the giant organizations to grab theglobalisation. The government have a crucial responsibility to defend theorganization as well as the people from globalizations brought to the country.

The challenging and changing environment is the main faces in globalisation.The individuals and the organizations must have to improve their skillsaccording to the globalisation.The globalisation directly attacks the way of thinking the people, the prices ofthe perishable goods, increasing or decreasing the demand of the jobs andservices, and also the government has to take care the integration of theeconomics.

We can have some factors that will effects the economies of many countries.

Adopting the most countries in to open economic,Rapidly changing the technological andcommunication aspects,Develop and implemented by the law-wageeconomic activities,


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Are mainly effects the UK economy in the recent past few years. And now thebest thing in here is the NEXT didnt get any effects from the globalisationthey have only grab the market from the globalisation.

International institutions and European Union

The government has to do many things to get back the things whatglobalization has damaged. Globalization makes the UK organization in tovery complex and highly competitor environment that will out flow the UKsmoney in to external or the international institutes.For this matter the European Union has put some controlled factors that willcirculate the euro money inside the European Union. This is a kind of indirectwork that they have done. We can identify three faces in this process.The UK and other European Union countries reduced the barriers of theinternational market. So the external institutes such as IMF has to involve thematter and they need to look after the economy and the IMF directly involving

to direct the path for the UK government. So the international institutions haveto provide the necessary guidance and the support to the ongoing process ofglobalization.The UK government has set some strategies that support to increase theproductivity of the macroeconomic concepts. Put some policies to strengthenthe productivity drivers. So they can compete effectively with the internationalmarket without any problem. This will balance the competitiveness and theglobalization and the UK economy as well.UK has put some policies accordingly to garb the opportunities getting fromthe globalization. Mean time they have made the regional economic factors

and protect the workers.Corporate Governance & Corporate StakeholdersThe organization is governed by a large number of people and they haveunique role to play in the organization. The organization comprised withdifferent levels of governing body. Any way all the people who have theresponsibility have the common corporate objectives. We can understand thehierarchy of the organization and identify the roles they are playing in theorganization.Here we are going to discuss the responsibilities of the corporate governanceand the regulatory need to shape the corporate governance according to meeta common requirement. And also we have to understand the interests of thecorporate stakeholders.We can take one by one of according to the level of authority and power. Themain power or the responsibility is owned by the board of directors.Board of Directors the CEO is the chairman of the board in NEXT. And theyhave the fullest power to make and implement the policies. The board ofdirectors are the people who take decisions in superior level. The BOD


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meetings are the place where the internal control of the organization is madeof. The policies are made in the BOD meetings and they are only providingthe plan but the failures in the implementation stage have no responsibility forthem. They are the people who made the strategic plan of the company andthey have to power of changing the internal structure of the organization as

well.So this is such important to happen the way it should be. And in here theNEXT future comes out. So the decisions we take in the board room will leadthe organization in to success. The board meetings most probably held inonce a month. In here they have discussed the recent maters and the boardpapers will deliver the performance and the expenditure level of some semibudgeted activities. Also for the budget activities board of directors have toapprove the budgeted activities in the board meeting. All the directors areselected once in three years from the selection committee formed comprisedwith stakeholders of the NEXT. All the directors have to attend all the boardmeetings continuously. Almost all the areas in the organization are discussedby the meetings. And the new comers to the board have trainings on each andevery area of the NEXT.The board secretary is the one who have to provide and facilitate the boardmatters or the organization issues to the board members.

Audit Committee this is where the accounting of the organization policies istaken in to consideration. Here in NEXT they have 4 members in thiscommittee and they all have accounting backgrounds. Major accountingissues are discussed in the committee where thay have regularly in a months.

And if there is any major risk for the organization they are referring that to themain Board.Nomination Committee this is an important committee where they are thepeople who are nominating the board members. They have one meeting in ayear and in that meeting there are 4 members attending with the chairman ofthe NEXT. In this meeting they are reviewing the issues arising in the board.

Also they are getting external involvements of electing the candidates for theboard. NEXT held this committee meeting and they have nominated thecandidates and short listed the suitable names and give it to the board forapproval. So the final approval has to give by the BOD.

Remuneration committee in the NEXT Company have six meeting ofremuneration committee. And the remuneration report is submitted to theboard meeting accordingly.Chairman chairman is been selected from the board of directors. Thecurrent chairman of the NEXT was selected on 2006. The strategies that needto develop the organization have to submit to the board by the chairman.


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Chief Executive the chief executive of the organization has the authority ofexecute the defined strategies from the board. The chief executive has theresponsibility of achieving the goals and the objectives set out in the board ofdirectors. The other executives in the NEXT are under the chief executive.The chief executive has to submit a report on the requirement of the materials

for the organizations.And there are few important positions that are very vital to understand thehierarchy of the NEXT. We can list down the positions or the stages in NEXThave.

Management delegationPerformance evaluationRisk ManagementExternal Auditors

Personal use of company assetsRelations with shareholders this is the most important part of theorganization. The board has to responsible to the shareholders on theirdividend and the other issues. And also the shareholders have the power topromote the group if necessary. The board of directors have to beaccountable to the shareholders. And the shareholders get the informationabout the organization annually and semi annually through the annual report.

Environmental awareness of the NEXTThe NEXT is a biggest retail stores, especially they are selling the cloths forchildren, women and mens. So the competition they have is not that small.

According to their competition they have spent millions of dollars for theiradvertising. In each and every marketing campaign they have usedenvironmental friendly concepts to follow.The times the environment is sick of the business activities. Such as, there isnothing we can get from the environment.The main policy we can offer is the continuous monitoring system policy. As agiant company the social responsible way of getting things done can be acrucial part.

And the other important part is that the macro and micro environment of the

clothing industry is now changing rapidly. So the most wanted policy we canhave is to monitor and take rapid actions against the changing.

Workplace health, safety and welfare in NEXTNEXT have more than 500 stores only in UK and they already have manystores all around the world. All these work places there are more than 10,000workers are working. So the NEXT management has many issues to discussregarding the employees. The main concern should be the health and safety


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of the workers. There are variety of policies and regulations defined by manyparties in the world. But there are some factors that must be there for betterworking condition. And also it is important to have the health and safety of theworkplace which will eventually create pleasant environment to work not onlythat the organization will get the maximum profit as well.

Generally the health of the employees in NEXT will determine by someidentified factors as follows.Ventilation the work place must have the fresh air. The air from the outsideshould be drawn to in by vitalized window or any other door similar to that. It isimportant to have the fresh air rather than generated air. The NEXT used tohave special ventilation system on their general stores. If there is warm in theworkplace and the humidity is there the fresh air will clean those and it willmake the employees healthy.Temperatures in Indoor workplace - everyone seeks to have a thermalcomfort. We need to examine the environment heat is comfortable to work forthe employees. So they may not get any obstacle just because of the heat.The NEXT stores temperature is about 16C so it is not violate the generalrules.Lighting lighting is always enable to workers to work in clear mind. Alwayswe need to provide solid lighting fittings and clear lighting for the convenienceof the employees. There must be emergency lighting system to be provided. Itis necessary to have such system because in case of power failure maycause damages of the eyes of employees.Cleanliness and waste materials the sanitation system must be there for any

of the workplace. The chairs and the tables also have to be in clean and thewaste materials must be maintained every day. The waste must remove often.Waste should be stored in appropriate places where it should be.Room dimensions and space work room should have minimum of 11 cubicmeters for each one. NEXT have the dimensions as it is. And it is important tohave some spaces to move for the person. Sufficient work room spaces mayfree the employees mind.Workstation and seating Especially the seating arrangements are morecrucial for preventing the back pain and fatigue. And also the workstation mustbe well personalized. NEXT is having a fantastic workstation for the

individuals and also providing very comfortable chair that will not going tohave any back pain at all.Those are the health regards for the organization. And it is must to have theabove requirements in the firm. The workers welfare is also align with theserequirements. And also we can now identify some of the safety needs of anorganization and also these are we defined in the organization of NEXT.


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identify that the NEXT has no problem on the globalisation effects. The NEXThas a quality and well defined staff and they have the right track to gain theprofit.The corporate governance of the NEXT is a well structured and dynamic fromthe top to bottom. So the chairman or the CEO is so much capable to handle

the corporate environment and the organizational success as well.We can have the understanding on how the NEXT helps on the society andthey have utilized the workforce as they wants and the work safety or the jobsecurity is well given. And also the organization has given any new trainingopportunity as they see the new trend on the way.

managing corporate responsibility

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