annette12 on Chapter 5 January 7, 2009
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My team decided to select the Nget Soun Group as our loan recipients. They are a group of twenty-two members in the village bank of Roka located in the Kandal Province of Cambodia. Mrs. Nget Soun, who is the village bank president, was selected to lead the group by the members. Mrs. Nget Soun wants to start a new business selling rice soup because her income has been considerably low. In starting a new restaurant business, Mrs. Nget Soun needs a loan to buy tables, chairs, plates, and any other necessary items. She is a 42 year old mother of four children who attend the local school.
The province of Kandal is located in the heart of Cambodia. Kandal has a population of 1,075,125 people, and comprises of 11 districts. Kandal is the suburban extension of Phnom Penh, and it completely surrounds the capital city. Nearly 90% of Cambodians are of Khmer heritage, and most of the people speak the Khmer language. Cambodia is ranked one of the poorest countries in the world. About 36% of Cambodians live below the poverty line. Fishing and agriculture is one of the main sources of income, and tourism also produces revenue for the Cambodian economy. The start of a small business for the Nget Soun Group would help subsidize their household incomes.
To assist the Nget Soun Group in developing a new business, Chapter 5 of the ninth edition of Management introduces the issues of social responsibility and managerial ethics. Social responsibility is defined as a business’s intention, beyond its legal and economic obligation to do the right things and act in ways that are good for society. The two views in becoming socially responsible are the classic and socioeconomic approaches. Classicists say that stockholders or owners profits should be an organizations primary concern. The socioeconomic view feels that managers should be responsible for any group who might be affected by the organizations decisions and actions. There were four examples of stages for different types of managers discussed in this chapter. Stage three is one of the stages; I feel could be beneficial for the Nget Soun Group to implement in their small business. Stage three expresses the need for a company to be socially responsible to their customers, who are the stakeholders that could be affected by the decisions the company makes. Being socially responsible for the customers might include fair prices, high-quality products, and good customer service. Although the Nget Soun Groups business is just getting started, they do not have to wait to have a successful revenue coming in to be a quality restaurant that shows concerns for customer satisfaction. Good customer service is one of the key expectations needed for a business to achieve successful growth. Once, the Nget Soun Group reaches their goal of achieving success in their business, they could also implement the stage four socioeconomic view where a manager has a broader view of making their society better as a whole.
Chapter 5 also talks about managerial ethics, and how it is important for a manager to be a good role model, ethical, and honest. Ethics is defined as the principals, values, and beliefs that define what is right and wrong behavior. Since, the Nget Soun Group consists of 22 members, who may not all have the same principals, values, and beliefs it would be a good management strategy for the members to implement an ethics policy for the business. In order to establish a good relationship with all stakeholders, by having an ethically responsible business, a company needs to develop a strong cultural organization that not only believes in their product, but also feels it is important for all employees to understand the company’s value system. I recommend that the Nget Soun Group establishes a strong value system for their business, and reinforce those values through weekly or monthly meetings. Although the Nget Soun Group is currently developing into a lucrative business, it is imperative for the members to develop ways of achieving socially responsible and ethical growth in their company.
The managerial ethics should be a big part of anyone’s business. It would be highly important for this group to learn the importance of ethics and social responsibility to become successful at what they are doing, they need to know how the business’s culture is effective by what is going on in the world around them. Good post Annette.
Wow, great job. I loved the way you went into detail and explained all of the concepts to your readers. I totaly agree with the fact of them being a group of 22 members and them having the advantage to develop a strong managment strategy if they truly respect each others point of view.
This is a well put together post. If the soup and rice restaraunt comes together they could effectively utilize your ethics plan. By meeting each month they would be able to voice any conerns or compliments they may have. The fact that there is so many people within the area of business may present a lack of compeition or the possibility of dominating a market. Which ever it is they will need to utilize whatever means nessecary to achieve a sucessful start to their business. What may not be ethical here may slide in Cambodia and the group should be willing to take whatever means nessecary in the begining to sucessfully start this business.
Great post , i agree with alot of what your saying and i think you did a great job with applying ethics to this group. I agree with your last paragraph completely. When dealing with a big group , having an ehtic policy for them all to follow would be a great idea to show ethic leadership and positive values.
This is a really good post. I like the research that you have done on your recipients and the data that you have provided about them. I strongly believe that they should learn the managerial ethics as they are getting into a new business. Any business in this world cannot run without the ethics. Ethics is the strong base of a business.
I agree that by focusing on social responsibility the whole team of 22 will have a strong ethics plan. In a place where it is not stressed to be ethical going above and beyond that will benefit to their success.
This is a great post, very thought out and well developed. I don’t think the impotance of ethics in a business setting, let alone a setting with 22 people like this one, can be stressed enough. Every person is unique and a sense of understanding and a strength in managerial ethics will be very important in making this business successful.