Bunrungrad hospital and my points of view

1. Bumrungrad has emerged as the leading privately managed hospital in Southeast Asia.

Comment on this hospital company:

Its core value is ‘the ability to recover fast’. Then, applied with augmentation to it offer its target people as a good product.

First, the Bumrungrad differentiated its product in order to tap local or existing market. Then, it invested huge investment its Thailand SBU to become star category. This SBU was in dog position due to Thailand economic recession in 1997. The Bumrungrad applied the product development strategy and added new features in its original product. Then defined its new position and conducted successful promotion. When it got success in Thailand, it extended it activities to foreign markets. At that time, the Bumrungrad implemented ‘market development strategy’. When it extended its market to oversea, it provided its distribution channel with very comfortable arrangement. In deed it used convenience strategy. For pricing, the Bumrungrad had cost leadership method to compete similar and expensive hospitals. Later, it applied ‘market diversification’ for more target segments. The basic concept of it success is market concept approach.

In January 1997, the Bumrungrad shifted to its new facility located at the centre of Bangkok. It established the 12-floor building with 554 beds and 21 operation theatres. This new hospital was equipped with the most modern medical equipment. Besides, 600 physicians, nearly half of them were trained at U.S. and others were from different parts of the world. For management, the Bumrungrad hospital hired an international management team led by American professional.
In order to project itself as a global hospital complying with international standards, the Bumrungrad began an aggressive marketing strategy. Above and beyond, it obtained ISO 9002 quality certifications in 1997 and it can pursued the ISO to certified on its hospital as Comprehensive Tertiary Acute Medical Centre in 1999 in order to get international recognition with their party validation.

The Bumrungrad also decided to use the Internet as an information and marketing medium to promote its services to foreign patients. It built an website ‘ www.bumrungrad.com ‘ in 1997. Its website served health care information, medical facilities available, range of treatments of Bumrungrad, ‘Find a Doctor’ section, and online appointment system (Appointments were confirmed within two hours.). According to estimates in 2001, nearly 150 appointments were booked every day through its site. Moreover, the patients could view their medical records in this site.

When they developed their market globally, they used promotion and made ensure for distribution channel. As a tactic of promotion, the Bumrungrad participated in an international road show organized by the export promotion department of Thailand commerce ministry. They took this advantage on Thailand’s promoting medical tourism as an ‘export’ product. As a follow up, the Bumrungrad opened its representative offices in Ho Chi Minh (Vietnam), Yangon (Myanmar), Dhaka (Bangladesh), and Vientiane (Laos) and these offices helped the foreigners to procure visa, to make travel arrangement, and to calculate estimate health care cost in accordance with their treatment. These offices coordinated with Bangkok airport staff and the main Bumrungrad hospital staff. The Bumrungrad also sent its sales representatives to other Southeast Asian countries for awareness and promotion exercises. These exercises intended to attract foreigners who had to undergo surgery from those countries where quality health care was either not available or was too expensive.

After that, the Bumrungrad started its new service for routine health checkups to new segment. Initially, it targeted the Japanese and it improved itself to be able to carry out this service. It tied up with a travel agency in Thailand catering mainly to the Japanese visitors and recruited a Thai doctor who could speak Japanese. Later, the Bumrungrad also opened other representative offices in Sri Lanka, Nepal, the Maldives, U.K. and the Netherlands.

As other wooing for foreigners, the Bumrungrad tied up with Thai Airways International owned by the government in April 2000 in order to run health care package trips to Thailand. As results, advertisements and catalop information on Bumrungrad appeared in the magazines of Thai Airways and their Royal Orchid Holiday “brochures”. The Bumrungrad offered tow options – the ‘Health Examination for Women or Men’ and the Executive Physical’.

In late 2000, the Bumrungrad launched another campaign to attract the patients in the U.K. As its distribution channel, it tied up with a U.K. based company, UK Healthcare Enterprises, and offered an ‘instant and affordable’ full package of healthcare service in which there were airfares, medical charges, accommodation. Nevertheless, the entire cost was a mere one-third of that in a hospital in the U.K. Then, the Bumrungrad extended to European countries with similar services. Apart from Europe, the Bumrungrad offered Japan and the U.S. with the services that were not covered under medical insurance including cosmetic surgery, laser surgery, skin resurfacing, skin and dental treatment and comprehensive checkups.
The Bumrungrad also got the opportunity on 9-11 attack on the U.S by offering many people from the Middle East and other Islamic countries who were uncertain of going to the U.S. and Europe for medical treatment. The Bumrungrad built its staff capacity to provide these new-targeted people. The entire staff of 1300 people was given sensitivity training on the fundamentals of Islam. For the first time, a Halal kitchen and Islamic prayer room were placed in the hospital. In addition, the appointed Arabic interpreters on board to communicate with the patients and arranged other specific cultural needs of Muslim patients. The Bumrungrad could pursue 10,000 patients from the Middle East in 2001.

The Bumrungrad used Arabic newspapers and tied up with Middle East travel agents to promote its customized services. Bumrungrad’s efforts at wooing were very fruitful.
In order to increase influx of foreign patients, the Bumrungrad opened an International Patient Centre (IPC) in mid 2002 and the IPC provided procuring visa, language translation, insurance, transport, interaction with a doctor from their homeland, and even repatriation.

In November 2002, the Bumrungrad tied up with Mandara Spa to offer relaxation programs. These programs targeted Japanese who preferred natural treatments. Specially trained Spa staff, in consultation with the doctor concerned, offered these treatments.

Along with its aggressive global marketing initiatives, Bumrungrad also took proactive measures to ensure it provided the right kind of ambience and service erperience to foreign patients. This helped the Bumrungrad generate tremendous word-of-mouth publicity.

2. The customer experience of Bumrungrad

Although the Bumrungrad was located in Thailand, it had a western-style ambience. The accommodation the Bumrungrad provided to visitors was equivalent to a five-star hotel. The lobby room was created with a ceiling as high as two floors, teak pillars and plush sofas and armchairs. The marble floors covered with attractive oriental carpets and the hostesses trained in different languages, also pursued the high-class visitors and patients. Many restaurants, McDonalds, Starbucks, Thai and Japanse restaurants, in the lobby for people of different nationalities, were also one of the main attritions. These facts created this ambience made the patients feel at home.

The Bumrungrad intended to provide a very international ambience in order to remove threaten of hospital and change the people attitudes to health and idea of hospital as a place to come not just when you are sick, but when you want a health check.

As a great customer experience of Bumrungrad, it ensured that its patients were treated in quick time. It had a reputation of utmost efficiency. In April 2002, it installed internet cafes known as BH Cyber Corners, in the hospital to supply information needs. The cafes were located in the lobby room and at the outpatient room centre.

In 2001, the Bumrungrad upgraded the internet service with medical information system called Hospital 2000 and the system facilitated dealings with customers of different nationalities. As results, the customers could register online and could communicate in any 17 languages. The Bumrungrad provided the patients with their records, payment particulars, medical bills, and pharmacy labels in their selected language.

The Bumrungrad was famous for its heart centre formed with two cardiac, two exclusive cardiovascular operation theaters, a coronary care unit with 14 beds, an exclusive testing lab, and a consultation centre. It also had women centre equipped with a consultation clinic with private facilities, a health-screening program and full obstetrics facilities, including labor rooms, birthing rooms, a nursery, and an intensive care unit for newly born babies.

The Bumrungrad was also distinctive from other by having cosmetic surgery center treated a number of foreigners and Thais. The centre had both American Board and Thai Biard certified plastic surgery physicians. The centre serviced for forehead lift, facelift, eyelid surgery, rhinoplasty, facial implants, breast lifting, enlargement and reduction, and reconstructive plastic surgery.

The Bumrungrad also provided the accommodation facilities to patients with two royal suits, 19 VIP suits, 57 deluxe rooms and 119 single, semi-private and budget 4 bed wards. The deluxe and VIP suits and royal suit rooms were installed PCs, internet connections. The Bumrungrad categorized the 554 beds into Medical/Surgical/OB/ Pediatrics, Adult Intensive Care, Cardiac Care (CCU), Pediatric Intensive Care, and Level III Neonatal Intensive Care. The Bumrungrad also made sure for airlift with a helicopter in a case of extreme emergencies.

The Bumrungrad’s 600 physicians assisted by technical staff who could operate a complete array of diagnostic and treatment tools including linear accelerators with 3D computer planning, beauty therapy, and radiation simulators, as well as all operations in the out-patient chemotherapy center and cancer consultation centre.

Service marketing mix

Product

The Bumrungrad’s product is originally health care with ability to recover fast. It offers for health service. Its segmentations are local people and international communities such as Japanese, Middle East, Europe, U.K and U. S. as well as South East countries and South Asia countries. The Bumrungrad targets to Thai middle classes, patients from Southeast Asia countries, foreigners who had to undergo surgery from those countries where quality health care is not available or is too expensive, the patients from the countries where health care cost are high and insurance net is low, people from Middle East and other Islamic countries who are uncertain of going to the U.S. and Europe for medical care, and Japanese who preferred natural treatments. In 2003, Bumrungrad’s main clientele comprised patients from Southeast and South Asia, who required specialist medical services, particularly in acute cure; patients from the Middle East; and patients from Europe, U.S. and Japan requiring elective surgeries like plastic surgery. They always applies marketing concept. The Bumrungrad tries to get customers’ lifetime value. The Bumrungrad applies all of product strategies, market penetration, product development, market development and even diversification to make sure its SBU making profit and obtain good customer perceived value. The Bumrungrad targets its market position to be global hospital. The Bumrungrad later tries for bran extension with BH International (BHI)


Place

The Bumrungrad’s market trend is global trend and its covering environment is ‘Macroenviroment’. As a global trend health care company, the Bumrungrad has to consider all of forces affected such as the demographic forces, economic forces, natural forces, technological forces, political forces and cultural forces.
Eg Economic recession, 9-11 attack, Islamic cultural needs, etc

Price

The Bumrungrad applies cost leadership. As one of its segments is Thai middle class, it tries to service low price. The Bumrungrad charges one third of U.K price or 80 /85 % of U.S. medical cost. In Thailand, the Bumrungrad applies going-rate pricing policy as it has fierce competitions

Promotion

The Bumrungrad spend its investment in promotion wisely.
Obtaining ISO certificates
Building a website
Participating in an international road show of the export promotion department of Thailand commerce ministry
Opening reprehensive office oversea
Sending sales representatives to other countries
Getting strategic alliances as a promotion activity
Trying to appear Thai Airways magazines and Royal Orchid Holiday brochures
Using Arabic newspapers and travel agent
Some other promotions such as ‘Dragon baby campaign’

SWOT of Bumrungrad

Strengths

Strong financial background
Good Management team
Good human resources
Strong technology support
Good facilities
Staff attitudes
Flexible operating system to run the hospital in nay situation
Excellent marketing strategies
Cultural diversity

Weaknesses

Limited local resources people
A little high medical cost for low income people
Limited local promotion

Opportunities

Thai economic policy
Good strategic alliances
Other countries’ high health care cost and low insurance net
Other country’s out-sourcing policy for health care
Homeland security policy of US, UK and European countries
Technology support

Threats

Economic recession
Fierce competition
Limited cultural environments
Political uncertainty in Thailand
Rapid technology changes
Unstable political situation in targeted market countries

At the moment, the Bumrungrad gets a little leading role in market, but others can copy its strengths. Although, it applies semi cost leadership and semi focus strategies, it can not cut more prices. As a result, it will need to find some alternatives to compete with others Hospital Company.

The Bumrungrad should remodel its structure with timely manner, as technology is changing from time to time. It may need to extend its market and seek more segments. At the same time, it is supposed to do more brand extension. It may need to have “after sale service” to delight the customers.

The above is my just learning and exercises.

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TIME MANAGEMENT

Allan Jaffe

Restating the note on Allan Jaffee's lecture in Community Management Training for Trainers by Nyo Min

It is important that you manage your time well or you won’t finish things as you wish and worst of all you will find yourself ends up with all unnecessary mess. If you can manage your time will find yourself that you could finish every thing on time as you have wished. Here are some tips for how to manage your time.

1. Clear your area for the next day.

Make everything ready for the next day. Put everything back in place before you leave your work place, have everything in order, and set up work time for the next day. E.g. 2 hours for planning, time to relax and so on. In this way, you can start everything the next day a fresh.

2. Priortise your work.

What you have to do the next day, do the first thing first. Take the most important or the difficult thing first and the day will go along easily. If you start with easy or small thing you will end up with big thing and you will find yourself do not finish the work or find yourself work extra hours.

3. Make “To Do List”

Work in order. Work according to the order. Do not jump from one to another.

4. Do difficult work first

Do the difficult work and first and look after minor jobs when you feel tired.

5. Fix deadlines and stick to them

A task should take only the time set aside for it. Set time for every work.

6. DO NOT postpone important matters that are unpleasant. Release your time for other things or you will not be able to go on and it will not get away and will disturb you in your work.

7. Arrange Set Times for Set Jobs

When you do a work do it according to the set time and try to finish it within that set time. Then go on to another job.

8. Fix Times

You don’t want to be disturbed while working. You put up a notice infront of your room, “I’m working, Please don’t disturb”. Find time for yourself to get relax.

9. When you start a piee of work, finish it.

Finish the work you have started or you will find yourself you do not finish any work or it is you that will suffer.

10. Take time to discuss matters with colleagues

Discus with your colleagues and see if there is anything he/she can share. Their opinion might help you.

11. Learn to say “NO”

You’ve got a job to do and a friend might invite you to do something and go somewhere for a certain reason, you must be able to say “No”. Remember it is his problem and not yours. It is your right to say “No”.

Note: If your are teaching a group of participants you can this as a role play.

Stress is not caused by what you have done, but by what you have not done.

Poor time management will cause you stress.

12. Make a habit of finishing the MAIN job before the end of the day.

13. Get rid of the non-important stuff

The tardier you keep your work, the more space for other work.

14. Identify Files

If you have files, file it. Make lots of little files e.g. budget, \work opan etc….. Do not put everything in a file. If possible use color coded.

Unexpected Visitors

1. Establish from the start

While you are working you may find at time the unexpected matters arising. E.g. A relative, that you cannot make contact with for many years, come to see you or a very close friend comes to see you. You are not in a position to refuse to see them. You have to be very clear, is it urgent or just a friendly visit? May be it is just small thing that you could finish it within five minutes. Be honest. Say, “I’m sorry. I can’t meet you now or today. I have my job to be done, could you come another time. You must find some way of dealing with it.

2. STAND!

If you remain standing, they will stand and won’t sit down. If you
sit, they will sit and it would be hard for you to get away. If you are
standing they will likely to remain standing.

3. Set limits

Be honest. E,g, Just say, I am sorry I can give you 15 minutes and I
have to get back to work.

4. Avoid small talk

Do not respond. Say, Ah ha!…. Um hum!….. If you converse, it
will go on and on and it will be difficult to end the conversation. Do
not give him any opportunity to go further.

4. If you can’t fet rid of them, Leave yourself.

Think a head of time if such an urgent matter arises like this: [
What I will do………if………]

Your boss may come in and tell you to do this or that, you are not in
a position to deny or say “no”. Make it clear to him about the job he
has assigned to you. Bur remember:

The Boss may not always be right
But
He/She is still the boss

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Why I am ----

At the moment Burma is in political deadlock. This problem was rooted before gaining independence on 4 January 1948. Unfortunately, Burmese people achieved the independence with political disputes and ethnic conflicts leading civil war. I was born under control of Burmese Socialist Programme Party. In my childhood, I saw some student movement, worker movement, but I didn’t know the reasons creating such chaos.

I passed ten-standard in 1983 and attended Mathematic major in 1983-84 academic year. While I was learning in university, I started to read some books as well as the Mathematic course books. As a result I recognized mismanagement of ruling government. In addition, I started to worry my future carrier after the university course. At this time many graduates were unemployment and further study was out of their reach.

While we were sitting for 1986-87 academic year exam, the Burma Socialist Programme Party announced 25, 45 kyats notes as invalid currency. This announcement sparked small protest and I participated in this protest. The students including me had no experience how to protest against the ruling government and were afraid for some punishment by the law enforcement officers of the BSPP. So, we covered our face with small branches to hide who we are. We marched to the home affairs minister’s house located in Mandalay. At this moment, U Min Khaung performed as the home affairs minister. In front of U Min Khaung’s house, soldiers, polices and riot polices forced us to return and they threatened us by shooting in the air. Next day, our school was closed without finishing the exam. After this protest, I review the situation as possible as I can but I got no clear answer.

Later, 8888 movement introduced me with bitter real situation on Burma. I participated in the movement as student leader. We got some benefits from this movement but we did not get democracy government and could not solve Burmese issues.

That is why I am --------.

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The experiences of group assignment writing

Assignment group

Ms June
Mr Tony
Mr Nyo Min

Our group was quite small but it was a little diversity in forming. In the group, there were two genders and two nationalities. In addition, all team members have different occupations. All have different walks in the life.

All team members are gentle and patient. As a result there is no problem or conflict in the group. Although, it doesn’t mean we don’t have debate and several points of views in group discussions. Like other group, we had numerous ideas, but we tried to combine all of ideas to reach consensus decisions. All members have negotiation skills and apply these skills to get one solid decision.

During the assignment writing, we tried to observe the organization we have selected to use as a case study. As I mentioned above, all members have jobs and their jobs drove away from Chiang Mai, Thailand. So, it was difficult to meet each other out of classes. With the support of hi-teach, such as internet, cell phone, we could communicate frequently whenever we need to discuss. In the case, we used “Delphi method” to obtain reasonable decision and consensus decision.

As the organization is the NGO I am working, I could provide all information the group needed. We were afraid of personal biases from me, so I allowed other two members to identify the problems the organization encountered. They made some commends without my wording. Then, I also express my opinion and suggestions on these problems. Besides I also introduces other members how the organization is solving the problems to get idea and to analysis the solutions are good or not.

For writing the assignment, I prepared for the case study. Mr. Tony and Ms June implemented data mining. Later, Mr. Tony merge all data to get draft one. Finally all members read the draft and edited to get fair copy.

While writing the assignment, we can learn individual trait, value, culture, eagerness, etc each other. In addition, we helped open the eyes of other from different concepts.
We worked together and developed method how to listen small voices by using “Brain writing”. It was good for who is shine to express his/her opinions.
In deed, we developed our consensus decision after gave up some of our own point of views and tried to see other people spot. It may be “Empathy”.

I can state all team members get new ideas, new experience because of the assignment writing. I am sure other members also enjoyed these experiences.

Sincerely,

Nyo Min

I intend the readers to aware about some points of Thai culture.

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How to lose 2 pounds in ten days

Losing weight 2 pounds in ten days, is easy if you follow these steps. The first step is to wake up early at 4:30 a.m. You may need to turn on alarm clock to wake you up. Second, get up as soon as you wake up and run for 4 miles before washing your face. It is important to run without stopping. After that you have to drink hot lime juice without sugar. To get hot lime juice, you have to cut lime and press into a glass. Then, pour hot and boiling water into the glass. After you drink the hot lime, you cn eat a few low fat breakfast and drink water. The next step is to walk wherever you go and never sit more than 5 minutes. In afternoon, you have to take fruit lunch and water. Besides, you have to avoid sleeping in the afternoon and drinking coffee with sugar. In evening, you have to run for 4 miles again. After running, you have to do light exercises to reduce your muscle tension. Next step is to drink zero calories soft drink and water instead of dinner. Finally, you have to sleep after midnight. After you follow these steps for two day, you can measure your body weight. You will find that you lose 2 pound in ten days.

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Motivation of Thai companies Vs motivation of American Companies

‘Great spirits have always encountered violent opposition from mediocre minds.’
(Albert Einstein)

The motivation is inspiring the staff to increase work performance leading to the work goals. Generally, there are many motivating factors, effective leadership, good communications, work enrichment, job enrichment, job satisfaction, needs fulfillment, organizational change, and moral in the management field.

According to Kreitner, the term ‘motivation’ refers to a psychological process that gives behavior purpose and direction. Most American companies attempt to get individuals to pursue organizational objectives willingly. On the contrary, Thai companies will consider about group thinking or collectivism in order to motivate their staffs.

In order to understand the differences between American companies and Thai companies, we need to recognize the different cultural factors among them. Thai values apart from a range of Western ones will be on collectivism, power distance, masculinity and femininity, and the avoidance of uncertainty. At the same time, a study stated ‘In the world, common values manifested in all cultures and religious include a respect for life, liberty, justice and equity, mutual respect, caring, and integrity.’ Therefore, motivation methods of American companies can apply for Thai companies.

‘Forget praise. Forget punishment. Forget cash. You need to make their jobs more interesting.’
(Frederick Herzberg)

According to Frederick Herzberg, in order to help employees charge themselves up or to motivate the employees, the companies need to apply the following principles;

Increase individuals’ accountability for their work by removing some controls.

Give people responsibilities for a complete process or unit of work.

Make information available directly to employees rather than sending it through their managers first.

Enable people to take on new, more difficult tasks they haven’t handles before.

Assign individuals specialized tasks that allow them become experts.

For Thai companies, they used to motivate their staff with money incentives, such as bonus, sale commission, salary increasing, rewards, etc. So, do American companies forget about the money incentives as Frederick Herzberg stated above? No. He took into account the money incentives with weakness.

‘Spiraling Wages. Have these motivated people? Yes, to seek the next wage increase. Some medievalists still can be heard to say that a good depression will get employees moving. They feel that if rising wages don’t or won’t do the job reducing them will.’
(Frederick Herzberg)

Nevertheless, there are many similarities motivating methods in American companies and Thai companies. So we can refer the evolution of management approaches when we explore on motivation. There are four motivation theories, Maslow’s needs hierarchy theory, Herzberg’s two-factor theory, expectancy theory, and goal-setting theory.

According to Maslow, people are motivated by a predictable five-step hierarchy of needs, physiological needs, safety needs, love needs, esteem needs, and self-actualization needs.

According to Herzberg, a satisfied employee is motivated from within to work harder and that a dissatisfied employee is not self-motivated and two classes of factors associated with employee satisfaction and dissatisfaction are satisfiers; achievement; reorganization; work itself; responsibilities; advancement; and growth, and dissatisfiers; company policy and administration; supervision; relationship with supervisor; work conditions; salary; relationship with peers; personal life; relationship with subordinates; status; and security.

According to expectancy theory, motivational strength is determined by perceived probabilities of success and the term ‘expectancy is one’s belief or expectation that one thing will lead to another.

According to goal-setting theory, the process of improving individual or group performance with formally stated objectives, deadlines, or quality standard is effective motivation.

To sum up above motivational theories, we can say these theories focus on human nature. As a result, these can apply for Thai companies. Every theory has exception and may have many weak points to utilize for musculature or globally.

As the world is changing rapidly, globalization grows strongly and it removes boundaries and cultural shocks. Some predicate that there will be global lifestyle in very soon. So, Thai companies become similar to American companies and start to use western motivation methods for Thai staff or employee.

For instance, I would like to restate the motivation of Proctor and Gamble's winning strategy by Medhee Jarumaneeroj. (The Nation)

‘Medhee Jarumaneeroj believes employee happiness is a winning strategy.’

Creating a happy working life for employees not only increases their efficiency but also boosts company sales. This is one of the strongest philosophies of Medhee Jarumaneeroj, Proctor and Gamble Trading (Thailand)'s manager for marketing and corporate communications.

"I think a company's good performance depends mostly on good internal operations and its employees' admiration for the organisation," he says. "We have to encourage them to think that way."
(Medhee Jarumaneeroj)

He asked them a simple question: would you be happier if you could work from home one day a week? The outcome is that all 160 employees in Procter and Gamble's Bangkok office can choose one day a week to do so.

The company supports the programme by installing high-speed Internet access at employees' homes and pays telephone expenses. Eight months after its launch, 80 per cent of the company's employees have joined the work-at-home programme. They must first choose which day they want to work away from the office, so that their absence fits in with their colleagues and ensures continuity of the company's operations.

An evaluation of working efficiency and employees' attitudes to their employer has shown that the programme works.

Most of them [the employees] share the same view that the programme allows them to concentrate on work quality, and they are happier to work in a convenient place.

In the original plan to lift staff happiness and improve working efficiency there were three programmes: working from home, work-life balance and sport recognition.

To summarize, I would like to affirm that Motivation of Thai companies will not be different too from American companies. In future, the gap between motivation methods of Thai companies and American companies will be eliminated by IT, Globalization, etc.

"The secret of joy in work is contained in one word - excellence. To know how to do something well is to enjoy it."

Pearl Sydenstricker Buck


combined by

Nyo Min

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Social responsibility and business ethics

Definition of social responsibility

Social responsibilities also known as corporate social responsibilities (SCR) is an idea that business social obligations above and beyond making a profit. The idea is that businesses should not function amorally, but instead should contribute to the welfare of their communities. This is the idea that business also has obligation to the society. In deed, there are different definitions among experts.

In addition, different organizations have framed definitions, but there is common ground to explain what SCR. is.

One expert said that CSR is about how companies manage the business processes to produce an overall positive impact on society. Lord Holme and Richard Watts stated the definition of SCR in their publication "Making Good Business Sense" that "Corporate Social Responsibility is the continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as of the local community and society at large"

At the same time, there are some evidences of the different perceptions of what this should mean from a number of different societies across the world. Definitions are as different as "CSR is about capacity building for sustainable livelihoods. It respects cultural differences and finds the business opportunities in building the skills of employees, the community and the government" from Ghana, through to "CSR is about business giving back to society" from the Philippines.

The CSR is also business strategy establishing a positive company reputation and brand in the public eye through good work that yields competitive edge while at the same time contributing to others and demands that organizations shift from solely focusing on making a profit to including financial, environmental and social responsibilities.

According to the Archie B. Carroll, business ethic scholar, in term of CSR, the global corporation should make a profit consistent expectations for international businesses, obey the law of host countries as well as international law, be ethical in its practices taking host-country and global standards into consideration and be a good corporate citizen, as specially as defined by the host country’s expectations. He also described philanthropic responsibilities as “social activities that are not mandated by law nor generally expected of business in an ethical sense”.

“People talk about businesses needing to be responsible as if it’s something new we need to do on top of everything else. But the whole sense of business should be responsibility. My philosophy is, we don’t run companies to earn profits. We earn profits to run companies. Our company need meaning and purpose if they’re to fit into the world, or why should they live at all?” is said by Tachi Kiuchi, managing director of Japan’s Mitsubishi Electric Corp.

In the United States, CSR has been defined much more in terms of a philanthropic model. Companies make profits, unhindered except by fulfilling their duty to pay taxes. Then they donate a certain share of the profits to charitable causes. It is seen as tainting the act for the company to receive any benefit from the giving.

The European model is much more focused on operating the core business in a socially responsible way, complemented by investment in communities for solid business case reasons. This model is more sustainable because:

Social responsibility becomes an integral part of the wealth creation process - which if managed properly should enhance the competitiveness of business and maximize the value of wealth creation to society.

When times get hard, there is the incentive to practice CSR more and better - if it is a philanthropic exercise which is peripheral to the main business, it will always be the first thing to go when push comes to shove.

But as with any process based on the collective activities of communities of human beings (as companies are) there is no "one size fits all". In different countries, there will be different priorities, and values that will shape how business act. Nevertheless, the debate about CSR created four arguments supporting to and four arguments against and there are;

Arguments For

The arguments supporting convinced that a business should be more than simply a profit machine; proponents of social responsibility have offered these arguments;

Business is unavoidably involved in social issues. As social activists like to say, business is either part of the solution or part of problem. There is no denying that private business shares responsibility for such societal problem as unemployment, inflation, and pollution. Like everyone else, corporate citizens must balance their rights and responsibilities.

Business has the resources to tackle today’s complex societal problems. With its rich stock of technical, financial, and managerial resources, the private business sector can play a decisive role in solving society’s more troublesome problems. After all, without society’s support, business could not have built its resource base in the first place.


A better society means a better environment for doing business .Business can enhance its long-run profitability by making an investment in society today. Today’s problems can turn into tomorrow’s profit.

Corporate social action will prevent government intervention. As evidenced by waves of antitrust, equal employment opportunity, and pollution-control legislation, government will force business to do what it fails to do voluntarily.

Arguments like these four give business a broad socioeconomic agenda.

Arguments Against

Remaining faithful to the classical economic model, opponents of corporate social responsibility rely on the first two arguments below. The third and fourth arguments have been voiced by those who think business is already too big and powerful.

Profit maximization ensures the efficient use of society’s resources. By buying goods and services, consumers collectively dictate where assets should be deployed. Social expenditures amount to theft of stockholder’s equity.

As an economic institution, business lacks the ability to pursue social goals Gross inefficiencies can be expected if managers are forced to divert their attention from their pursuit of economic goals.


Business already has enough power. Considering that business exercises powerful influences over where and how we work and live, what we buy, and what we value, more concentration of social power in the hands of business in undesirable.

Because managers are not elected, they are not directly accountable to the people. Corporate social programs can easily become misguided. The markets system effectively controls business’s economic performance but is a poor mechanism for controlling business’s social performance.

These arguments have been encapsulated into two points of view. Those who believe that organizations should not be concerned about social responsibility base many of their arguments on the costs involved and whether organizations should shoulder those costs on behalf of society. Those who are in favor of corporate social responsibility feel that organizations benefit from society and, therefore, have an obligation to improve it. Although there is no universal agreement, surveys and other reports indicate that many organizations are, in fact, becoming increasingly active in addressing social concerns.
The advantages and important of social responsibilities are being discussed here. This action would be taken by some organization base on their view. To have social responsibilities, the suppliers, business associates, and customers would be more confidence on the organization. So, the products and services of the organizations increase and lead to maximize profit.

The Importance of Social Responsibility
Although the activity of social responsibility is benefit for social and business organizational, the arguments for and against business social responsibility exist. There are several reasons of agreement of the activity. The importance of social responsibility is state below: -
1 Best Interest of Business to Promote and Improve the Communities
Organizations, as members of society, have a moral obligation to help society deal with its problems and to contribute to its welfare. It is the ethical thing to do by the business organizations. A measurement should be made of whether the organization is performing such activities as producing goods and services that people need, creating jobs for society, paying fair wages, and ensuring worker safety.
People and organizations need each other. Social responsibility to employees extends beyond terms and conditions of the formal contract of employment and gives recognition to the workers as a human being. People today have wider expectations of the quality of working life, included justice is treatment, opportunities for consultation and participation, training in new skill and technologies, effective personal and industrial relations policies, and provision of social and leisure facilities. Organization should be, for example, give due consideration to the design of work organization and job satisfaction, make very reasonable effort to give security of employment, and provide employment opportunities for minority groups.A number of leading companies have taken steps to develop more ethical cultures and system by involving individual employees in corporate affairs. To provide or support some benefits to the workers will lead to a good community in the business organizations. Good communication in the internal business would be leads to avoid miss understanding of each other. The workers would then enjoy their work and work out more efficiency. The quality of goods and services of the organization therefore increase. This will lead to profitable to the organization's business. Therefore, the social responsibility is important in internal environment of the business too.
2 Improves Public Image of the Firm
To many people, responsibilities to consumers may be seen as no more than a natural outcome of good business. There are, however, broader social responsibilities including providing good value for money; the safety and durability of products or services; standard of after-sales service; prompt and courteous attention to queries and complaints; long-term satisfaction, for example serviceability, adequate supply of products or services, and spare and replacement parts; fair standards of advertising and trading; full and unambiguous information to potential customers. Increasing concern for social responsibilities to consumers can be seen by the activities of such bodies as the Consumers Association, and the number of television and radio programmed devoted to this subject.

As an example of degrading the quality of life, some people believe that cigarette companies, because they produce goods that can harm the health of society overall, are socially irresponsible. By doing that, the consumers would be loses of confidence on the organization's products, and not buying their products. Then consumers will buy the goods from other organizations that they are confidence to. Social initiatives taken by organizations tend to promote goodwill, public favor, and corporate trust, and these may contribute to the long-run success of the organizations and profit. Therefore, socially responsible would acts enhance an organization's image and business in general.
3 Improving Stock Price
To having the action of social responsibility of an organization would lead to their suppliers and business associates more confidence to the organization. The examples of social responsibility might include: fair standards of trading, honoring terns and conditions of purchase or sale, and settlement dates, for example payment of accounts, assistance to smaller organization; engagement only in fair competition; respect for copyright and patents. By doing that, the other organizations would view the company as less risky. This is in the stockholders best interest. It will improve the price of stock in the long run because the stock market will views the company as less risky and open to public attack. So, it would reduce the cost of the production of the company. Therefore award it a high price-earnings ratio. Some organizations extend the range of social responsibilities even future by, for example: giving recognition to the needs of developing countries; limiting the extent of political involvement or campaigning; donations to, or sponsorship of, the arts, educational or educational or research institutions, sporting organizations or charities.
4 Solving Social Problems
Organizations have a responsibility not to misuse the scarce factors of production upon which the wealth of the country depends. Organizations have a responsibility to society, to respect environmental considerations and take care of amenities. For example, the effects and potential dangers of pollution, noise, disposal of waste; the siting and appearance of new buildings; transportation policies, such as the routing of heavy vehicles through narrow village roads; and avoidance of excessive packaging and more use of biodegradable materials. All of that must be think off since the decision making of the organizations to have their process of production. For example, is the protest against aerosol sprays containing chlorofluorocarbons. These have been blamed for damaging the ozone layer, which protects the earth from harmful ultraviolet rays from sun. Organizations should, of course, respect and obey the law which is set up of government even where they regard it as not in their best interests. But what is debatable is the extent to which organizations should co-operate voluntarily with actions requested by the government. Some examples are: restraint from trading with certain overseas countries, and the acceptance of controls over imports or exports; actions designed to combat inflation.

By the side, some pollutions can not be avoid, and sometime, our government is too busy to solve the others problems, society should give business a chance to solve social problems, such as air pollution and water pollution, that government has failed to solve. To solving those social problems, the environment will be cleaner. This would lead to a good image of the companies to their consumers or other companies. The confidence of consumer's increases, and favor to buy the goods from the companies. The profit of the companies will increase eventually. Therefore, acts of social responsibility is very important by organizations help correct the social problems that the organizations create.
5 Resource given by the organizations to solve the social problem

The measurement of social investment deals with the degree to which the organization is investing both money and human resources to solve community social problems. Here, the organization could be involved in assisting community organizations dedicated to education, charities, and the arts.
For example, Ben and Jerry's have a great reputation for being a socially responsible company. Management seems to include social responsibility issues in everything that it does. As an example, when recently looking for a site to build its new factory, the company was torn between building a new factory in its native Vermont to support struggling farmers or closer to the West Coast to avoid the pollution caused and energy expended by transporting the ice cream a couple of thousand miles. The Vermont site was eventually chosen.A lot of money would be used for solving the social problems. Most of the time, there is limited money for that. Technical also been used to solving problems. So, in order to avoid the limited of resources, most of the organizations will possess the resources (such as money and expertise) needed to tackle social problems. A good image of the companies develops. It will lead to even more consumers to have confidence on that companies and more consume on the goods of the companies. These companies would be profitable in the long run period. Therefore, being social responsibilities is very important to an organization in order to create a good image to the company

At the present days, many people turn to the CSR and find the way how to deal with it. The following are the strategies for the CSR.

Social strategies

There are four strategies to approach the CSR.

Reaction A business that follows a reactive social responsibility strategy will deny responsibility while striving to maintain the status quo.

Defense A defensive social responsibility strategy uses legal maneuvering and/or a public relations campaign to avoid assuming additional responsibilities.


Accommodation The organization must be pressure into assuming additional responsibilities when it follows an accommodative social responsibility. Some outside stimulus, such as pressure from a special interest group or threatened government action, is usually required to trigger an accommodative strategy.

Proactive A proactive social responsibility strategy involves taking the initiative with a progressive program that serves as an inspiring role model for the industry.

When learning the CSR, it is useful point to look at Carroll’s global corporate social responsibility pyramid. The pyramid is build with four levels, economic responsibility, legal responsibility, ethical responsibility and philanthropic responsibility. It will express that the learning on CSR alone will not work all points and will encourage to learn ethics to get fully understand of paradigm of the CSR and organizational ethics.


Definition of ethics

The idea that businesses should not function amorally, but instead should contribute to the welfare of their communities.

According to Cambridge dictionary, ethics is translated as a system of accepted beliefs which control behavior, especially such a system based on morals and work ethics is decoded as the belief that work is morally good. But we will focus on business field to find what ethics is.

The ethics is the study of moral obligation involving the distinction between right and wrong. Many people don’t have clear idea on the ethics because they are sensitive on the discussion about these issues. Some may confuse the ethics with immoral. To get overall profile of ethics, rules of ethics of Dr.Stephan Rothlin, CIBE Center for International Business Ethics/ Beijing is deserved to take a look.

Rule1: If you strive to understand the values of different cultures, you will find common points.

Rule2: If you analyze the facts, you will realize that honesty and reliability benefit you.

Rule3: If you analyze case studies from different perspectives, you will discover the benefits of fair play

Rule4: Respecting your colleagues is the smartest investment you can make.

Rule5: To increase productivity, provide safe and healthy working conditions.

Rule6: To inspire trust, make your performance transparent.

Rule7: Your loyal dissent can lead your institution in the right direction.

Rule8: Downsizing your labor force is only beneficial when you respect each stakeholder.

Rule9: To establish your brand name, act as a fair competitor.

Rule10: Reduce the gap between the rich and poor by developing a new social security system.

Rule11: If you act against discrimination, you will increase your productivity and profitability.

Rule12: If you protect intellectual property, all stakeholders will receive their due share.

Rule13: Ongoing changes in information technology require new forms of loyalty.

Rule14: Your public relations strategy will only secure your reputation if it witnesses your drive for quality and excellence.

Rule15: Your economic achievements will only stand on firm ground if you diminish corruption.

Rule16: Long-term success urgently calls you to constantly care for the environment.

Rule17: To become a refined player, sharpen your discernment and cultivate good manners.

Rule18: Care for your business by caring for society.



The work place is cultural diversity environment and very problemative. This is reasonable and this creates to consider the ethics issues. Employees' perceptions of fairness are equally or more important than other factors in terms of their influence on ethics-related outcomes. Fair treatment is so important because employees who perceive unfair treatment will rebalance the scales of justice by harming the organization. Employees who perceive fair treatment, on the other hand, will reciprocate by going above and beyond the call of duty to help management.

Ethical leadership is vital to creating an ethical workforce. It is a myth that employees are fully formed moral agents who can 'lead themselves' when it comes to ethics. Research indicates that most employees look outside themselves to significant others for guidance in ethical dilemma situations. If this leadership and guidance is not provided by the leader of the organization, employees will seek it elsewhere, most likely from their peers.

An ethical leader is a leader who cares, listens to what employees have to say, and has the best interests of employees in mind. In addition, an ethical leader communicates an ethics and values message. When making decisions, he/she asks "what is the right thing to do?" An ethical leader also role models ethical conduct and conducts his/her personal life in an ethical manner.


THE ETHICS AND THE SOCIAL RESPONSIBILITY OF MANAGEMENT
Each of us has our own set of values and beliefs that we have evolved over the course of our lives through our education, experiences and upbringing. We all have our own ideas of what is right and what is wrong and these ideas can vary between individuals and cultures.
As a manager you bring with you your own concept of what is right and what is wrong. Every decision that you make, for better or for worse, is the application of these values to the question at hand. This is made more difficult by the pressures of organizational life. There are the pressures of productivity, competition, bosses... Sometimes managers make decisions which conflict with their own or society's values because of what they see as the pressures of the business world.
But what is the right thing to do when it comes to social responsibility?
This is one of the most crucial questions that managers will face in the next decade. Is it a manager’s job just to maximize profits? Or should managers be concerned with using their organization to carry out other social responsibilities such as controlling pollution, employing disadvantaged groups or supporting education?
There are five factors which affect decisions made on ethical problems.
The Law
This defines the minimum ethical standards in a given area of practice. For example, deceptive advertising is illegal an violators of this law are liable to large fines, court action and/or loss of goodwill. Some unethical behavior is often not considered very illegal, such as pirating employees from other companies, padding expense accounts etc.
Government Regulations
These are also fairly clear cut outlining what is acceptable and what is not. These regulations set standards on issues such as unfair competition, unsafe products, etc. Failure to comply with these regulations could lead to criminal charges, or fines etc.
Sometimes these regulations do not force ethical behavior. In the U.S. cyclamates (artificial sweeteners) were banned because there was evidence that they were carcinogenic (caused cancer). In the next 16 months a major food packer sold 300,000 cases of cyclamate sweetened food overseas. Similarly many banned food additives and pesticides etc are being sold overseas, mainly to third world countries.


Industry and Company Ethical Codes
These are codes which clearly state the ethical standard a manager should follow within his or her organization.
These standard practices are usually followed if they are written down and the rules enforced however many companies have "unwritten" codes of practice or if written down, have no method of enforcing these rules.
Generally, written codes clarify the ethical issues but leave the resolution to the individual's conscience.
Social Pressures
There are often, in any society, groups of people who wish to change or influence government or businesses behavior and decisions. These groups may exert pressure on businesses through picketing, boycotting, publicity in the press, political lobbying etc. Sometimes organizations respond to what they see as the general feeling of the public on an issue.
For example, in 1989 on a televised debate on the issue of bleached paper products (i.e. toilet papers, sanitary products, writing and photocopying paper products etc) many businesses claimed that the Australian public would not buy unbleached paper products. A quick look at the products now available and selling well in supermarkets in 1991 should indicate how public pressure through selective buying and boycotting of unacceptable products has forced many of these same businesses to change their view. Keep an eye on television advertising which claim that their products are "environmentally friendly" as an example of many businesses seeing the publics concern over the environment as an "opportunity". (However some of these "environmentally friendly" claims are dubious and the government is introducing regulations and standards to try to avoid unethical advertising and promotion).
Some organizations will respond positively to this sort of pressure and some will see it as a threat to their achievement of the organizations goals.
Tension between personal standards and the goals of the organization.
This can complicate a manager's job enormously. If a managers task is to ensure that the organizations goals are achieved, and the task of a good citizen is to advance the welfare of the community, what if they clash?



You may refer back to the example involving the sale of banned substances overseas. It is not illegal, but it may be against your personal values to sell these products to unsuspecting overseas clients. Would you insist on a warning label such as those carried on cigarette packets?
What would you do if this action was a direct order from a superior? Does this take away your responsibility? As with many ethical problems there are no easy answers.


Seven step for changing the ethical culture of an organization
In order to change the organizational culture, leaders, managers, academics, and opinion molders are supposed to take seven steps for changing ethical culture of an organization developed by Frank Navran, Ethic Resource Centre 2003.

1. State position, philosophy or belief
The organization (through its senior leadership) announces that it has formally adopted a specific position, philosophy or set of beliefs regarding those fundamental values or principles which it wants employees to use as the basis for business decision-making. This statement is couched as integral to the identity of the organization and to be applied without exception, by every decision-making employee.
2. Create formal organizational systems
The organization creates and implements the formal systems, procedures and policies which explicitly define expectations regarding employee behaviors that are needed to guide employees in their day-to-day decision making. Examples of these systems include statements of values, codes of conduct, ethics policies, ombudspersons, ethics oversight committees, ethics surveys, employee "helplines", and other ethics management mechanisms.
3. Communicate expectations through informal (leadership) systems
Leaders at all levels of the organization explicitly and implicitly communicate their expectations regarding employee behavior, reinforcing the explicit organizational expectations detailed through the formal systems and structures. This includes the visible use of the ethics systems in their own decision making and the requirement that subordinate employees do likewise.


4. Reinforce policy through measurements and rewards
The organization reinforces its statement of position, philosophy or belief by making adherence to the associated guidelines and policies an integral part of how success is measured and rewarded. Informally, frontline leadership measures and rewards adherence to the stated position of the organization.
5. Implement communications and education strategies
The organization embarks on a strategic communications and education campaign to ensure that employees understand the stated position and the behavioral expectations, as well as have familiarity with the systems and structures that have been put in place to facilitate employee fulfillment of those expectations.

6. Use response to critical events to underscore commitment
Senior leadership uses critical events in the business to underscore their commitment to the stated position, philosophy or belief. They make their adherence to the position explicit and use the critical event as evidence of how the highest levels of the organization are accountable to the same standards as are imposed throughout the organization.
7. Avoid perception of hidden agendas
One of the most critical, yet least controllable, shapers of any organization's ethical culture is employees' perceptions of the motives behind senior management's adoption of the stated position, philosophy or belief, their hidden agendas. Senior management needs to assiduously avoid any decision or action which could reasonable be expected to communicate a self-serving or selfish motive for imposing the previously referenced position, systems or measurements on the employees of the organization.
The Ethics of Organizational Life or Organizational Ethics includes a body of theory and technique that is the domain of the ethics and compliance structures, systems, practices, procedures, and protocols necessary for a group of people to achieve shared purposes.

Examples of ethical organizations
Whirlpool Receives 2005 American Business Ethics Award
"Throughout the years, Whirlpool has built a culture of doing the right thing based on living up to our commitment to stakeholders and by quietly working behind the scenes to strengthen the economic and social fabric of the communities in which we operate," said Jeff M. Fettig, Whirlpool's chairman, president and CEO.
As an employer, Whirlpool maintains a strong focus on diversity and was a pioneer in the establishment of a confidential ethics hotline (1993). In addition, the company offers a comprehensive ethics program that incorporates a wide range of internal communication vehicles, training programs, employee surveys and leadership assessments.
In its demonstration of ethical behavior to shareholders, Whirlpool is compliant with the Sarbanes-Oxley Act and has established multiple internal control and audit groups. Whirlpool also actively participates in the ENERGY STAR program and has been recognized repeatedly for its energy saving initiatives in both its product innovations and its commitment to reduce the company's global greenhouse emissions.
The company was nominated for the award by the Southwestern Michigan Chapter of the Society of FSP and by Mike Damschroder, a member of the chapter's board of directors.
The awards are presented in three categories: large companies (over 2,500 employees), midsize companies (250 - 2,500 employees), and small companies (under 250 employees). Whirlpool received the award in the large company category; Paetec Communications, Inc., received the award for the midsize company; and Schloegel Design Remodel, Inc., received the small company award.
Levi's do not conduct business with those who violate their stringent standards of work environment and ethics. The conglomerate pulled an astounding $40 million worth of business out of a vast Chinese market. This act was in protest of human rights violations.

The Calvert Group, a mutual fund company, demonstrated social zeal in prohibiting investments in companies that produce guns, cigarettes and vodka. Hence, an angelic image was produced. This in turn increased overall business with other entities that appreciate what the mutual fund company did.



Examples of unethical organization

A federal jury convicted Tyson Foods of market manipulation and ordered it to pay cattle producers $1.3 billion.
Pharmaceutical giant Bristol-Myers Squibb was fined $150 million by the SEC for accounting fraud.

Conclusion

The first responsibility to society is to operate at a profit, and only slightly less important is the necessity for growth. The business is the wealth-creating and wealth-producing organ of the society. Management must maintain its wealth-producing resource intact by making adequate profits to offset the risk of economic activity. And it must beside increase the wealth-producing capacity of these resources and with them the wealth of society.
Ethics play an importance role in social responsibility. The business organizations must have ethical responsibility as they are doing business, including production, management, and services and so on. Without ethics, it would be danger to the human. Ethics is simply the rules that say what is right and wrong, as defined by a particular reference group or individual.The social responsibility is very importance to both society and business organizations. Although there are some arguments for and against social responsibility, even more of the organizations would take action on social responsibility. Many of the advantages being social responsibility was created, some of that was already discuss on previous pages. Believed that, the best interest of business organizations is social responsibilities, that would be benefit in the long run of company, can be earn more profit, and benefit to the human and the environment.

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