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In this assignment we need to find out details of how the corporate responsibility work in a world recognizes organization. Here we have to identify 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's renowned brand name in clothing and also they have diversified in to so many areas 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 UK and also the international brands. Firstly we need to discuss the influence that globalization doing in the clothing industry. And we also need to understand the internal welfare activities and how they have effect to the organization.
In this report we also aim the corporate governance and how they have work for the organization. Here also look for the health and safety of the workers as well.
About NEXT PLC
Next PLC is a clothing retail company situated in UK. It is a large retailer in the country having over 500 stores in all over the UK. And also there are more than 50 franchises branches in around the world. They have now entered in to the 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 they are selling some branded items such as GOLA and Morphy Richards. Recently the company has network with the most popular underwear brand Calvin Klein.
NEXT is distributing a Magazine call "The Faith Restorer", here they have include 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 than NEXT original shops.
Lipsy - retail shop for Women's Fashion
www.branddirectory.co.uk - outlet for youths' consider their fashionable brand names.
The NEXT is having discount sales times for 4 times in a year. This is so much popular in the UK so the people wait in the doors to open awaking overnights some times.
Effects of Globalisation on National Economies
Globalisation makes the markets so competitive than ever. So the Clothing industry is also facing many globalisation issues. Globalisation changes our lives 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 economic boom helper. Globalisation challenges the wages of the peoples in different countries. It will take the wages in to lower stages where most of the companies fail to survive because of this. We need to identify the successfully responding organizations for the globalisation.
The technology and the working methods can destroy any organization in a minute. So it is so much careful of the giant organizations to grab the globalisation. The government have a crucial responsibility to defend the organization 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 skills according to the globalisation.
The globalisation directly attacks the way of thinking the people, the prices of the perishable goods, increasing or decreasing the demand of the jobs and services, and also the government has to take care the integration of the economics.
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 and communication aspects,
Develop and implemented by the law-wage economic activities,
Are mainly effects the UK economy in the recent past few years. And now the best thing in here is the NEXT didn't get any effects from the globalisation they 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 what globalization has damaged. Globalization makes the UK organization in to very complex and highly competitor environment that will out flow the UK's money in to external or the international institutes.
For this matter the European Union has put some controlled factors that will circulate the euro money inside the European Union. This is a kind of indirect work that they have done. We can identify three faces in this process.
The UK and other European Union countries reduced the barriers of the international market. So the external institutes such as IMF has to involve the matter 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 have to provide the necessary guidance and the support to the ongoing process of globalization.
The UK government has set some strategies that support to increase the productivity of the macroeconomic concepts. Put some policies to strengthen the productivity drivers. So they can compete effectively with the international market without any problem. This will balance the competitiveness and the globalization and the UK economy as well.
UK has put some policies accordingly to garb the opportunities getting from the globalization. Mean time they have made the regional economic factors and protect the workers.
Corporate Governance & Corporate Stakeholders
The organization is governed by a large number of people and they have unique role to play in the organization. The organization comprised with different levels of governing body. Any way all the people who have the responsibility have the common corporate objectives. We can understand the hierarchy of the organization and identify the roles they are playing in the organization.
Here we are going to discuss the responsibilities of the corporate governance and the regulatory need to shape the corporate governance according to meet a common requirement. And also we have to understand the interests of the corporate stakeholders.
We can take one by one of according to the level of authority and power. The main 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 they have the fullest power to make and implement the policies. The board of directors are the people who take decisions in superior level. The BOD meetings are the place where the internal control of the organization is made of. The policies are made in the BOD meetings and they are only providing the plan but the failures in the implementation stage have no responsibility for them. They are the people who made the strategic plan of the company and they 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 the NEXT future comes out. So the decisions we take in the board room will lead the organization in to success. The board meetings most probably held in once a month. In here they have discussed the recent maters and the board papers will deliver the performance and the expenditure level of some semi budgeted activities. Also for the budget activities board of directors have to approve the budgeted activities in the board meeting. All the directors are selected once in three years from the selection committee formed comprised with stakeholders of the NEXT. All the directors have to attend all the board meetings continuously. Almost all the areas in the organization are discussed by the meetings. And the new comers to the board have trainings on each and every area of the NEXT.
The board secretary is the one who have to provide and facilitate the board matters or the organization issues to the board members.
Audit Committee - this is where the accounting of the organization policies is taken in to consideration. Here in NEXT they have 4 members in this committee and they all have accounting backgrounds. Major accounting issues 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 the main Board.
Nomination Committee - this is an important committee where they are the people who are nominating the board members. They have one meeting in a year and in that meeting there are 4 members attending with the chairman of the NEXT. In this meeting they are reviewing the issues arising in the board. Also they are getting external involvements of electing the candidates for the board. NEXT held this committee meeting and they have nominated the candidates and short listed the suitable names and give it to the board for approval. So the final approval has to give by the BOD.
Remuneration committee - in the NEXT Company have six meeting of remuneration committee. And the remuneration report is submitted to the board meeting accordingly.
Chairman - chairman is been selected from the board of directors. The current chairman of the NEXT was selected on 2006. The strategies that need to develop the organization have to submit to the board by the chairman.
Chief Executive - the chief executive of the organization has the authority of execute the defined strategies from the board. The chief executive has the responsibility of achieving the goals and the objectives set out in the board of directors. 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 the hierarchy of the NEXT. We can list down the positions or the stages in NEXT have.
Personal use of company assets
Relations with shareholders - this is the most important part of the organization. The board has to responsible to the shareholders on their dividend and the other issues. And also the shareholders have the power to promote the group if necessary. The board of directors have to be accountable to the shareholders. And the shareholders get the information about the organization annually and semi annually through the annual report.
Environmental awareness of the NEXT
The NEXT is a biggest retail stores, especially they are selling the cloths for children, women and men's. So the competition they have is not that small. According to their competition they have spent millions of dollars for their advertising. In each and every marketing campaign they have used environmental friendly concepts to follow.
The times the environment is sick of the business activities. Such as, there is nothing we can get from the environment.
The main policy we can offer is the continuous monitoring system policy. As a giant company the social responsible way of getting things done can be a crucial 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 can have is to monitor and take rapid actions against the changing.
Workplace health, safety and welfare in NEXT
NEXT have more than 500 stores only in UK and they already have many stores all around the world. All these work places there are more than 10,000 workers are working. So the NEXT management has many issues to discuss regarding the employees. The main concern should be the health and safety of the workers. There are variety of policies and regulations defined by many parties in the world. But there are some factors that must be there for better working condition. And also it is important to have the health and safety of the workplace which will eventually create pleasant environment to work not only that the organization will get the maximum profit as well.
Generally the health of the employees in NEXT will determine by some identified factors as follows.
Ventilation - the work place must have the fresh air. The air from the outside should be drawn to in by vitalized window or any other door similar to that. It is important to have the fresh air rather than generated air. The NEXT used to have special ventilation system on their general stores. If there is warm in the workplace and the humidity is there the fresh air will clean those and it will make the employees healthy.
Temperatures in Indoor workplace - everyone seeks to have a thermal comfort. We need to examine the environment heat is comfortable to work for the 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 general rules.
Lighting - lighting is always enable to workers to work in clear mind. Always we need to provide solid lighting fittings and clear lighting for the convenience of the employees. There must be emergency lighting system to be provided. It is necessary to have such system because in case of power failure may cause 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 the waste 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 cubic meters for each one. NEXT have the dimensions as it is. And it is important to have some spaces to move for the person. Sufficient work room spaces may free the employees mind.
Workstation and seating - Especially the seating arrangements are more crucial for preventing the back pain and fatigue. And also the workstation must be well personalized. NEXT is having a fantastic workstation for the individuals and also providing very comfortable chair that will not going to have any back pain at all.
Those are the health regards for the organization. And it is must to have the above requirements in the firm. The workers welfare is also align with these requirements. And also we can now identify some of the safety needs of an organization and also these are we defined in the organization of NEXT.
Floors and traffic routs - the traffic route is any kind of way or path that people or vehicle can move. Especially there must be more traffic routs that people can easily move. In case if there must be some unwanted thing happens in the organization the people must be taken out immediately with no harm. So to have more traffic routs with defined wide is must in an organization.
Falls in to dangerous substances - falling in to dangerous substances have high risk for any organization. NEXT have security fences and walls in such places in the stores. Traffic routs should be also has some fence.
Windows, Doors and gates - open able windows must be there and the fresh air must come after opening the windows. And also the windows must have safety. Especially the windows and skylights can be clean safely
Doors and gates should be fitted with safety with necessary equipments.
Managing workforce Diversity
Workforce diversity is the concept of how the business path can change. The valuable theories can change the organization's work path. So we can have few discussions on this regard and finally we can list down few scenarios that will change the business in to a diversify way.
The workforce diversity is a great concern in these days business. This is referred to a policies and Values that the NEXT must have. This is already practising the NEXT group PLC.
Social responsibility - the most goods we manufacture is infected the socially. So we have to rethink this for twice and make the organization's activities more responsible manner for the society. Through the workforce diversity we can give the opportunity to individuals that they can have the decision to improve.
Economically payback - everyone has to pay the tax and duties. So the organization NEXT also has to pay back the taxes and duties on time so they have the chance to be responsible.
Legal requirement - NEXT is under a legislative mandate. So the works have chances to work in a diverse environment. There must be non-discriminate in their work practise.
Capacity building strategy - the NEXT is the company that they have rapidly identified the problems. And they have given the solutions as it is in rapidly. So the work force diversify is the main concern of them. And also the new opportunities must be capitalize with them as well.
In this assignment we have to focus on the global impact and the external environment of internationally branded organization. NEXT is widely spared in the world renowned retail brand.
Firstly we discussed the impact on the globalisation for UK. And then the international institutions effects on the NEXT were discussed. Here we can identify that the NEXT has no problem on the globalisation effects. The NEXT has a quality and well defined staff and they have the right track to gain the profit.
The corporate governance of the NEXT is a well structured and dynamic from the 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 and they have utilized the workforce as they wants and the work safety or the job security is well given. And also the organization has given any new training opportunity as they see the new trend on the way.