Business communication refers to sharing of information between people within and outside the organization. It is the message which can be termed as exchange of ideas between two or more individuals within firm in order to achieve the desired objectives of business reliably. It can also be defined as relaying information within business by its people. HSBC holdings has been selected for this project report. is a multinational company based in British deals in banking and financial services which is located in London, United Kingdom. This report states about various behaviours, actions and communications in the organisation. Apart from that, report also discusses the global principles which are the basis on which an enterprise's functioning depends.
Company's social performance
Sustainability means building our business for long term by creating correct alignment between different considerations such as social, environmental and economic. It enables business in striving hard to achieve results and contribute to the health and growth of communities. According to the study of Dinnie, Keith which states that there are different factors of environment which needs to be consider by HSBC while dealing with other corporations. One among the various factors which play a significant role in company is sustainability. It refers to a theory which explains the importance of natural environment to protect them from being depleted and procured for future generation. Company reduces the impact of climatic change on business which is known as climate business. Climate business refers to the long term commercial business opportunities that may arise in the transition to a low-carbon economy. This covers three main areas which includes increasing the share of low-carbon energy production such as bio-energy, solar and wind, improving efficiency of energy and adapting to the impacts of climate change. Company collaborates with global banking and markets and commercial banking businesses which is commonly known as Asia money magazine. It involves various deals with rapidly growing companies. It offers traditional investment banking services to grow climate business customers to meet their desired targets.
Due to introduction of climate business, HSBC has taken a big project that is known as Greater Gabbard which is that project bond of establishing 504 Mega Watt wind farm located outside the city area. HSBC arranged a project bond to enable a consortium of infrastructure. It was a first time off shore transmission that is financed by capital markets. This new and creative concept of HSBC of creating climate business is posing one of the challenges which helps in attracting investors to the sectors. Tarhini, Alidescribes that other than positive side of environmental considerations of company, it also possesses some limitations which create a barrier in the path of growth of firm. The positive impact of climate business is to create financial economy of business by attracting high number of investors which in turn increases the monetary fund of firm. The negative effect of climate business is creating sustainability risk among various customers in terms of spreading rumours about the internal defects of organization.
As per Luxton and Sandra it has been observed that other aspect which is considered as a part of company's social performance and play a significant role in determining their true performance and judge their ability is community development. Primary purpose of corporate social responsibility is the overall development of society by providing basic facilities and services which society deserves. Company gives more emphasis on improving the society by providing basic education for disadvantaged young people which continues to be both inspiring and successful. HSBC invests around US $50 million every year to support charitable education projects wide number of employees being part of this event. The education programme organised by HSBC has six main areas of young development such as access to education, emotional quality, employability and entrepreneurship, cultural awareness, financial literacy and life skills. This strategic move of company is to increase their work partnerships with other strong firms. Organization helped around 18000 children to develop coping skills through Zippy's Friends programme in Latin America. Main motive of this programme is to help young people to realise their potential and hidden talent. Different aspects of this procedure helps in enhancing the value of existing business and promoting its interest among various countries across the world. Education is that factor which can make a difference between a lifetime of exclusion or becoming an active citizen. Company works with different NGOs which deals in providing literacy services to the general public at free of cost. Financial literacy fosters both social and financial inclusion which induces the level of investors in business. Its another factor is providing basic education to deserving candidate by providing various scholarships by judging their capabilities and financial health of companies. HSBC awarded its first scholarship in 1965 and today, it offers more than 6000 scholarships globally every year to promote the social interest. Another important feature of educational programme adopted by organisation is to provide education to the street children. Its strong collaboration with other companies who provides education to rural areas to reduce the illiteracy level. Main aim of an enterprise in providing rural education is to increase the scope of rural and backward areas of society. Education is one of the significant factors in today's modern society where literacy acts as an instrument in enhancing their value. According to Carayannis, Elias G study which shows that HSBC adopt various measures, tools and techniques to increase all positive effects in favour of firm and try to minimize the negative aspects but future uncertainty cannot be avoided as it harms and interfere in normal business functioning. It affect the performance of the company as the company's focus is confined within the restricted boundaries. The aim of the firm is to provide basic education to the village peoples Which will affect its overall efficiency level.
Discuss the impact of company's actions on society and stakeholders
According to Khang. et.al the study of which supports that businesses do not function in isolation where they are solely responsible and have no sense of responsibilities for other persons. An organisations have numerous individuals and groups whose needs must be cater by the firm in order to achieve its targeted goals and objectives and enhances the productivity level. A stakeholder is a person who are directly or indirectly influences the business functioning and do affect by the business actions. A business is set of complex and difficult factors which works together in order to achieve success and provide better output. The stakeholders may include different persons such as society, customers, investors, government and most importantly all the employees. On the contrary after describing the various stakeholders the next job is to analyse the impact of the business actions which can be converted into reactions for different stakeholders. As per the study of BS star, 2008 Society is regarded as a one of the deciding factor which have power to spoil or start the basic career of the companies. The society bestows all its natural resources on the business and want certain promises from business in return to promote the social interest by providing organic products to facilitate diet conscious people. Another important hope of society from the business is to deliver high quality products or services. There will be formulation of social agreement between the society and other organisation in providing products by adopting different key considerations. These considerations involves affordable pricing of the product, maintaining quality of the product, following quality standards such as ISI and ISO to ensure its product safety. Society is one of the kind of stakeholders but the main focus of the industry is on society than other factors (Dearden, John 2015). According to Hashim and Junaidahwhich depicts the different decisions taken by the business in terms of reducing the low-carbon emission to support the common cause of the society that is Global Warming, this shows that company has taken decision in favour of whole society by providing products which supports the Green culture of the society. Different techniques used by the society should be in relation with the society's stipulated standards. HSBC holding adopts various measures which provides future opportunities which in return supports existing opportunities. HSBC lay more emphasises on different values such as unique ideas and cultures which includes open communication to support all business activities in the organisations. These value will help employees in order to achieve high level of efficiency and effectiveness in all its desired aims and targets. The primary focus of several business principles of a firm involves Financial strength to maintain the existing capital strength and liquidity position in the company. Another important business decision involves Risk management which every enterprise needs to comply different standards imposed by the external environment to achieve higher excellence areas of service (Baker, Michael J., and Michael Saren, eds 2015). The standard speed decided by the organisation is fast and responsive in order to keep pace with the external environment. Another factor is performance focus which states that a venture take complex and difficult business decisions while taken into considerations various factors which may include competitors, competition pressures. Every action of business is depends on the move of its competitors. The motive of HSBC holdings is to find out the long term perspective of the company with respect to the society. The positive as well as negative impact depends on the capability of the external party and how it is taking it. Sustainability is wider concept which forecast the current and future condition of the companies in terms of providing employment opportunities and promoting the interest of society.
From the above study it can be summarised that sustainability has wide scope and has strong capabilities in affecting its overall business growth (Dinnie, Keith 2015). HSBC is a multinational corporation which provides ample of opportunities to the business from environment. The company needs to adopt various ethical standards and morals set by the society. It has been observed that the company's social performance is beneficial in some case and affecting in other cases. The performance of firm regarding its environment is mainly focussing on climate business which strengthens the financial ability of the firm. On the contrary the company emphasises on another area of sustainability that is Development of community by providing basic education to eradicate the poverty by increasing the number of literate peoples in the society.
Review and present a selection of business practices
In the given case scenario HSBC is intended to become a part of United Nations Global company which is one of the signatory which provides different principles which provides guidance to the companies (Carraher, Shawn M., and Terrence J. Paridon 2015). These guidance will help in order to meet their defined goals and aims within the reasonable period of time. There are ten principles propounded by this signatory which includes the following:
- Protection of proclaimed human rights
- Fight against human right abuse
- Right to collective bargaining
- Elimination of forced labour
- Effective abolition of child labour
- Eradicating discrimination
- Support precautionary approaches to protect from environmental challenges
- Promote greater environment responsibilities
- Encourage environmentally friendly technologies
- Reduce corruption practices
Some of are the business practices adopted by an organisation which supports and related to the above principles are:
Sustainability Leadership- This leadership programme refers to a unique professional development experience for senior leaders to deal with its subordinates. This programme has helped one of the world's biggest financial organisations more efficient while reducing the impact on business environment (Hovhannisyan, Nune, and Wolfgang Keller 2015). This business practice used by an organisation is related to one of the principle developed by UN Global compact which states that Business has high amount of responsibilities towards its environment. Sustainability is regarded as a significant aspect of the environment which is sustainability. It is long-term goal determined by the top management to form different practices and techniques which in turn support the smooth business functioning.
Technology- Another approach selected by the company is using green technology to encourage the development of inland technologies rather than using dangerous and risky technological device. It is related to one of the principle of UN compact which says that diffusion of environmentally friendly technologies. This will promotes the social interest and protect their feelings associated with the natural things.
Discuss both positive and negative impacts of business practices
- Reducing energy and waste materials by recycling the used materials and transform into new products.
- Reduction in costs of the products by elimination of unwanted costs from the overall business process.
- It has significant feature which denotes that company differentiate itself from its competitors in terms of external competition pressures.
- Staying ahead in competition by preparing future plans and systems
- The company sometime lacks in product quality by giving more emphasises to the sustainability measures.
- Creating risk for main business if company is not giving more accuracy to the sustainability measures.
- This sustainability doesn't ensure full guarantee of success as it is long-term objective
- Creating fear among the employees by complying with all defined rules and regulations stated by the external forces (Voinea. et.al. 2015).
- It can spoil the image of an enterprise by making any uncertain changes in the existing system
- It provides different area of specialisation in various business processes which supports business to achieve authenticity and reliability in all its decisions.
- Machines and innovative technologies used in the business helps in reducing risk to human life.
- It helps in creating revolution in the business by creating wide range of product options by using digital devices in the business.
- It helps in increasing communication in the business using appropriate communication devices which includes latest and updated technology.
- The company uses satellite technology in communicating and expanding its business all across the world.
- Use of technology decreases the employment opportunities for general public as one machine can take the place of 100 employees.
- New and unique technology used by the companies due to the digitalisation in the business environment ends up the job of old employees.
Develop recommendations for business practices
Planning and procedure are the two significant measures help in embedding sustainability into the daily routine operations of the business (Hashim, Junaidah 2015). Achieving different goals and the objectives set by top management will depends on the right working system and procedures. HSBC can use standard operating procedures that capture sustainable practices will help in making sustainability as one of the norms which needs to be comply by the organisations. One of the practice adopted by the firm is planning of its workforce. Workforce planning help to ensure that business has select right people with right skills which is useful for the current business. Another technique is Retention strategies which refers to that issue which is joint with the sustainability. Recognising and rewarding the contribution of staff can be a powerful retention strategy. These recommendations help HSBC to closely linked with the principle developed by UN Global compact.
Another business approach select by an enterprise is Technology used by the firm in order to increase its own level of potential (Lauring, Jakob, and Anders Klitmøller 2015). The efficiency of technology can be judged by enhancing the overall value of the measures. The technology used by an organisation depends on its impact on business. The different technologies can be selected by an enterprise according to the needs and expectations of existing business in comparison with its future strategic opportunities. In today's competitive and complex environment technology is an integral part as it supports all different business activities. It provides high level of efficiency by improving better decision making. It increases the brand image of the products and its precious services. It provides global advantage to its business by spreading its business worldwide.
Discuss the benefits,challenges and risks for stakeholders
Stakeholders are those person who directly or indirectly affects the business functioning and do affect by the business (Alvarez, José Luis, ed 2016). The company used sustainability as one of the business practices which provides different benefits such as reduction in costs, increased productivity, enhanced level of energy in companies, analysing competition in the external market, beating competition by providing sustainability measures. It can be challenging for companies in providing future opportunities, uncertain demands of the customer. There is high range of risks in this approach in terms of affecting company's current status.
On the contrary other practice followed by HSBC is use of technology in the firm to gain the competitive advantage over its competitors. Technology can be advantage and can be limitation which totally depends on its usage by the person. Its impact is totally depends on business capabilities and external competitors. It provides in determining future trends in technological factors which can affect the normal setting up of business (Khang. et.al 2016). It can be of challenging nature in terms of providing uncertain future benefit which can be turned into advantage or can poses threat. The company's are in constant risk to update its existing technology with the external and dynamic environment.
From the above study it can be concluded that communication in business is really important as it plays a significant role. The company which has been selected for this report clearly analysed on the basis of different factors. The complexities of this company is closely determined by measuring the efficiency of the business by applying key considerations of the environment. It shows positive impacts of the sustainability development practices adopted by an organisation.
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