Today, most of the business works in a global context. By term Business context, we mean, all the circumstances that set an event, idea, or statement in the terms that are fully understandable by the organizations. Organizations today are getting more and more competitive. This more competitive environment requires a sustainable and a responsible supply chain in the market. It is a fact that organizations and those who are involved in the responsible of managing the environment is the main subject for environmental uncertainty (Needle, 2004).
Organizations today operate a very complex environment. It is very important to bring study all the factors to bring together all market competitive goods and services. These may include legal or political frameworks, economic issues affecting demand and supply of goods and globalization (Glyndwr, n.d) Assignment help.
For all these factors, there is a need of business context model, which expresses the current business problems. One of the strongest elements of organization is stakeholders. The involvement of stakeholder in every well established organization is very important (Maxted, 2008).
In this report all the basic key ideas of stakeholder theory will be evaluated. Identification of the fact that stakeholders have attained a key position in every business sector is a very important task. The aim of this report is to point all the major characteristics of different stakeholder theory which highlights the involvement of stakeholders in housing sector. Expectations of the business community are increasing into areas beyond the core product or service into consideration of the environment, standards and human rights (Wetherly and Otter, 2008). The weight of expectation may lead to potential conflict amongst stakeholder groups, particularly in times of economic austerity currently being experienced in many European Countries.
The construction industry is widely-recognised as an accurate barometer of the business environment and reports in late summer 2012 were of profit falls by over 20% and a continuation of the decline in house sales. To address this number of changes to UK planning procedures have been announced by the government in September 2012.
Stakeholders Theory : In literatures numerous views has been details by various authors. In general, stakeholder theory can be defines as a conceptual framework of ethics followed in business and organizations. It addresses the morals and ethical values followed by the management for the organizations (Mitchell, 2010). The first stakeholder theory was proposed in a book named “Strategic management.” Stakeholder theory highlights how management satisfies the interest of the stakeholders in an organization.
According to Donaldson and Preston, four theses are related to stakeholder theory:
In Dubai, stakeholder theory helps managers to prioritize the interests of every individuals and groups, being affected by the organization’s activities. The theory also unfolds current circumstances faced by the stakeholders and it urges a managerial aspect by which the stakeholders can be identified despite of their fluctuating contribution in business activities (Malkat, and Byung, 2012).
In Dubai A survey was held under which ha questionnaire was designed based on various literature reviews. This survey was forwarded to all the potential players involved in the Dubai construction industry.
The result of the survey showed that 29.9% of the players were consultants and 23.4% of the total was working as client. Projects which were under construction counted for 55.8%. 87% of players were working on building projects. The direct influence of the project was stakeholders and was described in the survey as Primary. However, the stakeholders with indirect influence on the project were described as Secondary players. These were trade pressure groups and associations with 84.4% and 92.2% and of the total respondents.
As per the survey, 13 stakeholders were ranked based 6 project spheres. The six spheres were; decision making, time, cost, quality, safety, and environment. The rating scale included five parameters of raqnking; 1=extremely weak, 2=Weak, 3=Neutral, 4=Strong and 5=extremely strong. As per the ranking, PMs ranked first, on the second position were clients and consultants stood at the third position.
Carroll’s model : In year, 1991, a model known as Carroll model was proposed by Carroll. According to this model, corporate social responsibilities involve profitable, economical, ethical, and social conduct of business. Carroll model is like a pyramid and suggest that all the four components are not mutually exclusive, but these components helps managers to identify all the different type of obligation are in constant with one another (Katsoulakos, 2006).
In the below figure, a detailed explanation of Carroll Model is illustrated. It can be seen that Carroll surged that all the business must have economical responsibilities; however without making profit, the companies will cease and CSR will die. A CSR model is not against profit, it simply illustrates how profits are made.
In the next section come legal responsibilities. Carroll has explained the importance of legal responsibilities; however, he had not considered the countries in which law is ignored or has been modified. Ethical responsibilities come next in the pyramid. It says that may it be any business, following some ethical values is very important. By ethical values we mean the values that distinguish between what is right and what is wrong (Collinge, 2012).
Business, when viewed as a stakeholder in society, has responsibilities that extend beyond the economic and legal framework to incorporate ethical, environmental and philanthropic aspects.
Economical, Legal, Social, and Philanthropic Responsibilities by Balfour Beatty.
According to a survey done in year 2012, Balfour Beatty is world’s one of the top infrastructure service provider operating at a leading position in all the major market. The company in over 80 countries, in diverse economies and market provides assets to develop, function, and thrive. Engaging with stakeholders proactively is one of the essential parts followed in this company (Balfour Beatty, 2013).
Theory of Supply and Demand: Related to the Housing sector in UK
The housing sector in the UK particularly includes privately owned house and apartments, privately and locally rented accommodation, and some property managed by housing associations. In this section, we’ll evaluate the demand and supply of private housing in UK sector.
Demand for Private Housing : The demand for private housing in UK is evaluated by a number of factors. One of the most influencing factors in this regard is price. Always, there is an inverse relationship between the prices for houses and its demand. At higher prices the real incomes reduces and subsequently individuals reduce their demand. At higher prices, renting appears more attractive to individuals. When house prices are lower the reverse attributes prevail; however, the demand for property is very speculative. A rise in prices leads to a rise in demand (Durden, 2010).
Non Price Determinants:
Supply of Private Housing:
The supply of private housing is directly related to house prices, and hence the supply curve slops upward. Supply is frequently inelastic because of the frequent changes keeps on taking place. Change in house prices will cause a movement in the existing supply curve of property (Durden, 2010).
Non Price Determinants:
Price elasticity of demand in UK Housing Sector:
Price elasticity of demand in UK housing sector measures the responsiveness of demand of private ownership to the change in its price. When there is a necessity and there are few substitutes available, the demand becomes inelastic. This may well force up the eventual market
price when a transaction is agreed. The price elasticity of demand private ownership depends on the availability of substitutes. According to some surveys the income elasticity of demand in the UK is very positive. This means that when the real income rises, the market demand for housing also rises.
Price elasticity of Supply in UK Housing Sector:
Price elasticity of supply in UK housing sector measures the responsiveness of demand of private ownership to the change in its price. When there is a necessity and there are few substitutes available, the supply becomes elastic. This may well force up the eventual market
price when a transaction is agreed. It is necessary for a firm to know how fast and effectively it can respond to price changes taking place in the market conditions. Higher prices will lead to more supply.
By this Report we can conclude, that the housing and the construction industry in today’s competitive era is growing at a very fast speed. We can see that in last few years many major players have entered in the housing sector has witnessed a high growth. The major role in this rear is pale by the stakeholders. The companies firmly believe that the involving of stakeholder in the various business activities is very important. By the help of stakeholder theory, the managers in this field to a great extent are able to identify the key interest of all its stakeholders. Also, if see, the companies are using all the economical, legal, ethical, and Philanthropic factors, that at the helps in shaping the communities as well as the whole construction industry. At last, the demand and supply for all the private house ownership in UK is increasing at a very fast speed. This at the end will end to economic development of the country.
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