Nashralyn A. Hadjiula Grade 12 – Russel CASE ANALYSIS: Understand how the fairness, accountability, transparency and stewardship can help the decision-making process in business and non-profit organizations. 1. Why these fairness, accountability, transparency and stewardship is important? Fairness, accountability, transparency, and stewardship are important because they allow the people involved in a given business to know what to expect from each other and how they will be treated. Institutional unfairness and exploitation can emerge if these rules are not followed. When a company treats its employees unfairly, such as by forcing them to work for low wages or in unsafe conditions, it is exploiting them. This is why fairness is so crucial. Fairness means that everyone benefits equally from the company's resources and receives an equal percentage of the profits if they all contributed equally to those profits. It also implies that everyone who works for the company is guaranteed a safe working environment and a fair wage. Accountability ensures that a company is reliable and accountable to all of its stakeholders, including employees, customers, and suppliers. It means that even if a company makes mistakes or breaks commitments, consumers can believe that if they approach it in good faith, it will put things right. Transparency ensures that all stakeholders are aware of how a company makes choices and what they may anticipate from their interactions with it. When a company and its stakeholders are transparent, everyone understands where they stand with each other and what to expect from them. 2. How these fairness, accountability, transparency and stewardship differ in its approach in business and non-profit organizations? In business, balancing fairness, accountability, transparency, and stewardship can be tricky. When it comes to employees, this is especially true. It might be difficult to strike a balance between what is fair to employees and what is fair to the organization. Companies, for example, are not obligated to provide health insurance to their employees. However, by providing them, they may be able to save money on taxes. This might make it challenging for them to know what is best for their staff while also being profitable for the business. In some ways, non-profit organizations are similar to for businesses. They, too, must ensure that all donations are used wisely and that no money are wasted on unnecessary expenses. The difference between non-profits and businesses is that non-profits do not often have shareholders who require revenues in order to exist or develop.
