Interdisciplinary Approach To Business

INTRODUCTION

This report is going to consider the interdisciplinary approach as a solution to the problems facing the business world. The business world is competitive, full of uncertainty and is ever changing. Therefore, for a business to penetrate through the market or to come out as successful, it cannot focus or divert its strategy or solution to using one discipline to be successful. It is very essential that a business consider a variety of disciplines to make it in the business world. FACTORS THAT IMPACTS ON THE BUSINESS

COMPETITION

Every business has its rival. The nature of the business arena comprise of competition in which established businesses are fighting and eager to penetrate through the market.

According to Jensen and Meckling (1976), they defined it as an issue on the relationship between ownership and the conflict between owners and managers. The assumption is that those in control or who have been handed the responsibility of overseeing the organizations activities, initiating decision do not make best decision. That is to say, they are being more subjective rather than being objective and their choices are not in accord with the interest of principals and managers but are more of maximizing personal benefits therefore implying that the outcomes on the firm is not considered. An example is that of the Lehman Brothers, one of the biggest corporate scandals that took place in 2008 that is widely known. It was a financial service firm that hid over $50 billion in of loans and boosted them as sales or their revenue. The Lehman executives and the company’s auditors Ernst and Young were the main players in this deliberate misrepresentation of the accounting information9The 10 Worst Accounting Scandals of all Times, no date). This is an indication of abuse or misuse of power among executives. The agency problem calls for more caution among corporate executives about boosting their accounts and as such it is very vital to introduce and implement business ethics among business people. According to (Grane and Matten 2004), they explain business

According to (Needle 2010) this intervention is to assist the state in keeping track of any suspicious misuse of the environment and for it to be able to take necessary legal measures. Some members of an organization chose to brazenly defy environmental laws and pollute the environment, thinking that they will get away with it and in which most of the times its unfortunate. The result of such ignorance is large fines. To curb this rising concern, organization have corporate social responsibility as is outlined by Jones et al.(2005) policies that outline their environmental policies and are changing their strategies to be environmentally friendly. Having this awareness of how the business behavior can impact on stakeholders helps business people to be able to acknowledge the fact that where they operate exist a community, and therefore pollution can impact them also. Corporate social responsibility helps reduce operational risks and hence attracts customers for its reputation of sustaining the environment. However CSR is of importance only if the management and leadership of a business incorporate to produce better results.

Management is needed in his case for organizing and staffing ideas so as to monitor implementation on how best to protect the environment and therefore it needs strong leaders to align the people needed. Managers are