Family businesses in developed countries such as the U.S account for the 50% of the gross domestic product from small business to large corporations. However in the fortunes 500 companies list family businesses account for the 35% which shows that big family corporations rule the world. These family businesses are powerful and at the same time very complex that create both of them advantages and opportunities as well as challenges. The most important challenge is to effectively align the business system with the family system which it cannot come naturally. In the one hand we have the family which is driven by emotions and on the other hand the business that is driven by economics. The interaction of family cohesion and business achievement often creates outstanding business performance but at a cost. If there is lack of coordination, good things that benefit the business can damage the family and whenContinue reading
General Business Articles
Non-Governmental Organization (NGO) – Definition, Types and Roles
A non-governmental organization (NGO) is an organization that is not part of a government and was not founded by states. NGOs are therefore typically independent of governments. Although the definition can technically include for-profit corporations, the term is generally restricted to social, cultural, legal, and environmental advocacy groups having goals that are noncommercial, primarily. NGOs are usually non-profit organizations that gain at least a portion of their funding from private sources. Current usage of the term is generally associated with the United Nations and authentic NGOs are those that are so designated by the UN. Because the label “NGO” is considered too broad by some, as it might cover anything that is non-governmental, many NGOs now prefer the term private voluntary organization (PVO). NGOs are defined by the World Bank as “private organizations that pursue activities to relieve suffering, promote the interests of the poor, protect the environment, provide basicContinue reading
History and Development of Non-Governmental Organizations (NGOs)
Non-Governmental Organizations (NGOs) as we know them today are generally thought to have come into existence around the mid-nineteenth century. It was only about a century later that the importance of NGOs was officially recognized by the United Nations. At the UN Congress in San Francisco in 1968, a provision was made in Article 71 of the Charter of the United Nations framework that qualified NGOs in the field of economic and social development to receive consultative status with the Economic and Social Council. The development of modern Non-Governmental Organizations (NGOs) has largely mirrored that of general world history, particularly after the Industrial Revolution. NGOs have existed in some form or another as far back as 25,000 years ago. Since 1850, more than 100,000 private, not-for-profit organizations with an international focus have been founded. The growth of NGOs really took off after the Second World War, with about 90 internationalContinue reading
Arguments For and Against Social Responsibility of Business
Business entities should pay attention to the welfare of workers, consumers needs and their security, the well-being and privileges of creditors, government regulations and the obligations of the enterprise towards the social order as a whole. Nowadays, numerous organizations are concerned about social activities and are playing an active role in the same. While the outlook of the society have transformed, companies have become further conscious of their social responsibilities. A cautious analysis of opinions for and against the participation of organizations in social welfare activities is essential to conclude whether an organization should employ social programs. Arguments Favoring Social Responsibilities of Business The needs of present day customers have changed, ensuing in a change in their outlook of businesses. As businesses oblige their profits to humanity, they have to thus counter to the needs of the society. Society and business gain mutual advantage when there is a symbiotic associationContinue reading
Case Study: The Story of Warren Buffett
Warren Edward Buffett, born August 30, 1930 is a U.S. investor, and philanthropist. He is one of the most eminent investors in chronicle, the basic shareholder and chief executive officer of Berkshire Hathaway and in 2008 was ordered by Forbes as the 2nd most robust person in the world on an approximated net worth of around $62 billion. Buffett is often called the “Oracle of Omaha” or the “Sage of Omaha’ and is noted for his adhesiveness to the value investing philosophy and for his own frugalness in spite of his huge riches. Buffett is also a famed altruist, having engaged to impart 85 percentage of his fate to the Gates cornerstone. He as well assists as a appendage of the board of trustees at Grinnell College. In 1999, Buffett personified described as the greatest money manager of the twentieth century in a survey by the Carson Group, leading PeterContinue reading
Importance of Organization Culture in Business
Organizational culture is defines the different type of place an organization, this organization is for people, they will be any type of stakeholder: general manager director, employee and customer. Organizational culture is the big part of values, rules, symbols, taboos and rituals that evolve over time. It is the common feel and thinking shared by members that identifies how is the things get done in the organization. Culture drives expected behaviors internal to the organization ads well and those engaged when interacting with its outside environment. Understanding an organization’s culture helps an employee learn the line and discover whether their personality is a good fit. The greater the acceptance of key values and norms, the stronger the culture. Strong cultures are associated with employee commitment and organizational performance. The strength of culture is determined by the size of the firm, how long it has been around, intensity and turnover rate.Continue reading