Good Example Of Essay On Health Policy AND Global Financial Management
There have been increasing calls for businesses and executives to adapt corporate citizenship not just as a means of enhancing organizations’ sustainability but also to play a key role in enhancing the society’s welfare. That is especially the case for industries playing crucial roles such as the healthcare industry. In addition, the industry’s influence on the society through initiatives and policy changes is claimed to be highly dependent on the executives’ political competence. In that respect, this report seeks to discuss the relationship between corporate citizenship’s relationships with political competence. Finally, global finance and business management entails various considerations regarding the business locations. Such factors are discussed in this report with reference to the EU and the outside market as well as considering local and international markets choice for investors and credit providers.
Part 1: Corporate citizenship
Good corporate citizenship relation with political competence
The relationship between corporate citizenship and the political components is through the fact that the corporate citizenship influences company’s effect on the society. In that context, the political competence refers to the ability of the executives to identify the relevant stakeholders to partner with as well as identify the relevant society issues to address and enhance the society's welfare. In that respect, elements of corporate citizenship such as embracing initiatives that address society issues such as poor public health, lack of skills and resources are a means of helping the society, and the relevant stakeholders solve those problems. In addition, ethical practices by the executives as well as their embracing of good corporate governance are crucial to enhancing the good relationship between companies and the society, as well as the political system. In that view, good corporate citizenship requires understanding of the society's problems, and he stakeholders involved that was a role of the political system. In that respect, good corporate citizenship is a reflection of executives’ political competence (McCaughrin & Lemak, 2005).
Health care policy necessary for balancing costs, access and quality of healthcare setting in workplaces
Workplace environment can be enhanced by providing a balance between the access, cost, as well as the quality of healthcare for all employees. In that respect, it would require the guidance of some healthcare policies that have been established as a guide to those aspects. Such policies include the policies promoting access to affordable care in terms of setting out guidelines for employers’ contribution towards employees’ healthcare. In addition, the policies defining and guiding on the level of healthcare should be provided for workplaces as they seek to enhance justice and fairness for all employees in access of healthcare services. In summary, healthcare policies such as those relaing to Medicare seek to enhance a balance by balancing the cost, access and quality aspects of healthcare throughout the society, as well as the organizations.
Part 2: Political competence and corporate citizenship
Knowledge, individual behaviors, as well as skills, necessary for executives to have to be politically competent and be good corporate citizens
As a means of achieving corporate competence, an executive should have specific skills and knowledge that enhance their foundation in terms of corporate citizenship. In that respect, the executives should have skills ranging from the community needs understanding, corporate governance principles as well as environmental and ethical issues and principles. With those skills and knowledge, the executives can make a decision that does not only enhance the business performance and sustainability but also safeguard and enhance the society’s welfare in line with the political objective (McCaughrin & Lemak, 2005).
Witness testimony reflection of political competence
Considering that political competence reflects an individual’s ability to influence the policies in the industry as well as identify and engage relevant stakeholders for the purpose of enhancing a society’s welfare, the witness reflected competence. That is because it was identified that the witness had much understanding of the relevant stakeholders in healthcare and the roles they play in enhancing the society’s welfare. In addition, the witness’ ability to coordinate and relate to the stakeholders as a means of identifying and informing policies as well as measures that have a positive influence on the society is a reflection of their political competence (Beaufort, 2005).
An organization classification with respect to corporate citizenship
Corporate citizenship in healthcare entails providing services that seek to enhance the society’s welfare without necessarily drawing direct or short-term benefits. In that respect, an organization such as the Los Angeles Hospital that is a member of the hospitals operating a movement branded healthy food for healthcare. The movement seeks to employ a menu of options as a means of leading the healthcare to sustainability. That involves more than 90 of the California hospitals that have committed themselves to providing healthy foods that are produced from economically viable and environmentally sustainable systems. That seeks to support human justice, as well as dignity in the society. Thus, the hospitals commitment to enhancing the society’s welfare qualifies it as a good corporate citizenship. (SF Bay, 2015)
Part 3: Competencies learned
Competencies developed in researching as well as writing of the course Comprehensive Project
Completion of the course project entailed research on diverse issues relating to the healthcare and global management. In that respect, it was useful for exposing me to the extensive literature on the subjects as well as on various practices relevant to healthcare management. In addition, the project enhanced my research skills and capabilities relevant to the healthcare industry. Thus, understanding of organizations operations, executives’ practices as well as the corporate citizenship effect on the society developed the capability of evaluating individual’s behavior effect on organizational success and performance as well as the effect on the society’s welfare (Beaufort, 2005)
Competencies, as well as knowledge, support for career advancement in management
Career development in management entails application of various skills and knowledge relevant to the industry as well as the workplace. In that respect, the developed competencies through the project’s completion will be useful in enhancing career development. In specific, the research skills learned and the ability to analyze issues will be useful in analyzing market and environment issues that are relevant to organization operations and performance. Thus, with better analysis and research skills, it is easier to source and analyzing information on an issue for the purpose of supporting decisions that are evidence-based. In addition, the content and topic understanding will be great in understanding relevant principles ands well as methods of addressing relevant workplace and industry issues. Thus, the competencies would help enhance performance that is crucial to career development.
Part 4: Home vs. external markets decisions
Prospect and rationale of acquiring a company from the European Union or outside of it
Acquiring a company in the international market is dependent on several factors. Thus, acquiring a company within or outside the EU would depend on the attractiveness’ of a market as well as the competitive advantage that a business enjoys for being located in the region. In respect to the EU region, the market reflects an economic integration with the members’ countries being bound by economic rules and policies that seek to protect their companies, as well as economic interest in the global market. However, such measures include limiting external companies operaions, and export into the region while increasing the flow of trade, as well as economic operations between the member countries. Thus, the choice would be dependent on the policies that would suit the referred companies operations, as well as performance. In view of current economic as well as the political environment, the best choice would be the acquisition of a business outside the EU in such places as he emrging economies (Keller, 2013).
Advantages and disadvantages of the choice
The choice of acquiring a company outside the EU has several advantages as well as disadvantages given the opportunities that can be utilized as well as the inherent threats respectively. The advantage of selecting the company outside EU is that the European market is relatively developed compared to other emerging markets. That presents several opportunities in terms of low-cost labor, untapped markets, as well as less competition within the emerging markets. In that respect, a company in emerging markets would face relatively less competition compared to a company in EU. In addition, the independence of economies outside trade blocks are usually not greatly affected by occurrences in other countries such as would be in EU where issues and events in one economy would have a great effect on the other countries. However, the choice has disadvantages in terms of trade restrictions. That is because companies operating in markets outside trade and economic blocks face restrictions such as high tariffs when selling their goods to other countries (EU, 2015).
Advantages and disadvantages inherent in the option not chosen
The market not chosen is the EU and the following is a summary of its advantages and disadvantages wih advantages including the single market as well as reduced beuracracy. A single market for businesses: Businesses in EU are allowed to operate unhindered by the single market operations in all Member States. Tha presents an opportunity to grow compared o hose companies facing trade restrictions outside he block. There is also large markets for the companies to sell to in EU as companies do no have to worry about the customs duties and tariffs. Further, supply chains can be developed, and finances sourced by firms anywhere within the EU market unlike in markets outside markets. As a result, big or small businesses can become more competitive by maximizing their potential and becoming more efficient through the ability to extensively cover the market. In addition, here is better value for taxpayers resulting from more competitive and open public procurement rules. Further, the introduction of the euro was a huge step, and over 330 million citizens use it hence making business transactions much easier. A majority of EU countries agree that there has been a combat in corruption and favoritism through EU-wide rules on public procurement. There are low cost and less exchange rate risks, as companies benefit from the European Union’s single currency hat brings more certainty to business planning and encourages investment. That allows firms to be more effective, and trade is estimated to have increased by between 4% and 10% since the single currency introduction. (EU., 2015).
There is also less for medium and small -sized enterprises. Bureaucracy have been greatly reduced by the unifying and harmonizing of economic and business laws across the 27 Member States making the single market well functioning. Companies can now establish themselves under the same conditions in another EU countries or can decide to offer services to international markets from their home base. On the other hand, the EU market has some disadvantages including the interdependence between economies that results in adverse events in one economy adversely affecting the other economy hence being a high-risk region for businesses during bad economic and business cycles (EU., 2015).
MNC rationale for investing funds in financial market outside their country
The key objective of an investment is getting suitable and desired return on capital hence the choice of MNC investing in its country or external markets would be determined by the factors that determine the earning ability in those markets. In that respect factors such as economic growth, political environment, business environment as well as exchange rates and tax policies determines a country's attractiveness (Keller, 2013).
Exchange rate: It affects the cost of repatriating funds and profis for a business. A currency depreciation in the host country decreases the amount of foreign currency required to purchase assets, but it also decreases the nominal return one gets in the foreign currency. Therefore, the foreign investors rate of return is affected during funds repatriation. Empirical studies confirmed that, finding a significant impact of exchange rates fluctuations on international operations. In that view, the decision of a company to invest outside its own country would be dependent on the exchange rate. In situations where the rate provides a benefit, the company would choose investments in the other country considering the benefit in repatriating its profits (Valdez & Molyneux, 2012)
Tax policy: It is another factor that affects business decisions to invest in a country or not. MNCs are potentially subject to taxation in both the parent and host country. However, the majority of the parent countries have policies to decrease or eliminate double taxation for their MNCs. The way in which the parent countries’ decrease double taxation on their MNCs; for instance, allowing deductions or credits can have quite varied implications for investment decisions such as companies choosing to inves abroad for tax benefis given a large tax busrden a home.
The majority of countries also have negotiated bilateral investment treaties to decrease mutually withholding taxes on MNCs based in the host country. The BITs big advocate has been the Organisation for Economic Co-operation and Development (OECD) that considers it as a way of enhancing invesment across all member countries. Others claim that BITs’ main intention is to share tax information across all countries in order to hinder tax evasion and to decrease administrative costs, thus should have little, or even negative, impacts on invesments flows. However, empirical evidence suggests that such treaties raise invesment flows across nations with companies increasingly investing in markets where there are better tax conditions, as many economists and the OECD analysis presumed.
Rationale for financial institutions preference for provision of credit in financial markets outside their country
Financial markets attractiveness is dependent on a number of factors. Those factors determine the cost of borrowing of the earnings level of lending. Thus, the key determiner of the financial institutions lending marked are the variables that determine the earning ability. Such variables include interest rate, banking system regulations as well as the economic condition in a country that greatly determines investment levels hence the demand for funds. In that respect, a financial institution would prefer to provide credit in an external country where interest rates are high as a means of earning a higher return on its funds that it could earn from the home country. In addition, an institution would prefer to lend in a country that has a relatively better economic growth, as well as investments in the factors, reflect and drive higher demand for loanable funds. Finally, a country would prefer lending in a country that has a better-regulated finance system and industry as a means of managing its risk (Klingebiel, Randall & Luc, 2002).
In view of the discussion, it is clear that corporate citizenship is a crucial aspect of healthcare, and the industry’s executives require not only embracing it as a key practice but also having political competence. That owes to the industry’s crucial role and close interaction with the society hence the ability of the executives to take an active role in identifying relevant stakeholders and issues affecting the society as well as influence the policies that affects the industry and the society’s welfare. In that view, there has been identified to be a crucial and significant relationship between good corporate citizenship and political competence. In respect global business finance and management, it has been identified that choices for business operations within a country or outside the country is dependent on various factors. Such factors include those aspects that influence performance, as well as operations including economic and political environment as well as legal and regulatory environment. Thus, the factors have the ability to determine where investors chose to locate their businesses as well as the choice of where businesses would prefer to operate services such as credit provision.
Beaufort, B. L. (2005). Building Competence in Corporate Citizenship in Healthcare Organizations: Competence Perspectives on Resources, Stakeholders, and Renewal. Advances in Applied Business Strategy, 9, 169 – 189.
EU. (2015). EU’s Single Market. Retrieved from, http://ec.europa.e u/internal_market/publications/docs/citizens_en.pdf
EU. (2015). Industry and Enterprise. Retrieved from, http://ec.europa.eu/enterprise/policies/industrial-competitiveness/industrial-policy/key-challenges/index_en.htm
Keller, K. L. (2013). Strategic Management. 4th Ed. New Jersey: Prentice Hall.
Klingebiel, D., Randall. S. & Luc A. (2002). Financial Crises, Financial Dependence, and Industry Growth. World Bank Policy Working Paper No. 2855.
McCaughrin, W. & Lemak, H. (2005). Politically connected: increasing the political competency of healthcare executives in health policy. Journal of Health Administration, 22(1), 67-83.
SF Bay. (2015). Healthy Food in Health Care. Retrieved from, http://sfbaypsr.org/what-we-do/healthy-food-in-health-care/california-hospital-leadership-teams/
Valdez, S. & Molyneux, P. (2012). An Introduction to Global Financial Markets. 7th Ed.
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