Essay on Relationships Between Productivity, Reputation, and Strategy

1788 Words Feb 18th, 2016 8 Pages
Relationships Between Productivity, Reputation, and Strategy Abstract:
Businesses seek to maximize productivity because it increases efficiency, motivates employees, and can help firms compete on the strategic elements of time, cost, and quality.
Productivity has been shown to be positively correlated with reputation such that firms with good reputations tend to have higher productivity. Reputation can be improved through corporate social responsibility initiatives that seek to enhance social and environmental wellbeing.
Improved reputation can provide a sustainable competitive advantage and increase the perceived quality of a firm’s goods or services.

Introduction
In the business world, it is well
…show more content…
Stuebs and Sun hypothesized that reputation would not only increase productivity but would reduce labor costs and therefore improve labor efficiency in regards to both of its determinant variables (i.e. productivity and cost). However, the results of the study showed that a firm’s reputation does not determine the cost of labor or affect it significantly. A company’s reputation is of great importance since it is a key element of a successful marketing strategy and it has been found to impact productivity. Firms have ways of influencing and changing their reputation such as through corporate social responsibility (CSR) efforts. This essay will first define CSR and show how it can be used as a tool for businesses to improve their reputation, and then it will examine issues pertaining to the study done by Stuebs and Sun, as well as related research in the fields of productivity, efficiency, and firm reputation, and the relationship that these elements have in regards to strategic objectives.

Corporate Social Responsibility and Reputation
Corporate Social Responsibility is the philosophy that businesses should operate in accordance with not only legal, but also ethical and social standards in regards to the community and the environment. CSR is often associated with sustainability efforts and includes an
“[o]

Related Documents