Costs and Rewards to an Organization in Collecting, Publishing, and Releasing Non-Financial Information
The method of gathering and reporting non-financial information is critical in operating businesses because it connects to different management boundaries. Regardless of the operational costs incurred by a corporation when collecting information, the mechanism leads to employee and consumer expectations for the organization's activities. Non-financial reporting that benefits businesses include resilience, which is concerned with ensuring a balance between human and corporate needs. Of importance to sustainability, reporting is to ensure that organization improves the wellbeing of its employees and community through the protection of the ecosystem as elaborated by Quinn and Connolly (2017).
Consequently, social and corporate responsibility reporting business organization by outlining ethical concerns that govern relationship among employer, employees, and present indications towards a company's goals regarding performance and management strategies. Additionally, integrated reporting benefits companies because it encompasses both financial and sustainability statements that are essential in achieving trust among employees and stakeholders concerning the firm's commitment to maintaining balance.
Financial Reporting Benefits
Notably, financial reporting benefits companies by retaining their experienced employees as well as attracting competent workforce who are convinced and satisfied of the company's transparency. Subsequently, non-financial reporting helps in achieving customer trust and improve the relationship between clients, employees, and stakeholders due to high reputation that firm creates along its operations. Additionally, publicizing non-financial reports exposes the organization to several business opportunities resulting from trust and reputation the organization achieves from the public contrary to its competitors. The reporting strategy further helps the organization receive positive feedback from the public due to constant exposure to the media.
Application of Ethnocentric, Polycentric, and Geocentric Approaches to Staffing Policy
Ethnocentric Staffing Policy
Ethnocentric Staffing is a method of international staffing policy that considers officials from a specific nationality to occupy the top position in the company that is situated outside their native country. For instance, an American company located in Turkey employs ethnocentric staffing by having Americans in the top management of the firm. Importantly, ethnocentric staffing policy ascertains that competent staff manages the company to maintain its culture and prevent diversification due to cultural influence. Further, ethnocentric staffing is applicable when the host nation lacks adequate and competent staff responding to the expertise needed in the managerial positions.
Polycentric Staffing Policy
Contrarily, polycentric staffing policy aims to improve a company's operations by preserving top positions to citizens of the hosting nation and assigning overseas nationals other positions in the firm. Of importance to polycentric policy is to enable the firm to adapt to trends in the local markets concerning marketing and competition. According to Lakshman and Estay (2017), staffing policy is relevant in helping an organization respond to culture and tradition of the locals concerning their religious beliefs and social interactions. While the policy enables local managers to advance their experience, they are only limited to specific positions in the organization.
Geocentric Staffing Policy
Additionally, geocentric staffing policy employs individuals qualified for respective positions regardless of their nationality or culture. The policy is suitable for highly flexible organizations that require experts who can respond to various demands in the economy. Geocentric staffing is recommended in most organizations because it exposes the firm to varied cultures presented in the market of play to achieve competitive advantage and performance. Of importance to geocentric policy is to enable to company meet expertise and increase equality and diversity in the company for cordial relations among the staff.
References
Quinn, J., & Connolly, B. (2017). The Non-Financial Information Directive: An Assessment of Its Impact on Corporate Social Responsibility. European Company Law, 14(1), 15-21. Lakshman, S., Lakshman, C., & Estay, C. (2017). The relationship between MNCs strategies and executive staffing. International Journal of Organizational Analysis, 25(2).
