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The world at large is currently under the most turbulent times since the 1929 collapse of Wall Street. In fact, the recent financial crisis had serious economic effects than that of the 1929. Other think the solution lies with the government instead of company restructuring yet it is clear solution lies squarely on them. Firms must reconsider their position regarding corporate responsibility besides taking other actions to help deal with a strained budget. According to OECD, financial pressure made institutions seek short-term resolution (mark-to-market) valuation instead of dealing with the actual default (2008, p. 79). Firms have resorted to retrenchment, withdrawal of health insurance benefits among other actions that have directly influenced the lives of many citizens. In my view, it is not justified because with a well-laid strategic business responsibility is both a long and short-term goal in any business environment.
The management of business enterprises through turbulent time calls for leadership front to make sound judgments and that would positively affect on the day-to-day running of affairs. The main point is competing for market share at this hard economic time. There is likely to be conflict of interest because of short-term fallouts and the broader long-term objectives of a firm. Therefore addressing short-term business pressures responsibly would ensure the success of long-term goals and these calls for investment of apt, relevant, and effective corporate responsibility approach even in the slump of the economy.
The medium term strategies that firms must focus on are the ways of minimizing risks posed by future market failures. A crisis that may hit a firm should be a wakeup call for resorting to adoption of more responsive business principles. Responsive business principles will emphasize the need to develop consumer's trust and confidentiality in the goods and services that they offer. In addition, in the medium term, firms must maximize opportunity and reduce risk as an internal control mechanism with focus laid on the long term socio-economic and environment success and not only looking at the immediate returns (Wherther and Chandler, 2010, p. 27).
Good corporate management in the workplace, marketplace, community, and environment is the backbone of successful companies that do not suffer from economic and other business strains like the recent economic crisis. As a result, employees become the most respected and subjected to fair treatment to secure their confidence and reliability production and provision goods and services (Kotler and Lee, 2005, pp. 23-24). Good inter-personal relationship at workplace will dislodge unethical practices and enhance employee confidence and sense of responsibility so that they can work under minimal supervision. Companies must also develop good relations with the community via CSR like sponsorships to create mutual benefits between them and the clients. Finally, protecting the environment should be the ultimate goal of any business enterprise for the benefits of the future generation. The success of these principles does not only call for implementation but also for constant reviews to adjust accordingly for any given circumstance.
On the other hand, there has been opposing views on the issue of corporate responsibility from business enterprises. They have blamed the collapse of the economy on government reluctance to institute good policies in Wall Street or maybe the failure by the government to forecast the crisis. The global administrations have responded by efforts such as bailouts to save the situation but the ultimate solution to such a problem lies with the business community. OECD recorded that the Federal Deposit Insurance Corporation (FDIC) had to take over IndyMac Bank under receivership as it was on the verge of bankruptcy, (2008, pp., 74-75).
It is therefore necessary for the business community to find own solutions to the recent crisis as per the guidelines stipulated above in an effort to curb future downturns. Even though this may not have been the making of these companies, the final effect falls on the firms and by adopting responsive measures coupled with the government efforts that management team can amicable tackle.