Discuss about the Business Ethics for External Stakeholders.
Business ethics is a compulsory factor for all kind of business where a strategic principle is followed by the internal and external stakeholders who are related with this business activity. It controls the behaviour of a business that helps to show the right direction to the business and influence other individuals to stay on the actual path in the system. Ethics develop from the perception of right and wrong that lead to build up the choice for a business activity. Code of behaviour of the business personnel is a very important factor that makes them to think in a proper way and maintain the legislative rules and regulation without failure.
There is another most important activity which is performed by every little or small business industry to meet up their social responsibility from the ethical view point. Corporate Social Responsibility is attentively maintained by every profitable business organisation to ensure the common people that they are also for human and social welfare. In this particular report, a critical analysis has been conducted to understand the CSR activity in the Base camp of Everest along with their business marketing. Ethical principles are also evaluated in this report that is practiced in the Everest Base Camp during CSR activity. Effectiveness of these CSR activities has been widely stated here to identify the possibility of sustainable market of Everest Base Camp in Nepal. Moreover, a number of recommendation have been described here that can carry and improve the sustainability of the business.
Evaluation of the situation of Everest Base Camp
The South Base Camp of Everest is situated in Nepal which is a most common trekking route of Himalayas. This camp is based at 5,364 meters in the Himalayan range. In this base camp a wide range of beautiful scenery can be observed. Buddhist culture is seen in this area and remote mountains as well as Sherpa make this region entirely adventurous. Due to the low temperature, this area is not capable to produce crops. People only live here depending on the trekking as their occupation. Life is very much tough here because of the fluctuating weather and rocky mountain.
However, the tourism business helps to meet up their regular essential need that ensures their living. The political condition of Nepal has a huge impact in this area that regulates the activities of the trekking business. Season is also an important factor that induces the business and attracts the people for trekking purpose. Economic condition of this area is not that much upgraded however the tourists who come for trekking are able to avail possible facilities offer in the base camp area. People stay here as an initiation level of tracking and collect all the required things with them.
Critical analysis and evaluation of the business marketing in Everest base camp relating to CSR
Everest Base Camp is a leading tourism centre of Himalaya. This particular area is full of versatility consists of different culture and environment, which attracts people to visit this place and enjoy the scenic and cultural beauty of the Himalayan range. Maignan, Ferrell & Ferrell (2005) mentioned that standard of living of the people in this area are developed without the effect of culture and environment. Weather is a huge problem in this area however people of this area have obtained tourism as their earning option. The business of Everest base camp offers the tourist the long trekking facilities upto the peak of Mount Everest. According to Upadhayaya, Muller-Boker & Sharma (2011), investment is a very vital need for this business that allow to buy suitable instruments for climbing and set up required accommodation in the trekking route.
Climbing is a passion of a specific number of people who come from various part of the world and enjoy the journey of Mount Everest. The business of tourism in the Base Camp of Everest attract the adventure lovers age between 18 and 35 both male as well as female. However, number of female is quite little than that of male adventure lovers. Therefore, the tourism business of Everest Base Camp applies some attractive advertising methods to engage the specific tourists towards their business activity. Adventure with secure tour is a major offer that is provided by the organisation that enhances more domestic and foreign tourists to avail the facilities during climbing.
Showing previous story of success in climbing and providing different advanced facilities and experienced guide, the business of Base Camp of Everest are trying to attract more visitors that increases their chances of achieving profit. In addition, they are providing a chance to meet with famous climbers of all over the world through some seminar. These strategies are helpful as a present customer attraction plan in the Base Camp of Everest. Regular observation for advancement of the business activities Everest Base Camp is uplifting their existing facilities and developing it in a worldwide condition. They are thinking of to conduct climbing competition to influence the climbers to show their ability and get a chance to win rewards. People are seeking for advanced technique to accomplish their objective in climbing. Hence, upliftment of the structure of the business will allow carrying the sustainability of the business.
Provision of safety and security to the tourist during the trekking time is a common necessity that is ethically performed by the business marketing of Everest Base Camp. By these activities the business of Everest Base Camp starts their CSR activities. Director and management team of the business develops different ethical strategies and principle for their stakeholders that are quite influential for them to accomplish the summit with a great success. On the contrary, Holland & Leslie (2012) mentioned that cost of the trekking varies depending on the seasonal rush in the base camp. In addition, during off season the business needs to be closed due to bad weather and availability of the Sherpa. Price and competition of quality service influence customers to chose best offer that hampers the business settings. However, CSR helps to resolve such complication in which several facilities are provided by the Everest base camp to the internal and external stakeholders (Heslin & Ochoa, 2008).
During marketing the business organisation promotes the environmental factors that convey a message for a pollution free and green environment. Rodrick (2011) stated that Himalayan range and Everest Base Camp is a biodiversity hotspot and the conservation of the wildlife is an essential requirement for the region. Everest Base Camp takes care of those animals and provides them safety from the unwanted harm. On the other hand, Ghimire (2016) commented that provision of home to the Sherpa employees during the natural calamity help more than any other CSR to attract more loyal employees to the particular organisation. Business is done for the profit and the Everest Base Camp performs effective CSR to improve as well as upgrade the image of the organisation in front of the local people and tourists. Most of the time it can be seen that lack of educational institute as well as low financial condition of the employees in the base camp area are not allow them to send their children to school.
This issue is highly utilised by the Everest Base Camp hence, they perform CSR in this field and offer free of cost education to the children of the employees and other local people. According to Chong (2015), education is the fertilizer of human intellectual growth. Therefore, providing education at free of cost is noble activities that influence the mind of common people and increase their loyalty towards the organisation. On the contrary, Mihalic (2014) argued that not only the education health of the children also important for a society because children are the future of the society. Socioeconomic standards are maintained by them in future. Therefore, supply of nutritious food at reasonable cost that the employees can buy it for their children is an effective step of CSR performed by the Everest Base Camp.
Stories of these CSR activities are demonstrated during marketing of this business that becomes beneficial for the Everest Base Camp business organisation to attract a huge number of people who support social welfare. According to Arli & Lasmono (2010) various kinds of health promotional programs such as tobacco quit, vaccination for the children are conducted by them that upgrade the social validity of the organisation. Moreover, smoking destroys the respiratory system which is a great harm for the climbers. Consciousness towards the health of the children and regular vaccination support them to develop possible immunity power provide Everest Base Camp activity a great popularity that is a sign of profitability.
Climate fluctuation in the South Base Camp of Everest is a major issue, which is responsible for the reduction of visitors at the certain period of the year. Due to the low temperature the area became unsafe and unpleasant that does not support the visitors to come and enjoy the scenic beauty of the area. Local people also struggle to survive at this time and lack of basic requirements hampers their living. Therefore, they unable to deal with the tourism activity during the winter season of the year. Death rate increases due to such unfavourable condition of living in the area. Moreover, the entire condition turn into a mess that disturbs the tourism practice in the Base Camp of Everest.
Analysis of the ethical principle of CSR of marketing in Everest Base Camp
Ethical principles are developed as per the legislative rules and regulation as well as the need of the stakeholders of a particular organisation. According to Bronn & Vrioni (2001), Corporate Social Responsibility is also performed by the organisation followed by their organisational ethics and principle. Everest Base Camp in Nepal is not that much socioeconomically upgraded area therefore, CSR activity helps to promote the condition of that area which is an influential factor for the company to earn more profit in the business. However, the CSR policies that are practiced by the organisation are developed by the ethical point of view. Social and environmental welfare practices are attentively performed by the organisation (Jamali, 2008).
Provision of equal facilities and indiscriminate thought for employment is the primary factor of CSR that are performed by Everest Base Camp. Valentine & Fleischman (2008) commented that communication and good relationship with the stakeholders help to improve the social image of the organisation. According to Neville, Bell & Menguc (2005), ethics derive from personal and cultural values. Moreover, in case of a business along with these values different strategies and planning are included to make this more effective for the business fate. Due to low economic condition, people of Everest Base Camp, Nepal, are unable to expense a lot to live a standard lifestyle. Davidson (2009) commented that lack of employment facility also does not allow them to earn money to fulfil their needs which becomes a major problem in their daily life. Ethical principle of the organisation allows them to earn money through this organisation that can help them to meet their regular requirements.
As per legislation, Everest Base Camp does not allow child labour in their tourism business moreover, they serve them free cost educational facilities which is the inborn right of any individual. Scholarship and sponsorship are provided by the Everest Base Camp organisation that nurtures the future scope of the children of that area. Care of the local children and their proper growth is taken under ethical consideration by this organisation. Dahlsrud (2008) commented in this context that marketing become effective due to such ethical perception of the business organisation that works for human welfare. Environment friendly practice is also a motivational factor that improves the thought process of the local as well as international individuals to take part in the trekking from the South Base Camp of Everest. Conservation of wildlife enhances the wildlife conservation agencies to contribute their effort and scientists to accomplish their research over those places in Himalayas (Van Marrewijk, 2003).
According to Mittal, Sinha & Singh (2008), safety of internal and external stakeholders are most important ethical principle of the Everest Base Camp that they utilise during the business activities. Different kind of safety related programs for the professional climbers are arranged by the organisation. These programs are effective to increase their knowledge regarding the route and weather of Himalaya. Information of possible risks and protection measures are provided as an ethical activity to save their lives from unwanted risks. In this context Brunk (2010) mentioned that as per human ethics, life is a very precious thing and to provide protection is a major responsibility of an organisation. Indirectly this activity denoted as CSR which is generated from the emotional point of view of the organisational head. Low supply of required medicine during the emergency period is a great issue in this area.
On the other hand, Aguilera et al. (2007) stated that unavailability of professional physician in emergency condition put the local people in a great danger. However, the CSR principle of Everest Base Camp acts against the issue and resolve the problem which is beneficial for their business. Through advertisement the organisations able to reach to the government that help to promote the local health condition as well as support the business organisation for their upliftment (DeTienne & Lewis, 2005).
Recommendation to improve CSR activity in the long term business in Everest Base Camp
Everest Base Camp is a long term business in which a number of tourists depend for their initiation of trekking session. CSR is needed to be improved to provide viable quality service to the tourist that they can enjoy their trekking and stay in the base camp. Clean and pollution free area is always a requirement of any tourist spot. Therefore, regular observation of the cleanliness and hygiene of the Base Camp can help to improve the business activity in the base camp of Nepal. In that particular area no such production industry is situated that can pollute the environment however the emitted gases from the cars disturb the natural component of air. By some awareness program regarding more plantation and application of filter in the cars can increase the good image of the organisation in front of the local people and tourists.
Before the initiation of trekking the Everest Base Camp organisation should arrange a health check up session for the particular climber that will assure them regarding the physical condition and if there is any risk factors. Everest summit is accomplished followed by a very critical path and to make this summit with success, physical fitness and knowledge is an essential necessity that should be judged by the organisation before send them for a guidance of trekking. Health is a common priority of every person and when an unexpected care can be obtained from the side of organisation the employees show their faith towards their current workplace and become loyal to the organisation. Therefore, the organisation should follow such CSR to maintain employees and retain them for the long term business activity.
Supply of proper food and medicine in the regular basis should be observed by the organisation to maintain the health of the employees. Global Reporting Initiative (GRI) is the mentor of present CSR activities. Therefore, GRI can improve the practices by solving health related issues of the employees that causes the reduction of the manpower of an organisation, which is accountable for the downturn of the profitability. However, fitness of the employees help to provide a quality service to the tourists that results a huge satisfaction of the service users. That increases the profitability and customer loyalty in the business. In addition, accommodation of the employees should be provided by the organisation that will help them to reduce the risks of harm from natural calamity.
Business setting of Everest Base Camp needs to be modified with the advancement of the technology and facilities of climbing. It will attract customers and visitors more to select the particular route of climbing. Offers of long or short distance trekking should be offered to the customers at a reasonable cost that provides a chance to try their capacity of mountain climbing. In addition, they can help them to issue an insurance before climbing that will be helpful to get more customers because it show them that the business activity not only think about their profit they are concerned about their customers too. Thus, business of Everest Base Camp can improve their business in a huge manner.
Everest Base Camp conducts their business every year from Nepal which is socioeconomically poor area. Weather and land of the area hampers the living of common people that is a major problem to establish any kind of industry in this region. However, tourism has been taken by the people of this area as an earning option to meet up their daily needs. Ethical business principle of Everest Base Camp helps to perform their business in this area in a fluent manner. Hence, for their further profitability they follow different CSR activity which influences the internal as well as external stakeholders to provide their best effort in the business activities. Moreover, the international tourists effectively avail the touring facility that provides a huge financial help to the CSR activity.
Everest is the toughest summit therefore a huge number of possible supporting instruments are required to use in it. Cost sometimes matters a lot that imbalance the entire setting of the summit. Here ethics of the business organisation plays an important role and spend money for the existing employees help them to accomplish the summit with success. It has been identified that different kind of CSR activities that are performed by the organisation is helpful to obtain customer and employee loyalty but the priority is to take care of the internal stakeholders and their family to get more profit from this business. Therefore, it can be concluded that maintenance of ethics in a business not only help to earn profit but also develop the image of the organisation in front of the stakeholders. As a result it gains the loyalty of customers and employees that is beneficial for the organisation.
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