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What are the main schools of the economy and how do they suggest that the economic problem should be solved: Business with HR Assignment, AU, UK
| University | Aston University (AU) |
| Subject | Business with HR |
- What are the main schools of the economy and how do they suggest that the economic problem should be solved? Further, discuss which school of economic thinking you mostly agree with.
The first school of economic thought is the neoclassical economic system which is the most popular school of economic thinking in the western world. This economic system was derived from Adam Smith’s theory of economic activity. The basic message of neoclassical economics is that market intervention, such as government regulations is seen as a disruption to the natural order of markets and can stunt the efficiency and growth of companies by restricting the competitive and free markets. This theory is based on the assumption that economic agents are rational in their behavior, and that consumers look to maximize utility and businesses look to maximize their profits. Neoclassical eco.
- Discuss why organizations become increasingly aware of the need to act responsibly toward a range of stakeholders (CSR). Review relevant academic literature on corporate responsibility and integrate business examples into your answer.
Corporate responsibility refers to a business’s sense of responsibility toward the community and the environment in which they operate. In recent years, many organizations are beginning to make a more conscious effort to follow some form of corporate social responsibility (CSR), for example providing good working conditions for their employees or attempting to reduce pollution and waste through their business activities. Innocent, Marks Spencers and John Lewis are all examples of businesses that are renowned for their strong CSR.
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