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This paper presents a discussion regarding the measures employed or set by the Bank of America to counter the ever-changing economic, legal, and social environment. In addition, the aspect of corporate social responsibility regarding the corporation is tackled. Its relationship with the core business of the enterprise is equally discussed. The Bank of America Corporation has implemented ethics programs that seek to ensure that the corporation stays abreast of the economy, legal, and social matters (Crowther, 2000). This would in turn protect the company from any adverse effects caused by any of such changes.
The company has committees within its Management Board, which oversee important aspects of the company. They ensure that it stays relevant in the market and perform specific duties assigned to them. There is the Corporate Governance Committee that oversees the oversight of the Board’s governance process. It identifies and reviews the qualifications of individuals to become board members as well as candidates to get other posts within the company. The aim is to ensure that employees of the company meet the required threshold to oversee the appropriate running of the company and advise it on matters that are likely to derail stakeholders' interests. Put differently, having the right qualified employees, the company has the expertise to help in protecting the interests of the stakeholders.
There is also in place the Credit Committee. It has an oversight duty of senior management’s identification and management of the company’s credit exposures. They ensure that the services on credit rendered conforming to the required needs with the goal of achieving appropriate deals for the company. Their policies ensure that the company responds well to the trends that are likely to affect it in the current market. This has an effect of protecting the interests of the company and those of its stakeholders.
The Enterprise Risk Committee ensures that the Chief Executive Officer and senior management’s responsibility to identify, manage and plan for the company’s material risks are considered. The result of this is to overcome any threats that may affect the company’s operations. Therefore, the interests of stakeholders are protected from any changes in the legal, economic, and social settings.
The company supports the idea of Corporate Social Responsibility. This entails some investment for the welfare of the society. This is important because it is the society that sustains the corporation since it forms its environment, client’s and employees’ base. One of the programs is an investment in the conservation of the environment. They have done this by investing and encouraging the reduction of carbon emission into the atmosphere. This would go a long way in ensuring an environmental friendly atmosphere that comfortably supports life. The company would also gain by operating and working from a protected environment.
The bank also has its employee initiative offers that conserve the environment. It subsidizes the price of electric cars. This contributes towards less carbon emission into the atmosphere. Approximately 4,400 employees have already gained from the program (Kim, 2008). They have also made credible steps towards prevention of a mortgage crisis. This has been done by the introduction of a new loan modification program, as well as necessary preparations for upcoming the USA mortgage industry reforms. It is aimed that this would help people with bad mortgages held by the banks.
The program of corporate social responsibility for the bank has a direct relationship with what the bank carries out on a daily basis. In initiating reform in the mortgage sector, it serves to protect borrowers. This ensures that it attracts more customers. The bank is more likely to generate additional income by increasing the number of customers. The bank also has a program for reducing carbon emissions. This would offer a favorable environment to do business. Hence, they would earn more. They also have a program to fix the housing crisis. Once housing is enhanced or sorted out, the financial sector would be the biggest gainer. The bank equally offers finance to buyers at some interest. These constitute loans. Hence, it is the core business of the banking sector. Thereby it signals gains to the Bank of America Corporation.
The concept of Corporate Social Responsibility is rife in the modern world or business environment. Customers are always attracted towards those organizations that care for the society. By investing in the society, this shows that the company caters for the welfare of the people, who form part of the environment. Since the residents have enhanced the well-being of the company, then there is also need for the company to give back to the community. The company has responsibilities towards its shareholders, but it also has to do its duty for the society. A company should, therefore, have such a program since it provides the beneficial image of the company, thereby drawing associations to it, which would enhance the welfare of the organization.