1.0 How globalization has affected PwC

Operating and controlling
a successful company isn’t just about working hard, but rather about working
smart. Looking at the factors that affect the production, operation, policies,
people and profits of your organisation can come up with this information; how
the improvement of technology might affect a traditional publishing company
(Bush, 2017). To apprehend and evaluate external factors, organisations manage
what is called a PESTLE Analysis (BBC, 2017)

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2.1 Introduction

Globalization is the integration of economic
activity across borders. The process involves people, companies, and governments
of different nations to connect and communicate with each other. The process is
mainly driven by international trades and investments that are helped by information
technology (Wolf, 2018). Pwc in Cyprus has been affected with various ways from
globalization first of all from enabling universal connectivity, making it
easier for people to communicate. It easier to move capital, goods people and most
importantly information. Also it has benefit PWC in Cyprus in creating a more
skilled workforce. By having their headquarters in Cyprus PwC has the range of
skills, to assist companies expand to new markets and consolidate through
mergers & acquisitions. Also Cyprus is geographically located in a very
strategical position and PwC is taking advantage of globalization to
efficiently use its strategic position (PwC, 2018)

 

 

2.2 Reasons for using PESTLE-analysis

PESTLE-analysis is
helpful tool for understanding the big picture of the external environment in
which you are working on and the threats that may arise. By understanding the
knowledge of your environment, you can gain advantage of the results and opportunities
(CIPD, 2017). A PESTLE analysis is a useful tool to help you consider the potential
impact of influences in the macro-environment (C Evgeniou, 2015). It allows you
to identify possible key changes in the outside world, in a structured manner.
That external environment is broad and complex, so any tool to help you assess
existing and future influences on your organization is worth using. For
instance, they are six elements to a PESTLE analysis, political, economic, sociological,
technological, legal, and environmental (Free-management-ebooks.com, 2018).

 

 

 

2.2.1 Political influence

PwC’s Government
and public services practice provides guidance in such areas as regional development,
demographic change, ageing issues, government, governance, international development
etc. (PwC, 2018). This PESTLE Analysis of PwC
provides a comprehensive insight into the political environment of the company
for example, political stability, low barriers of market entry, international
trade agreements, reduced costs, low trade restrictions, positive tax policy,
experienced political environment (Health Knowledge, 2017).

 

 

2.2.2 Economic influence

Main impact in PwC that contribute
in Cyprus is economic impact, It involves in two groups, investment and payroll,
which correspond to a contribution to Cyprus’ GDP over than 0.7% in Gross Value
Added. Most of the company’s impact is the result of both direct operations and
the spending of our employees and the employees of our suppliers.

 

Profit: The
impact of the organisation in this category (profit, investments and
intangibility) is €55.8 million.  The
direct impact is €19 m, the indirect is €7 m and induced impact is approximately
€29 m. The profit impact is greater than both the direct and indirect impact
added together (dark green in image) because of the spending of Partners and team
in sectors that generate high value added (compared to the sectors that PwC
Cyprus’ indirectly spends), therefore, driving fairly high the induced influences.

 

Figure: (Pwc.com.cy,
2018)

 

Payroll: The
employs of the company are over than 1000 people including stakehalders like, staff
and partners. The wages the PwC pay them drives spending in the economy which forms
the second largest contribution to our total economic impact. The direct impact
of workers reward is approximately €30 m, the indirect impact is exactly €3.4 m
and the induced impact is just about €21.7 m.

 

2.2.3 Sociological influence

PwC quantified their high social
impacts of approximately 4, 5 million euro. This impact is relating to their own
contribution on education in Cyprus via investment on training their new people.Additionally,
the contribution they make to community livelihoods through their support for
empowerment, health and safety. As a leading professional services company, Pwc
offer excellent education opportunities for graduates and students.
Specifically, at PwC Cyprus, team may undertake either a 3 year training plan to
qualify as a member of ACCA. However, Pwc investing in their people, is the main key to
the way they do business because it enables the delivery of high quality work to
their customers (C Evgeniou, 2015).

 

2.2.4 Technological influence

PwC lists the eight technologies with the most cross-industry and world-wide
influence the last two dedicate. The consequence is a guide to the “Essential
Eight” technologies.The PwC believes that they will be the most influential on
businesses worldwide in the very near future. However, as we can see from the
Pwc report, there is high investments in research and development of the company
in generally. (30%, 18%), new technologies are available at reasonable costs.
(14%, 11%) and it can trends can increase market size. (51%, 38%) (PwC Cyprus,
2018).

 

2.2.5
Legal influence

 

The PwC Network Legal Practice in Cyprus
is a full member firm of PwC International Ltd, the biggest specialised
services corporation in the world and is part of the Taxes and Legal Services
Network, which has over than 2.500 lawyers in more than 90 republics.The Pwc is
mainly a corporate law practice which offers: Specialist legal advice for
businesses and individuals that they need PwC help. Additionally, they can
identify development risks technological capacity and any technological issues
(PwC pestle, 2018). The firm can also provide legal services in other areas of
major interest and concern to contemporary businesses and individuals such as
general companies’ legal advice, regulation in highly specialised areas such as
shareholders’ disputes, tax advice and preparation of organisation documents,
employment Law etc. (PwC Cyprus, 2018)

 

 

2.2.6
Environmental influence

At PwC Cyprus, employees take
their environmental responsibilities seriously. They have appraised the value of
their negative eco-friendly influence at around €3.8 million. This includes the
direct, indirect and induced impacts. Company’s land use direct impact is
negligible, waste is the third largest of our environmental impact that they
care about. Pwc has managed to decrease significantly number of paper consumption
through implementing actions such as double sided printing. Also they trying to
not using large amount of water, they estimate that the environmental water
impact to all of us thus the impact is around €0.1 million. Moreover, the fact of
dry urinals helped significantly to reduce the consumption of water in our offices.

 

 

 

 

 

3.0 “The five forces that will reshape the global
landscape of anti-bribery and anti-corruption” (PwC, 2018)

                    

 

 

 

 

 

 

 

Figure: (E. Porter,
2018)

 

The five forces model of analysis was developed
in
1980 by Michael Porter
to analyse the competitive environment in which a product or company works
(Investopedia, 2018). Porter identified five undeniable forces that
play significant role in shaping any market and industry globaly.. There are five
forces; competitive
rivalry, threat of substitutes, the threat of entry, supplier power, buyer power and threat of
substitutes.  Any company
strategy needs to include gaining a thorough understanding of the external
environment that the company is operating in (Mathooko Martin Ogutu, 2018). The
two main tools that can help are Porter’s Five Forces Analysis and PESTLE
analysis (Management-eBooks, 2018). For firms, this culture needs to shape
everyday decisions and behaviour by all their stakeholders in every country,
supported and enabled by the right technologies (Pwc.com, 2018).

 

4.0 Conclusion

Since PwC use the Total Impact Measurement and Management (TIMM) to report
its economic, social and environmental impacts, the company is able to
understand the external benefits of their investment in training qualified accountants,
their decisions can be driven to understanding of their overall impact and the
stakeholders they affect. (Evgeniou, 2018). To achieve their optimistic impact and reduce their negative one they
design adaptive strategies that enable them to react quickly on time to change
the negative
environmental impacts, in result they focus on their current and future actions.

 

 

PART 2

5.0
Ethics and Corporate Social Responsibility

5.1
Ethics                                                                                                                    

There
is true evidence that right ethics and good behaviour can bring positively economic
influence on the performance of an organization (Payne and Joyner, 2006). PwC
built trust within society and solves important problems that arise, combined
with their values, they provide the highest level of guidance through their
behaviours and actions. There is equal relationship infrastructure for sound governance,
independence, ethics and compliance (PwC, 2018).

PwC is faced also with conflicts
that can take many forms. They consult individual clients as well as organisations;
when the following types of situations arise. First of all, PwC deal with
matters that could align with employee personal interests, however this can
impact their objectivity, and could astray their duties and responsibilities in
doing what is best for their customers. Situations may also arise when PwC and
a client are on opposite sides of the same matter. This may cause problems as
it is against the preferred interest of both clients, however this situation is
common and does occur from time to time. These problems may not necessarily
cause great issues, as after careful consideration the potential conflict or
any perceived client sensitivities can be managed (PwC Global, 2018).

 

5.2 Corporate
Social Responsibility (CSR)                                                     

Corporate social responsibility can be defined as
the “economic, legal, ethical, and discretionary expectations that society
has of organisations (Arthaud-Day, 2005). CSR is essentially a explanation
of the role that company plays helping many different stakeholders in a
particular the role the company plays in supporting society, thus over time
there are a lot of theory about what a role of business actually is. Especially
nowadays it is more than ever, business has much more salient role and important
role to play in supporting the society and indeed many businesses are trying to
find ways to simultaneously do well financially at the same time is they doing
something positive for society and that is really what CSR is about (Garriga
and Melé, 2004). One of the most critical drivers of the importance of the CSR
in the last few years has been the internet what it’s done is that it’s allowed
consumers two things, one is greater visibility to the actions that company
actually taken thus they knew more about what company is doing today than they
ever have in the past, the second thing that, they allowing to their consumers
to bond instead together thus, to create advocacy group much easier than they could
do in the past and do exert influences on corporations once they banded together.
In result they increasing the transparency in which they operate in this way
they are not being pried open by consumers but they rather sharing much more openly
the power of the visibility that consumers have to their benefit. However, in
the other hand the PwC in respect to advocacy problems is drive usually to new
chances to co-operate and interact with the clients so that they are getting
feedback from support on a day to day basis connecting to both their product
and services as well as the way in which they conduct business within various societies
(Libguides.usc.edu, 2018).

They are three additional constituents that are important, employees
are a very important constituency what we are finding is that the motivation
especially of young people entering the workforce is very significant meaning,
they are very interested in finding companies to for that have some level of social
consciousness, mainly with respect to regulations government play a very strong
role in meaning they are a core constituency for the company, that why PwC
believes in young people and their potential and continues invest in the future
by recruiting talented university graduates. PwC is proud of our country’s youth
and they will continue to support the economy of Cyprus in every way possible
(Sigmalive.com, 2018).  

 

6.0 How
Ethics and Corporate Social Responsibility influences policies and decision-making
of PwC?

The PwC exist to build trust and solve any issues can arise
in a relationship with customers thus, their standards and policies help the organisation
deliver on that purpose. (PwC Global, 2018). PwC is treating customers and the
environment with respect. Acting in a socially responsible manner and behaviour.
Working together as a team and thinking about the way they work. Considering
the ethical dimensions of their movements. This is the PwC experience,
expressed in their code of conduct. In addition their policies do not rule all types’
of behaviour and issues that can or may arise in the company. As a result, they
used to follow the Code of conduct for all PwC stakeholders and firms that they
operate. The Code of conduct is basically depends on their values and it takes
them to higher expectation and results for istance, it demonstrating their
values in action and contributing to the PwC Experience (Pwc.com,
2018)

6.1 Code
of conduct:                                                                                                 

This Code describes a common set of expectations for our conduct,
a key element of which is that we abide by applicable laws and regulations. The
code of conduct improve the relationship between staff and client, they do not
tolerate harassment, discrimination, bullying, or disrespectful behaviour.
These behaviours undermine the integrity of our relationships. As a successful
company they respect and encourage open dialogue, to create a climate for frank
and honest discussions (Hussherr, 2018).

 

6.2
CSR Policy                                                                                                       

The Corporate Social Responsibility
policy of the company was originally approved by the company’s Board of Directors
on 26 March 2015 for adoption as the company’s CSR policy. This policy has been
recently reviewed and revamped to make it more relevant and focussed and the
revised policy has been approved by the Company’s Board on 6 March 2017. (PwC
global, 2018).

CSR Policies affect the approach
and the structure of the company. There are two main objectives that affect the
policies of the PwC, the board of directors and the CSR Committee (PwC, 2018).

The board of directors is responsible
for constituting a CSR committee and approve and update the CSR policy. For
instance, make sure the PwC spends, in every financial year, at least 2% of its
average net profit during the three financial years in pursuance of this policy.
In result if the company. If the company fails to spend the amount, reasons for
not spending to be specified in the above report (PwC Cyprus, 2018).

The role of the CSR Committee is
to formulate the CSR policy and seek approval from the Board of Directors of
the PwC and review the policy on a yearly basis. For example, develop and share
the CSR action plan with budget for the year, always with the board of directors.
In addition, they spend allocated amount on CSR activities once approved by the
Board of Directors so to create a transparent monitoring mechanism. And
finally, they submit periodic reports to the Board (PwC, 2018).

 

6.3
What are the objectives in the implementation of the CSR actions and policies?

The main objectives in implementing Corporation Social Responsibility
movement’s for the companies are the following; to bring (a) value to the image
of the company, (b) improve social relationships in the company for example woman
and men have good relationship . PwC Cyprus supports and helps the idea of Volunteering
and supports the community through donations and sponsorships.

PwC as a company, have implemented an environmental policy
under which the company operates in environmentally friendly manner. One of the
implementation of CSR is the impact on the (c) environment. The PwC is concerned
about the environment’s wellbeing and motivates its people to adopt eco-friendly
attitude. For instance, they recycle the waste paper and batteries in all PwC
Cyprus offices. All their stakeholders know about recycle of PMD in their main office
in Nicosia. In addition, they increase the use of double-sided and black and
white printing which have saved approximately 21% of paper (A Ioannou, 2018).

Furthermore, we can detect intensity and quality of (d)
relationships with their stakeholders. People in PwC Cyprus are
enthusiastically getting involved not only in local projects, but also in
initiatives driven globally by the Global Communities of PwC, thus
understanding how they can positively make a difference (PwC, 2018). The
PwC Global Policy, which is based on the IESBA Code of Ethics for Professional
Accountants, contains minimum standards with which PwC member firms have agreed
to comply, including processes that are to be followed to maintain independence
from clients, when necessary. PwC Partner, Zainab Waliji said, make everyone
feel comfortable to be who they are and knowing of the differences and those
unconscious biases that we have because sometimes, how we look or come across
is not necessarily who we are. The secret is to mentor their stakeholders and to
make the work place a place where they can be the best they can be. The PwC
have all come from different countries and different backgrounds thus the company
wants them be themselves, confident and successful (Walji,
2018) .

PwC is also responsible for improving the (e) skills and productivity
of the employees. All Partners and practice staff are required to complete an
annual compliance confirmation, wherefore they authorise their compliance with
all aspects of the firm’s independence policy, including their own
self-sufficiency. Moreover, all partners confirm that all non-audit services
and business relationships for which they are working and responsible, comply
with policy and that the required processes have been followed in accepting
these engagements and relationships (C Evgeniou, 2018).

 

The PwC (f) market forces play a much greater part than government
policy in the decision-making process. The effect of the markets will raise, as
they reflect increasing the demand, shrinking supplies and changing patterns of
demand for natural resources such as labour and distribution costs; environmental
and health legacies; operating and product liabilities; the security of assets,
including intellectual property; and the pressures for fairer trade and a more
equal distribution of wealth across the world-wide population (C
Evgeniou, 2018).

7.0 Evaluation
of the effectiveness of the PwC’s response.
                          The PwC approach is influenced by world drivers such as many companies.
PwC affect the way they doing now and in the future. They make sure that these feed
in PwC strategy keep continual at the forefront of their business thinking.the
Group Executive Committee receives quarterly performance reports and is involved
in an annual Corporation Social Responsibility Strategy Review Meeting. The Board
of Directors also receives a quarterly summary report alongside those from other
corporate functions including: SHEQ, HR, IT, Legal, and Finance.

The
primary aim of the Global CSR Steering Committee, working with the Board of
Directors and Group Executive Committee, is to establish clear objectives and
performance targets aligned to global drivers through their Material Areas (Flower,
2018).

 

8.0 Demonstrate
some areas for improvement in the response of the PwC. Corporate social
responsibility isn’t just a convenient public relations tool, it’s a vital component
for succeeding in the modern business world. Effective corporate social responsibility can improve your operations,
boost the morale of your people, and even help you to cut costs and stay competitive
with your corporate peer’s employee became more productive, CSR makes customers
think more highly of you, additionally its improved access to capital (Pwc.com,
2018). The PwC committed to contributing to the achievement of millennium development
goals and to the reduction of global threats. The company concentrate on
specific issues, sometimes with an increased focus on particular issues on a
regional basis. However, to define their Corporate Social Responsibility and
industry related strategic issues (Performph.com, 2018). These might include
the empowerment of communities, the role of women in the workplace, energy
issues, the digital divide, the end of life of their products, Health &
Safety and public health, mobility or other specific social challenges (Monster
Hiring Resource Center, 2018).

My suggest area for improvement is the financial performance,
because there is negative correlation between CSR and financial performance,
argues that this is due to high investment cost of CSR. Additionally companies
that use the CSR can affect negatively ass well because they focus on traditional
corporate objective of income.

CSR initiatives shouldn’t be measured by the money spent or
by the percentage of work being done. The focus must be on the programme’s
effectiveness, the quality and the change it promotes as well as its ability to
accomplish the mission.

However, I believe that it is difficult to force
mandatory corporate responsibility on firms. It is a helpful law but you really
need to have a calling from within to be able to have any impact on the communities
or make any kind of difference. Also, the government should incorporate a
mechanism of external audit to make sure funds are used for sustainability of
the projects.

 

9.0 Conclusion

Engaging in CSR is a major fact for companies due to their good
behaviour and ethical explanations. Within the highly competitive corporate
environment, the allocation of resources to socially responsible initiatives is
required and firms still consider their own firm’s needs.

Empirical research within near future they pointed out
evidence of the measureable payoff of CSR initiatives on companies and their
stakeholders. There are many reasons that pull a organization towards being a
CSR-attentive (Carlsson, Akerstom, 2018). CSR practices of PwC benefits the company
in different dimensions, including the brand image, the reputation of the company
and the society at large. CSR raises the firm’s stock value, increases sales
market, improves brand position, increases the ability to attract a wider
audience, decreases the pertain costs and finally increases the interest for
investors (Trong Tuan, 2012). Therefore CSR should be kept in mind for larger companies
in order to improve their image and increase their sales through the benefits
which are driven from it.