A contemporary corporation is a business form that is a traditional business form mixed with up-to-date knowledge and processes. Though the actual business formation is the same as it has been for generations, the processes involved are the difference. A contemporary corporation will use corporate social responsibility, strategic alliances, and virtual offices to its benefit. These factors allow the business to create a cohesive strategy to accomplish tasks and activities. In most cases, the corporation looks to use many more tools at its disposal to enhance operations and earn higher profits.
Corporate social responsibility involves the review of all business stakeholders prior to making decisions. Many companies traditionally operated in a manner that rewarded invested stakeholders. Under corporate social responsibility, stakeholders not invested in the company also play roles in a company’s operations. The contemporary corporation does not enter agreements or begin operations that can reduce the livelihood of these individuals. Common restrictions on a contemporary corporation include not investing capital into alcohol or tobacco operations or reducing the availability of natural resources.
Strategic alliances occur when two or more companies come together in order to accomplish goals or produce specific products. Different types of strategic alliances are available to a contemporary corporation. These include strategy, partner, contract, and operational alliances. Each option allows the companies to enhance their individual operations by pooling resources together. In most cases, corporations look to make strategic alliances with other businesses that offer more technology or resources than they have on their own.
Virtual offices are another common aspect of the contemporary corporation. Through the use of technology, a corporation no longer has to have a physical location where all employees work in one place. Corporations can use computers and other technology that allows employees to meet in virtual rooms to complete tasks and activities. In some cases, corporations can have many regional or international locations that make use of virtual offices. This also works well with strategic alliances or using individuals with specific attributes from different areas to complete operations.
The ultimate goal of a contemporary corporation is synergy, where all aspects of the traditional business come together. The use of up-to-date tools and knowledge often improves a business and gives it a competitive advantage over others in the business environment. Too much technology or use of alliances can be problematic. For one, technology may be unreliable and prone to breakage. An alliance requires a company to give up part of its knowledge to another business, reducing its competitive advantage.
