Because of the developments in technology, cases of intellectual property have increased because it has created an enabling environment to infringe individual and organizational property. Companies imitate the designs and innovation of other companies and modify them so that they look like it was their innovation. For example, Apple and Samsung have been battling in courts about infringement of intellectual property rights. The categories of intellectual property rights include copyrights and industrial property. Since patent rights allow organizations to charge whatever they prefer, there is a concern regarding the balance between their interests and the interests of the consumers. Consequently, the essay seeks to address issues of intellectual property rights with the interests of stakeholders and the social responsibility of companies towards social responsibility.
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Every profit-making corporation seeks to exploit every potential opportunity that comes their way to maximize their profits. However, they slowly shift from customer fulfillment to satisfying increasing their profits. However, business leaders should consider the long-term effects of their strategies and profitability. Therefore, profit-making companies should introduce strategies that align their needs with customer interests. The first practical strategy to apply is maximizing profits and shortens the return on investment. Organizations, such as Apple and Samsung spend extensive resources in research and development to develop new products. After developing a new feature, every creator seeks to increase their profits and increase value for shareholders since the value of their shares increases. However, consumers should also benefit from the innovation by charging reasonable prices considering many factors, such as the cost of production, prevailing economic conditions, and intended profits. The company should not exploit its customers at the expense of generating more profits.
Secondly, a profit-making organization should engage its research and development to make sustainable profits. For an organization to succeed in the long-term, it must focus beyond profits. All stakeholders are critical to the success of the company. For example, it should develop new designs and features of its products to offer solutions to customers while improving organizational profitability. Ways of measuring organizational success include profitability, an increase in the market share and stakeholder happiness. Therefore, charging prices exorbitantly leads to loss of customers to the competitor brands yet the company wants to increase its profits. Therefore, innovation should focus on building customer loyalty, as well as improving brand perception and this will automatically improve organizational profitability. Therefore, a company should balance the interests by developing new products and services and penetrate new markets, as well as increasing the value of the current customers.
However, the company should not solely focus on the needs of the customers since there are other stakeholders influencing organizational success. For example, it should charge slightly high prices for new inventions to generate more profits to reward its stockholders and business expansion. According to the product life cycle, prices should be high at the growth stage and lower the prices once imitations intensify. Similarly, the company can reward its employees with bonuses since its profits have increased and can also positively adjust their benefits and salaries. Therefore, patent rights should reflect the interests and expectations of various stakeholders.
Besides, companies should register their intellectual property rights to bar competitors from imitating their inventions. The protection is vital for the success of a company. It supports organizational growth and customer satisfaction. The protection ensures that the creator enjoys its rights until the invention outlives its usefulness. Consequently, various stakeholders, such as customers and shareholders will continue benefiting through affordable prices and dividends respectively. Failure to protect intellectual property would lead to untamed imitation; hence, the company loses its original ideas. Therefore, intellectual property rights protection must take into account the expectations of different stakeholders.
Companies with a mission of creating products and services that sustain human existence have greater responsibilities towards customers than themselves. The products and services they manufacture primarily focus on improving the well-being of the target audience. However, this does not mean that they should only focus on customers forgetting other stakeholders. For example, in this era of technology, customers of organizations, such as Apple and Samsung include patients and medical practitioners. The first responsibility is to develop new designs and features of mobile phones to improve the provision of health and social care services.
The research and development should begin with identifying trends among consumers. For example, technology in the healthcare sector has improved the provision of personalized services, while enhancing communication. Lives of people depend on these products and services, meaning that there is no way to live without these innovations. Therefore, a greater responsibility towards customers is critical since it helps to have long-term benefits like business growth and improved profitability. Conversely, having their own interests will not sustain their long-term growth since they will lose vital stakeholders like customers, who determine organizational growth. For example, the quality of healthcare depends on innovation and the introduction of technologies that make work easier. Prioritizing customer interests would determine intellectual property rights and a business strategy.
Many companies are spending their resources on litigation processes regarding intellectual property rights instead of focusing on product development. It is because the law has open loopholes that allow imitation to some extent. Profit-making corporations should balance the interests of various stakeholders, such as customers by charging appropriate prices on their patent rights and pay considerable dividends to investors. The corporations should have a greater responsibility towards customers so that they have long-term success.