Neoliberalism is based on the idea that the government makes the world worse for society instead of promoting economic growth.
Neoliberalism supports the generation of private companies and unhindered markets considering them the driving force of economic growth and social welfare.
The second area of financial liability exists with potential lawsuits.
No organization is exempt from a disgruntled employee or customer who claims discrimination.
When employees feel good about being at work, the overall feeling in the organization is more positive.
This breeds organizational loyalty and productivity, because employees feel good about showing up for work.Understanding the nature, concept and negative effects of neoliberalism on strategic management is of utmost importance, as neoliberalism is one of the greatest philosophies leading to global transformations in capitalism.Neoliberalism is not a clear-cut singular concept (Plehwe and Walpen, 2006, p.One area that organizations can lose consumer confidence is failing to honor guarantees or negatively deal with complaints.This is why consistent policies and employee training is imperative.Serving a wider community has always been the foundation and purpose of all domains.The latter is justified and legitimate due to developing and implementing principles that serve society and its needs (Abbott, 1988).Moreover, organizations must remain consistent in the execution of policies dealing with accusations.This helps reduce frivolous lawsuits that could bankrupt smaller organizations.Originated in the 1970s, neoliberalism is “a political rationality that tries to render the social domain economic and to link a reduction in (welfare) state services and security systems to the increasing call for ‘personal responsibility’ and ‘self-care’” (Lemke, 2002, p. While Neoliberalism, as a doctrine of political and economic liberalism and set of policies, it has specific positive aspects, the overall impact of neoliberalism on the strategic management of the social, institutional, business and cultural operations is negative.Neoliberalism, profit-driven and exceptionally focused on finance, has negative social impact on strategic management, as it fosters corporatisation of state companies, and other assets, the shift of welfare policy toward philanthropy and entrepreneurship, and individual ‘responsibilisation’ for health, welfare and education.