...Corporate social responsibility (CSR) refers to a company’s policy of protecting consumers, employees, community and the environment in addition to its own bottom line. Many consumers are aware of the potential for long-range harm from unethical business practices and will refuse to purchase the products or services of companies that employ such practices. For this reason, many companies have emphasized the importance of corporate social responsibility. Apart from its own benefits, it is also a good public relations move. Stakeholders Through CSR stakeholders have increased influence on company business activities as community citizenship and social responsibility have been consistently integrated into business management. Customers, employees, communities and business partners are among key stakeholder groups that carry weight in company decisions and activities. The objective of being of socially responsible business is achieved when its activities meet or exceed the expectation of all its stakeholders. The quality of relationships that a company has with its employees and other key stakeholders is crucial to its success. Customers have true influence over many companies. This is mainly because companies have generally recognized that satisfied customers and long-term relationships are vital to building sustainable success and profiting over time. Some organizations even use customer relationship management, as a target for efficient marketing and sales efforts. Businesses...
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...Introduction: Social Responsibility of Business or Corporate Social Responsibility (CSR) refers to management decisions & actions taken for reasons at least partially beyond the organizations’ direct economic or technical interest. The Concept of Corporate Social Responsibility is merely in growing stage towards social effectiveness of business. It is the philosophy which justifies business involvement in its social community. The simple fact is that business is a major social institution, and as such it is importantly involved in social value. In the operation of pluralism many groups influence business and in turn business influences them. Definition of Corporate Social Responsibility given by Scholars: According to Davis Keith, (“Can Business afford to Ignore Social Responsibilities?”- 1960) Social Responsibility is defined as, “Management decisions and action taken for reasons partially beyond the organization’s direct economic or technical interest.” According to Griffin R W, (“Management”- 1997) “Social Responsibility is a set of obligations an organization has to protect and enhance the society in which it functions.” According to Davis K & Blomstrom R L, Business and Society: Environment and Responsibility”- 1975) [i] Social Responsibility is defined as, “The Relationship of Business with the Social System outside its own formal organization.” [ii] Social Responsibility is that, (Business) Decision Makers are obliged to take Actions which protect and improve the...
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...Questions | Marks Allocated | Obtained Marks | Introduction | 5 | | 1.1 Since its return to business in India, Cola has taken many CSR initiatives in India. Identify the initiatives according to the main six social initiatives identified by Philip Kotler. | 20 | | 2.1 Discuss the negative drawback of Soft Drink Industry like Coca Cola and Pepsi Companies in the developing world like India in terms of their effects on the environment, people and economy. | 30 | | 3.1 Discuss the roles of community people and local NGOs in controlling developing ecological sensitive projects. Mention the some actions taken from the case study. | 20 | | 4.1 In your opinion, do you think there is a moral responsibility for the governmental authority who firstly issued approval to start Coca Cola business in India? Prove your opinion with finding from the case study. | 15 | | 4.2 Do you think a conditioned renewal of license is a good decision? Support your opinion with evidence/examples of conditions. | 15 | | Conclusion | 5 | | Referencing | 10 | | Report Format | 5 | | Total | 125 | | CSR 611 Corporate Social Responsibilities FINAL ASSESSMENT I certify that this assignment is my own work, based on my personal study and/or research, and that I have acknowledged all material and sources used in the preparation of this assignment whether they be books, articles, reports, lecture notes, any other kind of document, electronic or personal communication I also certify...
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...to Pearce II and Robinson Jr.(2013),corporate social responsibility(CSR) has become a vital part of business conversation and for most companies,the challenge is how best to achieve the maximum social benefit from a given amount of resources available for social projects. Pearce II and Robinson Jr.(2013) listed these five principles of successfull collaborative social initiatives(CSI) that facilitate better outcimes for society and for corporate participants. Identify a Stubborn Challenge and Address It for the Long Term Pearce II and Robinson Jr.(2013) added that among the more obvious examples of social challenges that will demand attention for years to come are hunger, inadequate housing, ill health, substandard education and degradation of the environment. Avon Products Inc., the seller of beauty and related products, offers a fine example of a long-term commitment to a pervasive and long-standing problem. A public charity was established in 1955 to improve the lives of women and their families — launched its Breast Cancer Crusade in the United Kingdom. To date, the crusade has awarded more than $350 million to breast cancer research and care organizations worldwide. Contribute “What We Do” Companies maximize the benefits of their corporate contributions when they leverage core capabilities and contribute products and services that are based on expertise used in, or generated by, their normal operations that is the social-purpose initiatives receive the maximum...
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...“Corporate social responsibility (CSR) in controversial industry sectors” The deadline for submission is December 1, 2011. Guest editors: Adam Lindgreen (Cardiff Business School), Martin Hingley (Harper Adams University College), and Jon Reast (Hull Business School) Corporate social responsibility (CSR) has gained unprecedented prominence in academic and business spheres alike (Kotler and Lee, 2005; McWilliams, Siegel, and Wright, 2006); more than ever before, it is necessary for organizations to define their roles in society and apply social, environmental, ethical, and responsible standards to their businesses (Lichtenstein, Drumwright, and Braig, 2004; Lindgreen, Swaen, and Johnston, 2009). Beyond the moral arguments and value-based debates that characterize the complex landscapes of CSR-related concepts and ideas (Garriga and Melé, 2004), corporate commitment to socially responsible management practices is associated with a conviction that the failure to meet basic social rules or expectations pertaining to the way organizations should behave can result in perceptions of those organizations as illegitimate (Campbell, 2007; Sethi, 1975). Increased engagement in CSR-related policies and initiatives, and the associated communicative efforts, therefore provide a way for organizations to circumvent situations and practices that might be perceived as unethical or unsustainable and “alienate the organization from the rest of society, resulting in reduced reputation, increased costs...
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...“Can Corporate Social responsibility (CSR) give a competitive advantage?" At a time where the UK business industry is more saturated than ever, more and more companies are incorporating social and environmental aspects into their business practices in order to stay competitive. Modern day customers no longer expect the best price and quality, in addition they expect the company to utilise their custom in order to enhance a positive impact on the world around them, because of this, many organisations are prioritising CSR and are ensuring they pursue ethical practices in order to generate a good reputation for being responsible for the procedures they undertake in production and supply. One way in which a company may seek to utilise CSR in order to achieve a competitive advantage is by establishing an affirmative relationship with local authorities. For example, Ben and Jerry’s ice cream company strive for upmost responsibility when it comes to the production of their ice cream products; they only use fair trade produce in production and furthermore they developed a dairy farm sustainability programme in Vermount which is the company’s hometown (James Caan, J.C. (2008). If it were the case that Ben and Jerry’s established a strong relationship with the local authorities due to their exceptional CSR, then it could mean they will be granted more use of local government owned land than competitors, which would lead to an obvious competitive advantage (Ben and Jerry’s website)...
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...CHAN Ching To (UID 3035102223) To what extent is Corporate Social Responsibility (CSR) beneficial to a company’s performance? An analysis of the relationship between CSR and financial soundness, quality of marketing, people management and long-term investment value. Introduction Since the late 1990s, corporate social responsibility (CSR) has been increasingly discussed in the society and it slowly becomes one of the important components in the business world (Jenkins, 2005). McWilliams and Siegel (2006) interpret CSR as ‘situations where the firm goes beyond compliance and engages in “actions that appear to further some social good, beyond the interests of the firm and that which is required by law”’. In general, CSR is believed to, in long-term, enhance business performance and boost employee morale. Also, CSR could be a tool to improve company image and to prevent crises (Weber, 2008). This essay argues that CSR has a positive relationship with a company’s performance, meaning that it brings benefits to corporate performance to a large extent. To measure one’s performance, three key aspects are considered, namely financial soundness, quality of marketing and people management. These three aspects are chosen from the criteria for Britain's Most Admired Companies 2014 (Management Today, 2014). Effects of CSR on Financial Soundness One of the most crucial criteria to determine a company’s performance is by analysing its financial soundness. Common indicators...
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...Partnership for POSDAYA; Supporting Family Empowerment Program through Corporate Social Responsibility A case of CSR Partnership Program of PT Adaro Indonesia and POSDAYA in South Kalimantan Dr Laila Refiana Said Indonesian National Council on Social Welfare Universitas Lambung Mangkurat Abstract In recent years, social responsibility of corporations has become a major issue. As a result, the mining companies in Indonesia have come under increasing pressure by NGOs and communities. In response to the pressure, mining companies in Indonesia have carried out corporate social responsibility (CSR) programs, especially when the companies are subsidiaries of global mining companies that utilize CSR as part of their global business strategy. The companies recognize that there is a responsibility to give back to the local communities to ensure the development of a better life in the surrounding mining areas. This paper brings a family empowerment perspective to many of the issues covered in the CSR programs. One of the strategies emphasizes a good relationship with local communities through community development as PT Adaro Indonesia made through its free cataract surgery programs for residents in South Kalimantan together with Badan Koordinasi Kegiatan Kesejahteraan Sosial (Coordinating Agency of Social Welfare Activities). This paper examines the combined effectiveness of PT Adaro Indonesia’s CSR program with the family empowerment program of POSDAYA (Pos Pemberdayaan...
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...that only people can have responsibilities, not business. Friedman stated that "the social responsibility of business is to increase its profits" only, he does not agree social responsibility is part of the responsibilities of Business, he stated that "Only people can have responsibilities" instead of a corporate, a business itself. "The corporate executive is an employee of the owners of the business, which generally will be to make as much money as possible while conforming to the basic rules of the society". In other words, the only reason to Corporate Social Responsibility (CSR) is to maximize the profit of the business. "Only individuals who are to be responsible are businessmen, the owners of the business, has the direct responsibility to his employers and to conduct the business in accordance with their desires". So it comes to an individual can perceive responsibilities but not business itself. Business as a whole cannot be said to have responsibilities. While according to Freeman (2006) does not agree to Milton Friedman's argument that only social responsibility is to increase profit; in the moral sense, giving money doesn't make up at all in doing CSR. Freeman has reassigned a new interpretation of CSR. "A conceptual scheme that separates the social responsibilities of a corporate from its business responsibilities has long outlived its usefulness." To replace Corporate Social Responsibility, Company Stakeholder Responsibility has formed. He also introduces...
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...WHAT IS CORPORATE SOCIAL RESPONSIBILITY OR CSR? For long it was argued that the role of businesses was purely economical and that economics was the parameter on the basis of which their success or failure was to be determined. Corporations, since eons, have been regarded as the providers of jobs, products and services and it was believed that they are only financially responsible and profit making is their only motive. But recent times have seen a departure from that tradition and now CSR is being taken up in a broader societal context, mainly due to globalisation and the change in the ecological balance. They stakeholders i.e. the employees, community, suppliers and shareholders are redefining the role of the corporations. As a result of this particular kind of shift, many organisations have started endorsing the idea of businesses leaving the purely economic front and blending in some societal dimension as well. THE HISTORICAL PERSPECTIVE OF CSR: CSR is not a new concept. It has been there since always though not necessarily by this name. Various ancient scriptures mention that businesses should be run ethically and more importantly, they should benefit the deprived section of the society. It has always been said that those who are privileged must lend a helping hand to those who aren’t. Chanakya, the teacher and guardian of Chandragupta Maurya, in his book ‘Arthashastra’ emphasised that ethical means be used while operating businesses. It is often argued that the level...
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...Chapter 2 Corporate Social Responsibility, Corporate Governance and Corporate Regulation 2.1 Introduction CSR is increasingly an essential issue for companies.1 It is a complex and multidimensional organisational phenomenon that is understood as the scope for which, and the ways in which, an organisation is consciously responsible for its actions and non-actions and their impact on its stakeholders. It represents not just a change to the commercial setting in which individual companies operates, but also a pragmatic response of a company to its consumers and society.2 It is increasingly being understood as a means by which companies may endeavour to achieve a balance between their efforts to generate profits and the societies that they impact in these efforts.3 This chapter discusses these issues. First, it describes CSR and its core principles. Second, it describes CG and narrates CG’s convergence with CSR. Third, it highlights how different economies are incorporating CSR notions in their corporate regulation. 1 Jeremy Moon and David Vogel, ‘Corporate Social Responsibility, Government, and Civil Society’ in Andrew Crane et al. (eds), Oxford Handbook of Corporate Social Responsibility (2008) 303; David Vogel, The Market for Virtue: The Potential and Limits of Corporate Social Responsibility (2005); Nada K Kakabadse, Cecile Rozuel and Linda Lee-Davies, ‘Corporate Social Responsibility and Stakeholder Approach: A Conceptual Review’ (2005) 1(4) International ...
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...improves their Corporate Social Responsibility (CSR) they automatically improve their public image, and therefore, their profits Assignment title number: 5 Word Count: 1253 With the development of social economy, international companies begin to play the paramount role in current society. Corporate Social Responsibility (CSR) has gained a limelight in international business and public debate, and has affected the way in which a company does business. Typically, the definition of Corporate Social Responsibility (CSR) ranges from companies’ internal management to bigger projects for social welfare (Sharma, et al. 2009). An example of CSR would be companies respect employees’ basic human rights or firms donate money to society for charity. There are several incentives for companies to establish CSR and it can also have an impact on improving the relationship with employees and consumers. There are some who would argue that top priority should be given to corporate social responsibility, then company improves their public image and as result, their profits. There are others who would insist that it is pointless in building CSR, and guaranteeing shareholders a profit should always be the top priority. Finally, there are others who would argue that there is a middle ground, however cynical the motive. This essay will attempt to demonstrate why making social responsibilities’ benefits outweigh drawbacks. Firstly, establishing corporate social responsibility can attract more...
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...1857-8047 CORPORATE SOCIAL RESPONSIBILITY AND CORPORATE IMAGE Ayanda, Adebayo Maruf Department of Business Administration and Management Technology, Faculty of Management sciences, Lagos State University, Ojo, Lagos- Nigeria. Baruwa, Akinfolarin Afeez Department of Business Administration and Management Technology, Faculty of Management sciences, Lagos State University, Ojo, Lagos- Nigeria Abstract This article analyses the impact of corporate social responsibility on corporate image, basing the findings theoretically and empirically. The first part of this article focuses on a theoretical concept of corporate social responsibility. The authors analyze different definitions of corporate social responsibility, review chronological development of this concept and reveal similarities between different definitions. Positive and negative positions towards corporate social responsibility are presented and compared. The second part of this article reveals the theoretical concept of corporate image and the constituting factors. After discussing different definitions of corporate image, concluding remarks are made. The authors of this article discuss the topicality of corporate image management subsequently and name the factors that form corporate image, laying out the basis to manage particular factors. The first two parts of this paper provide a theoretical basis for further discussion. The third part of this article outlines insights for causality between corporate social responsibility...
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...A Developing Country Perspective of Corporate Social Responsibility: A Test Case of Bangladesh Ali Quazi, The University of Newcastle Ziaur Rahman, IITM, Bangladesh Byron Keating, University of Wollongong Abstract The ‘social contract’ between the corporation and the community is of critical importance. The motivations for these contracts are continuously being revisited to understand how CSR programs can nurture and contribute to the growth of firms. While CSR issues are attracting a great deal of attention in the developed world, there is a need for more research into CSR in the developing world. This paper considers the CSR practices of a small sample of multinational corporations (MNCs) and local firms in Bangladesh to better understand this situation. Introduction Corporate social responsibility (CSR) has generated significant debate in academic and corporate circles in recent times. This debate acknowledges the importance of CSR in the first-world, but raises questions regarding the extent to which corporations operating in developing countries have CSR obligations (Jamali and Mirshak, 2007). Conventional wisdom suggests that CSR is more relevant to corporations operating in the developed countries due to elevated community expectations of socially responsible behaviour. In contrast there is also a belief that societal expectations in the developing countries mainly centre on economic growth; therefore relegating CSR to be of lesser importance to the society and...
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...Corporate social responsibility and minimum legal expectation Over the last few decades, the issues of corporate social responsibility have become the focus of society. Especially after many company scandals emerged (such as Enron and Libor scandals), the public are more curious about the CSR and the its legal expectation. Some countries have already set mandatory regulation about the CSR. For example, in Australia the Corporations Act 2001 stated that companies need to disclose environmental performance and another Act[1] requires certain companies to provide the information about greenhouse gas emissions. However, in the UK, the regulations mainly govern financial disclosures[2] and there are few regulations about the CSR of company. In the aspect of law, the Companies Act 2006 s.172[3] set some duties for the directors to promote the success of company which are in relation to legal expectation of the corporate social responsibility. The notion of CSR and the relationship between CSR and its legal expectation is the main of this essay. This essay will critically discuss the notion of corporate social responsibility and giving particular attention to minimum legal expectations. The structure is as follows: in the section 1, we are focus on the discussion in relation to many kinds of the definition of corporate social responsibility. In the section 2, we will discuss the notion of CSR through different theory perspectives and the minimum legal expectation. In the section...
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