How Corporate Social Responsibility Improves Organizational Competitiveness - Essay Example

How Corporate Social Responsibility (CSR) improves organizations’ competitiveness through its interactions with HRM and Marketing Institution Date Introduction Corporate Social Responsibility is a recent tool required for international business operations and company management practices. The concept of corporate social responsibility requires companies to integrate both social and environmental concerns in carrying out their business operations through interaction with all stakeholders (Aguilera, Rupp, Williams, & Ganapathi, 2007). Various people and experts have argued in support of effective implementation of CSR in company management processes asserting its great role in spurring development through its immense contribution to sustainable development. According to Amato & Amato, (2007) full implementation of the requirements of CSR I company management and business operations enhances innovative potential of the various regions of concern thereby increasing their competitiveness. Companies’ competitiveness through effective implementation of the fundamental principles of CSR can be envisioned at various levels. Castelo & Rodrigues, (2006) notice this improved competitiveness at four basic levels: the micro level, regional level, sectoral level and at the national or macro level. In regard to the topic of this proposal, increased competitiveness of companies through effective and efficient implementation of the guiding principles of CSR will be focused at the sectoral level. Effective human resources management through CSR is focused upon intersectoral improvements in terms of quality production and efficient delivery of services. This intersectoral improvement is what sets a company higher in the competition ladder compared to others in the same line of production across the globe. Research aims The goals of sustainable development are pegged upon effective industrial and companies’ management. This move ensures effective use of production resources such as human resources and other resources used in industrial production with an aim of improving the companies’ competitiveness while using as little resources as possible. Regarding this aspect, this research aims to investigate how Corporate Social Responsibility (CSR) improves organizations’ competitiveness through its interactions with HRM and Marketing. Research objectives At the end of this study, this research is expected to achieve the following specific objectives; i) To investigate the connection between Corporate Social Responsibility, corporate strategy and competitive advantage. ii) Describe the context of Corporate Social Responsibility in Human Resources Management and marketing iii) To find out the potential of Corporate Social Responsibility for creating competitive advantage. Literature review Effective company management looks into improving performance and competitiveness of the company by improving the quality of production and service provision in all sectors of the company’s operations. Concerning this argument, Halme, Roome, & Dobers, (2009) defines sectoral level competitiveness as the performance of a given company or industry in a given region (country) in comparison to other companies or industries in other regions. Within a company are different sectors that are entitled to carry out different mandates with an aim of improving the overall performance of the company. In this regard, Husted, (2003) records that a sector can ensure competitiveness based on its ability to grow, innovate, and produce goods of higher quality as well as provide better services with the sole aim of gaining large market shares in both the domestic and international markets. The increased market share is measured by examining changes in profit margins, market returns, and suppliers’ trends for the selected companies (Husted & Salazar, 2006). To achieve the intended improvements, companies make use of the natural environmental resources to aid their production. Enactment and observations of the goals of CSR within the operational lines of various companies is the honourable step in improving the competitive advantage of the company compared to the other companies in the same lines of production. Aguilera, Rupp, Williams, & Ganapathi, (2007) looks at factors of production at two key levels: Human resources level and at the natural resources level. Effective human resources management by ensuring the observance of CSR at the sectoral level is a prominent move to create a market advantage through quality production. Research methodology The research will adopt both qualitative and quantitative approaches in meeting the set objectives in a move to accomplish the main aim. A total of 20 companies selected at random will be used in the study. 20 key informants from key company officials, derived from key management positions, will be interviewed to determine the context of CSR in effective company management and marketing. The performance of various companies’ portfolio and consumer products will be investigated from past records following the adoption of CSR in management practices in order to establish market advantage gained by the selected companies over their competitors. Focused group discussions (FGDs) will be conducted with the respective company customers and employees to find out the potential of CSR in creating competitive advantage (Amato & Amato, 2007). Questionnaires will be administered to various individuals including employers, employees, and randomly selected consumers of various products from the selected companies. The questionnaires will aim at drawing the connection between Corporate Social Responsibility, corporate strategy and competitive advantage for the various companies selected for investigation in the research. Qualitative approach to data analysis will be used whereby the data generated from the questionnaires will be analyzed using the SPSS software. This will be supplemented with descriptive analyses of the results generated from FGDs and key informants. Tables and charts reflecting companies’ performance at various levels will be used to accompany the illustrations from other sources. Conceptual framework The aspect of competitiveness in companies’ operations is envisioned through a complex combination of efforts from various sectors. CSR requires effective use of environmental resources to improve production at various levels and across various sectors as envisioned in the framework described below. The framework encompasses takes into consideration the natural environment, human environment (HRs- employees, suppliers and the market) as well as the corporate finance level. Recommendations Owing to the expected contributions of CSR in effective companies’ management to gain competitive advantage over other companies in the same line of production, it is recommended that every company looks into the need to ratify the requirements of the concept. This research will be limited the geographical area of research, available finances and time allocation, extensive research should be carried out to reinforce the positive outcome of CSR ratification in effective management and sustainable development as a move to gaining competitive advantage in the market. Risks register This research will be limited to only a small geographical location determined by limited finances and time allocation; this may inhibit extensive data collection and, consequently, effective generalization. Although we expect to access all data that will be needed during the research to help in making valid conclusions, some data may be distorted due to human biases and inaccessibility, especially, of financial statements for the required period. This may inhibit the validity of the deductions made. Adequate precautionary measures and levels of preparedness are put in place to curb emergencies such as sickness and injuries, however, unanticipated health and safety risks may stem up which may require specialized handling. This may hinder effective data generation, analysis and interpretation of findings hence the validity of the entire results. Gantt chart The entire research process will be accomplished as represented in the Gantt chart drawn below References Aguilera, R. V., Rupp, D. E., Williams, C. A., & Ganapathi, J. 2007. Putting the S back in corporate social responsibility: a multilevel theory of social change in organizations. Academy of Management Review , 32 (3), 836-863. Amato, L. H., & Amato, C. H. 2007. The effects of firm size and industry on corporate giving. Journal of Business Ethics , 72 (3), 229-241. Castelo, B. M., & Rodrigues, L. L. 2006. Corporate social responsibility and resource-based perspectives. Journal of Business Ethics , 69 (2), 111-132. Halme, M., Roome, N., & Dobers, P. 2009. Corporate responsibility: reflections on context and consequences. Scandinavian Journal of Management , 25 (1), 1-9. Husted, B. W. 2003. Governance choices for corporate social responsibility: to contribute collaborate or internalize. Long Range Planning , 36 (5), 481-498. Husted, B. W., & Salazar, J. J. 2006. Taking Friedman seriously: maximizing profits and social performance. Journal of Management Studies , 43 (1), 75-91. Read More