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Effective Corporate Social Responsibility - Research Paper Example

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The purpose of the paper is to research the claim that being more ethical and socially responsible in business increases efficiency in the workplace. The results suggest that firms which are proactively dedicated to ethical activities gain advantages in terms of acquiring reputational capital. …
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Effective Corporate Social Responsibility
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Download file to see previous pages Effective Corporate Social Responsibility is an important asset to acquiring critical stakeholder resources. Consequently, firms who have greater and easier access to required resources are expected to be better positioned to exploit the cost structure benefits of organizational efficiency and thus more likely to gain a performance advantage over their respective competitors. This examination should assist the CEO, manager and senior firm officers strategize for our organization in this age of social responsiveness. Most prominently, the arguments and results garnered here to lend support for the organizational benefit of effective CSR. It outlines a path from ethical and social performance to financial performance superiority and demonstrates that firm may use CSR and more specifically the intangible Corporate Social Reputation that it promotes, as a substantive element in deriving a workplace efficiency and subsequent competitive advantage. Organizations today face increasingly multifaceted and often competing, motives and incentives in their decision making. More and more people, including consumers and investors, feel that corporations owe something to their work and the communities in which they operative which may entail sacrificing some profit at times. An organization’s ethically and socially responsible practices, commonly referred to as corporate social responsibilities (CSR), have been shown to be advantageous. Furthermore, research has also claimed that being more ethical and socially responsible in business increases efficiency in the workplace. The Chief Executive Officer of the company has asked the author to research the above claims. Therefore, the purpose of this report is to review available literature and recommend CSR policies to assist managers and senior firm officers strategize for the organization. Corporate Reputation An organization can improve corporate reputation at the same time while working toward establishing CSR, whether through incorporating higher human rights standards or by addressing environmental connections in the work ethic (Gaines-Ross, 2007; Speth & Haas, 2006). Reebok found that by incorporating internationally recognized human rights standards into its business practice it achieved improved worker morale, a better working environment, and higher-quality products (Holliday et al., 2002, p. 111). Manufacturing industries adopting sustainable measures are collaborating with institutions that support sustainable guidelines and are also improving and protecting their corporate reputations (Gaines-Ross, 2007; Grayson & Hodges, 2004; Holliday et al., 2002). According to Russell (2006), organizations that save money by cutting corners at the cost to the planet will be recognized as poor performers, which will ultimately affect the organization as incidents of environmental disaster will continue to linger in the minds of consumers. For example, in September 2006, the Dutch company, Trafigura Beheer, which unloaded toxic sludge on the coast of Africa, killing 7 and making 50,000 people ill, has experienced the backlash from consumers for its poor decision (Gore, 2006; Russell, 2006). Trafigura Beheer focused on the financial cost associated with disposing of the toxic waste product and chose an easier method (Gore, 2006).  ...Download file to see next pagesRead More
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