Corporate social responsibility and its theoretical foundations. Australian firms and CSR - Essay Example

? Introduction The term Corporate Social Responsibility though a invention of few decades back but has existed in various forms from the earliest days of businesses. Companies manipulate their businesses processes and go one step ahead then the industry to create a positive impact on the society. Corporate social responsibility of companies can be viewed in two general ways Companies share and invest their income for the benefit of the society. Companies follow the industry standards or apply best practices in their business as to be more responsible and ethical. To understand the basic concept behind CSR we have to learn what binds an organization to be socially responsible. Every organization has stakeholders which exist at all levels of business operations and are major contributors of the business. The company has to show its competency and loyalty to its stakeholders and the community that the business is not only concerned solely with the expansion and betterment of the business but it is also keen and responsible in contributing towards the growth and betterment of its stakeholders and the society it operates in. As a gesture of company’s conviction and dedication, they engage themselves in such activities which in some way will help in the prosperity of the society and will leave an everlasting impression on those they helped. Also at the same time they can include such policies and practices into their business which portray the company’s business processes as more ethical and morally correct. Concept and Benefits Social responsibilities of corporations comprise of ethical and managerial principles to guide a business enterprise. This is because it deals with everything from corporate image, public relations, environmental liability, lawsuits, relations with governments and worker morale. These corporate responsibility principles are guided by another set of principles. The first and the basic principle is that the firm’s or company’s product raises or enhances the quality of life. Three basic types of processes are identified to implement corporate responsibility principles. They include of environmental management, issues management and stake holder’s management. (Gail Thomas, 2006) Number of factors drive the corporate responsibility trend. One major factor which make organizations more socially responsible is that companies which do not engage in CSR activities might be viewed as those who are only interested in the growth and expansion of their business and are not at all concerned with the betterment of their various stakeholders and the society. Hence ruining the image of the corporation in the mind of people which is a serious risk for business. On the other hand the benefits of CSR for corporations are limitless. Although the benefits would not be monetary directly instead would require investing in quite heavy amounts but in return the corporation earns a position of a reputable contributor to the society enhancing the brand image, employees will have more dedication to work for a company who works for mutual benefit of the society and the stakeholders especially the investor’s would be more confident. Australian Firms and CSR There are a lot of Australian companies who are listed amongst the more socially responsible organizations. BHP Billiton , Telstra, Rio Tinto , Pacific Hydro , Arup Australsia and many other corporations. BHP Billiton is Australia’s largest firm by market capitalization. It employees over 40,000 people all over the world which makes it rank amongst the largest mining companies in the world. As it is the largest firm in Australia and has global operations so it has engaged itself in many socially responsible activities and made it a priority so as to maintain the trust and confidence of the stakeholders and investors. Various socially responsible initiatives has been taken by BHP Billiton which have contributed greatly to well being and uplift of Australian society and also in other countries where its operating. Along with initiatives for the betterment of the society, BHP Billiton also acknowledges the betterment and safety of the people and manpower involved in its business processes and ensures their safety by taking definite measures for it. Since the merger there have been many such events in which BHP Billiton came into news regarding socially responsible projects. In 2004 BHP Billiton joined Medicines for Malaria Venture in fight against Malaria. BHP Billiton pledged $750,000 to MMV . The basic purpose of this partnership was to establish a channel through which affordable and effective anti malarial drug would be developed and provided. The announcement was made at the Economic Forum's Africa Economic Summit. This would seem as a very socially responsible step. If we look at it globally Africa is the most mineral rich continent of the world and at the same time the spread of malaria and the deaths of children and adults from malaria is the maximum in this continent. So by doing this the corporation is benefiting the society it’s operating in hence enhancing its image and gaining the trust of its local employees. Also in 2009 it announced in papers an open opposition of new tax reform in Australia and explained how it will hurt Australia. By doing this it gained reputation as a concerned firm and earned PR aswell. It has also launched a program in UK based charitable company for helping communities by the name of BHP Billiton Sustainable Communities. On a three year rolling the company will contribute 1% of its pretax profits. The objective is to improve the living standard and make sustainable communities. Other measures and its visions are clearly defined on the company’s website. Which reveal in detail about the company’s motives and measures to resolve the issues it has identified for which its responsible to the community. The aims seem realistic and will contribute greatly to the global environmental condition reducing the rate of global warming and making it a globally socially responsible firm. REFERENCES: CSR IN PRACTICE. 2010. BHP BILLITON AND CORPORATE SUPPORT FOR INDIGENOUS COMMUNITIES. [ONLINE] Available at: http://www.csrinpractice.com/2010/05/bhp-billiton-and-its-support-of-indigenous-communities/. [Accessed -]. CSR WIRE. 2004. BHP Billiton Joins Medicines for Malaria Venture in the Fight Against Malaria. [ONLINE] Available at: http://www.csrwire.com/press_releases/22784-BHP-Billiton-Joins-Medicines-for-Malaria-Venture-in-the-Fight-Against-Malaria. [Accessed -] MALLEN BAKER. 2011. Definitions of CSR. [ONLINE] Available at: http://www.mallenbaker.net/csr/definition.php. [Accessed -]. Micheal Hopkins, M.H, 2007. Corporate social responsibility and international development: is business the solution?. illustrated. -: Earthscan. BHP Billiton. 2009. Sustainability report. [ONLINE] Available at: http://www.bhpbilliton.com/bbContentRepository/docs/sustainabilitySummaryReport2009.pdf. [Accessed -]. ARUP. 2011. Top 20 CSR companies in Australia. [ONLINE] Available at: http://www.arup.com/News/2011_02_February/Top_20_CSR_companies_in_Australia.aspx. [Accessed -]. Read More