Corporate Social Responsibility - Term Paper Example

? Corporate Social Responsibility Table of Contents Introduction 3 Discussion 3 Conclusion 6 References 8 Introduction Corporate Social Responsibility endorses a significant business accountability vision to a broad range of the stakeholders besides several investors and shareholders. Leading global organizations around the globe are trying to implement several unique business strategies in their business operation in order to secure their market share. The organizations are implementing several aggressive strategies in this competitive global business market to maintain their financial stability (Brejning, 2013, p.76). However, several unethical business practices and in-adequate corporate governance are the major consequences of aggressive business strategies. The organizations are trying everything in their business to avoid the critical threat of intense industry rivalry. These are creating huge legal challenge for the organizations. Governments of several developed and developing countries are trying to develop legal policies in order to restrict the business firms. This essay will evaluate several contemporary issues in corporate social responsibility in global business environment. Discussion Wellbeing of employees, civil society, community and environmental protection are the major areas of concern. The concept of corporate social responsibility is underpinned by the specific idea or principle that the organizations around the globe cannot act as the isolated economic units operating in the detachment from the broader society. Traditional and old views about survival, profitability and competitiveness have been swept away through the concept of CSR (Fukukawa, 2011, p.121). In the past, the governments of the developed and developing countries strongly relied on the regulation and legislation to deliver environmental and social objectives in the competitive business sector. Recoiling government resources, integrated with the regulation’s distrust has guided to the exploration of non-regulatory and voluntary initiatives. Growing demand for the corporate disclosure from the stakeholders including suppliers, employees, investors, communities, activist organizations and customers are pushing business towards the CSR initiatives. Recently several investors are changing the way of the performance assessment of the organizations. Investors are making their investment decisions based on various criterions that include ethical concerns. According to the report of social investment forum, more than 2 trillion US dollars valued assets invested in the portfolio linked to the social and environmental responsibility. The organizations are trying to maintain proper business ethics in their business practices in order to motivate and attract the shareholders and investors. In addition, employees within the organization are increasingly looking beyond several employment benefits. Effective and skilled employees are the strongest asset of an organization. Therefore, it is important for the organization to retain skilled, experienced and effective employees. The organizations are trying to motivate their employees by providing employment benefits and taking care of their professional and personal needs. In this competitive business environment it is important for the organization to retain skilled employees. Moreover, the organizations are trying to maintain effective relationship with the suppliers. Several business owners and stakeholders are introducing codes of conduct for their existing suppliers to follow the business operation in effective socially responsible manner. It has been found out that several organizations do not want to provide accurate financial information about the organization. This concept can affect the business performance of a business in the near future. The organizations need to provide accurate financial statements and maintain effective corporate governance. Transparent financial disclosure will help to motivate the investors to make their investment decisions (Carne, 2008, p.45). The global organizations are trying to increase their business profit margin through aggressive business. High energy consumption and burning of fossil fuels are increasing the level of carbon emission. Moreover, extensive use and high consumption of natural resources is resulting resource. Therefore, the governments of several developed and developing countries are trying to develop several sustainability policies for the business organizations (Werther and Chandler, 2010, p.129). Organizations are trying to reduce the consumption level of natural resources and energy resources. They are trying to maintain zero solid waste and water recycling to increase their brand reputation in global market place. Moreover, the government of the countries are trying to motivate the organizations to reduce the level carbon emission. The organizations are introducing fuel efficient logistics trucks in their business operation to reduce the level of pollution. It will help the organization to bring sustainability in their business operations. Health and safety workplace is considered as the major growth driver for an organization. It is important for the organizations to provide effective, safe and environment friendly working conditions to their employees (Humanrights, 2013, p.1). Violation of health and safety law can create several legal challenges for the organization. It is true that few organizations do not review their machineries and working conditions for a longer period of time in order to reduce operational cost. In adequate monitoring, maintaining and reviewing of working condition and machineries can result serious workplace hazards. Moreover, several organizations deny paying compensation and appropriate job opportunities to these disable employees. In this case, the employees or the family members of those employees cam file a legal case against the organization. In this case, the court and government have all the right to take legal action against the organization. Moreover, the organization can lose their reputation in front of their shareholders and investors regarding this issue. Therefore, the global organizations are trying to maintain and follow OSHA acts in order to avoid legal employment issues and challenges. The organizations need to implement green business strategy in order to overcome environmental challenges (Longstaff, 1998, p.1). Moreover, they should try to provide effective employment benefits and opportunities to the employees to maintain significant workplace environment. Recently, several leading organizations are initiating several CSR activities in order to minimize the threat of legal and environmental challenges. Providing employment benefits and opportunities, maintaining water recycling and zero solid waste, disclosing appropriate financial statements and can develop several potential business opportunities to the organizations. Effective corporate social responsibility can improve the financial performance of the organization. It reduces the business operation cost. CSR enhances the brand reputation and brand image of an organization in global market (Rang, 2011, p.9). In addition, the organization can increase its productivity and quality of products or services through maintaining sustainable business practices. It helps the organization to attract and retain more number of customers and employees respectively. Significant access to the resources, effective workforce diversity and effectual product safety can enhance the business performance and brand reputation of the organizations. Conclusion Effective corporate social responsibility can provide benefits to both the community band environment. Moreover, effective CSR increases the brand image of an organization in global market. Organization can do charitable contribution through CSR activities. Several employee volunteer programmes will help the organization to increase its brand awareness in competitive global market place. Corporate investment in education, community and employment will help the organization to build strong relationships with the government, stakeholders, and all the shareholders or investors. Effective CSR activities help the people or employees to work under a favourable work environment. On the other hand, several environmental benefits can be attained through the effective CSR strategies (Murray, Poole and Jones, 2006, p.208). Water recycling process helps the organization to provide several environmental benefits. Limited water consumption maintains effective ecological balance. Moreover, reduction of contemporary issues associated with CSR provides better product functionality and durability. Effective integration of several environmental management tools, such as costing, life-cycle assessment, eco labelling and environmental management standard can help the organization to reduce the level of carbon emission. Greater use of renewable resources helps all the animals to utilize the natural resources in order to fulfil their needs. References Brejning, J., 2013. Corporate Social Responsibility and the Welfare State. London: Ashgate Publishing. Carne, A., 2008. The Oxford Handbook of Corporate Social Responsibility. London: Oxford Handbook. Fukukawa, K., 2011. Corporate Social Responsibility. London: Routledge. Humanrights, 2013. Corporate Social Responsibility. [Online]. Available at: . [Accessed on August 7, 2013]. IISD, 2013. Corporate Social Responsibility. [Online]. Available at: . [Accessed on August 7, 2013]. Longstaff, S., 1998. The Ethical Dimension of Corporate Governance. [Online]. Available at: < http://www.ethics.org.au/ethics-articles/ethical-dimension-corporate-governance>. [Accessed on August 7, 2013]. Murray, P., Poole, D., and Jones, G., 2006. Contemporary issues in Management and Organizational Behaviour. London: Sage. Rang, T., 2011. The Strategic Importance of Corporate Social Responsibility. Stamford: Cengage Learning. Werther, W., and Chandler, D., 2010. Strategic Corporate Social Responsibility. London: Routledge. Read More