Corporate Social Responsibility in the Global Business Community - Assignment Example

Corporate social responsibility in the global business community Introduction Corporate Social Responsibility (CSR) is a practice in business that involves participating in initiatives that are beneficial to the society at large. The corporate social responsibility (CSR)concept is emerging into a light with the introduction of liberalization and globalization. However, with promoting the Corporate Social Responsibility (CSR) concept locally and globally, it becomes very essential to understand about entrepreneurs’ in business opinions about the concept, and this is because they implement it. The global market scenario is changing. Also, it changes the business entrepreneurs perception towards business and society. Today, business is not just about profits, but it is more about profit sharing with society and employees (Kiran & Sharma, 2011). The majority of the world-renowned firms and organizations, for instance, the world bank, as well as European Commissions are mostly actively promoting and supporting the concept of Corporate Social Responsibility. However, Modern corporations attempt to put significant focus on the politics, economy, and the society of a country (Baxi, 2006). Perhaps, the developing nations are supposed to focus more on the Corporate Social Responsibility implementation and from the planning process. In addition, they can form alternatives to lifting the development of the social sector, and a suggested way is to develop viably and strategized public-private partnerships. Currently, the greatest challenge for most governments is on how to create Corporate Social Responsibility practices policies aa well as nurture a framework that is durable and would assist society and companies to translate the public policies to deliverables (Kiran & Sharma, 2011). Therefore, the paper focuses on defining CSR, identifying a global business that implements a CSR strategy, explain why, how, and where the global market they implement their strategy. The overall objective of the paper is to get a better understanding of how and why global companies are becoming more responsible. The paper also include the interpretation and conclusion. Global Business that Implement CSR Strategy Nestle is one of the global renowned and largest, beverage and food companies. Nestle is a very old organization that started its activities almost 130 years ago. Its key success is innovations of its product. Alongside with its innovative capabilities, its brand business acquisitions that have made it be the large food firm all over the world. However, with time the passing, the Nestle company has swiftly grown and penetrated into the production of soups, chocolates, coffee, frozen products, cereals, mineral water, yoghurts, and other different food products. In the year 1921, Nestle constructed its first factory countries that were still developing (Ravi & Sharma, 2011). For it the success, Nestle partnered and worked with the farmers, assisting them to be successful and productive so that they can supply milk of high-quality, coffee, as well as other raw materials. Currently, Nestle’s milk region in Brazil is very big than even the nation of Switzerland. It has, made a great difference in the development of economy and improving the standards of living for the regions farmers as well as their families(Ravi & Sharma, 2011). In the year 1962, Nestle needed to penetrate the Indian market and they received the permission of the government’s to construct a dairy factory in the northern part of Moga. However, the level of poverty in the district was severe, and the majority of people did not have electricity, telephones, transportation, or even access to medical care. As a matter of fact, a farmer-owned five acres or less of infertile and poorly irrigated soil. Majority kept one buffalo cow that was producing adequate milk for consumption at home only. However, Nestle’s chain of value, derived from the firms origins in Switzerland, only depended on an establishment of local sources of milk from a big and, diversified small farmers. Nestle established chain value in Moga and needed Nestle to transform the context of competition. Therefore, this formed tremendous shared value for both the region and the company. Nestle went on to construct a dairies that were refrigerated as collection stations for milk in every town and also had to sent their trucks to the stations to collect and deliver the milk(Ravi & Sharma, 2011) . Currently, Nestle purchase milk from most farmers of more than 75,000 in the district. However, as the quality keep on improving, Nestle pays high prices to milk farmers than even those that have been set aside by the government. Today, the region of Moga has a higher standard of living more than even other areas within the vicinity. The commitment of the Nestle to work with small farmers is key to its strategy. Therefore, through this means Nestle had invested heavily in order to strengthen its chain of supply and found means to tie needs of the local as well as opportunities to its objectives (Ravi & Sharma, 2011) . Interpretation There is a consensus that, nowadays, firms have started to grasp the essence of putting Corporate Social Responsibility into practice in order to enhance their share of the market, as well as their reputation in a market. Therefore, this could be inferred that, soon in the coming future those corporations would survive or remain in the markets or those who have already gained the society goodwill. Hence, the corporations need to work in a more seriously manner on the implementation of Corporate Social Responsibility practice. The business firms or organizations seriously plan and implement Corporate Social Responsibility (CSR) dominate the market and have a position. Either a local or multinational firm changing perception of philanthropy to the social responsibility would enjoy the bigger share of a market (Kiran & Sharma, 2011). However, if the corporates implement Corporate Social Responsibility practices, they would get many business partners, and this would provide them with new opportunities in business. Moreover, it is a factual that organizations with a social image that is good would enhance their global reputation and minimize the need for regulation interventions by the shareholders or government. However, the enhanced reputation of the organization would even attract number of customers that would increase the sales of the organization’s, and the organization would more profits. Corporations would also be in a position to reduce risk through enhancement of their reputation, improving themselves with business opportunities, cutting costs, and also making good relationship with key stakeholders (Kiran & Sharma, 2011). Conclusion It can be concluded that, due to liberalization and globalization, Corporate Social Responsibility practices are becoming more important in order for a company to survive. Foreign and multi-international companies are adopting Corporate Social Responsibility practices at high levels, and clients prefer to purchase their products more compared to national/local organization products. Also, it can be stated that following the example of a company like the Nestle, the organizations can form a shared value by adopting the success of Corporate Social Responsibility. The Corporate Social Responsibility (CSR) model would assist business corporations to develop more, enhance the progress of a society, and as well all sectors to flourish and improve. Therefore, it can be inferred that through an adoption of CSR practices, corporations would be able to enhance their social image and market reputation. Additionally, it can be concluded that, if the business entrepreneurs are implementing the Corporate Social Responsibility (CSR) practices, they will gain partners in business as well as new business opportunities. However, an organization’s best social image would enhance its reputation and assist in reducing regulatory interventions employed by government and shareholders. Enhanced reputation would attract even more and more customers that will reduce risk and increase profits due to the enhanced reputation, good social image and with new opportunities in market; Finally, it would assist organization to cut costs and make good working relations with the stakeholders. This have been proved with a help of the case study of Nestle company (Ravi & Sharma, 2011). References Baxi, C.V. (2006). Corporate Social Responsibility Concepts and Cases: The Indian experience. Excel Books, New Delhi, 23-47. Kiran, R., & Sharma, A. (2011). Corporate Social Responsibility: A Corporate Vision. International Journal of Contemporary Business Studies, 2(3), 58-68. Ravi, K.,&Sharma, A. (2011). Corporate Social Responsibility: A Corporate Strategy for New Business Opportunities. Journal of International Business Ethics, 4(1), 10-15. Read More