Corporate Social Responsibility Strategy of Hennes and Mauritz - Coursework Example

CORPORATE SOCIAL RESPONSIBILITY strategy report al Affiliation) Executive Summary Hennes & Mauritz is one of the biggest retail shops in the world which has established itself to a near monopoly status in the society dealing in cloths. It has spread its reach and tentacles around the globe due to the fact that quality and variety are its benchmarks and irreducible minimums. In the line of business, there are other factors and circumstances that ought to be considered other than the role of making profit and it is the notion of Corporate Social Responsibility. H&M has continues to pursue policies and principles of CSR as a moral imperative and part of the larger mandate to help humanity. Accordingly, H&M spends resources both financial and human to facilitate programs and ideals which are not principally profit making but touch the lives of people and leave a lasting impact on them. They include engaging in activities and outreach programs which would meet the society in their various points of need as would be identified in various points in time. Six chore characteristics of CSR Managing Externality This is a phenomenon where the business seeks to cover the negative effects occasioned to the environment and the society at large upfront to avoid an even larger effect in subsequent times. It could come in the form of environmental protection and conservancy such as H&M providing seedlings to be planted for future benefits while being alive and cognizant about current costs and risks or threats. (OConnor & Shumate, 2010). For instance most multinational are guilty of environmental degradation and pollution which is a negative externality and a direct cost to the immediate environment. Therefore, the immediate community would form a negative perception and bad will towards such a company. However, the case is different in H&M because protection and conservancy is their core mandate in endearing their product to the local community. Therefore, it is part of H&M to appeal to the local community by taking care of the environment Beyond philanthropy Is the instance where companies such as H&M choose to share their abundance with the less fortunate people in the society by articulating and covering their needs and shortcomings (Dean, 2014). Intuitively, the business also markets themselves in the course of the corporate social responsibility. Apart from creating employment for the disabled H&M provide discount offers to disabled community. The aim basically is to show appreciation and concern to people with special needs. H&M has also invested in programs that create awareness of people with special needs. For instance, H&M buys wheel chairs and white sticks to the less privileged in a way of ensuring that they also feel part and parcel of the human society by living comfortably and with dignity. Practices and Values At the minimum is concerned with the societal principles and good practice methods that a firm can help to inculcate to the general society by way of indoctrinating them into their beliefs and operations. For instance the notion of gender equality and rights of the minority groups such as the special needs persons. Gender equality is a fundamental aspect of social responsibility. H&M Company intends to promote equality by giving men and women equal employment opportunity. Currently, the company workforce comprise of 36% women. By the end of the year, the company intends to raise number of women to 48% in its workforce. Additionally, H&M intend to create executive position that will be reserved for women and people with special needs. (Remmé, 2015). People with disability also have a stake in the company, in that the company has also reserved certain positions for people with disability. In retrospect, some work portfolios which are preferred for the people with special needs and abilities notwithstanding the output and productivity. It is common knowledge that the disabled or the special need people go through a lot of stereotypes in their lives and in work places is no exception. In H&M, it is part of their policy to recruit person with special needs so as to have a full representation of all the people from the society since the disabled people are part of the human society. Social and Economic Alignment Refers to a phenomenon where a company strategically places its operations and affairs at the disposal of the customer so as to win their loyalty and long term interest or loyalty. H&M focuses on building customer trust by providing quality products, maintaining the required safety standards as well as the integrity of the products. Providing relevant information in the labels allows the customer to make a choice on the product that beneficial to them (Baden, Harwood & Woodward, 2009). The organization business is a fundamental aspect of social responsibility. Maintaining a strong supply chain is crucial for the organization business Voluntary In principle refers to the instance where a firm freely offers to give its services and input to program of zero profit but which will have returns on the society. H&M as a company has volunteered to help countries and people achieve economic independence and growth so as to live better lives in good standards of humanity. In order to appeal to the good natural sense of the local community, H&M endeavors to initiate seminar and learning workshops so as to enlighten the local community on how to make the woven baskets given the fact that H&M has the capacity and institutional ability to manufacture high quality woven baskets it purposes to share the skills with the society. At the long run the people will have been empowered to manufacture the woven baskets and sell them to H&M which means that the company volunteered their knowledge and expertise freely. Multiple Stakeholder Orientation Is where all the pertinent or direct stakeholders of a company are engage in a joint activity which would benefit all of the parties equally. H&M has stepped up its corporate duties by providing open days where health issues are articulated. This is to say that they have sponsored free health clinics and days where they hire medics to do check-up for the locals and the society by extension free of charge. It is important to note and mention that a healthy society is a wealthy society and therefore the instant H&M embarks on the role of proving free medical aids and checkups then the society would be covered and healthier (Sharma & Khanna, 2014). Tentatively, the health clinics are usually open to people of all ages and spheres of life and the checkup given is covered in terms of cost by the H&M. In principle, H&M takes the first step in ensuring that the people are healthy and that they take charge and cognizance of their health as much as it is not in the line of operations of H&M as a company. Theoretical perspectives of H&M as part of their broader CSR 1. Instrumental theory and perspective This is the instance where H&M considers its market share and the competitive edge it would achieve by employing a productive and sound CSR. In the endeavor, it has managed to employee proper environmental programs which would endear the firm to the locals and the customers by extension by ensuring that it utilizes the environment well and under no circumstance it is adjudged guilty of environmental pollution. 2. Ethical theories and perspectives relative to the H&M CSR strategies At best encompasses the principles and ideal of protection of civil liberties and human rights by the governments and the people of the society so as to ensure that freedoms and basic rights are protected. In Sweden, companies are required to respect the human rights of all people both the employees and the public. The companies encourage to uphold the guideline provided for OECD countries. H&M operations are in accordance to these guidelines as they strive to improve the welfare of the public. The company plans to initiate a program that focuses on promoting wages. Currently, H&M has joined the Fair Wage Network, a sustainability program that bring together other clothing retailer with an aim of promoting fair wages around the globe (Farooq, Payaud, Merunka & Florence, 2014). For the company to keep up with such program it plans to review the wage structures in a number of its stores locates in low income areas such as in Bangladesh and India (Van Aartsen, 2014). In this respect, H&M seeks to partner with likeminded organisation to devise ways and means through which the less developed economies would achieve economic growth and independence. This would be achieved through establishing mechanism such as encouraging them to embark on small and medium enterprises so as to achieve economic independence. Just as the old adage goes that to be forewarned is to be forearmed, H&M endeavors to enlighten the whole society on the benefits and their inalienable or fundamental rights as people. Once a person knows that it is their right to choose how to worship, where to shop or the basic freedom of life, such a person would be well equipped to live in the human society freely. For instance, H&M has purposed and laid elaborate plans and programs to ensure that the schools and institutions of higher learning have specific and special days in their curriculum where there are taught about basic human rights and freedoms. H&M covers the cost of the facilitators and the legal trainers and the sole role of the students and the universities by extension would just be to avail themselves and learn. Subsequently, the company also stands as a model employer by encouraging its staff members to work in their subsidiaries and branches in a free manner and join trade unions of their choice. In the long run, H&M will expand its global reach of these program and thus improve the wellbeing of a considerable number of people. For instance, at the current dispensation, it supports and finances most rights awareness programs around the world especially in countries where the voice of the workers is suppressed. It has laid down articulate and elaborate plans to sponsor and coordinate with the civil rights movements and activists by manufacturing and printing for them quality banners and clothes which they would in turn use in the demonstrations and activism. Intuitively, it encourages the global society as a whole to raise their voices and concerns in times of suppression and difficulties especially where and when civil liberties are suppressed. Strategies employed by H&M in ensuring that it score well in CSR perspective and approach Purely ethical: refers to the situation and instance where the company or firm engages in activities on the basis of moral ground and foundation. For instance when H&M is considerate to diversify its operations to environmental conservancy and protection, it endeavors to act right in the age of global warming. It is needless to mention that H&M forms part of the global citizenry and that its actions or existence would be harshly if did not take part or any meaningful action to help preserve the natural environment. Purely economic: H&M as any other rational business aims at making profit thus the fact they are involved in capacity building and creation of enabling environment strategically positions it to enjoy economic returns. For instance, when they help less developed countries achieve higher economic growth is a preparation of future plan to establish businesses in those areas in the foreseeable future. Purely legal: refers to the concept where a firm or a company pursue and fulfils al the requisite r necessary requirement to ensure that it complies with the legal framework and the constitution. For instance, it is a requirement that the workers be allowed fair and proper working environment, working conditions and fair remuneration for their services. Thus by fulfilling these demands H&M meets the legal requirement to that extent. Stakeholder maps and positions Naturally, encompasses all the interest groups and people who may either benefit or loss due to the activities of H&M as an organisation. Intuitively, the suppliers, the customers and the staff members or the employees of H&M are the primary benefactors. However, when the scale of involvement is expanded, the list would include the government which acts as the primary custodian of the legal instruments by delineating the legal frameworks and rules. Thus, the operations and actions of H&M directly revolves around the actions or reactions of the government relative to policies. For instance, if the government puts in place a law prohibiting importation of cotton, it would deal H&M a blow since most of the cotton they use in production comes from imports from other countries. In principle, the government is the sole custodian of the working environment relative to rules and laws of operations such as how many people may be employed, the level or amount of taxation and other polices which directly affect the processing and selling of quality cloths by H&M. Customers cannot also escape attention when discussion this concept since they are the receivers of the cloths sold by H&M. If the general tastes and preferences or trends of the customer shift from the tradition or classical cloth line of H&M then it would mean direct losses and no business. In principle, the customers are the biggest stakeholders in the lifeline of the operations and business endeavors of H&M, since they are the direct determinants of whether the business would continue to operate or not. Recommendations of H&M CSR strategies Ecological role 1. Provide seedlings for plantation to cover environmental pollution in phenomenon called factoring in the negative externalities. Thus, H&M goes upfront to put in place mitigative measures to cover for environmental protection as a precautionary step on behalf of the global citizenry and community 2. Proper refuse and waste disposal in their systems and companies so as not to give the locals community any reasons to hate their business. It also acts as a model to other SMEs and businesses in encouraging them to preserve the environment and dispose their wastes efficiently 3. Conduct seminars and workshops so as to raise the awareness of the society on matters environmental. It would ensure that the people would be equipped with knowledge and the know-how to preserve and protect the environment under different instances. 4. Provide loans and grant to viable parties to better their financial or economic impetus thereby increasing their actionable capacity to act. Loans and grants given to interest groups such as youths and people with potential to help them realize their dreams. Enhancement of social welfare 1. Better pay for the workers of H&M so as to enable them to live comfortably off their wages. It is critical to go the extra length to ensure that workers are pensionable, insured and live comfortably from their proceeds at the place of work 2. Better working conditions such as flexible hours and humane terms of employments. This ensures that the workers would not be summarily dismissed for instance without due process being followed. 3. Encourage its worker to join trade unions and organizations so as to articulate for their issues and rights in case the need arises 4. Manufacture quality cloths and sell at affordable price cognizant of the economic situation of the customers through subsidies. Thus, going extra mile to ensure less privileged customers have access to quality clothing at pocket friendly price. Role of recruitment and retention of employees relative to the perspective and notion of CSR 1. H&M ought to provide good working conditions for the staff member such as competitive pay 2. H&M ought to uphold rule of law and recognize employee rights and civil liberties 3. Encourage empowerment where minorities and interest groups are allowed chance and opportunities to speak their minds 4. Redistribution of the scales of income and allow for fair and workable wage able to sustain the workers comfortably. Conclusion The above essay has articulated the concept and general notion of corporate social responsibility as conducted by H&M. it has specifically outlined and focused on the environmental, human right, gender equality, place of the special needs people in the society and encouraging people to live in better conditions. This is critical since the lie of operation and duty of H&M is clothing and thus for them to diversify and extend their reach to a different area due to societal concern is plausible. The irreducible minimum as articulated is that the company has endeavored to encourage more people to observe environmental conservancy aspect as a matter of priority and deep concern. Similarly, it endeavors to increase awareness and the place of the women and the special needs people by providing an enabling environment and society where they would feel comfortable. For example in the case of the special needs, it provides wheelchairs and white sticks to the less privileged and thereby ensure that they are able to live more comfortably in the society. It is also important to note and mention that H&M plays a particularly critical role in ensuring that the bright and needy students in the society are considered in terms of their tuition fees so as to give them potential to explore their potential and abilities. References Baden, D. A., Harwood, I. A., & Woodward, D. G. (2009). The effect of buyer pressure on suppliers in SMEs to demonstrate CSR practices: an added incentive or counter productive?. European Management Journal, 27(6), 429-441. Dean, H. (2014). Life-first welfare and the scope for a “eudemonic ethic” of social security. Deconstructing Flexicurity and Developing Alternative Approaches: Towards New Concepts and Approaches for Employment and Social Policy, Abingdon: Routledge, 152-72. Farooq, O., Payaud, M., Merunka, D., & Valette-Florence, P. (2014). The impact of corporate social responsibility on organizational commitment: Exploring multiple mediation mechanisms. Journal of Business Ethics, 125(4), 563-580. OConnor, A., & Shumate, M. (2010). An economic industry and institutional level of analysis of corporate social responsibility communication. Management Communication Quarterly, 24(4), 529-551. Remmé, J. H. (2015). Corporate Social Responsibility in the Netherlands. In Corporate Social Responsibility in Europe (pp. 93-123). Springer International Publishing. Sharma, J. P., & Khanna, S. (2014). Corporate Social Responsibility, Corporate Governance and Sustainability: Synergies and Inter-relationships. Indian Journal of Corporate Governance, 7(1), 14. Van Aartsen, C. (2014). 13 The free market myth and its influence on corporate social responsibility. The Role of Law and Regulation in Sustaining Financial Markets, 322. Read More