Corporate Social Responsibility - Coursework Example

Corporate Social Responsibility Introduction An organisation is a unit of people which is structured and managed to meet the needs of the people, society or a globe. Organisations are meant to achieve goals therefore they cannot be run without people. It is for this reason that all organizations must put into considerations factors that will bring relationships between different activities and people for effective running of business. In this context, responsibilities, authority, roles and tasks must be clearly defined and assigned to the right persons who are best suited to perform them (Derek & Jane, 1994, p. 51). In addition, organizations are open systems and this implies that they can affect the people and the environment around them. Likewise environment can equally affect organizations bringing about changes in an organization structure. This project description therefore seeks to objectively reflect on theories, models and concepts relating to human behaviour. Also it will shed light on how such theories suggest how people relate in an organisation as managers and employees. Still, it will explore and identify the role that a Human Resource Manager has in execution of duties as dictated by policy and practice. Finally, the report will necessitate the acquisition of independent study skills which in turn promote critical reasoning, effective communication, Information Communication and Technology (ICT) skills, self-awareness and research skills. Corporate Social Responsibility Different organizations have different meaning of CSR as used in business environment. Each definition depends on the nature of work that the organization does. However, there is a reasonable common ground among those definitions. First CSR refers to how organisations manage their business procedures which aim at producing overall impacts positively on the society. This may involve interactive processes between the clients, society and the organization that will help to improve the livelihood of people in the society (Andrew & Mette, 2006, p. 182). Secondly, it is a continuous process whereby, there is commitment shown by an organization to contribute to economic development through proper cultivation of ethics. This way, the quality life of an organization’s workforce becomes improved. This by extension touches families, community and the entire society (Abagail, 2006, pp. 8). Thirdly, CSR can be defined as a way of capacity building to sustain livelihoods. It involves respecting cultural differences and making use of business opportunities to build the skills of employees and community by giving back to the society (Joachim & M, 2013, pp. 413-419). Out of the three definitions, the most appropriate according to this report is the last in the above list of three. The reason given in this report concerning the third definition is that organizations are supposed to pay back to the society after achieving their objectives. This is the only way through which they can earn a good reputation and stand a better chance to win more clients who will trust them. Using FTSE4 GOOD index, this report identifies British American Tobacco (BAT) as one of the best placed company to demonstrate these facts. The Company has made the following contributions the society: Participating in social responsibility activities like giving grants to people living in marginalised areas of the African continent to support their education. Giving assistance to farmers through improved irrigation farming methods and provision of fertiliser to ensure that they grow quality tobacco for increased yield. Contributing to development of local infrastructure especially the construction of good road network to feed all the residences of farmers including rural electrification. On the same note, there are some benefits that are associated with the above named policies .The benefits are realised by both the society and the organisation in question. Benefits to the Organisation There is increased innovation as the company tries to carry out research concerning marketability of their product. This helps an organisation to realise a larger market share due to close interaction with clients. Also, there is cost saving which enhances sustainability through cut cost. This report reflects on General Mills Company which reduced its energy cost by 20% following installation of energy monitoring meters. Still, CSR increases customer engagement in different ways since it is easier to introduce a new product into the market through effective communication (Hansen, Dunford, & Boss, 2011, p. 35). Benefits to the Society Ideally, CSR policy would literally function where business would embrace responsibility towards the society by participating in social welfare of the society. It is extended in form of community affairs, corporate responsibility, global citizenship, community relations, corporate societal marketing and philanthropy. Thus corporate social responsibility is all about how companies are able to manage their business processes to produce an overall impact that is positive in the society. The impacts are supposed to be realised by employee’s shareholders, stakeholders and the society at large. If an organisation chooses to clearly follow the way of CSR it will be able to integrate ethical concerns in its interactions and activities with its clients and its entire stake holders (Abagail, 2006, pp. 18). Flexible Working In this report flexible working refers to any of the working schedules that an organisation puts in place to enhance ease of working. It involves a wide range of working hours whereby this depends on type of job and employees capability. In short, flexible working differs from traditional permanent form of working which used to be rigid and would not allow for any change (Pettinger, 1996, p. 41). The different forms of flexible working are explained as follows: Numerical It where an organisation allows affirm to change rapidly to changing levels of demands .It is dictated by fluctuating levels of production within an organisation. The challenges faced by managers in this form are that they may be faced by stressful moment when seeking employees to fill vacancies required during business peak season. This can be avoided by early advertisement for jobs at the beginning of peak season. This form is common with Tesco Company which employs most people during Christmas. Functional Flexibility This is where workers take on other tasks in the work place rather than finishing and doing other work set for them. It is commonly practiced in food industry where workers usually multi task. For instance an employee will work on the till, put things in the bag and clean the work place. Managers are faced with the challenge of identifying the best suited employee for due elements of inexperience with the task itself. It is practiced by Sainsbury where employees have other commitments and they are still able to work. Temporal Flexibility This relates to variations in the number of hours worked for whereby arrangements are made in the type of flexibility which includes job sharing and career breaks. This permits employees to leave work for personal commitments. The challenges managers face is that an employee may request for permission abruptly leaving unfulfilled duties. This can be avoided by early notice in case employees face eventualities during working fays. It is common with companies that have capacity to alter working hours. Locational Flexibility This is where an employee works in one place but he can be asked to work from elsewhere .For instance, he can be asked to work from home. The challenge that managers face is that the manual skills of an expert working from outside may be urgently required at times. This is preventable by having several experts within the same organisation. It is practiced by Avon which allows employees to work from home. Financial Flexibility In this form, employees are provided with financial responsibility by being given rewards and other benefits. For example, giving bonuses for those who have worked well .The challenges faced by managers are that when an organisation is experiencing financial constraints, it may prove difficult to award employees heavily. This can be avoided by proper balancing of monetary rewards and prizes. This is practiced by companies such as Apple an American successful multinational that manufactures electronics. Literally, many organisations have different forms of flexible working in order to achieve the target objectives. This report also sites that firms do get concerned about the welfare of employees and their interest is when their employees work comfortably in the working environment. This implies that both employees and business are bound to benefit and feel motivated to work and in return provide excellent services to the customers (Daniel, 2009, p. 141). Equal Opportunities Although the two terms are used interchangeably at tines there is a clear cut distinction between the two terms as used in the working environment within a given organisation. Equality This is about creating a fair and equal opportunities for all at the place of work without prejudice and discrimination. In this case every person is encouraged to participate and he can deliver services that are healthier and diverse within the society. It is a quality of being the same where values and status are treated the same. This implies that people from weaker or smaller groups must be protected. It is in fact one of the human basic rights that each human should be entitled to (McKerlie, 1996, p. 274). It should seek to get rid of unlawful discrimination against harassment, victimisation and all uncalled for mistreatment. Diversity On the other hand, diversity refers to recognition of group and individual differences within an organisation. It literally means the state of having differences whether it is age, race, condition, belief, sexual orientation and gender. Diversity seeks to recognise value and respect the differences among people by trying to help them realise their full potential and by promoting a culture that is inclusive. Diversity seeks to rank individuals by their personality and character with less regard to gender, ability or ethnicity (Ayub, Aslam, & Razzaq, 2013, p. 642). In this respect, an organisation must use effective, objective and systematic approach if unlawful discrimination is to be avoided. This is done by ensuring that both recruitment and selection are done by reputable managers on the basis of candidate’s relevant technical knowhow, experience, capability and talent. At this selection stage, it is prudent to consider factual evidence by insisting on genuine occupational requirements. In applying this, the following three review measures should be put into practice during selection stage: Organisations should avoid discrimination during selection: It is illegal to discriminate on the basis of age, sex disability and colour this can be prevented by use of law courts. Selection reliability should be improved: This implies that the selection process should only measure what it is designed to measure this is in terms of job performance rating, avoiding content errors and avoiding inconsistency. Selection should meet validity requirements: This is by ensuring that tests are effective to applicants and judges. Recruitment During the recruitment phase, most organisations will opt to make use of aptitude test. This is a test that aims at predicting future performance of an individual in a given activity because it tests the ability of an individual to learn a given task. Aptitude tests form important tools when it comes to an organisation whose main interest in the employee is related to cognitive capacity. This is because the test is comprised of only one correct answer in a wide range and the employees can correctly solve all the questions asked. This way, managers are in a better position to tell which worker can learn more abstractly and recall past experience. Advantages of Aptitude Tests They are considered as effective and accurate way to gauge the strengths and weaknesses of the candidate this because they give feedback and evaluation of academic background. They are effective tools in new hiring and promotion. This is because they are more efficient than interviews and can be used to determine if a person is able to do job. Where an organization is concerned with several studies, tests are more accurate and effective in measuring the potential of candidates for success in the role of the job. This is because aptitude tests are standardized and as such it ensures a fair process because it is valid. Disadvantages of Aptitude Tests They cause cultural bias owing to the job and description, requirement because every time the test must be modified. In fact employees develop their capabilities and achievements through experience. This experience includes their social background, opportunities, education, and environment at home. All of these are bound to affect testing results for instance; most aptitude tests involve reading, which means that if a candidate lacks experience in reading skills, he will be at a disadvantage when taking the test. Similarly if the test is given in English, and that's his second language, he will equally be disadvantaged. Lack of perfect connection between performance and aptitude .This implies that having an aptitude for certain skill doesn't guarantee that a candidate looking for job will perform that skill to perfection. Performance may be affected by other factors including training, interest, and motivation. Aptitude tests are expensive to conduct. This is because they involve various tests other than simple interviews In relation to the above cited factors, a sample aptitude test would assume the sample provided below. The candidate should indicate their choices by clicking the appropriate button in the columns marked "M" for most and "L" for least. Remember there are no right and wrong answers. I am the sort of person who… Top of Form 1 A I try out new activities.   B I consider other people’s feelings.   C I like to understand the underlying theory. Bottom of Form Top of Form   M L 2 A I have highly original ideas.   B I am prepared to tell people if they are mistaken.   C I am modest about what I have achieved. Bottom of Form Top of Form   M L 3 A I conceal my feelings.   B I am nervous before big events.   C I review work critically. Bottom of Form Top of Form   M L 4 A I like meeting new people.   B I enjoy setting long-term goals.   C I usually feel relaxed. Bottom of Form Aptitude test can be evaluated and reviewed simply by using the steps illustrate below. Source (Shirsavar & Moosavi, 2012, p. 1945). Ranking orders involves selecting the top scorers as this acts as the most important approach. It is useful in that it attracts highly qualified candidates at times of low unemployment. Cut off score becomes the next option to admit candidates who get more tan minimum score. Finally, there is profiling which entails job specification which focuses on areas such as knowledge, skills, abilities, experience and personal qualities. Reward This refers to anything that an organisation gives to its employees in recognition of one’s service, achievement or effort. In regard to the Times Top 100 companies, this report chooses two companies namely British American tobacco (BAT) and Vodafone (Eaton & Brown, 2002, p. 284). British American Tobacco is a multinational tobacco manufacturing company with clearly define reward systems that meet the needs of its people. Its reward strategy involves: Rewarding achievement and contribution rather than tenure Simple but clear reward systems Regular feedback mechanisms to assess views on the rewards made to employees Greater choice of an individual’s benefit package Freedom of managers to influence pay increase of their staff On the other hand, Vodafone uses the following strategy: Recognition of employees by use of recognition e-cards, star awards and pioneer awards Flexible pension schemes where employees choose how much to use Allowing employees to shares but not with the money saved There is twenty eight days annual holiday for employees. The Towers of Perrin Total Reward Model is used in this report to demonstrate how rewards of the two companies relate to each other (Greenwald, 2004, p. 6). It is evident that from the above model, BAT has increased interest in individual rewards and benefits whereby, it places much interest in base pay, contingent pay and long term incentives. On the other hand, Vodafone has more interest in training, pensions, holiday, flexibility, health care despite better pay. The major reason suggested by this report regarding the differences in the two companies is that BAT is a firm that manufacture perishable consumable goods which may face vigorous campaigns against their use following anti cancer organisations .This makes it a bit rigid on some benefits such as holidays for its employees. On the contrary, Vodafone manufacture non perishables electronic gadgets which are highly used in all countries and therefore its profit margin can be large enough to permit more benefits and flexibility. Employees Engagement Employee engagement refers to an approach at workplace that is designed to see to it that employees are committed to their organisation’s, values, goals and that they are motivated to contribute to organisational success, and at the same time they are able to enhance their own sense of well-being (Williams, 2008, p. 40). In this connection, employee voice refers to the employees’ participation in influencing decision making of an organisation. Employees should be given a voice through formal and informal means to reduce conflict, encourage staff retention  and improve communication through improve communication, motivation and decision making. The other meaning for employee voice is that it is a two way form of communication between employer and employee. This is the process of the employer communicating to the employee as well as listening and to communication from the employee. This is of great significance in the current economic climate as it promotes strong authentic values which create clear evidence of fairness and trust. It also leads to increased performance and productivity. In addition to this, managers must choose the most appropriate type of communication to use. Two major forms of communication are used. The upward downward communication involves flow of information from the manger to the subordinates and vice versa. It is advantageous in that managers get feedback from subordinates who are immediate. Also, there is mutual trust between employees and managers and it ensures every person is working towards the set goals. Furthermore, participative communication involves contribution by all members in decision making. It has advantages such as quick solving of problems, poor people’s views are elicited to shape plans and small scale surveys can be done on regular basis. To this end, this report further looks at M&S and how it communicates with its employees. It has known how to communicate its employees by observing code of ethics by employing the following policies: health and safety policy and anti-bribery policy. It prefers to communicate with employees through democracy. Training and Development Training involves learning new information and reinforcing existing knowledge and skills while development revolves around building the capacity to achieve and sustain a new desired state that sustains and organisation and community (Fail, Anal, & Preven, 2013, p. 478). For this to be successful the organisation must look the elements of the training cycle which include: Target group which involves identification of a problem, identification of the target group itself, and determining population and its existing level of its awareness. Training needs assessment which involves determining existing level of performance and behaviour. It also involves data analysis and compilation. Training design is the third element that involves setting objectives, finalising content and creating training modules. The fourth element is the pre – training preparation which involves the confirmation of participants, budgeting and logistic arrangements. Also there is training delivery which is concerned with opening of the programme, maintaining continuity of learning and documentation. The last two steps involve evaluation and follow up respectively. Evaluation may take the form of mid tern evaluation, long term evaluation or impact assessment while follow up is done to make any necessary correction. Once the above have been achieved, it is possible for universities to use one of the three evaluation methods suggested below: Performance observation Training evaluation forms Pre tests evaluations and post tests evaluations These evaluation methods are effective as they facilitate the university to know the extent to which learning programme has been successful. Ideally all the elements of evaluation are built on these methods. Staff Retention Staff retention refers to the ability of an organisation to provide good and favourable working conditions that will enable its employees to meet their needs and therefore remain loyal and fully committed to that organisation. It is affected by issues such as: Compensation This report considers compensation as one of the largest factors for the retention of employees. Compensation plays significant role in attracting and retaining good employees like those whose performance is outstanding or unique skill which is indispensable to the organization because organisation invests much money on their orientation and training. Career Advancement Opportunities Career advancement is a phenomenon which is organized, formalized and planned effort to accomplish the balance between requirement of organization individual career needs and workforce. The rapidly rising awareness makes it evidence that employees can give up on an organisation that lacks future career prospects. Supervisor Support The leadership style is an effective factor in employee retention. The relationship between supervisor and worker play important role in employee turnover intention. Forinstance, employees may not want to be supervised by an autocratic leader as they may feel oppressed. Recommendations . Provide financial incentives to employees such as bonuses, raises, and stock options. Consider hiring a human-resources manager if your company has 100 employees and above. Sensitize employees on what’s expected of them and how to develop them within your company. Offer a competitive benefits package, including health and a good retirement plan. To conclude, this report uses BAT as an example of organizations that have successfully managed their staff through by use of similar strategies. Forinstance BAT has been using a five phase approach to retain its staff (Wood, 1992, p. 297). This approach involves identification of business advancement team, developing survey instrument, opportunity identification, maintenance and public relations. It is therefore prudent to relate people with organization to meet the desired objectives. References Abagail, M. (2006). Strategic Implications. Journal of Management Studies, 43(1), 1-18. Abagail, M., S, S. D., & M, W. P. (2006). Strategic Implications. Journal of Management Studies, 43(1), 1-8. Andrew, K., & Mette, M. (2006). reconciling aspiration with application (1st ed.). London: Palgrave Macmillan. Ayub, A., Aslam, M. S., & Razzaq, A. (2013). Diversity. Journal of Contemporary Research In Business,, 4(12), 642. Daniel, F. (2009). Open innovation in the financial services (1st ed.). NewYork: CRC Press Inc. Derek, T., & Jane, W. (1994). Effectve Management (2nd ed.). NewYork: Prentice Hall. Eaton, J., & Brown, D. (2002). Career Development Internationa. Reward journal, 7(5), 284-287. Fail, J., Anal, & Preven. (2013). 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