Global Biz Environment - Article Example

Global Biz Environment Article #11 Corporates social responsibility (CSR) is one of the contemporary trendsin the 21st century that has turned out to be a major source of business opportunities and innovations. CSR has also become a major strategy that has given many business organizations an upper hand while competing with their rivals. Corporate social responsibility is a broad phenomenon, which involves all matters concerning environmental conservation, taking good care of the society, employees, as well as all the stakeholders in general. It is however very unfortunate that instead of some corporates minding the wellbeing of the society, they have ended up being the foremost parties that are harming the society. Some companies in the developed countries have been blamed for producing unhealthy foods that have ended up contributing to obesity among other nutritional ailments as discussed in the article. Moreover, some companies like Nike and Shell Oil among others have been forced to be socially responsible only after experiencing intense pressure from the public, NGOs and states governments. With this regard, measures have to be put in place by many states governments together with other watchdogs in ensuring that such organizations are pressurized enough so as to engage in activities that are friendly to the environment, society, and employees among other parties. However, the article reveals that despite the fact that some companies have only been forced by circumstances to be socially responsible, CSR as a trend has been gaining popularity in the 21st century. Despite the fact that CSR has been gaining popularity at a high rate, there has not been any universally acceptable strategy or framework of measuring the level at which organizations are socially responsible. Companies only publish what they had engaged in the past years, which at times is completely irrelevant to their operations. Companies should be indicating their contribution in reducing pollution, wastes, and carbon emissions among other important aspects. There are four justifications for corporates social responsibility (CSR) namely moral obligations, license to function, reputation, as well as sustainability. Under the element of moral obligation, business organizations have to be good citizens and do the right thing as per the expectations of the society and country’s laws governing citizens and business organizations. For instance, in the USA, Business for Social Responsibility, a major nonprofit organization urges businesses to be achieving their successes in manners that are ethical and respect communities, people and the environment. Sustainability on the other hand dwells on business organizations being good stewards of the environment. According to the article, organizations can also be philanthropic by supporting community-based programs that are concerned with taking care of the environment. The element of licensing involves the various legal requirements that companies are supposed to meet before they start operating. In addition, business organizations also justify corporate social responsibility initiatives with the element of reputation that revolves around companies creating good public images by being socially responsible. CSR also involves corporates being accountable to all the stakeholders by even ensuring that their annual reports are prepared in a faithful and honest way. In general, the article emphases on the need of integrating business organizations with the society whereby both parties are supposed to be beneficiaries. On one side, business organizations need a healthy and productive workforce that can only be achieved by investing into the society by supporting community projects like building schools, hospitals, and offering them equal opportunities among others. Safe working conditions and safe products attract customers on top of reducing the internal cost of accidents while efficient utilization of land, energy, and water among other resources makes organizations more productive. A healthy society that has a purchasing power increases demand for the products manufactured by organizations in the neighborhoods. This means that business organizations have to be socially responsible to the society, environment, employees, states, the international community, and all the stakeholders in general. In conclusion, it is very unfortunate that some companies have only been forced to be socially responsible by circumstances that include intense pressurization by governments, NGOs and the public. This means that state government and the public have an obligation of ensuring that business organizations engage only in acceptable activities and that they should be in the front line towards pressurizing for corporate social responsibility. The UK government move to make listed companies (public companies listed in the stock market) to be indicating in their financial reporting how they have been practicing CSR is a commendable move and other governments should put similar measures. Organizations have to be good citizens and hence should be engaging in the right things even where the law does not specify. Business organizations should integrate with the society and support them in all possible ways. Article #12 This article highlights the need for incorporation of corporate social responsibility (CSR) by business organizations. This article is about five companies namely Royal DSM, SouthWest Airliners, Uniliver, Broad Group and Potash Corporation that were voted for being the best companies with respect to practicing CSR. Corporates engagement in CSR activities has proven to be of much benefit not only to the above-mentioned companies, but also to other business entities. Becoming socially responsible has turned out to be one of the most effective business strategies that are giving many corporations an upper hand in highly competitive business environment. Practicing CSR is no longer an unnecessary cost as many used to view it a few years ago. The article proves that doing the right things does not interfere with the bottom line imperatives of an organization. Royal DSM, a company based in Netherlands is among the companies that were highly voted for being socially responsible. The company was initially producing petrochemicals and plastics though it has introduced new lines of products in the recent past. Currently, the company produces nutritional enhancements, energy effectual building materials, and pharmaceutical elements. Royal DSM has been one of the best companies in practicing CSR with embracement of sustainable and health-enhancing technologies in their production systems being the very first moves that the company made towards becoming socially responsible. Moreover, the company has other community supporting programs whereby some of them are achieved in partnership with other organizations like World Food Programme (WFP). The main purpose of this partnership is to ease distribution of the company’s vitamins, fortified foods, and nutrient mixes to the needy countries like Kenya, Afghanistan and Bangladesh just to mention a few. The company has also been engaging in other programs primarily to help the international society with supporting community construction projects like schools. Royal DSM has supported construction of various projects such as the construction schools in India and South Africa using sustainable technology. Application of sustainable technology during the building of these projects reduced both the erection cost the ecological effect. This means that organizations can socially be responsible beyond their line of production. By remaining committed to the caring the welfare of the community whom the company seems to value a lot, its growth has been on a constant increase and it is currently among the internationally known corporates. SouthWest Airlines is a company based in the USA, and is currently listed as the biggest domestic air carrier in the country. It is among the companies that value their staffs a lot and feel indebted to be good to them. The company provides its employees with the best possible working conditions and also creates good relations between the management and the employees. All these considerations make their employees happy, a factor that motivates them to work harder and create good relations with the customers thus resulting to an increase in the company’s turnover. SouthWest Airliners is a good example of how corporates can practice CSR effectively with respect to treating employees in the most appropriate way. Currently, much of the company’s success is attributed to the value it puts on its employees and its commitment towards making its staffs remain happy and motivated. Taking good care of the environment is another approach that organizations can apply in practicing CSR. This involves using the most appropriate technology in production activities as well as manufacturing products that do not harm the environment. Broad Group Company is among the good examples of the organizations that have been fully committed in conserving the environment. In fact, the company values the environment more than its business orientation. Broad Group produces air conditioners and air filtration systems as well as energy efficient buildings, a factor that contributes a lot towards conserving the environment. Potash Corporation on the other hand was recognized for practicing corporate social responsibility with respect to good governance. The company has being faithful to its shareholders by adhering to the minimum requirements set by the Canadian company laws. In addition, Potash Corporation has been engaging in activities that prove its commitment to minding the welfare of its stakeholders. CSR is not only limited to the environment, employees and the society, companies can also incorporate more sustainable supply chains like the case of Uniliver Company. In conclusion, this article has incredible information about the element of corporates social responsibility, which has emerged as one of the major trends of the 21st century. The article has provided a clear application of CSR and its positive impacts not only to individual business organizations, but also to the general society. The article quoted some case studies of five companies that were voted for being the best organizations that were socially responsible in a numerous ways. Royal DSM for instance has been supporting the society in a great way even in the areas that they do not specialize in. The company has remained committed towards caring the welfares of the general society including those who do not consume their products. As a result, it had supported various community projects with the most notable element being collaborating with World Food Programm (WFP) in providing food aids to needy countries. Works Cited Kanter Rosabeth Moss “Spotlight on the good company.” Cambridge: Harvard Business Review, 2011. Print. Porter Michaen and Kramer Mark. “The link between competitive advantage and the corporate social responsibility”. Cambridge: Harvard Business Review, 2006. Print. Read More