Corporate Social Responsibility - Research Paper Example

Corporate Social Responsibility: Research Proposal As companies shift into the global environment, they face different issues that force them to increase their adoption of ethical practices. Most of the practices trickle down to the corporate values and mission to make the public a better place by taking up initiatives that are considered their obligation. The corporations are also looking for ways of benefiting from such indulgences, with the economic value and possibility of expansion part of the question. This creates a new understanding of what the companies go through as they look for better ways of dealing with their responsibility within the community. Corporate social responsibility (CSR) grew from the need to create a society that people are happy to be in as the companies grow their presence as well as revenue (Geva 2008: 4). The need to promote sustainable social development has become one of the main forms of expanding the company’s mandate in taking care of the environment as well as improving the way people live. The uptake of CSR by companies has also become one of the most sought after attribute, with so many of the companies looking for different means of maintaining strong competitive edges over their rivals. Any company wishing to gain such an edge has to look for ways of creating a sustainable approach for the community to adapt and benefit from (Menz 2010: 120). In this research, the main goal is to allow the retail company to design its corporate mission and values in a way that embraces CSR and improves on the sustainable development strategies that will work for the benefit of the company and society as a whole. The stakeholders need to understand the importance of this venture, and this research will aim at making it a priority for the company to have a better strategy when dealing with the community (Menz 2010: 122). Many will argue that CSR is part of a company’s structure, but it has to be inculcated for it to take effect and affect the company positively. The decision to make CSR part of the corporate strategy will emanate from the research conducted and the proposed means of achieving this goal within the company’s business opportunities. The companies must understand that the CSR process must embrace the three P principles. These principles are the Profit, Planet, and People (Geva 2008: 8-9). These define the link between the company and the society, which identifies the mainstream issues that most companies must take into consideration. This allows the company to deal with policies based on the challenges present in the community. Problem statement In the current business environment, it is safe to say that corporations are key players in the demonstration and adoption of responsible mechanisms and strategies to ensure that they conduct business in a manner that protects the environment. Many companies seem to agree with the need of making CSR a compact means of dealing with issues across the divide, but the process of using such policies to boost presence in the society has a become a norm (Geva 2008: 12). CSR has become a notion that companies embrace to position themselves strategically within the society. The only way the retail company can do this is by fully understanding how to handle CSR in its operations, and whether the incorporation of CSR will affect the way the company operates (Godfrey & Hatch 2007: 88). The process of CSR will also differ from one country to the next, something that companies choose to address based on values as well as significance. The company, therefore, must understand that feasibility studies are important if the CSR process is to bear any fruits (Fassin, Rossem & Buelens 2010: 9). The retail business has also to step into assist in making the society better for all. The retail industry has a huge impact on the society, and the community benefits best from making use of what is locally available. By setting up better CSR missions, it will be easy to satisfy the emerging social gaps that have made the society become disjointed mainly due to the use of technology (Lee 2008: 60). Further, CSR shows that the lack of political goodwill can be an avenue for providing the society with a positive gesture to apply in daily life. The lack of accountability and transparency in many firms further creates the need for better interactions with the public. For this reason, any retail company that wishes to meet its core goals of interacting with the society has to meet its needs and implement strategies adequately. Research questions and objectives This report will seek to answer these questions: 1. What CSR strategies are more prevalent in the country? 2. How do these strategies help the strength the relationship between the community and the company? 3. How do companies develop CSR strategies based on the market forces and the prevalent regulatory policies? 4. Do these CSR strategies have any significant impact on the competitive nature of companies within the society? The main objective as noted is to come up with a report that examines the retail industry and the impact that CSR has on companies that undertake it. The report will also seek to: i. Analyse how CSR strategies are developed by retail industries in the country ii. Explore the current strategies present in the market and their requirements iii. Investigate the impact CSR has competitiveness of a company Significance of the study CSR is a topic that has the attention of several customers, as well as managers. Though many look at CSR from a point of view that assures them of the impact it has in the society, the idea of conducting more research shows that more is yet to be identified regarding the impact this has to the society as a whole (Lee 2008: 63). The aim is to show that CSR is an important part of strategy and the impact of this strategy requires further delving to meet the academic needs of fellow researchers, as well as answer all management questions regard the impact CSR has in the society (Godfrey & Hatch 2007: 92). It will also seek to identify whether the impact that CSR has on customer attitudes differs when variable such as brand identity and customer relations are examined. Literature Review In the past few years, the society has understood the impact that companies have in meeting the core needs of the people they engage with on a daily basis. The impact of CSR as a strategy in the market has made it easy to deal with different issues that have made it grow from a narrow to a broader concept (Campbell 2007: 948). The importance of this aspect is yet to reach the intended magnitude because no consensus has been reached to accept the use of CSR as part of a strategy to link the company to the society. The difficulty of defining CSR has made companies over the years to create initiatives they term as edging closer to social responsibility while in the real sense it is making it difficult to attain the level of growth expected from such an indulgence (Eisenhardt & Graebner 2007: 26). The impact this has is mainly attuned to the ability to implement what is ideal for the society while making more changes to the ethical and discretionary responsibilities of companies. Under the agreed definitions, it is very easy to see that the aspect of economic and legal obligations of these corporate companies has to come up always and sometimes confuses the observers as they seek to understand the mandate of their actions (Geva 2008: 20). Agreeably, the meaning of CSR divided into various combinations that encompass the legal, economic, ethical, and social expectations of the community, while at the same time developing the agendas of the company (Campbell 2007: 949). It would be difficult for a company to use CSR as a way of pleasing and interacting with its customers, and not expect to gain anything in return. Many will argue that this is not the ideal way of examining the process, but companies will also want an assurance that their actions will pay off eventually. The responsibilities of a firm are etched on the people it serves, the surroundings and the expected profits (Eisenhardt & Graebner 2007: 27). Many will think that companies should forego their monetary gains and offer the profits to charity. In the real sense, the aspect of having the brand noticed by as many clients as possible will be a good way of selling the products to those who did not know about them. The success of the CSR program will also bring more people on board and create a host of loyal clients who will boost the company’s position in the market (Campbell 2007: 950). Marom argues that corporations engage in CSR for two main reasons: strategic and normative (2006: 191). The moral argument for all firms that engage in CSR forms the normative reason. The strategic reason has its focus on the cause-effect relationship expected from the CSR based on the financial performance of the company. Whichever way one looks at it, the morality of any action conducted by the society will only be possible to achieve if the business meets the core strategies of increasing its financial performance (Geva 2008: 29). Many would argue, however, that the normative rationale should be at the top of everything taking place. However, the impact this has on the society is based on the ability to generate the key needs of the society as well as generate the agreed upon strategic growth for the company. Hitting the equilibrium will be a difficult thing and this will imply having to gather major ammunition to assist in generating better chances of meeting the core goals of the society (Campbell 2007: 952; Secchi 2007:350). However, the morality of CSR has been overtaken and counteracted by firms looking for strategic gains from their actions. This has made companies to conduct CSR activities based on the attention gathered from the use of the financial performance methods in place (Campbell 2007: 953). The idea is to get more practices that will push the company towards a higher purpose and place it at the top of the agenda. The only way of making this work is by allowing it to attain a huge significance when handling issues that affect the society. The question many tend to ask is whether corporations are justified to use these tactics to enrich themselves at the expense of their clients (Eisenhardt & Graebner 2007: 30). Many seem to ignore this question because they feel the society still benefits and the profits are all based on the company’s ability to position itself strategically in the community. Ideally, the goal of this process is to generate as much publicity as possible while making more profits from what they have (Geva 2008: 30). The impact that the company will have in the society will mainly be based on the kind of trust it creates as it seeks to retain the position it has and improve the wellbeing of its clients (Lee 2008: 65). The only way of guaranteeing this is by using all its resources to bring about change to the society while making it very easy to attune its goals towards the growth of its portfolio. The only way of making this easy is to establish new mechanisms that will inform clients of what the company is all about, and the way its mission and values will influence the society as a whole (Campbell 2007: 958). Trust is built by having the best CSR programs touching on the lives of the people while making better choices on what was needed to keep things on the right track (Mailis & Lawrence 2007: 62). Ideally, everything that happens within the society will only be affirmed if the willingness to pay the premium prices becomes a responsibility that clients are willing to undertake. Ideally, companies that induce trust also set a pace that will generate better ideals for the sake of meeting the competitive advantage in the market, while seeking to buy the trust of those unsure about the company’s position in certain moral issues (Geva 2008: 34). Research Design Inductive research approach To deal with this topic conclusively, I choose to conduct a qualitative inductive search. This will allow the research to undergo a sense-making perspective, achieving the very best answers that will be appropriate when dealing with the topic of study. By assuming a social constructive notion, it becomes very easy to see the reality in the world today as societal and socially embedded (Carroll & Shabana 2010: 87). The use of the explorative approach aims at developing the CSR theory further and creates an inductive approach to the whole process. This will also emphasise on the ability to generate qualitative data that will offer insight into the complex social processes that will take place during and after rolling out any of the CSR plans presented. Qualitative studies are always good at getting the right information for descriptive studies. This will push the researcher into getting the right information and collecting data that will add to what is already known regarding CSR. Case studies Another good way of making sense of the issues surrounding the CSR theories and perspectives would be to conduct case studies that would assist in bringing about the needed to understand the impact of CSR in the society (Carroll & Shabana 2010: 87). The importance is to develop patterns that show any form of relationships amongst the constructs that cut across the different cases and define them based on the variable present. This would also see as many definitions and logical arguments presented to showcase the impact that this has on the society, while at the same time creating different chances of making better choices for the sake of meeting the overall needs of the society. The importance of a case study is to offer the kind of robust persuasion needed to drive the point home, as well as make better use of the skills gained from such needs. This also allows them to make better choices as well as enhance the possible contributions needed to assist in the development of new theoretical foundations to define CSR. The studies will rely mainly on theoretical sampling so as to define the way the attained results will contribute to the theories noted during the study (Carroll & Shabana 2010: 88). Data Collection The best way of collecting data is to use the case studies information and triangulate the data from different sources (Carroll & Shabana 2010: 89). This will be essential in understanding the extension of the data attained as well as the main methods through which each of the available mechanisms wishes to gain the intended information. Further, the use of interviews with semi-structured questions will be used to get in-depth information regarding the use of CSR in various companies. The interview answers will also be critical in defining the way this will happen, as well as create new platforms that will allow the researcher to document and observe within a favourable environment. With every case study, at least 20-25 semi-structured in-depth interviews will be conducted to sample the top management as well as different agents within the companies to get their take on the process of CSR in the market as well as the company. The different approaches will assist in creating new understandings of the CSR projects the companies have and the need for all these within their society. To achieve the intended target, the interviews will be divided into six main categories (Carroll & Shabana 2010: 89-90). The first category will deal with the CSR policy that will include the specific questions targeting the strategies in place as well as the link between the CSR policies and the values and mission of the company. The second will deal with the CSR actions and issues that will include questions regarding the focus of the CSR and the legitimisation process used by the company to achieve the targeted goals. This will also look at the impact the policy has on the stakeholders and their position in making the right decision for the sake of getting the right policy. The third category will deal with the stakeholders where the focus will be on the role of the stakeholders in determining the operational aspects of the CSR policy in question. Category number four will target the employees and focus on their involvement. It will also query whether the CSR policy is open for alternative ideas within the company. The fifth category will deal with external communications where the company will answer the question on the publishing of CSR reports and whether the communication has any support to it. The last of the six categories will deal with the evaluation attribute, and this will include any criticisms accorded to the companies from outside while conducting their company policies (Carroll & Shabana 2010:90). The documentation process will include having as many CSR reports as possible, brochures, external and internal reports, and corporate websites. The aim will be to create a documentation process that will harness the real impact of the CSR policies in the company, while making good use of the information available to both the public and the stakeholders (Carroll & Shabana 2010: 91). This will also show why the inclusion of stakeholders will be an important step towards making the right decisions in the company. Ideally, everything will have to make better use of the strategies in place, and the CSR strategy will only be effective if the documentation can also show how effective the CSR process has been in making the company more recognisable. Ethics Everything collected will be maintained under lock and key to protect it from getting out into the wrong hands. All computers used for the sake of automating the results will be password-protected to avoid any tampering. A consent form will also be signed by the participants to make sure that the respondents understand the experiment will be done on a voluntary basis. This will also be the place where the validity and reliability of the data will be discussed in relation to the genuineness of the study method and the process in general. References Campbell, J.L. (2007) "Why would corporations behave in socially responsible ways? an institutional theory of corporate social responsibility", Academy of Management Review, vol. 32, pp. 946-967. Carroll, A.B. & Shabana, K.M. (2010) "The business case for corporate social responsibility: a review of concepts, research and practice", International Journal of Management Reviews vol. 12 no. 1, pp. 85-105. Eisenhardt, K.M. & Graebner, M.E. (2007) "Theory building from cases; opportunities and challenges", Academy of Management Journal, vol. 50, pp. 25-32. Fassin, Y., Rossem, A.V. & Buelens, M. (2010) "Small-business owner-managers perceptions of business ethics and csr-related concepts", Journal of Business Ethics vol. 96, pp. 1-29. Geva, A. (2008) "Three models of corporate social responsibility: interrelationships between theory, research and practice," Business and Society Review, vol. 113, pp. 1-41. Godfrey, P.C & Hatch, N.W. (2007) "Researching corporate social responsibility: an agenda for the 21st century," Journal of Business Ethics, vol. 70, pp. 87-98. Lee, M.P. (2008) "A review of the theories of corporate social responsibility: Its evolutionary path and the road ahead", International Journal of Management Reviews, vol. 10, pp. 53-73. Mailis, S. & Lawrence, T.B. (2007) "Triggers and enablers of sensegiving in organizations", Academy of Management Journal, vol. 50, pp. 57-84. Marom, I.Y. (2006) "Toward a unified theory of the CSP-CFP link,” Journal of Business Ethics vol. 67, pp. 191-200. Menz, K.M. (2010) "Corporate social responsibility: is it rewarded by the corporate bond market? A critical note", Journal of Business Ethics vol. 96, pp. 117-134. Secchi, D. (2007) "Utilitarian, managerial and relational theories of corporate social responsibility", Academy of Management Review, vol. 9, pp. 347-373. Read More