Efficient Corporate Social Responsibility Strategies - Term Paper Example

Name: Prof: Course: Date: Thesis Proposal: Empowering Communities through Efficient CSR Strategies Abstract Successful businesses never overlook the strengths and opportunities that come with corporate social responsibility (CSR). CSR is the best and tested method that has helped many firms to create a smooth relationship between their core business and suppliers, employees, customers, and the society as a whole. Well-established companies ensure their CSR is well interwoven with the mission, vision, and the company culture. Every enterprise wishing to boost its profit margin and overall performance must contribute immensely to the immediate society where it operates. CSR as a primary component of business strategies helps business executives to address various business issues creatively. The main hurdle for many companies is developing an approach that can assist the company to realize its short-term and long-term goals while still impacting positively in the society where it operates. Innovative firms try to overcome the challenge with smart business partnering models that create exceptional value for both the company and the community. This research will explore how US corporates can enhance CSR practices to boost performance while still empowering the communities where they operate. Background Information Creative CSR solutions must address the challenges faced by the company, all stakeholders (employees, suppliers, customers, and the society), and other business partners. Business executives must explore the power of smart partnering in boosting the business performance and empowering the community (Saeidi, Sofian, Saeidi, Saeidi and Saaeidi 343). CSR features many working definitions, but most scholars suggest that it incorporates dual goals; exploring gains for both the business and the society. Projects pursued under CSR business model must benefit both the firm and the immediate community. Business executives must refrain from implementing projects that only serves their interest. CSR initiatives always yield double-sided benefits. CSRs that only help to build the reputation of the firm also fail to pass the test of efficient CSR initiatives. A business model that incorporates a robust CSR component must address the deficiencies that sometimes exist between the firm’s words and actions. Smart partnering between companies and the community creates the ultimately shared value (Malik 433). In such initiatives, the company focuses beyond boosting the reputation and avoiding the risks to enhancing its core value creation capabilities by addressing all the strategic issues and setbacks. The society gains more than just seeking financing to improve employment or sustaining the minimum standards; the quality of life is remarkably improved. Both parties must use the available expertise and resources to find creative remedies to avoid significant business and social drawbacks. Some of the issues addressed using a robust CSR business model includes guaranteeing a sustainable supply of primary raw materials and enhancing the distribution of essential products to the rural communities (Servaes & Ane 1050). For instance, a firm can decide to improve a rural road as part of its CSR initiatives, but the primary goal of such projects is improving the quality of life in the community and also assure smooth distribution of the company’s products. Successful firms usually map their CSR strategies before beginning to implement the projects. Thesis Statement Most US firms have CSR activities scattered across the CSR map, but they need to master the guiding principles of developing vibrant CSR initiatives that can assist them to meet the immediate needs of their core business and the society at the same time. Companies must shift from the culture of rolling up pet projects in the name of propaganda and philanthropy and focus on projects that yield double-sided results. Focusing on CSR projects that co-create value to the society and the business require proper business strategies based on peer research and tested approaches. This research will explore three fundamental principles that can help firms to achieve their CSR goals quickly including the need to find the right partners; building an in-depth understanding of the significant benefits and; concentrating on the primary CSR efforts. Some of the challenges that hinder CSR initiatives will also be discussed in this study. Literature Review The use of standalone CSR reports has remarkably increased in the past twenty years, and a 2013 report by KPMG indicates that over 70 percent of companies in the world engage in CSR reporting (Birkey, Rachel Michelon, Patten and Sankara 3). The positive effects hold across the various assurance providers. Other aspects outside assurance are typically linked to the environmental reputation scores. According to KMPG report, over 18% of interviewed firms obtain external assurance. Synthesizing and reviewing the contemporary literature help the researchers to understand the role of CSR in enhancing the company value. It is vital to know the unmatched value of CSR to the public firms by reviewing and analyzing the findings from past studies. Malik points out that the reviews also help to identify the gaps in the existing literature and suggest potential sources of data for empirical researchers and provide the best methods for considering other ideal avenues in future surveys (420). Investigating the key drivers that motivate CSR practices among the SMEs foreign subsidiaries also provide crucial insights into the study. The authors use regression and stakeholder theory analysis to integrate CSR and international business literature to develop a research technique that identifies and explain the aspects that accelerate CSR in the local markets (Park and Pervez 193). The new research model fills numerous research gaps, and the outcomes provide practical and useful implications to both multinational and local businesses. In companies that have high customer awareness, CSR and the firm value are closely interrelated. However, the interrelation is insignificant or negative for businesses with low consumer awareness level. Servaes & Ane affirm that research also shows that the impact of customer awareness levels on the CSR-value interrelation is reversed for firms that have a poor previous reputation of partnering with the society (1047). The last survey also shows that CSR functions only boost the value of a given firm under specified circumstances. The relation between CSR and a firm's performance has not been explicitly examined because various aspects indirectly impact on that relation. The three potential mediators in the relation between CSR and business performance include reputation; competitive edge and; customer satisfaction (Saeidi et al. 345). Findings from 205 manufacturing and consumer goods firm in Iran reveal that the association between CSR and the performance of the company is entirely mediated. Only competitive edge and reputation mediate the relation between CSR and the performance of the firm. CSR also indirectly elevates the company's performance via boosting the competitive advantage and the reputation for optimizing customer satisfaction levels. Significance of the Research Although CSR plays an integral role in empowering employees, the society and elevates the performance of SMEs and large companies, it has never become a mandated business practice in the US and other countries. CSR remains a great initiative that successful companies undertake to empower their global and local communities. The concept of corporate citizenship and CSR has emerged as a remedy for firms to consider. Well-established companies take responsibility for the effects of their decisions on the environment, community, and the society as a whole. CSR boost the relationship between customers and the business. CSR also assures personal and professional development. It also helps to empower the employees and suppliers and significantly expands the public value outcomes. CSR remains one of the best business practices that guarantee positive impact in the society. The study will also provide crucial insights on how firms can use CSR to empower communities at the national and local levels while still boosting the business performance. Research Questions 1. How can US companies employ robust CSR strategies to empower their employees, suppliers and the society while still optimizing and maintaining exceptional business performance? 2. What are some of the challenges faced by firms while trying to implement different CSR strategies? 3. What are some of the possible remedies that can be adopted by business executives to overcome challenges faced while executing CSR initiatives? Research Methodology This study will use secondary data from the previous peer researched studies. Using secondary data saves lots of money and time. Utilizing secondary data set also allows the researcher to analyze massive data sets that would not be feasible if the researcher decided to source primary data. Gathering secondary data is also simple because they are thousands of online resources that provide credible information related to the topic. The secondary data will then be analyzed using qualitative data analysis technique. Qualitative analysis remains one of the best methods for evaluating data involving human experience. Qualitative research also provides the researchers with a unique opportunity to add fresh insights as soon as new findings and fresh data emerges. Qualitative data analysis also provides the researcher with m an opportunity to evaluate past studies in detail and in depth to identify and fix deficiencies. Ethical Consideration Previous works from other authors will be acknowledged to avoid plagiarism and intellectual theft. The data and findings in this study will only be used for research purposes. The actual names of the companies and participants will not be shared to avoid any potential victimization. The data and findings will be thoroughly reviewed to prevent any biases that might mislead the readers and target users. Analyzing big data always face several ethical issues since sometimes confidential information is needed to accesses sensitive information from some online sources. Lack of such details might delay the study especially when gathering and analyzing the secondary data. Limitations of the Study Researchers face serious challenges while assessing the quality of data. Determining whether the data was sourced through ethical means remains a significant challenge. Determining whether the available data augments well with the research thesis also remains an uphill task while using secondary data. Evaluating the techniques used to source the data is also quite challenging when using secondary data. Researchers cannot rule out confidentiality and anonymity issues while using qualitative data analysis method. Other researchers sometimes ignore secondary data and qualitative data analysis. Biases and personal weaknesses may limit the ability of the researcher to analyze secondary data using a qualitative technique. Therefore, the researcher must have top-notch data analysis skills so as to refine the findings and assure the proper interpretation of results. The researcher also needs to perfect the art of interpreting the data correctly. Expected Results Qualitative data analysis provides the researcher with a precise understanding of the targeted topic. The expected outcomes of the study include providing crucial insights on the relationship that exist between practical CSR approaches and business performance. The research will also provide refined concepts on how firms can use CSR strategies to empower communities, their employees, and suppliers. The study will also provide the readers with crucial insights that can be used to strengthen the relationship that exists between business and the communities where they operate. Businesses owners will also learn how they can best implement CSR to meet and surpass their business goals. The outcomes of the study can also be transferred to other settings. Works Cited Birkey, Rachel N., Michelon, G., Patten, D. M., & Sankara, J."Does assurance on CSR reporting enhance environmental reputation? An examination in the US context." Accounting Forum. Vol. 40. No. 3. Elsevier, 2016: 3-10. Malik, Mahfuja. "Value-enhancing capabilities of CSR: A brief review of contemporary literature." Journal of Business Ethics 127.2 (2015): 419-438. Park, Byung-Il, and Pervez N. Ghauri. "Determinants influencing CSR practices in small and medium-sized MNE subsidiaries: A stakeholder perspective." Journal of World Business 50.1 (2015): 192-204. Servaes, Henri, and Ane Tamayo. "The impact of corporate social responsibility on firm value: The role of customer awareness." Management Science 59.5 (2013): 1045-1061. Saeidi, Sayedeh Parastoo, Sofian, S., Saeidi, P., Saeidi, S. P., and Saaeidi, S. A. "How does corporate social responsibility contribute to firm financial performance? The mediating role of competitive advantage, reputation, and customer satisfaction." Journal of Business Research 68.2 (2015): 341-350. Read More