Processes of Undertaking CSR Activities within Business and Companies - Coursework Example

Business Customer Inserts His/Her Name Customer Inserts Grade Course Customer Inserts Tutor’s Name 30th March, 2015. Introduction CSR activities and practice has gained immense following from different sections of the society. As a result, several opinions and criticisms have been developed on the role of CSR in managing and changing the corporate activities. Some people argue that CSR is a mere disruption for organizations mandated by law to make profits while others proponents for CSR argue that the practice will enable change in the society. As a result, these people are of the view that CSR should be enhanced to ensure that certain obligations are upheld to a certain bear minimum. Therefore, many experts have advanced theories and opinions on the processes of undertaking CSR activities within business and companies. These views are analyzed in this paper as it tries to outline several recommendations to be implemented in relation to CSR activities within companies. Constricted CSR Perspectives Several people have argued that the implementation of CSR activities within a company should be based on interest of the stakeholders. For instance, economist Milton Friedman argues that CSR activities should only be conducted within the laws of companies through profit maximization. He further contends that protagonists for CSR implementation within companies are people out to topple the system of free of commercial community used by organizations for trade. These views are backed by Aras & Crowther (2009, p. 65) who argue that organizational leaders have a fiduciary role for the protection of stakeholder interests within companies or organizations. Therefore, constricted views on CSR advocate for the implementation of policies that protect and promote the interests of individuals who are stakeholders within different organizations. This is in consistent with the views of Adam Smith’s book Wealth of Nations illustrating views of free economy (Nair 2012, p. 49). He believes that every person engages in economically free enterprises for the promotion of self interests. As a result, companies’ pursuit for profits protects and promotes these individual interests thus CSR should conform to profit seeking agenda for businesses (Gössling 2011). These views are not consistent with some stakeholders who might be of the view that businesses should act responsibly in undertaking their operations. For instance, some business leaders are of the view that companies such as oil companies should manage their business in an environmentally friendly and responsible manner. This might contrast with the interest of stakeholders who are interested in profits since implementation of necessary CSR activities might exceed or be inconsistent with set regulations or laws. Moreover, critics argue that stakeholders’ legitimate income or rights should not be utilized in pursuant of individual interests of CSR implementation (Lozano 2008). CSR implementation within organization has also found criticism from different quarters such as researchers and other critics concerning CSR. For instance, researchers have argued that CSR amounts to window dressing since it does not address various and key fundamental issues. This is due to lack of consistency in terms of laws, standards or regulations used in the implementation of CSR activities within organizations. CSR policies, activities and regulations differ based on region and companies across the globe. As a result, CSR has attracted more criticisms for failures in ensuring that standards are adopted for conformity and improvement of practices in the industry (May 2011). For instance, in China companies did not undertake CSR activities until a CSR code was introduced into Corporate Law. As a result, by the year 2012 over 1,700 companies in the country has filed CSR reports. Lack of a global standard or common code to drive CSR has ensured that this practice is undertaken in an ad-hoc manner that limits it growth and widespread adoption (Murphy 2008, p. 116). The organization for a collective responsibility for a common CSR policy within different industries is a challenging task. For instance, the mining industry adopted the Voluntary Principles (VP) framework that were to ensure common standards in regard to mining and CSR in this industry. However, the adoption of these common standards has been daunting and chaotic in its implementation. Due to the confusion and the diverse state of affairs within different organizations and entities, the implementation of CSR has been slow, daunting and irregular in terms of general accepted standards (Malik 2014). Researchers who share a constricted view of CSR are also of the idea that companies should each decide and shape a CSR policy that suites the activities and needs of the respective company or organization. Broad CSR Perspectives Several researchers have presented positive views on the implementation of CSR practices across different jurisdictions with the view of enhancing the practice. For instance, Gössling (2011, p. 107) outlines that companies have a responsibility of making profits while at the same time ensuring sustainability. This is due to the fact these companies exist for the purpose of serving the interest of the consumers. However, these interests are sometimes overlooked in the process and pursuit of profits since the overall effect of activities of these companies impact on all aspects of the society. For example, a tannery which serves its consumers and shareholders with good products and profits might discharge harmful substances into the environment (Ogula 2012, p. 91-93). As a result, the internal costs of the company have been transferred externally to the society and this shall have negative impacts. Therefore, in order to reduce government control or excesses, these companies have to ensure sustainable production as it aims to promote sustainability. CSR enables companies to ensure there is a balance in the society and that excesses committed by the companies can be checked and ensure growth for these companies. Therefore, CSR aims at taming government control while at the same time build companies in the process of ensuring better sustainability within businesses. In contrast to the narrow view of CSR, Idowu (2008, p. 93) outlines that the primary goal of companies is to ensure survival while at the same time extend the life of its activities. This process can only be undertaken through the engagement of meaningful business practices by these companies. Companies that engage in CSR activities ensure that its plays a role of good citizenship by ensuring that all their activities do not destroy the community (Urip 2010). For instance, companies are not supposed to transfer internal costs or issues to external environment. Therefore these companies have a responsibility of ensuring that they promote sustainable activities and operations within the society (Ellis 2008). It is well understood that companies contribute a lot in terms of development of the society since these companies have the capability of changing society due to their huge capacities. CSR promotes the principles of Triple Bottom Line whereby the principles of people, planet and profit combine to ensure that the society benefits sustainably. As a result, these companies realize exponential growth while at the same time maintains a good image. Researchers such as Mallin (2009, p. 117) argue that CSR enables an organization build a positive image that enhances partnerships and growth among the stakeholders of the company and other interested parties within the community or the society. Another broad view of CSR is that companies should ensure that apart from economic, legal and ethical responsibilities companies should ensure that CSR aspects assist in building a company’s brand (Sanjeev 2009, p. 84). Businesses should voluntarily participate in CSR activities and ensure programs such as education, healthcare and the other social benefit programs are supported. As a result, companies will have an opportunity to grow their businesses while at the same time promoting social empowerment. According to Fetscherin (2010, p. 65-72) a better and empowered society gives people an opportunity to build and grow their businesses into the future with confidence. This is feeds into the system and organizational activities of corporate companies and entities. As a result, organizations and companies are encouraged to participate actively in CSR programs that will ensure society benefits since this will eventually impact these companies positively (Visser 2010). For instance, programs designed by Kenya Breweries Limited in encouraging responsible drinking has ensured that the society is protected from harmful effects of excessive alcohol drinking. Companies such as Nike have also supported educations and sports programs within vulnerable societies within different jurisdictions (Seema 2013, p. 113-115). As a result, these companies have had the effect of changing society and promoting their brands through the use of CSR. Protagonists and researchers have advanced several theories concerning the promotion and the effect CSR has had within different societies or jurisdictions. For instance, Dahlman (2012, p. 122) argues that ethics can be taught and therefore CSR can be learned and transmitted through education and exposure. As a result, we analyze several factors using the Kew Garden Principles which outline the responsibility of every entity or person in the society. The Kew principles are defined by four major aspects of Need, Proximity, Capability and Last resort in the undertaking of CSR activities. Basically the Kew Garden principles outline that businesses and companies can learn or be taught on issues concerning ethics. Companies and organizations can undertake compliance training to ensure several factors concerning CSR practices is implemented within the required regulations or globally accepted standards (Baxi 2005). In the process of undertaking CSR implementation within organizations, companies should ensure that analysis of all the major principles is undertaken through the use of proper metrics such as the Kew Garden’s principles. CSR is implemented based on a need assessment since companies are not supposed to fix every issue within the society (Schwartz 2011). Companies should engage in CSR strategies that ensure maximal involvement and impact on the people especially in situations where these companies have a greater need. Therefore, companies should pay attention to undertaking CSR activities close to their operational bases for better impact. In most cases, society is faced with challenges that people or organizations are not ready to assist and thus based on the Kew Garden’s Last Resort principle, organizations should assist since no one else is willing. Asit (2009, p. 74), contends that organizations and companies have an obligation to undertake CSR activities based on the Kew Garden principles. Countries such as India have a long tradition of assisting individuals who are vulnerable within the society due to its strongly religious beliefs within the society (Visser 2010). As a result, companies and organizations operating in the region have robust CSR policies with companies such as Wipro leading the pack in implementation of these CSR policies. Organizations such as Wipro in India belief that by alleviating the issues within the Indian society then a direct impact on the company through one way of the other shall eventually be achieved one day (Santosh, 2011, p. 97). Conclusions & Recommendations The implementation of CSR strategies within organizations is a complicated process that requires the involvement of various stakeholders. This paper has analyzed the different views of CSR and its implications on the implementation of CSR within different global jurisdictions. For instance, the constricted view of CSR analyzes the implementation of CSR policies within certain narrow views of profit maximization due to the nature of businesses which concentrate on profit making unlike other entities. Since shareholders and concerned stakeholders have the view that undertaking these steps would undermine the position of these companies. This views contrast with those of researchers who belief in a broad view concept of CSR whereby issues such as people, profit and planet are considered in the planning of a CSR strategy. This view outlines that people have the need to make profits while at the same time ensure there is bare minimum to be upheld concerning CSR implementation. Researchers analyze this type of CSR policy as sustainable in growing businesses around the globe. For instance, organizations and people who view CSR as a key drive for the sustainable business outline that companies should ensure that the needs of all stakeholders including the society has to be considered CSR policy planning. Moreover, these organizations are aware that companies are mutually dependant and therefore, there is need to drive and implement CSR policies. Consequently, the implementation of CSR would ensure less government control over these organizations. Therefore, there is need for the development of CSR code within organizations and ensure companies implement at least a minimalistic form of CSR policy within their organizations. However, for better implementation and regulation of CSR activities, it is advisable and recommended that government in different regions ensure there is a CSR policies for companies and organizations. References Aras, G & Crowther, D 2009, Global Perspectives on Corporate Governance and CSR, Palgrave, London. Asit, R 2009, ‘Successful Experiments of Corporate Social Responsibility’, Indian Journal of Industrial Relations, vol. 44, no. 3, pp. 72-87. Baxi, C & Prasad, A 2005, Corporate Social Responsibility: Concepts and Cases: The Indian Experience. Excel Books India, New Delhi. Dahlman, C 2012, The World under Pressure: How China and India Are Influencing the Global Economy and Environment. 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