Telstra Corporate Social Responsibility Actions - Case Study Example

Telstra Corporate Social Responsibility Actions By: Student’s name: City: Institution Affiliation Date: Telstra Corporate Social Responsibility Actions Introduction In the 21st century, it is very necessary it has been necessary that organization move away from their style of doing things and move towards the involvement of the group in community-based activities. These activities that are carried out without a direct benefit to the organization are called corporate social responsibility. However, corporate social responsibility can be internal and external. In the internal environment, it is that point where the organization does things that are going to take care of their employees to ensure that they are satisfied with the environment that they are working. Though the firm will not benefit directly from this activities, by the motivation of employees it means that the performance of the organization at large. On the external part, the team tries to carry out activities to the surrounding stakeholders with the aim of ensuring that the public image and relationship. When an organization does all this, then it will make sure that the attraction of customers to the products of the firm. When carrying out all these activities, it is prudent that the required business ethics to be put in place. Business ethics are those principles that are necessary for the employees of the firm in ensuring that the organization services appear to be uniform and superior before clients. In ensuring that all these activities are in place then it necessary that the corporate governance should be observed and be known to all. Corporate governance touches on issues of management of the organization. The management systems should in be in a manner that they will ensure activities are running in a way that is correct and an environment that is conducive (Gray, 2001, pg. 10). In this paper, we are going to look into the corporate social responsibility of Telstra Ltd. We are going to look into financial performance, social performance and environmental performance. Financial/economic performance In this section, we are going to look into the financial performance of Telstra Ltd after putting in place activities that are said to be responsible for corporate social responsibility. Below is a table that indicates the financial results of Telstra Ltd for the years 2015; General information The financial year 2014 Financial 2015 % change Total assets 39360 40445 2.8 Total liabilities 25400 25935 Total owner’s equity 13960 14510 (Basic) profit earned- per share 34.4 34.5 Total ordinary share issued 13960 14510 Profit received by Shareholders- per share (DPS) 34.4 34.5 Net Cash Flows from Operating Activities 8,613 8,311 Net Cash Flows from Investing Activities 1,130 5,692 From the above, we can be able to see that in the year 2015 the financial performance of the company is better than the one that was done in the year 2014. This due to right financial decisions that may have been taken. The improvement in financial performance can be attributed to the CSR activities that are being undertaken. When these events are considered within the organization, then it is possible that there will be an improvement in the performance of the company. It is required that those who are in the accountant sector to account for the corporate social responsibility so that they can be at a position of ensuring that they have known its impact. The financial statements of this company indicate that the strategy that they are using is working. There has been an improvement in various sections of the financial statements. The investment that has been done to ensure the performance of the company is on the right track is in constant rise making it possible that the organization performed well. The activities that were put in place to ensure that the customer gets the right services have bear fruits, as there was an increase in the percentage of sales. Putting in place these measures are part of the CSR programs that cause the improvement of the sales is one action that can be accounted directly in the financial statements of the company. The growth of this effects by 6.2% means that there is a good response in the market in the way the products have been received. Though no direct income was earned by putting the measures in place, in the long run, it has been to increase the performance of its product in the market. Coming up with different sections like the global enterprise and services, Telstra Wholesale, Telstra operations and other different functions that are meant to take care of the different segments of customers is going to ensure that customers receive the very high quality of services and easily access the services without difficulties. This is a good strategy that is going to make sure that the whole business impact is felt to those who are receiving the services. To make sure that the firm is economically viable then it is prudent that investment is done in those areas that are important (Mathews, 2007, pg. 6). The growth margin of the financial performance can be associated with the implementation of corporate Social responsibility activities that are economically viable due to the returns that are seen. Always managers are careful to consider the impact that these events are getting out of the actions undertaken. The beneficiaries of this activities, on the other hand, are always left impressed by the organization through its generous contributions towards activities that they do not pay for. When these activities are beneficial to them, they always are impressed and keep on going for the firm’s products and services. Companies are always keen to impress the communities in which they operate, as they are the source of customers for the goods and services that they produce. The company does not expect to be in the position of getting the reward of the actions of corporate social responsibility but in the long run, they will be able to feel the impact. Therefore the activities of Telstra Ltd should be patient with the practices of corporate social responsibility. The trend at which the economic viability of the action put in place is active to this firm makes it viable and improves its performance. Social Performance The corporate social responsibility to a large extent has been to promote the social life of those which it touches. Those who are practicing this actions should be in the position of ensuring that they have been able to impact all those that are targeted. Social performance cuts close all the stakeholders of ranging from customers, employees, the community where the business premises exist, shareholders, and the government. All the CSR actions are supposed to be able to take actions that include all the involved shareholders. Customers are the most important stakeholders to any organization. Therefore, it is prudent that most of the actions that are CSR in nature are going to ensure that those customers feel included in the actions taken in the firm. Telstra Ltd has taken several actions that are customer based that have made it look to be performing in the right manner in its actions. Social performance regarding customers is one of those that Telstra Ltd is carefully taking care of. Several actions which include; vulnerable customers have been looked into, and actions meant to take care of them have been in place. This is to ensure that they have been able to tp be fully satisfied. On top of that, managing of usage charges is another program that has been put up by Telstra Ltd as another social performance action. This gives customers the confidence of not being charged extra confidence on the products and services. Customers are going to cement their confidence and continue using the firm’s services. Telstra Ltd has been able to come up with the privacy data management programs that are meant to ensure that customers are guarded against their useful information being leaked or hacked. Cyber safety actions are taken to ensure all the shared information is controlled. All the above actions are meant to make the customers feel cared for. Telstra has taken this actions though no direct profitability that it will derive out of them. However, all the actions are meant to see the welfare of the customers are will cater for to avoid disappointments on the process of them receiving services (Amstrong, 2012, pg. 10). When it comes to the social performance, that regards to the community where this organization operates. Actions like ensuring digital literacy campaigns amongst the society are one of this actions. This is going to make the people understand what the company offers. Also, actions of supporting victims of domestic violence is another action that has been taken by Telstra Ltd showing how it is socially responsible to those who are the surrounding to its area of operation. The Telstra Foundation that is meant to champion social innovation that is meant to improve the lives of the communities closes Australia. The community forms a very important part of any organization hence it is important to be involved in social aspects. Employees on the other part, are the most important assets that there care should be taken. The social performance by Telstra Ltd towards employees involves the engagement of this employees in several aspects. This is going to ensure all the employees understand what they are expected to do and at the end reduce resistance within the organization leading to increased productivity. Also, the action of ensuring the health safety of the employees is paramount as it is going to show the ability of them not attending the jobs due to illness. The action of ensuring gender equality is one of those actions, the ability of the company to provide flexible working, providing ways in which aging employees are taken care of, provision of employment pathways is also another action, learning and development actions have also been put in place to ensure that employees are updated the latest skills to perform their functions. Lastly, the provision by the company for employees from the company to carry out voluntary participation is another area that is going to ensure that they can nature there talents. The government is another player that the organization should take into consideration to ensure that the corporate to ensure that they deliver better services to the citizens. The above actions that have been undertaken by the firm are showing the social performance of Telstra Ltd that is going to ensure that it is in the track of seeing the welfare of all the stakeholders. However, the shareholders in the firm should be educated on the importance of undertaking this function that is going to see the firm perform even better through persistent actions. Through being socially responsible, the impact of this actions has been felt in the balance sheet of the firm as indicated in the financial performance of the company. Social performance is one of those areas that indicate that the company is socially responsible, and the welfare of its stakeholders makes it have a good public relations with all stakeholders. Environmental performance Environmental accountability is actions that are taken by an organization in its interaction with the natural environment in which it exists. From the past, the work of environmental protection has been one that attracts the interest of the public and also cuts across to individual private life. The responsibility of environment management has majorly been the role of governments where they make sure that all areas within their jurisdiction have been preserved and kept safe for the habitation of the human beings and the organism that live in those particular areas. Governments have gone ahead to give incentives, regulations, and sanctions that are meant to make private entities mindful of the environment and the way they handle it. In cases of problems on the environment, the governments are taken into the task to take actions that are meant to ensure that the same conditions are mitigated, and life has returned to normality in those areas. With the fact that the government takes the largest responsibility in the issue of environmental conservation, the private sector has been left hence not minding much of what occurs in the environment, and occasionally you find that their actions end up causing environmental problems (Crowther, 2000, pg. 8). In the recent time, we have seen the role of the private sector in the conservation of the environment on its rise. Several private entities have taken initiatives that are meant to ensure that the environment is safe and well kept. Many of the private and Government businesses are now waking up to the reality that environmental protection is meant for each and every person so as to ensure that there is a sound and vibrant economic growth which may not be in conflict. The publication of the Brundtland Report in the year 1987 by the World Commission on Environment indicated that management and business scholars have been examining the way corporations should be integrated into the process of environmental conservation processes using their strategies. Recently we have seen many of the companies in the world taking up a responsibility of trying to ensure that they do not harm the environment in every way possible. Due to the dynamic changes that are taking place in the way the perception of the environment is, the earlier scenario where the government used to impose regulations meant to make all to be keen in the way they handle the environment, has shifted to where the corporate world self- regulate themselves and take actions that are voluntary to ensure that the environment is safe (Reyes and Twose, 2002). Telstra Limited is one of those companies in the private sector has come with measures that are going to ensure environments accountability. Actions like customer education in ways they should conserve the environment and have symbols of environmental conservation on their packages and advertisements. On top of that, the energy accountability whereby the firm can take the accountability of 85% of its carbon emission to the atmosphere (Jowit, 2012, pg.5). The acts of E-waste management which leads to better ways of managing of the environment. These actions are the ones that make Telstra accountable for the environment. Due to the sensitivity that environmental issues have already, the international community has already recognized the need for corporate social responsibility. Therefore there is no need of nations creating regulations on why to conserve the environment and the best weapon to this is through the creation of educating forums that are meant to create awareness on environmental issues. The corporate social responsibility activities should be ones that are more robust and with given targets to achieve on the environment at large. This is going to ensure that everything is done right towards ensuring that the environment that we are living is safe and will end up bettering the environment. Conclusion Corporate social responsibility is one of those factors that any organization should engage in due its benefits to the firm at large. When best practices are put in place the dividends to the firm will be so high. Most of these actions should be given time as their profitability is going to be seen in the long run. To ensure that the comprehensive plans are put in place then from financial /economic viability should be evaluated, the social performance of the organization must be practiced, and environmental accountability all should be inclusive. Telstra Limited has tried to observe all this. However, they should take the time to see the fruits of their actions fully. 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