A Role in Improving the Quality of Life of People in the Society - Research Paper Example

Introduction Corporate social responsibility is the dedication of companies to invest in sustainable economic improvement of its employees, their families, community to improve the quality of life in manner that benefits the company (Petkoski, Twose, 2001). SR has increased in its dominance in the world as the concept is being practiced in many organizations. In addition, it has some benefits that are associated to CSR. CSR has two dimensions - internal policies of the company and the external environment where the company operates in (The law society, 2001, p. 5). Generally, CSR helps a company to attain increased financial performances and improved relationship between the customers, employees and the community. The activities that companies engage in are geared to support, encourage or to motivate the public who have been offering support to the company. Some issues addressed in CSR are people issues, which include workers health, safety, and development of good corporate governance and corporate culture. This also includes social issues, that involve community development i.e. education and poverty eradication, lastly environmental conservation (Urip, 2010, p. 5). In addition, corporate organizations are involved in CSR to recognize the significance of their stakeholders (McWilliams & Siegel, 2001). The CSR should bring sustainable results to benefit both the community and the company. The policies of CSR may also be influenced by the social political policies of a country; this affects mostly the foreign companies. This paper evaluates the details of CSR in regards to cultural context of the population. In developing policies of CSR, the company should take considerations of socio-cultural factors. Depending on where a company operates in, the needs of the public is influenced by the culture in the location. In choosing the type of CSR activity that a company wishes to engage in, it should look for potential partners, setting realistic goals and expectations of the outcome of the program and finally setting structures and cross-functional plans for implementation of the plans (Kotler, & Lee, 2005). The social problems that are given priority in a certain country The community needs of countries vary from one to another; companies should consider the underlying need of nation when determining which activity to run. CSR in a country depends on social priorities and the political and socio cultural context. In addition, companies have the tendency of tackling the social problems that are currently prevailing in the community. In handling the problem, the company seeks to empower the community as means of mutual coexistence. Generally, the social problems facing a community include health care need, education, and economic empowerment. In South Africa, the greatest social need is black people empowerment and the health provisions of people living with HIV and Aids. Solving environmental needs that might affect the community in the future is essential; and this could include prevention of soil erosion, prevention of water or air pollution by factories. For CSR to be sustainable, the economic, social and environment should all be considered without preference of one unless there is a dire need to do so (Crowther, Capaldi, 2008). Natural disasters like floods, earthquakes, or droughts are likely to be given a priority whenever companies are evaluating the activity to sponsor in their CSR programs. In Pakistan, the current need is to eradicate the effects of the recent floods through provisions of clean water and food, housing, and health care facilities. In addition, Pakistan companies’ policy in CSR is likely to be influenced by the above conditions. In China, where there a large number of employees especially from the countryside with no official places of residence, providing shelter to such employees is usually taken to be the main CSR activity; indeed, the people are paid a low wages hence they are not in a position to live a decent life. The work environment in China factories is unfriendly and sometimes unfit for the workers; this is viewed as an opportunity for improving the workplace conditions as a CSR activity. Some local companies in China do not view these needs as fundamental requirements for its workers, but as hindrance to their growth. China is a highly industrialized nation, with a very large number of industries; some of these industries are heavy polluters to the environment. Therefore, there is a great need for companies in China to get involved with CSR activities that are geared to reduce the effects of pollution in the world (Zheng & Fewsmiy, 2008, p.4). In Brazil, the social disparity between the rich and the poor is high; hence, there is a need for companies to address this. However, there are other needs in Brazil that the companies should consider, for instance, the number of black people and their salaries, the number of women employees and their salaries compared to the male counterparts. In addition, there is need for healthier and safer workplace environment. The relationship between multinational companies, the local government, and their stakeholder (including social organization) The local governments have a role to play in enabling multinationals conduct their activities responsibly; this can be done through mandating, facilitating, collaborating, or endorsing (Petkoski, Twose, 2001). The local governments facilitate CSR by proper legislations, combining of resources, and enabling support. The governments are encouraging CSR as they see it as a sustainable development strategy which improves their country’s competitiveness for more foreign investment. However, the multinationals are more pressured to engage in CSR than the local companies do; indeed, the expectations of the social organizations are high and sometimes unrealistic. There is a risk of the population depending on the companies for services that the local governments should be providing. The local governments can neglect their roles in the hope that multinationals would perform them this due to there is no clear distinct between the responsibility of the governments and multinationals. Through CSR, companies are in a position to acquire too much political power, hence undermining the role of the governments (Boeger, 2008, 4). In some nations, where human rights abuse is prevalent, there is always a conflict between the government and the companies who choose to engage the governments on the matter as part of their CSR (The law society, 2001 p. 9). The multinationals have the potential of exploiting the political systems and other structures to their benefits, which causes apprehension between them and local governments (Boeger, 2008, 4). Due to the size and financial ability of multinationals, the social organizations always expect them to perform more duties towards developing the well-being of the society (Paetzold, 2010, 3). In this case, the civil society is an active party in the development of CSR strategies and educating the population about the importance of CSR. The role of the citizens The role of individual citizens is important for CSR practice is to be effective. Primarily, the citizens’ role is to check and make companies accountable for their activities in the country. In addition, the government should provide proper judicial systems where disputes arising from activities of companies can be handled in an impartial manner. This can be attained through monitoring of the projects that are initiated by the company to ensure that they benefit the target group. The citizens also should check for any exploitation by companies and report to the relevant authority. Moreover, the employees or any stakeholders of a company have the right to participate in CSR (Boeger, 2008, 4). Citizens have role of engaging companies to do more as it has been researched that in every two out of three citizens expect companies to deliver more to the society in addition to paying taxes, employing people and making profits (Urip, 2010, 16). For citizens to participate fully in CSR activities, they must be aware of issues that surround CSR and have interest in the matter. Taking a proactive step in the supporting the companies that are good corporate citizen by buying their products or services. In addition, the citizens can endorse products or services from companies that are environmental friendly even though they might came at a premium rate. Another way in which the citizens can engage CSR is through communication with the managerial teams of companies and expressing their desires for companies to streamline its operations to quality standards. Most companies are owned by public shareholders who can influence the manner in which the company is managed (Shah, 1). In democratic nations, the citizens have the responsibility of ensuring that they elect leaders that entrench CSR as a core issue in their planning. The public is also entitled to ensure that political and the ruling class delivery they pledges on issues concerning CSR. The dynamics of CSR are constantly changing and regulation cannot adequately cover the whole issue. Therefore, the citizen can get organized in groups that will champion and challenge companies view that they are only responsible to their shareholders and not to the whole society where they exist (Shah, 2). The United States of America: CSR is often associated with charity In the United States of America, CSR is mostly viewed as a philanthropy model where they value financial support rather than sustainability. In view of CSR as a moral obligation of companies, which contribute to NGOs in the country or abroad? The government has legislated CSR through which some companies are made to contribute to the less fortunate in the society. In 1950, the Supreme Court legalized corporate contributions and involvement in social issues (Bueble, 2009, p. 5). The actions of charity are mainly driven by personal willingness or interests but not business concept. Never the less the notion of CSR has now entrenched in the business model of Americans. The United States does not have regulations that compel the companies to report the amount of money spent in CSR activities; however, it has been shown that the number of companies publishing their reports is increasing (Lianna, 2008). In some, respect CSR, which is a form self-regulatory is seen by companies as a means of avoiding the governments’ burdensome interventions through enforceable policies (Andriof, & McIntosh, 2001, p. 84). CSR gives the legal or moral obligation priority over the interest of the company and the outcomes of CSR might or not deliver corporate interests. This causes some managers to be less willing to engage in CSR activities. Central CSR themes in South Africa are: black empowerment and the fight against AIDS South Africa is the powerhouse of economy in Africa, but it suffers from large unemployment rates, crime, HIV/Aids, and effects of apartheid regime (Aras & crowther, 2009, 154). The companies in SA have the obligation of tackling the social issues that are affecting the community. Most themes of CSR in South Africa are directed to black empowerment and fighting of AIDS. The country suffered a long repressive regime that marginalized the blacks hence they are usually less empowered due to low education. One challenge the South Africa companies are facing in the requirement of transforming in order to capture all the dynamic people and needs of the society (Ende, 2004, p. 15). The companies have to create equal opportunities for all people across the racial divide to reflect the nation demographic to propel the economy to higher heights. The good corporate citizens have actively been involved in campaigns to educate the society about HIV and AIDS. The companies have funded many drives, hospitals, and clinics where the patients can assess treatment at no cost or at a minimal rate. The government established some acts that are aimed at enabling marginalized groups to be incorporated in the market. Through Employment Equity Act of 1998 and Broad-based Black Economic Empowerment Acts of 2003, the government has facilitated the black people to obtain employments (Aras & crowther, 2009, p.149). The Broad-based Black Economic empowerment act is a political intervention that assists the blacks to participate in economy building activities by participating in income generation and decision- making (Matten, Visser, Pohl, Tolhurst, 2010, p. 155). The act promotes blacks owning companies, black empowerment through holding of managerial positions, training, and skill development, finally procurement from black owned companies and businesses. The corporate system, which has largely been white dominated, is set to encompass all the social divides of South Africa. There is provision for equal opportunity for employment for employees living with HIV. The employers have a legal obligation to treat all employers without discrimination regardless to their status and set structures that prevent and address acts of discrimination (Crowther, Capaldi, 2008, p. 200). In the Netherlands: activities that transcend legislation are perceived to be socially responsible The Netherlands government plays a great role in promoting corporate social responsibility by promoting the concept of CSR and not making obligations (OECD, 2008, p. 148). By following the outlined structures by the governments, the companies in Netherlands are deemed as social responsible. Companies that pay their taxes, law abiding and solving needs of the people who are less fortunate are some of the ways companies in the Netherlands participate in CSR. The companies follow the rules and regulations, and communicated the relationship between them and its stakeholders like the employees (Habisch, 2005, 87). The people of Netherlands are societal conscientious, it is estimated that at least 80 per cent of the population belong to one or more non-government organization. The political climate of this country does support social responsibility programs. There are non-governmental organizations that promote the importance of CSR, they have also formed action groups depending on their action claims either environmental, human rights or consumer rights. The companies in Netherlands have policies that enable the disability wages, sick offs payments. The Dutch employers have a group that helps them to exchange ideas, experiences, and knowledge with human resources policies (OECD, 2008, p. 149). In attempt to encourage the employers in Netherlands to employ disabilities, the government formed labour market policies that encouraged the companies. In the United Arab Emirates The UAE, which is predominantly Islamic state, has a culture of charity and philanthropy roots, which emanate from their religious beliefs (Anon, 2007).The government of United Arab Emirates has largely focused its CSR in development and empowerment of its human capital. The economy of UAE largely depends on the service industry and oil production, hence the need for CSR activities that are geared to the human capital and environmental. With some pockets of the nation depending on energy, there is need for environmental CSR that should minimize the impact on the environment. There is need for proper housing of service workers in UAE. The UAE has a large force of foreign worker force that requires CSR activities through health, safety, development, and training. The number of workers housed in a room is large and the employers are required to match the living conditions of their workers to international standards (Esveld, & Human rights watch, 2009, p. 6). In March 2007, the labour ministry was forced to close down a hundred accommodations for company workers. This is due to the fact that the accommodations or labour camps did not meet basic health, safety, or fire standards. In addition, the workers in UAE did not have rights to form labour unions that can champion for rights of the employees. Normally, the workers require better environment to work in, as some workers are forced to work for unpaid overtimes, with restricted movements, and confiscation of passports among other evils. Workers are obliged to pay recruiting fees, which is the means of exploiting the employees. The employers need to initiate reforms in the methods of paying its staff, which may involve direct transfer to their banks account rather than paying cash onsite (Esveld, & Human rights watch, 2009, p.8). In a country where there has been slow acceptance of CSR by the companies, it may be essential for the governments to legislate the practice to compel them (Nijsen, Hudson, Muller, 2008, p.135). Conclusion CSR has become a common phenomenon in businesses in the world, whose main aim is to self-regulate the companies, and at the same time, play a role in improving the quality of life of people in the society. The CSR project that a company may want to engage in is usually influenced by political policies in a country, as well as the culture and beliefs of the people in the said country. Multinationals should work in collaboration with local governments to provide necessary requirements to the society. The relationship between multinationals and governments can turn sour when the companies use their influence to obtain political power (Boeger, 2008, 4). Through active citizenship, CSR can be improved, especially when citizens are made aware of issues of CSR, thus supporting companies that are as well responsible citizens. In addition, there is need for communicating the importance of CSR to management to allow it take an active role in satiating the various needs of the society, as well as influencing the politics of a country (Shah, 2). Depending on the cultural state of a country, CSR is viewed differently from one state to another; in the US, CSR is viewed as charity, while in the Netherlands, it is as basic as following the laws and guidelines set by the authority. The culture always determines the needs of a society in terms of CSR; in SA, the main need is black empowerment and HIV while in UAE improved care for its human resource is the core need. References Andriof, J. & McIntosh, M. (2001). Perspectives on corporate citizenship. NY: Sheffield Greenleaf Publishing. Anonymous. (2007). 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