Ethic as the Most Important Aspect of Corporate Social Responsibility - Case Study Example

CSR Challenges (Telstra case study) Name: Institution Affiliation: Course: Course Code: Date: Table of Contents Introduction 3 Objective of study 4 Literature review 4 Challenges faced by CSR 4 Frameworks for CSR development 5 Methodology 6 Results and analysis 8 Discussion and implications 9 Conclusion 11 Recommendations 13 Bibliography 14 Introduction Corporates social responsibility refers to the way an organization is able to relate with the environment it works in[Mis13]. It involves the work that an organization does for the community around and how each of the members of the organizations carries out their duties towards the community[Wij11]. Corporate social responsibility has traversed the social and economic aspers of an organizations’ processes. One of the main ways for an organization to be socially responsible is by observing etiquette and ethics that make sure the community around it is not harmed by its operations. Responsibility taken by the organization towards caring for the environment around it, improving the economy and value of life within its niche. The charity events that an organization carries out as well as other activities that are to help the community at large are considered as the corporate social responsibility of an organization[Sch03]. The most important aspect of corporate social responsibility is the ethics of the organization and the relationship that the business operation or the workers of the organization have with the surrounding community or the world at large. Over the last few decades, the face of CSR has changed due to development of businesses and the globalization effect. Businesses have to deal with regulations and CSR needs according to the need of the particular location. The challenges faced by an organization in one country are far different to the ones faced working in a different nation[Mis13]. Due to this factor, CSR strategies or frameworks for success employed by the organization have to differ in order to cater for the different challenges met along the way. Objective of study The contents of this paper seek to evaluate the challenges faced by the Telstra company in the line of CSR on its operations in India. A contrast of the challenges faced by the company in India will be done in relation to Australia[Wij11]. The study will also evaluate the appropriate frameworks that ought to be used by the company so as to surpass the challenges posed by the Indian market. A conclusion and recommendation will then be given to aid in future development of the framework Literature review Challenges faced by CSR The form of challenges faced by an organization in performing its CSR functions are determined by the institutional environments of the host country. The state of economy that a nation is in will affect the CSR functions of an organization because the state of the nation will determine the performance of the nation and the extent to which CSR proceeds will have a positive change in the nation[Kra07]. In other cases, that laws in a certain nation are so stringent to the point that they hinder CSR development by an organization. From studies conducted in India it has been found out that a high percentage of the population is living below the poverty line and with little or no employment. In Australia CSR is not focused on the eradication of poverty as it is in India but on the betterment of the lives of the people. When operating in foreign markets, CSR faces new challenges like laws and other restriction or requirements that are way too far for the company to sort through CSR. Laws and regulations in new markets can cause an organization to neglect its corporate social responsibility especially on the social aspect[Val10]. The fact that Telstra operates in the Indian market, it means that the company has managed to find a framework that is viable and effective in improving the interactions of the organization and the community around it. Telstra is able to manage its relation and improve its core CSR function by the use and implementation of the regulatory regime framework. The development in internet infrastructure is a key component for the development of the company’s portfolio and hence CSR. If the host nation of an organization is focused technological development it will help a lot improve the level of contribution by private sector organization which always keep in check with technology. Poverty plays a major role in defining the challenges faced by organization on trying to perform their duties towards society[Val10]. Frameworks for CSR development There are several frameworks that can be employed by organizations to help them perform their CSR function in whatever environment irrespective if the challenges posed. It has been established that performing quality CSR by an organization in a foreign market has many challenges. The three-domain model of CSR is one that focuses the activities of an organization in three main area that is purely legal, purely economic and ethical. The use of this model helps cushion the investors against any pointed fingers because it does not allow an organization to overstep its boundaries within he constructs of the law[Sch03]. The regulatory regime framework for CSR is one of the commonly used method by organizations that seek to invest in developing countries. Like in the case of Telstra, the use of this regime has proven to help navigate the challenges of the developing world. The regulatory regime incorporates the association of the government in projects done by private organization[Wij11]. By using this regime, organizations are able to counter unemployment, poor infrastructure and at the same time cater for the interests of the organization[Wij11]. The regulatory regime framework involves the combined use government and private resources to make sure that there is some form of efficiency within the economy. Potters diamond model, on the other hand, relates the functions of the organization to the clients, the organization, the government and the competition that the organization faces. The model simply means that when each function of the organization is performed efficiently the organization will have been able to cater for all its relations with the environment around it[Mis13]. Methodology From an evaluation of India as a country it can be said that the nation is at its prime when it comes to the development of technology. Data was collected from the internet and other secondary sources so as to show the depth of the problems and challenges that the company Telstra will face in its operations in India. Studies have shown that India is at 19% when it comes to the elements of the internet ecosystem[Val10]. The study done on more than 50 countries around the world, showed that the percentage of internet integration into the nation is low. This mean that the nation has a low use of the internet as opposed to the other countries it was compared with. When it comes to the Australian context, there has been a considerable increase in the levels of computer literacy within the nation due to the high networking done by the company in their home country. The level of maturity in India when it comes to digital transformation strategy in the nation is higher than that of Australia. This means that Telstra has a higher chance for development in India than it has in its home country. The use of secondary data from the internet was also one of the main methods that were used in the study. Data on the on the rate of literacy around the world was taken to aid in the development of a hypothesis o the impacts of literacy levels on the implementation of good strategies to aid in the development of the tech company in the region. The rate of literacy within a nation has a direct impact on the development of industries and also and impact on how an organization should market itself in relation to corporate social responsibility. A comparison on the literacy levels in more than five countries showed that India has a higher level of literacy among the adults and the youth at the same time. This then leads to the problem of the use of resources both renewable and non-renewable within the country, With such a high level of literacy within the country, India ought to have a high productivity rate in the telecommunications industry. It means that the country has a problem on the use of its available resources. There is a high relation between the levels of literacy and how an organization is supposed to plan for its corporate social responsibility strategies. For a country that has a high level of literacy with no development, the focus of CSR strategies should be channeled towards the extensive and proper use of the resources available. Through an evaluation of several secondary sources, data and information on the CSR situation in India was collected to aid in the development of the study. Looking at the population demographics of the country, the number of the poor against the rich is very high with a very big difference on the income levels around the nation. More than one hundred million people live below the poverty line in India while less than a million people take home the high income[Val10]. From this demographic, it can be said that the nation feels the impacts of poverty in the development rate and status of the country. It can be seen the high levels of poverty in the nation are higher than other nations in the world. This means that the nation has a lot to deal with when it comes to dealing with development. Results and analysis From the data collected and the literature reviewed, it can be said that for Telstra to operate in India, it had to focus on other aspects of corporate social responsibility than the ones it was concerned about while operating in Australia. The challenges posed by a developing nation are varied and way different from the ones faced while operating in a developed nation like Australia. It means that the company will have to face challenges to deal with government initiative and proper utilization of resources. From the Australian context labor was difficult to access due to the high employment levels of professionals as opposed to the low levels of employment in India. In most developing nations, the challenges faced by organization are based on the impact of the governance on how business is to be run. This then affects the corporate social responsibility strategies that are employed by organizations serving in developing countries. From the data and the literature, he set of challenges faced by Telstra in Australia are different from the ones in India because of the difference in the economies of the two countries. The corporate social responsibility of an organization is impacted by the social and economic aspect of the host country. The social responsibility for organizations economically, i.e. how much and organization is able to contribute to the economy of a country is affected by the economic status of the country. Discussion and implications Being a new entrant into the Indian market, Telstra as an organization was barred from carrying out some CSR standard functions. This was due to implications by the law on CSR affecting new and foreign organizations. Telstra was not performing its core functions of CSR because of the implications of the law in India that affects the motivation of the company in carrying out CSR functions. You see, organization are governed by people who have insight and feelings. Since time in memorial the process of CRS has been conducted out of the goodwill of the organization. in most cases, organizations channeled their CSR proceeds towards areas that are of interest to the organization and also without pressure. This, however, is not the case in India where organizations are required by law to give 2% of their income towards charity or ‘CSR’[Val10]. This is perhaps one of the major institutional challenges that Telstra had to go through in India that it had not encountered in Australia. India is the only nation that has turned the aspect of corporate giving into law. In as much as organization are required to cater for the environment around them they still require the freedom to decide how they will channel their proceeds to the society. Through this, it can be said that Telstra did not carry out standard CSR functions because it was not giving back to the society in a way that as an organization it saw fit. By the implementation of deduction on profits, organizations abandoned standard CSR functions by assuming that the deduction were able to cater for the societal needs. The foreign regulation contribution act FCRA, is a law in India that regulates and to some point hinders the contributions of foreign companies[Val10]. The act states that an organization must have operated in the country with a good track record of over three years to be able to contribute through CSR. The law, in one way or another affected the ability of the organization (Telstra) to carry out some of the standard functions of CSR. The three-dimensional model of corporate social responsibility states that an organization should be focused purely on the legal, economic and ethical aspects of CSR. Under the model, an organization ignores the social responsibility towards the community under the explanation that when the economic aspect is covered, social problems will be solved in the process. Thus, by an organization purely focusing on the economic aspect the social aspects of the environment will be catered for. The organization was operating under restrictive compliance laws where an organization is tied from acting or taking action by constructs of the law. When using the 3-domain model, the organization is hindered from performing CSR functions that are felt directly by the society and the nation. In order for the organization to function and help the society around it, it has to employ the use of proper and strategic CSR frameworks to aid in the proper dispensation of corporate social responsibility functions. India being a developing nation has interest in improving the living standard of the poor who are majority. In order to do this, it will take the intervention of the government in partnering with the private and foreign investors to change the situation. Organizations cannot act on their own when it comes to dealing with nationwide challenges as those faced in India. The need for heavy involvement of the governance is much more needed by Telstra while operating in India as opposed to operating in Australia. The regulatory regime framework is the proper tool to be implemented by the organization in facing the CSR challenges faced by the company in its operations in India. The regulatory regime framework is of great importance in the success of the Telstra company in facing the challenges it has in India. The regulatory regime framework because it involves working with the government to formulate and develop partnerships with the private sector that aid in development of the nation[Wij11]. Through the regime organization are able to operate in new markets because the government helps in the reduction of barriers that hinder investments by private sector investors. Tariff barriers in India like the Two percent income deduction to cater for CSR is one of the main factors that might affect and organization motivation to participate in CSR activities other than the 2% deductible. It can be seen that through the model, Telstra will have an opportunity to carry out standard CSR functions as opposed to the initial times. Through the use of the model, organizations are able to engage the government in the flexibility of employment laws by working together to provide employment for the general public. Through the use of the regulatory regime in the implementation of CSR strategies, the government is able to enforce quality which will lead to efficiency and productivity that will help improve the economy. One of the main challenges faced by Telstra in India is the high rate of poverty and unemployment in the nation. In India, the Telstra will have to focus most of its CSR activities towards projects that help provide employment for the people and betterment of the economy of the country as a whole. Conclusion Frim the study has been found out that the regulatory regime framework is important in achieving the primary goals of corporate social responsibility by an organization. the study was also conclusive that the state of the economy on a nation has an impact on the levels of CSR that an organization is to be involved in. From the study, the failure of a country in investing in current technological equipment poses new responsibilities atop the already existing CSR responsibilities for the company. the reluctance in investing in new equipment affects the performance of an organization and also gives new entrants into the market more CSR because of the education and literacy programs they ought to offer in order to catch the eye of the client. The availability of infrastructure especially in the technological sector have a major impact on how much the organization has to give back to society in order to achieve its goals. Organizations ought to help change the environment round them positively but the occurrence of disequilibrium in the allocation of resources and also the use of the available resources can lead to the failure of the organization in helping out the society. Like persons, organizations first look at what is good for the company before the interests of the society. Resource management I important because it helps balance the demand supply curve of any economy. When the supply is higher than demand there will be a shortage in the economy. Like in the Indian case, the is a high rate of unemployment yet most of the population is literate. This because there is a high supply of labor in all form but there are few organization able to offer employment to the whole population. The challenges faced by the organization while operating in Australia are different from the ones it faces in India due to the difference in the economies of the two nations. Australia being a developed country posed different challenges when it comes to CSR of an organization due to the high levels of digital literacy in the country. In India, digital literacy is low thus pushing the organizations to work with the government in order to put forth a framework that will aim at improving the nationwide infrastructure. Recommendations From the study, it has been seen that the challenges faced by an organization when operating in new or foreign markets are different as those faced in the home country. An evaluation of Telstra and its operations in India showed that the fact that India is a developing country and Australia is not, the company had to face new challenges. Factors such as poverty and poor development of the technological infrastructure and the laws in India impacted on the organization’s CSR functioning. Using the three-dimensional method is good to be used by the organization in situations when the company feels that its existence is threatened. It is a method used to achieve possible deniability by the organization in the event that it is put under scrutiny. The use of the regulatory regime framework proves to be the method that can be employed by Telstra to be able to face the challenges posed by the india market. The regulation regime framework works hand in hand with the government to help in the development of the private sector. Telstra has collaborated with the Indian government to aid in the revamping of the broadband network around the country. Through the use of this strategy the company is able and will be able to change the technological infrastructure of the nation thus giving back to society through its partnership with the government. For long term results the company should continue using the regulatory regime framework to set up projects that provide employment and help in the reduction of poverty within India. Bibliography Mis13: , (Mishra, 2013), Wij11: , (Wijen, 2011), Sch03: , (Schwartz, 2003), Kra07: , (Kramer, 2007), Val10: , (Valente, 2010), Read More

The form of challenges faced by an organization in performing its CSR functions is determined by the institutional environments of the host country. The state of the economy that a nation is in will affect the CSR functions of an organization because the state of the nation will determine the performance of the nation and the extent to which CSR proceeds will have a positive change in the nation (Kramer, 2007). In other cases, that laws in a certain nation are so stringent to the point that they hinder CSR development by an organization.

From studies conducted in India, it has been found out that a high percentage of the population is living below the poverty line and with little or no employment. In Australia, CSR is not focused on the eradication of poverty as it is in India but on the betterment of the lives of the people. When operating in foreign markets, CSR faces new challenges like laws and other restrictions or requirements that are way too far for the company to sort through CSR. Laws and regulations in new markets can cause an organization to neglect its corporate social responsibility especially on the social aspect (Valente, 2010). The fact that Telstra operates in the Indian market, means that the company has managed to find a framework that is viable and effective in improving the interactions of the organization and the community around it. Telstra can manage its relation and improve its core CSR function by the use and implementation of the regulatory regime framework. The development in internet infrastructure is a key component for the development of the company’s portfolio and hence CSR. If the host nation of an organization is focused on technological development it will help a lot improve the level of contribution by private sector organizations which always keep in check with technology. Poverty plays a major role in defining the challenges faced by organizations in trying to perform their duties towards society (Valente, 2010).

Several frameworks can be employed by organizations to help them perform their CSR function in whatever environment irrespective of the challenges posed. It has been established that performing quality CSR by an organization in a foreign market has many challenges. The three-domain model of CSR focuses on the activities of an organization in three main areas that are purely legal, purely economic, and ethical. The use of this model helps cushion the investors against any pointed fingers because it does not allow an organization to overstep its boundaries within the constructs of the law (Schwartz, 2003). The regulatory regime framework for CSR is one of the commonly used methods by organizations that seek to invest in developing countries. Like in the case of Telstra, the use of this regime has proven to help navigate the challenges of the developing world. The regulatory regime incorporates the association of the government in projects done by a private organization (Wijen, 2011). By using this regime, organizations can counter unemployment, poor infrastructure and at the same time cater to the interests of the organization (Wijen, 2011). The regulatory regime framework involves the combined use of government and private resources to make sure that there is some form of efficiency within the economy. Potters diamond model, on the other hand, relates the functions of the organization to the clients, the organization, the government, and the competition that the organization faces. The model simply means that when each function of the organization is performed efficiently the organization will have been able to cater for all its relations with the environment around it (Mishra, 2013).   

From an evaluation of India as a country, it can be said that the nation is at its prime when it comes to the development of technology. Data were collected from the internet and other secondary sources to show the depth of the problems and challenges that the company Telstra will face in its operations in India. Studies have shown that India is at 19% when it comes to the elements of the internet ecosystem (Valente, 2010).

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