Corporate Social Responsibility in the Car Industry - Capstone Project Example

The era of globalization has ushered in a new generation of intense competition. Organizations have recognized the importance of generating various strategies by which they could profit from their operations. One of the business initiatives recognized as increasing the financial performance of a company is the use of corporate social responsibility. Briefly, corporate social responsibility (CSR) is defined as those methods by which an organization minimizes its negative impacts on the environment and society.

To ensure the maximization of benefits arising from CSR, it is important to give consideration to employees. Nevertheless, little research has been conducted with respect to the role of the employees in ensuring CSR. In this present study, the role of the employees has been validated. True enough, corporations have acknowledged their importance and it is in this regard that they have come up with various initiatives to promote employee engagement. However, these strategies have not been employed in the branches of the companies outside their home country, in view of their desire to reduce operational costs.

This study makes use of a qualitative design to explore the topic at hand. Chapter One: Introduction Background of the Study The importance of the concept of corporate social responsibility (CSR) was first addressed during the Johannesburg World Summit on Sustainable Development in 2002 (Kotler and Lee, 2005). In highlighting its importance, many have argued that to ensure their efficiency companies nowadays must also be able to give consideration to social and environmental areas. Aside from this, they are likewise mandated to deliver the results of their achievements in honest and transparent ways (Werther and Chandler, 2010).

Apparently, the participants of the said summit have recognized the fact that it is through the attainment of these purposes that the efficiency of the companies is guaranteed. The development of a framework was one of the most significant contributions of this particular summit (Kotler and Lee, 2005). In the said framework, two approaches were reflected: the advocacy as regards the adoption of regulatory frameworks that makes the concept of CSR mandatory based on the behavior of the entrepreneur (OECD, 2001).

This particular approach is popular amongst developing countries and the major non-governmental organizations that were present at the said summit. As was to be expected, there were others who rather objected thereto.