Use of Corporate Social Responsibility - Coursework Example

Socially responsible organizations take the initiative of following the laid down legislation and also take care of their employees and their families voluntarily without being under any obligations (p.199).

They continue to say that CSR just means the strategies that organizations use to conduct their business ethically by being society friendly. CSR involves a lot of activities like partnering with local communities, investing in socially sensitive ventures, having excellent employees, customers, and family relations, and lastly being involved in environmental conservation activities (Ismail, 2009, p.199).

According to Gotherstrom (2012), organizations like H&M can use the Stakeholder theory of CSR. It involves the organization management putting into consideration economic and social factors that affect the business during its decision making in its operation. In this case, the stakeholders involved include investors, political groups, communities’ employees, trade associations, government, etc. These all stakeholders affect the business in one way or another but the business has to find ways and means of keeping them happy. This theory is not only how the shareholders can make more profits but also how the organization can make decisions that will affect how society views it (p.8). The application of this theory has been on the rise especially due to the rise of activists and environmental groups. (p.9) In the case of H&M, we find that it is involved in its CSR activities to atone for the condemnation that it received from Greenpeace in the year 2011for discharging hazardous wastewater with chemicals which could affect the environment negatively. This is demonstrated by the way it partners with UNICEF to help children in Bangladesh.

The next CSR is Legitimacy Theory; this theory and the stakeholder theory are related in one way or another. It says that the environment and the various groups in the society interact and may affect the business. This theory acts concerning if the business is not operating in socially acceptable ways then the stakeholders act differently to ensure that the business survives. These include strategies that enhance the firm's image in the eyes of society (p.9).

In conclusion, should H&M practice these theories, it will not also succeed in its business by endearing itself in the eyes of society but it will also be a model of a socially responsible organization. The virtue of it aligning its strategies with CSR activities means that it is a socially responsible organization.