Initial Research Plan - Essay Example

Initial Research Plan 1 Topic Introduction This study on Corporate Social Responsibly is aimed at carrying out an evaluation on how CSR affects an enterprise’s performance. Through this research, organizations will be able to know with extreme elements of precision, the possible results of getting involved in CSR on their bottom-line. It’s objective of this study to establish a plausible correlation between CSR as an activity, and a company’s profitability. 1.2 Research Problem. The research problem is to establish a correlation between CSR and actual business performance.

Even with the numerous studies on Corporate Social Responsibility, there is yet to be in place empirical evidence on the precise link between CSR and business performance, this gap is what the study seeks to fill. 1.3 Purpose of the Research. The key purpose of this study will be to ascertain the existence of any correlation, either positive or negative, between CSR and actual business performance. The study equally seeks to establish and define any existing trends for measuring business performance in relation to existing strategy.

It is also the purposes of this research to establish the impact of CSR on business performance focusing on key performance indicators which include market value, revenue and shareholder value. The study will as well have the purpose of establishing the approaches for effectively measuring the impact of CSR on business performance. 1.4 Significance of the Problem. With a clear understanding on actual effects of Corporate Social Responsibility on an organization’s performance, companies will accurately spend their resources on CSR activities that yield optimal results.

Establishing this correlation will also help in instituting CSR as core business strategy, for any organization seeking improved performance (Kaufmann and Olaru, 2012). Since the act of Corporate Social Responsibility has a direct impact on the society (Kotler & 2005), this study will to a larger extent increase the participation of companies in community betterment projects through CSR. 1.5 Conceptual Theoretical Framework By definition, conceptual theoretical framework is a structure that has the ability to support a theory on any work of research (Creswell, 2008).

For this study, it is our theory that Corporate Social Responsibility has an ultimate effect on an organization’s profitability. 1.6 Research Questions Is there a significant positive correlation between Corporate Social Responsibility and actual business performance? Are there existing trends of measuring business performance in relation to strategy and are the key indicators of business performance valid? Does Corporate Social Responsibility, directly or indirectly, affect key indicators of business performance including shareholder value, market value and revenue directly or indirect?

s Are the approaches used in measuring the impact of Corporate Social Responsibility on actual business performance effective? 1.7 Hypothesis. The research hypothesis (H1) is: Corporate Social Responsibility has an effect on a company’s overall performance while the null hypothesis (Ho) is that; there is no relationship between CSR and performance. H1: µ (CSR) > ? (Profits) H0 : µ(CSR) =< ?(Profits) 1.8 Literature Review or the Current Understanding of the Phenomena. According to Orlitzky, Schmidt and Rynes, (2003), CSR has a big effect on the overall performance of an organization since it shapes the opinion of customers and stakeholders on the soft side of an organization.

It is equally an opportunity for a company to market itself without any expectation of immediate results, (Orlitzky, Schmidt & Rynes, 2003). The responsibility attached to an organization’s involvement in CSR however, has long term economic benefits that range from customer loyalty to a sense of indebtedness to such an organization among customers, (Go?ssling, 2011). Stakeholders touched by a company’s CSR activities both directly, or otherwise, always feel obliged to provide support to such an organization’s goods or services and are the best brand ambassadors to such enterprises (Hawkins, 2006).

Gossling (2011) further explains that the CSR phenomena is an indicator among stakeholders, that a company has accepted responsibility for events around itself and is not just concerned about own growth but does care about the external environment in and with which it does business, it shows the soft side of such commercial enterprises that are always profit driven. This Gossling (2011) adds, has a major effect on the organization’s image in its environment of business. According to Nussbaum (2008), previous research into CSR concluded that the act is at the core of most organization’s business strategies and they take it very seriously from every aspect.

Their industry rankings, he adds, are pegged on how effective their CSR agenda is. A company’s survival is dependant of profits and these are subject to revenues which can be achieved through customer satisfaction by having competent and inspired work force, this Nussbaum (2008) says, is the simplest connection between CSR and profitability in any organization. Employees that know of their contribution to the society through provision of services in an organization are always motivated and this sits at the core of profitability in any company (Horrigan, 2010).

References Go?ssling, T. (2011). Corporate social responsibility and business performance: Theories and evidence about organizational responsibility. Cheltenham, UK: Edward Elgar. Creswell, J. W. (2008) Research Design: Qualitative, Quantitative and Mixed Methods Approaches. Sage Publications. Kaufmann, M. and Olaru, M. (2012). The Impact of Corporate Social Responsibility on Business Performance-Can It Be Measured, And If So, How? Retrieved, May 17 2012 from: http://www.culturaldiplomacy.org/ Orlitzky, M.

, Schmidt, L. F. and Rynes, S. L. (2003). “Corporate Social and Financial Performance: A Meta-analysis.” Organization Studies, 24(3): 403-441. Hawkins, D. E. (2006). Corporate social responsibility: Balancing tomorrow's sustainability and today's profitability. Basingstoke [u.a.: Palgrave Macmillan. Horrigan, B. (2010). Corporate social responsibility in the 21st century: Debates, models and practices across government, law and business. Cheltenham, UK: Edward Elgar. Kotler, P., & Lee, N. (2005).

Corporate social responsibility: Doing the most good for your company and your cause. Hoboken, N.J: Wiley. Nussbaum, D. (2008). Doing Business in the Global Environment: Corporate Social Responsibility as an Organization's Core Business Strategy?. Mu?nchen: GRIN Verlag GmbH.