CSR Strategy and Win-Win Strategy - Essay Example

BAYER PHARMACEUTICAL COMPANY College Bayer Pharmaceutical Company In the contemporary business environment, organizations employ effective business CSR strategies towards a win-win approach of business development. Business competition has overwhelmed the market and customer-based business approaches are necessary to ensure that organization form lasting relationships with their customers to ensure that the business survives the harsh market conditions. Bayer Pharmaceutical Company is one of the organizations that have survived tough market conditions to enter into the FT 500 list in the year 2013. However, for an organization that invests in the chemical industry, corporate social responsibility is one of the most important factors that influence customer relationship and hence the profitability of the organization. A critical analysis of the organizational strategy will reveal the CSR strategies that Bayer Pharmaceutical Company has deployed and the way it has impacted on its business development strategies. First, the organization has invested in long term customer relationships by ensuring that customers benefit from quality products that the organization produces. Over time, the organization has invested in production of quality plastic materials as one of the CSR strategies to win customer loyalty. For an organization to win the long term loyalty of its customers, it is crucial for the organization to invest in quality products that serve the needs of the customers more satisfactorily (Crane, Palazzo, Spence & Matten, 2014). For a strong win-win approach, the organization needs to establish a symbiotic relationship in which both the customers and the organization have a mutual benefit. Customers are likely to remain loyal to organizations that satisfy their needs and protect quality. As such, the reason why Bayer Pharmaceutical Company has remained profitable is because they have provided quality products to win the loyalty of their customers. Bayer Pharmaceutical Company has used environmental friendly methods to attract customers to their business organization. A strong Corporate social responsibility strategies ensures that the organizational operation zero negative effects of the other stakeholders including the customers, the government and the environment. Since Bayer Pharmaceutical Company is a chemical based company, it releases a number of harmful chemicals that may have negative effects on the environment. However, the company has put enough efforts to ensure that the organization reduces its disposal of harmful chemicals in the environment. For instance, the organization has committed itself to the use of low-carbon fuels to ensure that there is minimal environmental pollution (FT 500, 2013). Most customers have affinity to organizations that are sensitive to the environment and using this strategy is likely to attract customers in the organization. Secondly, the organization is committed to the use of green electricity and storage of electricity in plants. This strategy ensures that the organization is committed to the government’s efforts to regulate environmental pollution. Organizations that comply with the government regulations have a good corporate image, which is essential in attracting customers (Plaza-Úbeda, Burgos-Jiménez, Vazquez & Liston-Heyes, 2009). Customers prefer to associate with organizations that have a good image and ones that are not likely to face government charges. Another important aspect of the Bayer Pharmaceutical Company CSR strategy is creation of friendly work environment. CSR approach can only be termed as a win-win approach if an organization takes care of the welfare of its employee and benefits from their loyalty (Crane, Palazzo, Spence & Matten, 2014). That is, the organization benefits from employee commitment, while the employees benefit from worker friendly environment. Government organizations strive to ensure that organizations provide a healthy environment for the employees to work in. In Bayer Pharmaceutical Company, the employee welfare is checked in a number of ways. First, the organization has consistently ensured that their employees work in environment with little carbon dioxide emissions and a temperature regulated environment. As such, the employees in this company are satisfied and remain loyal to the organization. Loyal employees have a higher work output and are committed to both the short and long-term goals of the organization. In the contemporary business environment, organizations have to ensure that their employees understand the value of goal commitment if they have to survive in the competitive business market. The Bayer ability of Pharmaceutical Company to apply a CSR approach that creates a hospitable working environment for employees ensures that the employees are committed to management goals and that the organization remains profitable. The future of Bayer Pharmaceutical Company depends on its ability to develop a dynamic CSR approach to ensure that they survive in the changing market trends. Research and innovation is the only way to go if the organization has to sustain the market pressure in an era of business rivalry (Plaza-Úbeda, Burgos-Jiménez, Vazquez & Liston-Heyes, 2009). First, the government regulations are changing rapidly and new ones are coming up. For this reason, it is crucial for the organization to remain observant and innovative. For instance, the organization should consider the challenge of ensuring zero-carbon wasters within the environment. Innovative product recycling of wastes such as plastics can help the organization remain cost efficient alongside a commitment to ensure environmental cleanliness. Research will ensure that the organization is committed to the regulations that hit the chemical industry from time to time. On this note, Bayer Pharmaceutical Company should engage in research to ensure that changing regulations and CSR strategies are detected and corrective actions implemented in the organization. In conclusion Bayer Pharmaceutical Company is one of the companies that have employed Bayer Pharmaceutical Company and win-win strategy to impart efficiency in its business operations. Today, the management has the role to ensure that the organizational strategy takes care of all the stakeholders of the business. For Bayer Pharmaceutical Company, business success emanated from the ability to satisfy the government, the customers and the employees. The organization remains commitment to environmental sustainability and production of quality goods that satisfy the needs of the customers. By building its corporate images and winning customer and employee loyalty, the organization reaps from the benefits of committed customers and employees. The appearance of Bayer Pharmaceutical Company among Fortune 500 companies shows that the organization has remained profitable within it investment strategy. The future success of the organization depends on its ability to use research and innovation to survive in the dynamic chemical industry. Bibliography Crane, A, Palazzo, G, Spence, L, & Matten, D 2014, Contesting the Value of "Creating Shared Value", California Management Review, 56, 2, pp. 130-153, Business Source Complete, EBSCOhost, viewed 12 March 2014. FT 500, 2013. Bayer Pharmaceutical Company. Available at: < http://www.ft.com/ companies> Plaza-Úbeda, J, Burgos-Jiménez, J, Vazquez, D, & Liston-Heyes, C 2009, The ‘win–win’ paradigm and stakeholder integration, Business Strategy & The Environment (John Wiley & Sons, Inc), 18, 8, pp. 487-499, Business Source Complete, EBSCOhost, viewed 12 March 2014. Read More