World Vision - Ethics and Corporate Social Responsibility, Diversity Management - Case Study Example

Name: Professor: Course: Date of Submission: Assignment 2–Case Study Report (Group Work) Executive Summary In the global business today, there is renewed effort by companies to have good relations with the social environment. As a result most companies through their Corporate Social Responsibility Policies have in the recent past aligned themselves with society in a bid to plough back (Zulkifli & Amran, 2006 pg 48). This way, companies side their business operations with practices targeting to produce a general positive impact in the wider society. Studies indicate that 85% of managers suggest that well planned Corporate Social Responsibility Policies have a positive impact to the image of the organization. The Corporate Social Responsibility Policies are therefore central in investment resolutions (Zulkifli & Amran, 2006 pg 56). According to statistics from IBIS World Report X0021, the Charities and Not-For-Profit Organizations in Australia played a significant role in making society a better place for al to stay. In order to do this, the organizations have constantly raised funds that are channelled to performing valuable work in areas of little appeal to profit-making enterprises. They have helped the public sector in modelling a dignified and empathetic society worth of everyone. With time, the sector has seen a significant growth with income of up to $101.54 billion as at 2010-11. It is in this regard that most companies would want to be part of this noble course, towards creating a better society to live in. This paper examines the Australian Argo Investments. As one of the top Australian companies, Australian Argo Investments donates large sums of money each year to not-for-profit or non-profit, third sector organisations in accordance with its Corporate Social Responsibility policy. In particular, the paper will detail a report of a research about the company’s possible recipients, of its $200,000 donation before the end of the current financial year. In the paper, considerations are given to the World Vision and the Plan (International) Australia as possible candidates. The two are given attention for their continued effort in Child support in third world countries. In the end, the paper makes recommendation of who should receive the donation, citing justifiable reasons. Literature Review Every individual in society, regardless of their social status, has a responsibility and a role to play in alleviating human suffering (Roux, 2007, pg 57) Modesty demands that everyone plays a part in humanitarian aid. However, this is an enormous task to be left in the hands of the public sector. As a result, most organizations, mainly Non Governmental Organizations, foundations and business corporations have dedicated their time and resources to this worthy course (Roux, 2007, pg 59) They do so to help the deprived people get a chance to rebuild their lives. This is the idea behind charity organizations that engage in philanthropy the world over. Such organizations include the World Vision and the Plan (International) Australia. The World Vision History The history of the World Vision traces back to the 1940’s humanitarian activities of its founder and missionary, Dr Robert Pierce (The World Vision International, W.V.I.). In his effort to help the poor children especially in Asia, he was driven by compassion to form a body that would help assuage the suffering the world over. In 1950, World Vision was formed with Dr Robert Pierce as its foremost president. By 1966, its operations had spread to the rest of the world including in Australia. Mission/ Aim The World Vision was established as an evangelical aid movement that later turned into an international humanitarian body. The organization has as its mission: “to follow our Lord and Saviour Jesus Christ in working with the poor and oppressed to promote human transformation, seek justice and bear witness to the good news of the Kingdom of God.” (The World Vision International, W.V.I.). Ideally, the World Vision hopes to make the world a safer and better place, good for human habitation. It does so by attending to the poor, spreading the Gospel of Christ and seeking Justice for the exploited. It is in the field of working with children and for children that World Vision has done enormous and splendid work for the world communities. The organization targets the children in their vision statement that reads as thus: “Our vision for every child, life in all its fullness; our prayer for every heart, the will to make it so.” (The World Vision International, W.V.I.). Size of the World Vision World Vision is one of the leading humanitarian organizations in the world today. As an organization, it operates in Africa, Asia, Europe and the Middle East; North, Central and South America. In total, the World Vision operates in more than 100 countries worldwide. As at 2008, the organization’s revenues from donations stood at $2.6 billion (The World Vision International, W.V.I.). Work of the World Vision Being a humanitarian agency, the World Vision is involved in a number of charitable activities. The activities can broadly be divided into: emergency help, education and learning, health care, economic empowerment, and crusading for justice (The World Vision International, W.V.I.). To achieve this, the organization is involved in responding to disasters in different parts of the world; transforming communities through programmes such as HIV AIDS Awareness, nutrition programs and health campaigns such as sexual and reproductive health. Importantly also the organization advocates for a better society through fostering peace and understanding; fighting injustice and poverty. Being an evangelical organization, it also encourages sharing of the Gospel of Christ. It works in collaboration with other major world bodies such as UNESCO, WHO, UNHCR and UNICEF (The World Vision International, W.V.I.). Achievements of the World Vision Since its inception in the 1950s, The World Vision has had numerous achievements in its contribution to different communities in different parts of the world. In just a few decades since its formation, the body has achieved quite a lot. Some of the notable cases were its contribution towards starvation in Korea and Ethiopia. The organization is also accredited for its response to catastrophes such as tsunamis, earthquakes in India, Turkey, China and most recently the Haiti and Japan Earthquakes (The World Vision International, W.V.I.). The World Vision also has alleviated suffering among refugees especially as a result of war. In particular, the organization has worked with war refugees from Kosovo, Sierra Leone, East Timor among others (The World Vision International, W.V.I.). Plan (International) Australia History Plan International’s history can be traced to the period of the Spanish Civil War (Plan International, P.I.). It was co-founded by a British News reporter John Langdon-Davies in conjunction with a humanitarian member of staff Eric Muggeridge. The duo was moved by the numerous children who were left as orphans after their parents died in the bloody Civil War (Plan International, P.I.). Together they formed the then ‘Foster Parents Plan for Children in Spain’ in 1937, that later changed to be called Plan International. The organization offered food, refuge and clothes to the orphaned children. For some time, the organization ran with the help of the British people who were asked to donate a shilling per day as well as show affection to the despondent children (Plan International, P.I.). The period marking the World War II saw ‘Foster Parents Plan for Children in Spain’ extending its areas of operations to the war hit regions of Europe. After the war, in the 1950s, the organization ventured to the rest of the world, in parts of Asia, Americas as well as the African region. It reached Australia in the 1970s, then being referred to as Foster Parents Plan of Australia. Plan International Mission/ Aim Established during the hard times of war, Plan International targeted the poor and oppressed. It has as its mission, attaining “lasting improvements in the quality of life of deprived children in developing countries, through a process that unites people across cultures and adds meaning and value to their lives” (Plan International, P.I.). This is achieved by championing for their rights, giving them basic necessities and fostering peace. The organization’s vision is to; “create a world in which all children realise their full potential in societies that respect people's rights and dignity” (Plan International, P.I.). Size of Plan International Plan International has an extensive area of operation with influence in more than 60 countries the world over. It has regional offices for its operations in Africa, the Americas, Asia and Europe. As at 2010, Plan International dealt with more than 28 million children as well as their respective households in estimated 66,886 communities all over the world (Plan International, P.I.). Work of Plan International Plan International uses its 21 nationwide organizations to get money and sensitize the public on pertinent issues. In general, the organizations key areas include: Early Childhood Care and Development (ECCD); sexual and reproductive fitness; education and learning; water and hygiene; children safety; residency and calamity or hazard reduction (Plan International, P.I.). It also works in relief efforts such as in Haiti and Japan during the earthquakes. Presently, the organization has 1.5 million sponsors that help children from all over the world. The organization works in conjunction with the International Red Cross and Red Crescent Movement (Plan International, P.I.). Achievements of the Plan International Since its founding in 1937, The Plan International has been applauded for its contribution in alleviating pain and suffering. Its achievements include its involvement during the Spanish Civil War, then being called Foster Parents Plan for Children in Spain’. It also had a leading role in helping refugees during the World War II in Europe. The organization has also remained steadfast in championing for child rights and bringing an end to child poverty. This has been seen in most developing countries such as Benin, Liberia, Sudan and Rwanda in Africa; Bolivia, El Salvador, and Honduras and Haiti in the Americas; as well as Bangladesh, India, Laos and Vietnam in Asia (Plan International, P.I.). World Vision vs. Plan International These two world bodies could be said to have similarities as well as differences. The similarities and/ or differences can be traced in their organisational configuration, management style, as well as in their staff drive and motivation. The dissecting could also be done in reference to their enrolment of volunteers, marketing and sponsorship, diversity management along with ethics and their corporate social responsibility. The differences are mainly in their approach, but in principle, the have more similarities than differences. Organizational Structure An organizational structure entails allotment of duties, synchronization, and supervision. These activities are aimed at attaining the organization’s goals. Most organizations are divided into branches or departments. This will form a network that interconnects entities in the firm for its effective management. Both the World Vision and the Plan International have this hierarchical structure in organization. This involves an organization being divided into sections, each with a lower and higher ranking officials (The World Vision International, W.V.I.). The World Vision is made up of many national entities that are found the world over. Together, the entities make up the World Vision Partnership. There are head offices that oversee adherence of the organization’s policies and norms. These offices are located in major world cities such as London, Los Angeles, Bangkok, Geneva, Nairobi, New York, Dakar and Lusaka among others (The World Vision International, W.V.I.). The organization has a Board of Directors that controls what is called “Partnerships”, or councils. The different partnerships are guided by the same core values and the mission as well as the vision of the World Vision International. The international Board for World Vision has 24 members, and holds meetings two times every year. During these meetings, the board appoints higher-ranking employees, endorses budgets and strategic plans. They also decide on the international policy of the organization. Currently, the chair of the International Board of the World Vision is Roberto Costa de Oliveira while the CEO and president of the organization is Kevin Jenkins (The World Vision International, W.V.I.). The national Boards are made up of experts, the clergy and community service leaders. They deal with the national matters. Funding within the World Vision comes primarily from the private sources. This includes people, companies, as well as foundations. It makes up to over 80% of the organizations income. The remaining 20% comes from governments and bilateral agencies. Most of these proceeds go to child sponsorship programmes (The World Vision International, W.V.I.). On the other hand, Plan International has the Members’ Assembly as its major decision-making organ. It constitutes all the permanent members of the National Organizations. The Assembly holds meetings two times every year (Plan International, P.I.). During these meetings, the Assembly will select the Board of Directors for the organization. The board is answerable to the Assembly. The Assembly also endorses budgets as well coming up with top strategic plans for the whole body (Plan International, P.I.). The Board of Directors will endorse policies and practices in accordance to the grand strategy by the Assembly. The policies will then be implemented by the people in the field. Plan International also has International Headquarters which acts as the technical centre and service provider. It is manned by the organization’s CEO. The headquarters are located in the United Kingdom. The CEO is answerable to the International Board of Directors and runs the day-today activities of the organization. The CEO works in conjunction with The International Management Team and the National Directors Team. Additionally, the organization’s lower level management comprises of Regional Offices, Country Offices and Country Management Teams. Down to the community, the organization utilizes the Program Units. Plan International spends 80% of its donations on child support initiatives commonly in the developing world (Plan International, P.I.). In the financial year 2009-2010, the organization raised €535,000,000. Out of this, 70% came from child donors from all over the world. The remaining 30% of the organization’s income come from grants from governments or foundations. In 2009-2010, the organization spent €455,000,000 (Plan International, P.I.). Organisational Culture Organizational culture will define the organization’s principles, norms, values and approaches. They are collectively practiced and agreed upon as the identity of the organization. They will guide in decision making and will foster appropriate behaviour. Both the World Vision and the Plan International have organizational cultures embedded in their core values and approaches. The World Vision esteems in six major value aspects that define them and what they stand for. In the core values, the organization states that: it is an evangelical entity, dedicated to the poor, values people; it is a steward, a partner and remaining responsive to the plight of the underprivileged. The core values shape the organization’s approach and practices as a humanitarian agency. On the other hand, Plan International takes pride in the following core values; integrity, transparency, accountability, sustainability, efficiency, and honesty. The organization always moves in for the benefit of the child. It upholds human rights and in particular, child rights. They esteem in according human beings the dignity they deserve (Plan International, P.I.). In their operations, they hope to remain moral, honest and accountable. They too cherish creating an atmosphere for efficiency and sustainability. Diversity Management In the world today, communities are striving to co-exist, learn form one another and value each other. Such is the case with the corporate world (William, 2010, pg119). In order to improve their perception to the world community, organizations have taken measures to ensure that they remain as representative as possible. This is attributed to the fact that diversity in management creates an atmosphere of robust creativity. Additionally, it is in line with bringing on board every region of the world for better representation (William, 2010, pg121). In both the World Vision and Plan International, there are deliberate measures taken to ensure the organizations remain as diverse in their management as possible. Furthermore, having diversity in management for these organizations is a matter of obligation. This is because they work in very diverse communities of the world that would need considerable experience of people from those regions. However, as a matter of principle, they also have variety of work force. The top management positions for instance are rotational. This way, people from different regions will have a chance to lead the organization (Wheeler, Fabig, & Boele, 2002, pg 89). Ethics and Corporate Social Responsibility Ethics could be defined to be the laid down rules ad expectations of how people are expected to behave in a certain setting (William, 2010, pg 120). According to research findings, for the past few decades, the need for any organization to have a clearly defined code of ethics has become indispensable. For this reason, every corporation in the world today will be compelled to spell out how each individual within its operations, ought to behave (William, 2010, pg 121). Similarly, every organization needs to have a plan for the wider society (Weyzig, 2007, pg 68). Most companies through their Corporate Social Responsibility Policies have in the recent past aligned themselves with society in a bid to plough back. Organizations align their practices targeting to produce a general positive impact in the wider society. Studies indicate that 85% of managers attest that well planned Corporate Social Responsibility Policies had a positive impact to the image of the business (Weyzig, 2007, pg 69). The policy is therefore central in investment resolutions. In this regard, both the World Vision and Plan International have done a lot to touch the hearts of the people. Being humanitarian agencies, the organizations have channelled almost all their resources towards alleviating pain and suffering. Through their programs, they have responded to disasters, attended to victims of war and famine and empowered communities of the world to fight poverty and disease. In both organizations, a grand 80% of their revenue is ploughed back to society particularly towards reaching out to destitute children and giving them hope for tomorrow. In addition the two organizations work with funds that are donated from people, governments, companies and foundations. This means that they have to be totally accountable and honest. There has to be high levels of integrity and efficiency for the funds that are allocated to serve the intended purpose. In addition, the organizations have strict codes of ethics that aim at achieving the veracity required. People that are employed should possess phenomenal moral standards as a qualification for recruitment (William, 2010, pg 123). Recommendations It is always important for business entities to make informed decision about where to invest or put their money (Weyzig, 2007, pg 67). Based on the research and the analysis done about the two humanitarian agencies, and supported by reasons, Australian Argo Investments should allocate the $200,000 to both the organizations. However, the amount should be divided in 60% and 40% in favour of the World Vision. From the analysis, statistics revealed that in total, the World Vision operates in more than 100 countries worldwide. As at 2008, the organization’s revenues from donations stood at $2.6 billion. This relatively higher than the Plan International that operates in 60 countries with a budgetary allocation of €455,000,000. However, the decision to allocate to both comes from the fact that both organizations had convincing missions and strategies. Their track record since their inception served as an indicator that the two entities have struggled even with persisting economic hardships to accord the less fortunate a reason to smile. Although the research shows a slight difference in terms of structure and operations, the two entities have worked to help the destitute children by maintaining human dignity, championing for justice, and upholding organizational accountability as well as ethical foundations (William, 2010, pg123). Conclusion In the world as a whole, there is a lot of human suffering and pain. Whereas life has presented fortunes to some people, others grapple with anguish and lack. It should be a responsibility of every individual in society to be part of this noble course in being the brother’s keeper. Such is the idea in the charity and philanthropy world. Usually, this taunting task of looking at the welfare of the less fortunate is left in the hands of the government. Due to its enormous implications, most governments especially in the developing world cannot afford. It is at this point that humanitarian agencies come in. These are nongovernmental organizations that give relief to people from different communities who are deprived as a result of war, disease or famine. They do so with the help of grants from governments and donors who volunteer to give to the poor. They are basically rooted in the idea of helping. This paper examined how companies are partnering with humanitarian agencies through their Corporate Social Responsibility Policies to give back to society. The paper examined a possibility of where Australian Argo Investments would donate $200,000. The paper detailed a research done on both the World Vision and Plan International (Australia) in a bid to come up with the best option. The recommendations gave a split of 60%-40% in favour of the World Vision. Work Cited Plan International (P.I.). Retrieved 7th May 2011, from: http://plan-international.org/about-plan The World Vision International (W.V.I.). Retrieved 7th May 2011, form: http://www.wvi.org/wvi/wviweb.nsf/maindocs/3F50B250D66B76298825736400663 F21?opendocument Roux, M. Climate conducive to corporate action: 1 All-round Country Edition. “The Australian.” Canberra: A.C.T, 2007. Weyzig, F. Local and Global Dimensions of Corporate Social Responsibility in Mexico “Journal of Corporate Citizenship” 24, winter: 69–81, 2006. WRI. World Resources 2005—The Wealth of the Poor: Managing Ecosystems to Fight Poverty. Washington: D.C., World Resources Institute, UNDP, UNEP, World Bank, 2005. Zulkifli, N. & Amran, A. Realizing Corporate Social Responsibility in Malaysia: A View from the Accounting Profession “Journal of Corporate Citizenship” 24, winter: 101–14, 2006. Wheeler, D., Fabig, H., & Boele, R. Paradoxes and Dilemmas for Stakeholder Responsive Firms in the Extractive Sector: Lessons from the Case of Shell and the Ogoni “Journal of Business Ethics” 39(3): 297–318, 2002. Jessica, L. Protect, Respect and Remedy: Ruggie’s Latest Report to the UN on Human Rights and Business “CSR Journal” retrieved 7th May 2011, from: http://apps.americanbar.org/intlaw/committees/CSR_Journal-5.23.08.pdf William, H. Business Ethics: A Textbook with Cases Cengage Advantage Books. New York: Cengage Learning, 2010. Kevin, M. The pulse of humanitarian assistance International humanitarian affairs. London: Fordham Univ. Press, 2007 Read More