The Uses and Limits of CSR - Coursework Example

Corporate Social Responsibility Student’s name Code & Course Professor’s name University City Date Critically discuss the uses and limits of CSR. Include in your discussion some illustrations of who, or what, may gain benefits or be at risk through adoption of CSR strategies. Introduction Corporate social responsibility or in simpler terms, responsible business. A business chooses to engage in practices bound to be in line both ethically and legally to the society in respect to either national or international standards. Corporations are required to be responsible for how any of their practices affect the society and natural environment. They are also to apply principles of sustainability; the organization’s activities should be volitional and consider the social and environmental interests as well as in the interaction with the stakeholders. To be socially responsible, attention must be drawn to three angles; environmental, societal and business. In the environmental perspective, organizations are to produce products that are environmental friendly and non-harmful whereas the societal angle requires the organization to employ morally upright citizens. . These fields address intricate but nonetheless critical issues such as human rights, equity, equality, environmental conservation and the interdependence between organizations and society. This report focuses on the uses of corporate social responsibilities and limitations it may face with also who stands to gain from its adoption and those may fall victim of the negative circumstances. Discussion Corporate social responsibility has various effects that a business may end up in the long run benefitting it at times negatively impact the business in regards to how it is adopted and how it may affect the stakeholders. Some of the issues that may lead the business to adopt the CSR are the little role the government plays in the business sector due to its inadequate resources and many regulations also the increased want for disclosure of corporates by the stakeholders, also the customers have had an increased interest as far as its ethical conduct of the company is involved that has proven to influence the buying of their commodities, the pressure exerted on the companies by investors based on its performance and ethical conduct, competition in packages offered by rival firms where the employees do not only look at the payment package they are also concerned with the packages that fit their personalities and that are flexible with their lifestyles. Businesses are also making sure that they take time to evaluate how their suppliers carry out their activities and make sure they put up regulations that act as a sieve and cover their reputation and prevent it from being tarnished so businesses have to be at their best possible conduct (Science Direct n.d). Benefits businesses that adopt Corporate Social Responsibility stand to gain Business enterprises that adopt the corporate social responsibility stand to benefit a lot as the financial performance index is able to reach higher notes than before, the cost of operation is also decreased which increases the benefits gained, the image portrayed to the public is also appealing to investors and customers as its reputation displayed is good, the customers also become attached to the brand due to the quality of products and also due to the enhanced brand image which makes the sales made to hit the roofs (Science Direct n.d). Lloyd bank over the recent past put in place measures that will guarantee that they live up to the standards that the stakeholders expect them to meet. Lloyd bank made an elaborate move to ensure that the customers and clients can easily withdraw money by initiating the first automated machine services where they could be able withdrawn money from them that would be accounted for directly on the online basis and would reduce the hustle of long queues. In commercial banking. Lloyd has also given the allowance to its employees or rather a free ticket to be opinionated especially in areas that they are not comfortable in and concurrently that not being held against them and no discrimination. Lloyd is also under the policy of the living wage where the amount of money given to them and also to the contractors that are not part of the organization are given a good substantial amount of money that will cater and amount to the task that they have done including bonuses and allowances as stipulated. Lloyd bank has also made an effort with the aim of having full customer satisfaction and work towards the reduction of complaints that are made by the clients this will in turn increase their clients as their services will attract more. The packages offered give employees more benefits hence employee retention is more and also it is able to attract a lot of employees for instance in the LLOYD bank, the workers at Lloyd bank through the work options that was introduced in the systems gives them the ability to choose the time to work that complements their schedule best and that will make them strike a balance between work and social life this will help in making them feel that they are not missing out on a particular part of their lives (Springer n.d). Work options allows for the employees to give their undivided attention towards the work and then give best results as far as work related issues are involved as they have nothing at the back of their mind that will hinder them from achieving their best potential. The products offered are also safer as investors are now more cautious before it gets goods from suppliers, the methods of working in the enterprise is also changed where it meets the needs of the employee and is relatable to the lifestyle therefore the employee does not have to be on call throughout the day and can work during the times that work for the employee. Lloyd makes sure that all stakeholders are at level with the current predicament of the organisation by involving them in decision making processes and invite them to attend key meetings were their participation is key. Employees are awarded according to how they perform and their activities and key roles they play. They are given the option of selecting the time that suites them best from the ordinary stipulated working hours. Bonuses are awarded also to boost the morale of the employees as they feel appreciated and this will encourage them to work even harder and this will impact the organisations progression positively as only with hard work is success acquired in an organization. Corporate Social Responsibility SetbackAcknowledgement of Issues Many if not all of companies oversee the broader social concerns. Nevertheless, company literature showcased under TotalFInalElf, Shell, BP and ExxonMobile, highlights a substantial differences in their strategies. Such variations are realised with respect to divergent strategies used. Essentially, company literature of the ExxonMobil and TotalFinalElf showcases a less consideration to CSR Initiatives. For instance companies have declared their support for the Universal declaration if the Human rights, where Shell and BP has showcased its support for the Sullivan principles. BP emphasises on its communication to the public which is perceived to be instrumental to its business agenda. These companies asserts the operational benefits realised in the countries, hence they acknowledge they are part of the paradox of the plenty issues. Nevertheless, there is a difference between ExxonMobil and TotaFinaELf. Whereas the two view their responsibility primarily with respect to the provision of affordable and environmentally clean fuels. Benefits the Community and Public accrue from using Corporate Social Responsibility The general public stands to gain a lot from the charitable contributions that the enterprise makes. Businesses involvement in charitable initiatives may lead it to getting less tax imposed on it. This will also benefit the organisation as a product that in the long run has a cause that has an impact on the customer is likely to sell as everyone would like to take part in the initiative through small contributions which increases the business sales. The employee also stands to benefit like having catered delicacies and yoga in the office the more talented employees get the chance to choose the place they will work at. The business setting out its main values and aims as voluntary servicing to the community this will attract a lot of employees. This gives the employees a chance to interact with other people other than those in the office which will lead the employees to have morale and keep them happy as they will have the feeling of satisfaction that they actually gave back to the community. It also breaks the monotony at work as they are given the permission to even volunteer during work hours. The business is also able to gain free publicity in association with the cause as it also widens the market scope of the business and the same time promotes it (American Marketing Association n.d). The company brand will be appealing to the community more for its capability to support a noble cause without accruing any profits. Through charitable causes the business is also able to gain customers support and also attract more customers (Science Direct n.d). Customers will be behind a brand that assists in a cause that they are really concerned about (JSTOR n.d). The employees also offer their services voluntarily in programmes and lend a hand in the activities. The employees offering their services that in the long run will not accrue any profit other than the increased competitive advantage where they get to promote and enhance sustainability and engagement of employees where they get the opportunity to share out their skills for free in the community level. The businesses when they engage their employees in volunteering activities they experience growth in the organisation in terms of multiplication in the number of clients that they get. This will affect the employee positively where they get a strong sense of worthiness. Volunteering not only benefits the community but also the individual as voluntary activities that they engage in are usually new that they are not used to at the end of it all they are left with the skills they learnt here (ProQuest n.d). A strong bond is also formed between the people involved the workmates which builds their friendships and relationships which to the business then leads to positive impacts. They also involve themselves in education and sponsor students through initiatives for those who cannot raise the tuition fee. The businesses also make the learning process more practical where they clearly show them what is required in the industry and also exposes them to a window of opportunities. The public get access to products that are safe for their consumption and at the same time the quality offered of the product is very high. The safety and quality of products sells the product more it will satisfy the customer’s needs more (Science Direct n.d). The CSR pyramid is thought to consist of legal, economic, philanthropic and ethical responsibility that is entirely based on the American concept. Evidently, culture has played an imperative role in influencing the perceived CSR priorities. Evidently, Visser (2005) articulates the CSR order accordingly to figure 3. AS such, in developing countries economic responsibilities are subjected to the highest priority, which are followed by legal and ethical considerations. Contrariwise, the African CSR responsibilities follows a different path; i. Economic Responsibilities; A number of developing countries suffer from a reduced numbers of foreign investments coupled with high unemployment. Therefore, its is no surprise that a company’s economic contributions is highly considered by companies and communities. This is attuned to approaches in Europe, in comparison to the narrow focus on the profitability in the US. ii. Legal Responsibilities: In developed countries legal responsibilities are generally typified by lower priorities as opposed to developed countries. This does not essentially imply that that developing countries are not interested in flout of the law, hence there is a reduced pressure for good conduct. This is attributed to the fact that developing countries have poorly developed legal, that in most cases lack resource and administrative efficiencies. iii. Ethical Responsibilities: Ethics in developing countries appear to have least influence in the CSR agenda. Whereas the process is ongoing, it is generally not consistent. Evidently, data from Transparency International showcases that the corruption index in developing countries are usually high. iv. Philanthropic Responsibilities: Developing countries are inclined to the American CSR model, where the philanthropic responsibilities appear to be discretionary acts. Corporate social responsibility is however not all a walk in the park, the CSR has seen many businesses shifting their aims and goals from profit making and losing track. The company at times may be engaged in community based initiatives so much that at times it winds up losing track of the main goal and fails to raise appropriate funds that are required by the stakeholders and ends up making loses (Springer Link n.d). The company’s image is also tarnished as the corporate social responsibility has policies set up that make sure that all the shortcomings made by the company are documented. For instance in the motor vehicle industry when they find that their product does not meet the required standards and has to make sure that they get them back and remedy the problem. This will have a negative impact on the company as people will have doubts on the authenticity of the product provided. The businesses also tend to please customers where they will involve themselves in charity causes that will appeal to them however, if their initiatives do not bear results immediately some customers may lose interest as they view it as a publicity stunt or public relations whereas in fact they are actually very genuine and may accumulate to major losses for the business they may spend a lot of time trying to convince them of their legitimate intentions and they may not be believed at the end of it all (Science Direct n.d). The cost incurred during the production process may also increase where since the corporate responsibility tends to increase the budget of a company for the charities and all other initiatives cost money. The business then has to increase the amount of money charged on commodities so that it may return it funds and at the same time make profits. This leads to the customers suffering from being overcharged. Conclusion Corporate social responsibility is an important element that has to be factored in each and every business organisation. It must however be done carefully so that the business does not lose its main purpose of making profit and not lay much emphasises on making an image for itself through charitable causes and in the end up making major losses. Everything should be done in moderation. Corporate responsibility is very important to an organisation as it may expand its market scope and appeal to a lot of customers that compels them to buy their products especially if the product supports an initiative that they have a keen interest on. A business then that also has its core intentions will retain its employees and also it will be able to attract other employees as they do not look at the fat bonus checks and salaries so a business that offers a little bit more than financial aid will be more appealing to them as it also gives them satisfaction where they feel that they would have given back to the community and the same time learning more activities during the volunteering activities. The volunteering activities also gives them the chance to break monotony while in the office and engage in volunteering services that they are even allowed to engage in during the work hours. 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