Wine a Tasty Way to Support Social Development by Mallory Clyne - Article Example

Analysis of the article “Wine a tasty way to support social development” Introduction This essay is an analysis of an article written by Mallory Clyne, titled “Wine a tasty way to support social development.” The essay is premised on analysis of the article’s content using two theoretical concepts: corporate governance and values and identity. The analysis will focus on how each of the two concepts is reflected in the article based on the issues addressed by Clyne (2013). First theoretical concept: Corporate governance The author of the article begins on a rather satirical note by noting that “Life is busy”. She goes on to explain that the average person rarely has time to reflect on what is happening in the developing world. She argues that global issues are usually left to governments, but since the priorities of government do change, issues like building schools in developing countries are in many cases ignored. But then the author offers a solution: that the ordinary person can make a contribution in developing countries by buying wine that has a social impact. What those opening remarks imply is that in most cases, social issues like building schools are left to governments. Traditionally, businesses would argue that their aim is to maximise profits based on Friedman’s (1982, cited by Simpson & Taylor 2013, p. 202) definition of the responsibility of a business. But it is apparent that today, this responsibility has changed, and as noted by Simpson and Taylor (2013, p. 202), business has responsibility towards society as a whole. It is only when it is considered that business has a responsibility towards the whole society that “buying wine that has a social impact” can have a meaning. The responsibility of business towards the society as a whole is entrenched in the principles of corporate governance and corporate social responsibility (CSR), and both concepts are clearly addressed in Clyne’s (2013) article. Corporate governance can be defined as the relationships within a firm and between a corporation and its environment (Aguilera et al, 2006, cited by Stolt 2009, p. 2). This environment includes a wide range of stakeholders including shareholders, customers, the government, communities and so forth. CSR is defined by the World Business Council for Sustainable Development (cited by Simpson & Taylor 2013, p. 202) as the continuing commitment by a business to make a contribution to economic development while ensuring that the quality of life of its personnel and that of the community and wider society is improved. The link between corporate governance and CSR lies in the point that corporate governance is all that concerns how an organisation is governed in pursuit of its objectives while CSR is all about how the organisation manages the impact of its operations on the society, economy, as well as the environment, besides the mandatory requirements set by regulation (Simpson & Taylor 2013, p. 205). The article by Clyne (2013) addresses corporate governance and CSR issues as the author highlights several examples of cases where firms are paying attention to the two concepts. To start with, the author notes that in recent times, the private sector has recognised the positive relationship between implementing CSR initiatives and brand building. Clyne (2013) for instance cites a firm called Lush Cosmetics which sells hand cream and proceeds of the sales are donated to charity activities across the globe. She also cites Tim Hortons Coffee Partnership which is an initiative that supports coffee farmers to develop sustainable coffee communities. In a nutshell, these are examples of cases in which firms have realised that getting involved in charity is one way of being responsible towards the society. Clyne (2013) also argues that firms are realising that they must come up with novel responsible forms of business so as to succeed, which implies having respect for human rights, being environmentally friendly as well as socially sustainable, and paying fair wages. These issues are critical dimensions of CSR and corporate governance and are highlighted by several international organisations such as the United Nations Global Compact (Prandi & Lozano 2011, p. 212). In particular, the UN Global Compact asks companies to embrace, sustain and implement within their area of influence, a set of critical values in four keys areas: human rights, labour regulations, the environment and fighting against corruption (UN Global Compact n.d.). Under these four areas, there are ten principles which require businesses to among other things, support and respect the safeguarding of internationally proclaimed human rights, adhere to international labour standards, promote environmental responsibility, and fight all forms of corruption (UN Global Compact n.d.). The article by Clyne (2013) goes further to highlight cases of how companies are exercising CSR. One example is that of Wine for the World, an organisation that is contributing socially by ensuring that South Africans in the wine industry are trained to American standards as regards ethical issues involved in handling wine. Another example if that of the Durbanville Hills Winery Trust, which directly perks up the quality of livelihood of South Africans by donating a percentage of proceeds from sales of each bottle of wine to the Trust. The Trust then invests in countryside schools and had sponsored 24 students to pursue their high school education by 2013. Furthermore, the Trust offers financing to the local nursery and is involved in training workshops for the local people to enable them work better in their farms. Other wine-related initiatives in South Africa include Land of Hope, which supports the education of employees’ children, and Solms Delta, whose employees are shareholders in the trust (Clyne 2013). All these examples showcase how businesses are going beyond their aims of making profits and meeting governmental regulations expected of them in their business, to ensuring that the society’s other needs are met. Clyne (2013) argues in the concluding remarks that “International development is everybody's responsibility.” This is arguably true as it reflects the role that can be played by firms in international development through their corporate governance objectives and CSR initiatives. In particular, the cases highlighted by Clyne (2013) are examples of how firms can support international development through donations, training of people to increase their knowledge, providing support to social amenities such as schools and so forth. This point is supported by Utting (2003), who argues that firms have in recent times been involved many activities such as corporate social investment, improving health and safety standards, improving environmental and social policy and performance, philanthropy, and community development projects, all of which enhance development at different levels of the society. The fact that such initiatives are supported globally through organisations such as the UN Global Compact means that indeed, international development is everybody’s responsibility. That is, everyone can support international development by buying products from firms which are involved in various CSR initiatives like those discussed by Clyne (2013). Such include wine from South African firms which are certified by the Wine Industry Ethical Trade Association. Second theoretical concept: Values and identity The first reference to values and identity by Clyne (2013) is when the author argues that organisations are learning that they need to come up with responsible business models in order to be successful, which means that they must respect human rights, remunerate their employees fairly, and be socially and environmentally responsible. Every organisation usually has its own approach towards these issues and this determines each organisation’s values and identity. According to Tricker (2012, p. 242), firms have a set of business principles and ethics that define their mission, vision, and values, which in turn create their identities and guide their actions. Every organisation has a way in which it identifies itself and defines its interests. But the overarching issue according to Clyne (2013) is that each organisation must respect human rights in all its dealings with employees, customers and other stakeholders; it must have a fair system of compensation for its personnel; and it must engage in activities that are socially and environmentally conscious. It is such activities that define each organisation’s corporate identity, and the same is emphasised by the UN through the Global Compact, where companies are requested to embrace, sustain and enforce a set of core values in the spheres of human rights, environment, labour standards and anti-corruption (UN Global Compact n.d.). Corporate identity is defined an organisation’s members’ collective understanding of the attributes believed to be central, and reasonably permanent, that differentiate the organisation from other organisations (Mallin 2009, p. 14). The concept is thought to form the foundation for the image of an organisation. Stated in different words, identity is the starting point for the uniqueness that marketers seek when they attempt to position an organisation (Jung 2010, p. 142). In essence, companies have boards, whose function among others is to set the company’s values as well as standards and ensure that the organisation’s obligations to its shareholders and other stakeholders are fulfilled (Solomon 2011, p. 347). This then defines their identity. According to Fox (2004, p. 26), corporate identity differs from conventional brand marketing since it concerns itself with all an organisation’s stakeholders and the multi-dimensional way in which an organisation communicates. Each organisation articulates its corporate ethos, objectives and values and exhibits a sense of individuality, which can help it to differentiate it from others in a competitive environment. This can be reflected through the organisation’s comparative advantage in attracting and retaining employees and customers, achieving strategic alliances, gaining the support of financial markets, and generating a sense of direction as well as purpose. In Clyne’s (2013) article, the various firms’ values that make them stand out with unique identities include their initiatives to contribute to charity. The author cites CSR projects by Lush Cosmetics and Tim Hortons Coffee Partnership which aim to help the society in different ways. Also highlighted are the activities of wine firms and wine associations which contribute to improving the quality of life of communities in South Africa by offering help in rural schools, sponsoring students and training the local people. These are areas that the firms have identified to be helpful to the society and comprise part of the various firms’ values and identities. As noted by Mallin (2009, p. 14), the definition of corporate identity in CSR initiatives aims to highlight corporate values as well as the obligations that a firm purports to undertake towards its shareholders. What the article by Clyne (2013) shows is that organisations can use CSR as part of their overall corporate identity strategy. As argued by Salleh, Wahid and Marimuthu (2013, p. 100), CSR as corporate identity includes the essential features of an organisation that make it different from others in terms of its reality, the way it perceives itself and its behaviour. This is depicted in part by the organisation’s values which refer to how the organisation observes laws and regulations, transparency, internal rules, integrity, honesty, and its diversity in promoting community relations as well as environmental protection. It can be argued that many firms as indicated by Clyne (2013) are striving to contribute to CSR initiatives by donating what would be part of their profits to be used for the betterment of the society. These firms therefore establish their identity in the wider perspective of corporate identity, which includes stakeholders such as customers. Therefore, when wine firms donate to support community initiatives, wine drinkers too are perceived to have made a contribution to the society. Conclusion In summation, corporate governance as a theoretical concept is reflected in Clyne’s (2013) article through the way in which firms are contributing to community support activities to show their CSR. By donating to communities, the firms involved can be said to be depicting the relationships that they have within themselves and with the environment, which is the society around them. The second theoretical concept reflected in the article by Clyne (2013) is values and identity. It is argued that by involving themselves in CSR initiatives, firms are depicting their values and hence identity, which aims to support the members of the society around them. By doing this, these firms ensure that their wider image or corporate identity, which includes other stakeholders such as customers, is reflected when they are involved in charity activities. References Clyne, M 2013, “Wine a tasty way to support social development,” 12 August 2013, ProQuest. Fox, R & Fox, J 2004, Organisational discourse: a language-ideology-power perspective, Greenwood Publishing, New York. Jung, E 2010, “Corporate identity”, In R L Jackson (ed), Encyclopedia of identity, volume 1 (pp. 140-146), SAGE Publications Limited, London. Mallin, CA 2009, “Corporate social responsibility: introduction an overview”, In C A Mallin (ed), Corporate social responsibility: a case study approach (pp. 1-8), Edward Elgar Publishing Limited, Cheltenham. Prandi, M & Lozano, J M 2011, “Corporate social responsibility and human rights”, In R Mullerat (ed) Corporate social responsibility: the corporate governance of the 21st century (pp. 209-228), Kluwer Law International, Alphen aan den Rijn. Salleh, M M, Wahid, N A & Marimuthu, M 2013, “Corporate social responsibility to reflect organization’s corporate identity: a content analysis”, Journal of Economics, Business and Management, vol. 1, no. 1, pp. 98-101. viewed 26 March, 2014, Simpson, J & Taylor, J 2013, Corporate governance ethics and CSR, Kogan Page Limited, London. Solomon, J 2011, Corporate governance and accountability, 3rd ed., John Wiley and Sons, New York. Stolt, R 2009, Corporate governance in Hong Kong, Grin Verlag, Norderstedt. Tricker, B 2012, Corporate governance: principles, policies and practices, 2nd ed., Oxford University Press, Oxford. UN Global Compact n.d, The ten principles, viewed 26 March, 2014, Utting, P 2003, Promoting development through corporate social responsibility - does it work? Global Future, Third Quarter, viewed 26 March, 2014, Read More