The CSR Benchmarks and Models of the Cooperative Bank - Essay Example

The CSR benchmarks and models of the Cooperative Bank Briefly review the CSR benchmarks and models which managers could consider when determining their position on CSR. Corporate Social Responsibility deals with the treatment of the firm’s stakeholders ethically or in a more responsible way. Ethical way refers to treating the firm’s stakeholders in a manner that is acceptable in the society. Social consists of economic responsibility. Stakeholders of a firm exit both in the firm and also outside the firm. The firm’s natural environment adds up as a stakeholder. The broadest aim of the social responsibility is to create higher and even higher standards of living, while maintaining the corporations’ profitability, for people in and outside the corporation (Line 2012, p.10). CSR becomes classified in a number of ways; Environmental protection The main focus of CSR is to find a sustainable solution for the natural resources use, to help reduce the company’s impact on its environment. Over the couple number of years, environmental responsibility has grown to include more than the compliance with all appropriate government regulations, or participating in energy efficiency. A number of companies and environmental organizations define environmental responsibility as including, comprehensive move to a firm’s operations, goods and facilities that also include; assessing the products of the company, processes and the services; removing waster and other emissions; utilizing the efficiency and the subsequent productivity of the entire assets and resources (Frankental 2001, p.21). Labor security These contain freedoms of association and the subsequent recognition of the right to the collective bargaining, the removal of all types of forced labor. It also entails the abolition of child labor and removal of discrimination in line with employment and occupation (McWilliams & Siegel 2001, p.18). Human rights Business practices can affect significantly the dignity and rights of the workers and the community. The focus is, to develop a job environment free from discrimination and a place where the creativity and learning can improve the appropriate codes of professional conduct, and where a correct balance can be maintained between jobs and other areas of the employees’ lives. Behaving in an irresponsible way on human rights issues can detrimental because the reputation of the firm is on the line. The issue is also related to the issue of globalization and ever increasing global trade, and the problems of finding methods of doing business globally that respect the human rights and facilitate the growth of emerging economies. Nations become required to upheld, support and protect human rights to their levels of influence. Paying the employees a living wage and giving them protection from harassment may cost more in the short run, but it vastly increases the workers morale and reduces turnover increasing profits in the future. Therefore, socially responsible management practices can increase the firms’ level of profits (Carroll 2000, p.16). Community involvement It involves community partnership, global community involvement, employee giving, service donations and volunteerism. Corporate, community involvement is a number of actions undertaken by the firms to improve the impact of their activities, in the communities that they operate. When correctly executed, these activities not only bring immense importance to the recipients’, but will also improve the reputation of the organizations and their brands, goods and values in the communities where they have interests in, as well as globally (Greenfield 2004, p.20). Business Standards They cover a number of corporate events like; ethics, environmental protection, financial returns and human rights. The growth of international trade and communication has led an increasing pressure from a number of groups, for the formation of world business conduct standards (McWilliams & Siegel 2001, p.18). Early models of CSR have developed since 1960s, and maintained their focus on the social aspect of CSR as referring mainly to these responsibilities beyond and above the legal and economic obligations. From a managerial perspective, elements of the corporate social responsibility have become widely criticized by a number of economists, as a way of regulating the free market through both social and ethical obligations. An organizations corporate performance is always difficult to determine since it gets evaluated by the culture of which the firm operates (Carroll 2000, p.16). These are the issues that place concern on the legitimacy and effectiveness of this concept, and its role in the global free market economy, hence putting pressure on a need for a standalone model to help support its modern practice society. It is only appropriate that the management of an effective, strong social performance improve its perception of any business. Nevertheless, comprehending what should be achieved and physically working towards achieving it are difficult to face. Meehan et al (2006) proposes a convenient method of tackling this issue via the competitive advantage through the social resources or the 3C- SR model. This 3C- SR model, attempts to develop on the idea that, the corporate responsibility, is a strategic method of obtaining profits rather than a philanthropic approach on behalf of the company or a means of regulation. If any organization or company lacks in social and ethical commitments, the connections with their partners in the value network or consistency of behavior over time, it gets considered to have a competitive disadvantage. It is through these correct management technique of these elements which in turn develops on an effective corporate social performance. The appropriate management, however, seem to be difficult to obtain as individuals will get the levels of which the organizations operated differently, and there are no set measurable levels for success. This model offers a more positive approach to standardizing of the complications of Corporate Social Responsibility, but as a tool for success, it is questionable (Hoertz 2000, p.5). Cooperative Bank Stakeholder Engagement Co operative Bank has tremendously grown to a position of complete power over the decades, and has at the same time witnessed equally rapid growth in its social and legal criticism, over a wide range of issues. According to their famous mission statement, Cooperative goals have always been consistent and constant since the organizations inception. “We are you” was the objective that the founder members envisioned when they opened their doors to the first branch. Co operative Bank aims to always find ways of reducing their costs throughout their branches while giving quality services to their customers. Co operative Bank is a neighbor and citizen in thousands of communities all over UK and across the world. Co operative CSR activities stretch across its people, the community it serves and the environment (Hillman & Keim 2001, p.4). The organization recognizes its vital responsibility to help sustain the communities in which they operate. Co operative Bank focuses on environmental sustainability as it is a crucial way of improving the current quality of life for everybody around the globe; other regions include the company’s employees together with the community projects. Constant engagement with stakeholders is a crucial part of managing its corporate social responsibility. By the company engaging with its stakeholders, firms are able to increase their understanding of its stakeholders, their views and expectations, helping firms to improve their strategy, services and products. The Bank work with its customers, associates, leading suppliers and the communities, in order to hold the full capability of their company and its size and reach (Redman 2006, p.15). Every leading business has stakeholders, and in the case of Cooperative Bank, there are several prominent stakeholders, both internal within the business and also outside of the business, they include; The Shareholders The Co operative Bank Executives The Employees The Community (where the Banks get located) Consumers Non-profit Organizations Summarize and evaluate this corporation’s position in relation to the CSR model (The 3C-SR model) developed by Meehanet et al (2006, p.23). What conclusions can you draw? Ethical and social commitments These commitments represent the organization’s values element of social resources. The commitments include the ethical standards and also, the social objectives the company subscribes to and become included in its mission, strategy programmes, objectives, corporate culture and organizational policies, (Meehanet al 2006, p.25). Striving for the organization’s excellence is an example of the organization’s ethical and social commitments in the production of their ethics statements. This subject of Ethics aims to bring the stakeholders to the different types of attitudes and conducts that create a clear, honest and legal work environment. As one the global largest organization, Cooperative conducts its business globally, and as a result, their operations and actions are subject to a number of different laws, customs, and cultures. The companies’ activities are, therefore, complex, and are always changing because of new legislation in the society they are operating (Meehan et al 2006, p.25). Cooperative bank has a natural affinity associated with the aims and the values of voluntary organizations and charities. It is also the bank in the UK high street with a developed customer driven Ethical Policy. Over the past years, the company has developed an impressive variety of customers within its sector, from a number of small local charities to a highly international organization. The company success in working all over England has led to the opening of the new Scottish charity and also social team. The highly specialist unit became located in Edinburg and Glasgow and truly much committed to providing the nation’s charitable organization another alternative to the old traditional banks (Walsh 2005, p.10). It is evident that the organization has over the years tried to maintain its Corporate Social Responsibility towards its stakeholder and most importantly, the community. This is one of the reasons that the Bank has continued to develop over the years. References Carroll, A. B, 2000, A Three-Dimensional Conceptual Model of Corporate Performance, Academy of Management Review 4, 15-17. Frankental, P, 2001, The Corporate social responsibility ± a PR invention?´, Corporate Communication. An International Journal, 20-23. Greenfield, W, 2004, In the name of corporate social responsibility, Business Horizons 47(1), 19-28. Hillman, A., & Keim, G, 2001, The Shareholder value, stakeholder management, and social issues: What’s the bottom line?, Strategic Management Journal, 22, 3-8. Hoertz Badaracco, C, 2000, ‘The Transparent Corporation and Organized Community’, Public Relations Review, 24 (3), 4-6. Line, M, 2012, Independent assurance statement, Two Tomorrows, 10. McWilliams, A., & Siegel, D, 2001, The Corporate social responsibility: A theory of the company perspective, Academy of Management Review, 26:, 18. Meehan, J., Meehan, K., & Richards, A, 2006, The Corporate Social Responsibility: The 3C-SR model, International Management Review 17, Vol. 3, 24-38. Redman, E, 2006, Three Models of Corporate Social Responsibilty. Roosevelt Review, 15. Walsh, F, 2005, Furry sporrans turned down as Co-op banks on ethical profit, The Guardian, 10. Read More