Ethics, Corporate Social Responsibility, and Sustainability Principles - Essay Example

 Ethics, Corporate Social Responsibility, and Sustainability Principles Introduction Corporate social responsibility initialized as CSR involves the general good any company impacts on the outside community through its operations. The multinational company practices CSR to its customers leading to its global success and respect from its rival companies. Debenhams has a long and wide experience in clothing lines, furniture and household items. Every company’s activities should be undertaken in line with their CSR to promote the company’s reputation in the long run. Literature Review Debenhams is a British multinational retail company formed in 1778 by William Clark and William Debenham. The company operates as a departmental store in United Kingdom, Ireland and Denmark where it has 178 stores and 61 franchise stores in several other countries. The company has a renowned brand collection of clothing known as the ‘Designers at Debenhams (Easey, 2009). In the late 1980s the company’s sales were declining, which was later saved by the then Debenhams designers. In addition to the ‘Designers at Debenhams’ the multinational company also has a list of other brands which it solely owns. Apart from the owned brands, the company has concessions where outside retailers can also trade from. Some of the concessions like from the Sports Direct were introduced in Debenhams stores (Easey, 2009). Further, the company also deals with retail websites in Ireland and in the United Kingdom. The company has mobile applications that allow consumers to purchase products online from their retail stores. Financial companies also offer insurance services through Debenhams brand. Additionally, the company operates forex bureaus in some selected retail stores. The company through its Debenhams Beauty Club, offers CSR to its customers whereby they can accumulate points with the purchase of Debenhams beauty and health products (Easey, 2009). CSR Principles The business and the society are closely interrelated and therefore, CSR is fundamental in maintaining the relationship. The business has three roles; acts as an institution in the society, acts as a corporation in the society and as individual managers in the society. The roles can be equated in three levels of analysis namely institutional, organizational and the individual level which can further be expressed in terms of principles (Lee & Kotler, 2013). Public Responsibility The principle provides that the organization is entirely responsible for the consequences of its operations in the society. It confirms that the business is responsible for the problems associated with its activities or areas of interest. The principle illustrates that the organizations have the responsibility of solving the problems which they create. The nature of organizations social responsibility varies from company to company due to their different impacts on the society’s resources or the problems they bring. The principle emphasizes on the organization’s relationship with the ethical, social and political environment (Maimunah, 2009). Legitimacy Under this principle, the society grants the business power to use its resources and the possibility of losing the same power in case it contradicts the expectations of the society. Under the definition of CSR, the business and the society are intertwined which hence stipulates the expectations of the organization. The society grants business the power to operate and to balance the power between institutions so as to stipulate their legitimate functions. Since business is a social organization, the society can impose sanction(s) if the organization does not meet the society’s expectations (Sharma, Sharma & Devi, 2009). Managerial Discretion The managers are considered as moral actors under this principle, whereby they are required to uphold that virtue in order to realize the socially acceptable outcomes. Discretion is a must since the managers’ actions are not completely stipulated in the corporate procedures. The principle paraphrases that the individual manager has the opportunities, choices and personal objective of achieving the organization’s social responsibility (Jones & Bartlett, 2009). CSR Concepts Corporate Sustainability (CS) The concept of corporate sustainability refers to the corporate operations in regards to its responsibilities on the environmental, social and economic factors (Carroll, 1991). CS has 5 levels which affect the CSR of any company. Profit driven: there will be consideration on the ethical, social and environmental variables provided the factors add financial value to the company. Synergistic: solutions that are functional and balanced should be created in order to add value to the social environmental and economic areas, since it’s a win-win situation in all the stakeholders (Carroll, 1991). Compliance driven: provides that corporations should adhere to the government’s rules and regulations and also respond to the society’s stewardship and charity expectations. Caring: CS perspectives reach out beyond the profit and legal objectives in order to balance the environmental, social and economic expectations. Holistic: the corporations’ activities should be in line with the CS, because it basically supports the life of every person on earth (Carroll, 1991). Social-Impact Management Involve the interdependency between the wide societal concerns and the business needs. It provides a society-business approach which stresses that today’s business should recognize the interrelationship if the two institutions need to succeed. The recognition is important because the organizations take on larger functions and the society increasingly mounts pressure on them to address the environmental and social problems (Opkins, 2007). This approach outlines the interrelation between the traditional financial concerns and the society’s expectations in regards to the company’s impact. The management of the social-impact has two dimensions that is: the influence of the society to the organization and the organization’s influence on the environmental and social issues of the society. The social-business impact has three business aspects; Social context: considers the responsibilities and rights of the stakeholders. Purpose: the importance of business activities in terms of society’s and business wise. Metrics: the measurement of the business profitability and performance (Sun, Stewart & Pollard, 2010). Reputation Management Involve any type of effort that is instituted by the organization in order to promote its respected name and image. Initially focus was on the media and public relations and partly on management crisis. Currently, the reputation management is being expanded to include all stakeholder members. Most of the managers recognize that reputation management improves the financial base of the company, improves competition and above all, improves the public approval of the business activities (Carroll, 1991). Triple Bottom Line (TBL) Tripple E constitutes the environmental, economic and ethical factors whereby, TBL evaluates the company’s performance based on the company’s social, environmental and economic impacts. The variation is termed as triple P which constitutes of profit, planet and the people. It involves the clarification of the company’s purpose in respect to its stakeholders. The triple E bottom line normally provides the basis for ethical, environmental and economic reporting. However, the approach has been criticized for being misleading and having limited value. Some writers have claimed that both practically and conceptually the approach rarely helps in the realization of CSR (Crowther & Aras, 2008). CSR Objectives CSR fulfills the society’s expectations. The company should undertake its activities with pragmatic reasons. The business functions should be consent with the society which will hence satisfy the society’s needs.CSR prevents public criticism and also prevents the government’s regulation on certain aspects. This defensive approach can help organizations which use their powers irresponsibly from receiving government actions in the short run (Mallin, 2009). It recognizes the society as a system in which the organizations are part of it. The system is also interdependent whereby organizations interact freely in the complex system: the society. There are exclusive involvements between groups, individuals, organizations and subsectors of the society. CSR is among the stakeholders interests. Therefore, any organization that is responsible socially will realize its profitability in the long run. The virtue of corporate awareness usually transforms to substantial profits to the organization.CSR enables the realization of business opportunities. The organization can change the social problems into business opportunities which in turn will lead to profits (Mares, 2008). Analysis Image: Corporate Sustainability (CS) Debenhams undertakes ethical sourcing as a prudent retailer in everything they do. The company produces high end quality products that promote consumers worth for their money. Debenhams keenly pre-assesses it suppliers so as to promote its public image and the customers’ expectations. The company undertakes diligent practices in choosing its suppliers which is followed by vetting of their ethical compliance in line with the company’s code of conduct and policies. The vetting ensures that the highest standards are upheld and maintained at any given time (Asongu, 2007). The resourcing division works exclusively with the Ethical compliance and corporate responsibility team and the suppliers in promoting consistency in goods supply and at efficient prices. Debenhams takes into account the manufactures, its employees, suppliers and environmental needs so as to build and maintain its corporate image (Gottschalk, 2011). Reputation Management In 2013, the company banned the use of Angora in its entire products due to abuse of rabbits that was reported. The campaigns were spearheaded by the People for Ethical treatment of Animals (PETA) which Debenhams took seriously. The Company evaluated that the practices never matched its ethical standards and hence, terminated the orders of Angora its clothing lines. (Paetzold, 2009). Store Design Social-Impact Management The company employs green energy so as to promote efficiency on the environment. From the past 5 years, the company has employed energy investment programs in its stores that have seen the reduction of carbon emissions in the air. 2.5 million Sterling pounds have spent on Aberdeen and Glasgow stores in heat control, air control and lighting so as to promote a serene environment for the customers, employees and to reduce air pollution of the environment (Mcgoldrick, 2002). The new stores that have been opened in Scrunthorpe and Borehamwood, has also been incorporated with complete LED lighting systems. Through the employment of state of the art lighting technologies, the company has been able to reduce the total energy consumed by 20% while in the process maintaining the normal lighting levels. Debenhams projects that by the year 2020, the company would be able to reduce the carbon dioxide pollution by a solid 10% according to its 2007/08 baseline. The company believes that the move will deliver continuous improvement in its energy efficiency program. Through the explorations of innovative and diverse technologies, the company would minimize energy and the carbon dioxide usage across all its departmental stores, offices as well as depots (Herbert & Schantz, 2007). Triple Bottom Line (TBL) Debenhams is focused in the reduction of waste not only due to environmental issues, but to make monetary savings and also being an ethical practice. In January 2014, the company’s objective was to have 0% wastage across all its stores. Currently, the company has achieved 94% waste reduction which accounts 38% improvement from last year. The multinational store is fully confident in its achievement of 100% waste reduction goal in the coming future. Currently, a total of 101 stores have achieved the 100% goal across many estates (Kotchen & Moon, 2012). Customer Communication Public Responsibility The company launched a new method of mobile campaign which acted as a customer response strategy as well as a marketing tool. The customers’ communication is done from a centralized and single control point in order to maintain its good rapport from the customers. Through the email campaigns, it tempted the customers to text short ended codes to receive vouchers. The codes were sent to their mobile phones which they present to the chain stores to receive to redeem their vouchers (Benabou & Tirole, 2010). The mobile campaigns have informed the customers on events happening at the stores, Debenhams promotions and sales activities as well as the offering of discounted vouchers. During the customers’ requisition of vouchers via mobile phones, the company experiences increased redemption rates as compared to the printed vouchers. Upon expiry of the customers mobile vouchers, there is an automated updates sent to the customers so as to redeem their vouchers. The mobile and email conversational messages have been able to achieve 200% success in its sales volume (Milton & Soares, 2010). Conclusion The research has outlined the objectives, principles and concepts of the company in relation to CSR. Through the study certain concepts like the corporate sustainability, reputation management and social-impact management have been evaluated in relation to Debenhams policies and practices. Debenhams maintains strict social values like the adoption of green energy in order to reduce environmental pollution and the banning of Angora fabric-use due to the unethical treatment of the rabbits. Debenhams incorporate these CSR activities so as to promote ethical, social responsibility and long term sustainability of the company. Reference list Carroll, A. (1991). The Pyramid of Corporate Social Responsibility: Toward the Moral Management of Organizational Stakeholders. Retrieved on23rd Mar 2015 from: http://161.45.251.150/sdrive/LBUCKNER/GA/School/Business%20Ethics/Class%20Material/Pyramid+of+Social+Responsibility.pdf Mcgoldrick, P. J. (2002). Retail marketing, 2nd edition. London, McGraw-Hill. Carroll, A. (1991).The pyramid of corporate social responsibility: Toward the moral management of organizational stakeholders,34,4: 39-48. Lee, N., & Kotler, P. (2013). Corporate social responsibility doing the most good for your company and your cause. Hoboken, N.J., Wiley. Opkins, M. 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