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Corporate Social Responsibility

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Corporate Social Responsibility or CSRs have become a very important part of the business landscape in todays day an age. CSRs are basically an ever ‘evolving business practice that incorporates sustainable development into a company’s business model’ (Schooley 2019).  Basically they are processes that help an organisation be socially accountable to not only itself but the stakeholders and the general public. The presence of a good CSR ‘has a positive impact on the [the] social, economic and environmental factors’ (Schooley 2019) tied to the business.

 

According to Katie Schmidt who is the founder of Passion Lilie, a clothing brand priding themselves on being ‘ethical fashion’ ie. being an ethical business, a good ‘CSR can positively impact [a] business by improving [the] company[’s] image, building [the] band and motivating [an individual] as a business owner’ (Schooley 2019). This is because like in most cases public opinion is critical to an organisations success. If that particular organisation has a positive image in the public eye it can definitely help them to build a name and reputation with their customers which can be extremely beneficial in both the short and long term success of the business.

 

In this day and age an organisations reputation is more important that ever as ‘consumers, employees and stakeholders are beginning to prioritise CSR when choosing a brand or company’ (Schooley 2019) to invest in or support. On top of that these same individuals have begun to start ‘holding corporations accountable for effecting social change with their business beliefs, practices and profits’ (Schooley 2019). Failure to operate at an acceptable level will definitely lead to some form of negative repercussions for the organisation in question.

 

JeyBoyton who is the CEO of B Targeted Marketing Co. is of the opinion that ‘CSR is an opportunity for companies to demonstrate their good corporate citizenship..and protect the company from outsized risk by looking at the whole social and environmental sphere that surrounds the company’ (Schooley 2019). In essence used correctly CSR can help an organisation stand out from the crowd and protect it from any judgement or negative repercussions from the various parties involved in the companies operations.

 

The importance of a good CSR can be seen through the various levels of research and observations done over the years either in the form of reviewing an organisations success or simply by determining through surveys and questionnaires the importance that these CSRs are held at. One such research that back this up is the one done by Cone Communications who in a study determined that ‘more than 60% of Americans hope businesses will drive social and environmental change in the absence of government regulations’ (Schooley 2019). On top of this ‘nearly 90% of the consumers surveyed said [that] they would purchase a product because a company supported an issue they care about’ (Schooley 2019) and up to ’75% will refuse to buy from a company if they learn it supports an issue contrary to their own belief’ (Schooley 2019).

 

Last but not least, according to Susan Cooney who is the head of global diversity, equity and inclusion at the company Symantec, an organisations ‘sustainability strategy is a big factor in where todays top talent chooses to work’ (Schooley 2019) due to the fact that the ‘next generation of employees is seeking out employers that are focused on the triple bottom line: people, planet and revenue’ (Schooley 2019).

Sustainable Development Goals:

Sustainable Development Goals or SDGs basically are ‘new, universal set of goals, targets and indicators’ (Ford 2015) created by the United Nations (UN) that is expected to ‘frame their agendas and political polices over the next 15 years’ (Ford 2015). The SDGs are in theory a ‘blueprint to achieve a better and more sustainable future for all’ (United Nations). These SDGs were put in place to ‘address the global challenges [the world faces] including [ones] related to poverty, inequality, climate change, environmental degradation, peace and justice’ (United Nations).

 

SDGs are in theory an expansion of the MDGs or the millennium development goals which was an agreement between the different governments in 2001 due to the fact that this original agreement was due to expire at the end of 2015. The MDGs in itself were considered to be inadequate as it ‘failed to consider the root cause of poverty and overlooked gender inequality as well as the holistic nature of development’ as well as the fact that it ‘made no mention of human rights and did not specifically address economic development’ (Ford 2015).

 

SDGs consist of 17 different goals which are all interconnected with one another in the hopes that none of these goals are left behind as they are all deemed of equal importance. These goals consist of (1) no poverty, (2) zero hunger, (3) good health and wellbeing, (4) quality education, (5) gender equality, (6) clean water and sanitation, (7) affordable and clean energy, (8) decent work and economic growth, (9) industry, innovation, and infrastructure, (10) reduced inequalities, (11) sustainable cities and communities, (12) responsible consumption and production, (13) climate action, (14) life below water, (15) life on land, (16) peace, justice and strong institutions and (17) partnerships. The United Nation hopes that by 2030 all these goals will be achieved.

 

These goals were published in July 2014 after deliberation of an open working group made up of the representatives from 70 different countries. On top of this when creating these goals the UN conducted a series of ‘global conversations’ which ‘included 11 thematic and 83 national consultations, and door-to-door surveys’ as well as an online My World survey which asked people to ‘prioritise the areas they’d like to see addressed in the goals’ and all this was fed to the group who came up with these 17 SDGs.

 

The need for companies to assume social responsibility is a long-standing issue. There are two main points of opposition to corporate social responsibility: First, it is believed that an enterprise is a profit-oriented production and operation unit, and profit maximization is the eternal theme of its pursuit. It has no responsibility and obligation to complete the responsibility of the government or the work has to be done by society; second is that the corporate social responsibility will change the direction of capital utilization, resulting in increased costs and lower profits, weaken the competitiveness of the enterprise, dilute the main goals of the enterprise, thereby damaging the interests of shareholders, employees and customers. Therefore, enterprises cannot bear a lot of social responsibilities (Emmert, 2014). However, unlike this view, more scholars believe that it is necessary for enterprises to undertake corporate social responsibility (Robert Newbury, 2020).

 

A well-known Chinese economist believes that the fulfillment of corporate social responsibilities by large-scale enterprises is conducive to enhancing their competitiveness and financial performance. The research proves that the improvement of financial performance has a positive correlation with the fulfillment of corporate social responsibility. The implementation of corporate social responsibility helps companies reduce operating costs, because a good corporate image can not only save publicity and marketing costs, but also attract talent to save management costs and training costs (Jingwen Mi, 2018).

 

Walt Disney is a world-renowned cartoon entertainment company. It is their mission to bring happiness to people all over the world. Walt Disney Senior Executive Vice President and Finance Officer said: “2018 is a very meaningful year. Walt Disney manufactures products in an ethical manner by reducing its impact on the environment; Walt Disney is also in March 2019 Expand community charity services and commit to invest US $ 100 million over the next five years to encourage and support children ’s hospital patients and families around the world (DISNEY, 2019).”

 

Consumers attach great importance to the contribution of large enterprises to society, and companies can enhance their international reputation through corporate social responsibility. Walt Disney adheres to its obligations and promises to reduce its damage to the world while expanding its business. For example, Walt Disney completely eliminated disposable plastic straws and replaced 80% of the plastic products on hotels and cruise ships. Walt Disney has increased the importance of corporate social responsibility to build its own corporate image. A good corporate image and brand image can enhance consumers’ trust in the company and bring a large number of loyal customers (DISNEY, 2019).”

 

Brand image is the intangible wealth of an enterprise. Today’s competition is not limited to the competition of tangible products. The brand and image of an enterprise are also part of the competition (Gong Ke, 2011). Tmall is an online shopping company under Alibaba. November 11, 2018 is the tenth year of Tmall’s establishment. Traders from 200 countries and hundreds of millions of consumers all joined the Tmall offline carnival to celebrate. The transaction volume reached 213.5 billion yuan on the same day. Then, the executive director of Alibaba stated that what Alibaba values is not how much profit Tmall can bring to them, but that it can help society upgrade the business model while improving the life quality of people when creating a business platform (Soo, 2019).

 

For China, Alibaba has improved the quality of life of rural people. Chinese farmers are accelerating their integration into the Internet era, attracting many young people to return to rural development, benefiting rural people, and changing the world ’s view of China. For the whole world, Alibaba has driven the international market, established multiple electronic platforms to promote economic growth, helped developing and underdeveloped countries, especially helped young people integrate into global trade, and benefited people all over the world (Group, 2018).

 

Enterprises can obtain resources, capabilities and social capital in the process of assuming social responsibility. It’s brought many benefits to the enterprise, such as: customer loyalty, absorption and retention of excellent employees, establishment of corporate image, social network and trust, and reduction of transaction costs,reduce resource consumption, improve innovation capabilities, etc (Low, 2016). According to the research of Brown and Dacin (1997), corporate social responsibility behaviour affects consumers’ perception of product quality. Corporate social responsibility associations can indirectly influence consumer evaluation of products by influencing company evaluations. Corporate social responsibility associations also have an important impact on new products (Guido Berens, 2005).

 

Employees are the supporting force for enterprise development. Safeguarding the legitimate rights and interests of employees is one of the main contents of corporate social responsibility. Empirical research by Peterson (2004) shows that there is a significant relationship between corporate social responsibility behavior and employees. Corporate social responsibility practices, such as fair pay, clean and safe working environment, training opportunities, child care facilities, flexible working hours and work sharing, can both increase employee morale and productivity, and reduce absenteeism and personnel flow (PATRICK AGESA MUGESANI, 2016). In addition, Fulmer and Ballou (2003) used “Fortune” magazine’s “100 Best Work Companies in America” as an example to analyze the relationship between employees’ attitudes to workplace quality and corporate performance. Have a positive attitude towards the quality of the workplace, which can enhance the financial performance of the company (Goenner).

The corporate’s internal social responsibility can obtain the accumulation of internal social capital. The reason is that the company provides employees with a safe and comfortable working environment, improves the quality of employees through training, signs fair labor contracts with employees, and provides employees with minimum wages and compensations. It is the specific performance of the company to fulfill its internal social responsibilities. Corporate internal social capital is a useful resource, it can not only enhance the trust within the organization, mobilize the initiative, enthusiasm and creativity of employees, reduce and avoid employee opportunistic behavior and arbitrary behavior, save the internal management costs of the enterprise, increase the enterprise profit (Flávia Cavazotte, 2016).

 

When an enterprise assumes external social responsibilities, it will establish a good corporate image among consumers, creditors, suppliers, governments, communities and other stakeholders, gain more attention and support from them, and increase the company’s visibility and reputation. The influence among the public, so as to better build their own social relationship network. The external social capital of the enterprise is conducive to cooperation and mutual trust among members, saving time, energy and costs for negotiation, formulation and execution of agreements, thereby reducing the enterprise Between the transaction costs, increase the profit of the enterprise (Lantos, 2001). Corporate social responsibility is an investment that brings many benefits to the company. There is no need for companies to use corporate social responsibility to seek benefits. Corporate social responsibility is the accumulated capital that companies get through giving back to society. Modern companies do not blind their interests through corporate social responsibility,but social responsibility brings many benefits to the enterprise (Worldwide, 2015).

 

References:

 

Ford L. 2015, ‘What are the sustainable development goals?’ Retrieved on 14 April 2020 from https://www.theguardian.com/global-development/2015/jan/19/sustainable-development-goals-united-nations

 

United Nations, ‘About the Sustainable Development Goals’ Retrieved on 14 April 2020 from https://www.un.org/sustainabledevelopment/sustainable-development-goals/

 

Schooley S. 2019, ‘What is Corporate Social Responsibility’, Retrieved 14 April 2020 from https://www.businessnewsdaily.com/4679-corporate-social-responsibility.html

Passion Lilie, ‘FAQS’, Retrieved 14 April 2020 from https://passionlilie.com/pages/faqs

Emmert, P. D. (2014). Corporate Social Responsibility in Comparative Perspective, 8.

Robert Newbury, D. D. (2020, April 15). The Business Case for Corporate Social Responsibility. Retrieved from The Business Case for Corporate Social Responsibility: https://corpgov.law.harvard.edu/

 

Jingwen Mi, S. J. (2018). Journal of Management and Sustainability. The Relevance of Social Responsibility and Financial Performance of Listed Companies , 41.

 

DISNEY, W. (2019). 2019 CORPORATE SOCIAL RESPONSIBILITY UPDATE. The Walt Disney Company.

 

Gong Ke, Z. Z. (2011). Engineering Education and Management. In C. Z. Liangchi Zhang, In JiLin Province Native Brand Design Thinking (pp. 437-439). Berlin: Springer.

 

Soo, Z. (2019, November 11). South China Morning Post . Retrieved from Consumers from China’s smaller cities lift Alibaba to new Singles’ Day record as buyers shrug off trade war: https://www.scmp.com/tech/e-commerce/article/3037137/chinese-consumers-spend-us1-billion-first-minute-alibabas-singles

 

Group, A. (2018). Social Responsibility Report. Alibaba Group.

 

Low, M. P. (2016). Asian Journal of Social Sciences and Management Studies. Corporate Social Responsibility and the Evolution of Internal Corporate Social Responsibility in 21st Century.

 

Guido Berens, C. B. (2005). Corporate Associations andConsumer Product Responses. TheModerating Role of Corporate BrandDominance, 35-48.

 

PATRICK AGESA MUGESANI, D. A. (2016). ROLE OF INTERNAL CORPORATE SOCIAL RESPONSIBILITY ACTIVITIES ON EMPLOYEES’ COMMITMENT IN FIRMS LISTED IN THE NAIROBI STOCK EXCHANGE.

 

Goenner, C. F. (n.d.). Investing in Fortune’s 100 Best Companies to Work for in America .

 

Flávia Cavazotte, N. C. (2016). A Study of Publicly Traded Companies. Internal Corporate Social Responsibility and Performance.

 

Lantos, G. P. (2001). The Boundaries of Strategic Corporate Social Responsibility.

 

Worldwide, F. (2015, November). Financier. Retrieved from The importance of corporate social responsibility: https://www.financierworldwide.com/the-importance-of-corporate-social-responsibility

 

 

 

 

 

 

 

 

Corporate Social Responsibility & Organizational Performance

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Social corporate responsibility (CSR) is a long term framework that companies adopt to enhance the welfare of society. In the past decade, the initiatives companies took for their stakeholders offered them several benefits regarding reduced costs, maintaining legitimacy and gaining competitive advantages. Different companies like Coca-Cola and Walt Disney, through their business, built reputational capital and achieved a win-win position through the value creation process. The term CSR is rapidly influenced by legitimacy and engaging modern concepts like business ethics, managing stakeholder’s value and social performance. The expression of these terms is related to multiple investment options, practices and corporate citizenship acts(Gong Ke, Z. Z. 2011).

Business management scholars always investigate the significance of CSR as under organizational objectives, yet the influence of profitability is linked to these goals. The economists Milton Friedman believed that companies should focus on economic interests as the stakeholder’s value. The variety of stakeholders, such as suppliers, employees, and customers’ community, feel value creation is a significant process because business gets to benefit from CSR programs.  The stakeholder’s relationship can be neutralized when business cases are more pragmatic(Jingwen Mi, S. J. 2018).  Socially responsible investment movement allows a positive relationship between corporate financial performance and corporate social performance. A research study has found a relationship between financial performance and social initiatives of companies that were aligned on their organizational goals. Considering CSR a strong business case, it is likely to consider that improvement of its bottom line. This viable choice of business is used to risk management and implement low-cost practices. Due to CSR implementation, a competitive advantage is achieved, which related to synergistic value creation. A business case under empirical research work for the potential structure of the economy that is built on the syncretic stewardship model ((Flávia Cavazotte, N. C. 2016).

CSRs or Corporate Social Responsibility have developed into a very integral element of today’s business setting. CSRs are mainly an ever progressing business process that initiates sustainable business development into any organization. Actually, these practices are the procedures that support a company to be socially responsible to not only its stakeholders but also towards the general public. The existence of a good CSR develops a positive image on the economic, social and environmental factors attached to the business.

Katie Schmidt is a creator of a famous clothing brand ‘Passion Lilie’, she is a proud business entrepreneur for starting an ‘ethical apparel brand’, that means an ethical business, with a fine CSR, can impact positively on a business by developing an organizations image, creating the group and motivating the employees as an entrepreneur. The reason behind in most of the times public opinion is very important for the success of the company. When a typical company has a positive picture in its customers’ eye, it surely can support the business to develop a reputation and name with their consumers that can be very valuable for all the long and short term success (Gong Ke, Z. Z. 2011).

The organizations in the developed countries may react to civil society and shareholders pressure to have social responsibility with extra seriousness by implementing strong CSR structure, except only to settle their opponents and exclusive of any awareness to real changes in their procedures. That means deliberate CSR obligations can just be the tool for organizations in the progress to anticipate actual regulation.

For example, Coca-Cola has started a new product Coca-Cola Life in many countries recently. It is sold in a recyclable bottle or in a green can, many critics state that with as much as 17 grams of sugar and 68 calories in one serving of soft drink is a tactic to trick the customer by the healthy product appearance. Nutritionists say that Coca-Cola Life must not be taken as a healthy option (Low, M. P. 2016).Displaying valuable Corporate Social Responsibility is a significant part of a company’s bigger goals. It is moreover an integral part of developing a more engaged company (DISNEY, W. 2019).

The question for organizations to adopt social responsibility is a never-ending issue. There apply two major factors of opposing Corporate Social Responsibility. Number one, it is thought that a company is a profit-based operation and production unit, and profit escalation is the basic goal of its administration. It has no obligation and responsibility to fulfil the government as well as society’s responsibilities towards the goodwill of the world. Secondly, the corporate social responsibility will change the way of the utilization of capital of the company that will be resulted in cost increase and fewer profits. It also can weaken the cooperativeness of the company; decrease the main targets of the company, therefore affecting the interests of financiers, workers and consumers. Thus, the company cannot afford this much social responsibilities. But, on the other side, many critics think that it is important for companies to take CSR for the betterment of society and its people (Guido Berens, C. B. 2005).

The significance of a strong CSR can be observed by the different research levels and examinations made over time by the time either in the shape of examining a company’s achievement or just by finding out by questionnaires and surveys the significance that these CSRs are kept at. One such study that supports this conducted by Cone Communications, they in research concluded that 60% or more Americans think that businesses should work for environmental and social change where government rules are absent. Other than this, a massive 90% of customers expressed their opinion that they like to buy a product of such company who worked for any issue people care about and around 75% of people surveyed rejected to purchase from such company who come to know that the company supports any contrary issue(Flávia Cavazotte, N. C. 2016).

In the present day, a company’s status is very important as customers, shareholders and employees are starting to priorities the Corporate Social Responsibility when selecting a product or brand as well as any organization for support or investment. Ahead of it, the same persons have started to think that the investment companies are liable for the change in their business approach, profits and practices. Failure to work at a suitable level will surely direct to some type of negative consequences for the company in question. Walt Disney is a globally famous animation entertainment company. To pass happiness to people around the world is their prime objective. Walt Disney produces goods with an ethical approach by minimizing its environmental effects. In March 2019 Walt Disney expanded social charity services and promised to spend 100 million USD in the coming five years to support and encourage patients of children hospital and families all over the world (Jingwen Mi, S. J. 2018).

In China, Alibaba group has worked to develop the quality of life of people of rural areas. Farmers in China are speeding up their integration into the era of internet, captivating young people from around China for the development of rural areas, promoting people of rural areas, and changing the global perception about China (Soo, Z. 2019). Alibaba has worked for the international market, created different electronic stages to support economic development, helped underdeveloped and developed countries, above all supported young people incorporated into world’s trade, and benefited the small business groups around the world.

Companies can get capabilities, social capital and resources during the course of accepting social responsibility. It brings several advantages to the companies, like, customer loyalty, retention and absorption of good employees, development of the commercial image, social trust and network, and progress in innovation potential (Low, M. P. 2016).

Business firms acquire transparency and sustainability due to CSR implementation because it is ubiquitous. Due to the structural framework, economic behaviour describes the relationship between society and organization, yet the organizational goals are necessary to be followed. In some research frameworks, this relationship is linked with aims and objectives. Certain values in organizations emphasize that sustainable development is oriented to organizational goals. CSR under multinational enterprise is implied on business strategy with an inherent focus on global supply chains. The globalization under environment protection and human resource management is prevailed in the CSR framework to organize sustainable development goals (Flávia Cavazotte, N. C. 2016). Inter-governmental bodies under cooperation and UN-based conventions have viewed CSR impact inherently.

The political, social and environmental factors are key to consider in small, medium enterprises because global supply chains are working on effective communication and technology-based interventions. According to research evidence, social values led models to allow organizations to adopt CSR initiatives because it works positively for economic and non-economic reasons. The syncretic business model allows narrow and broad bases that show how financial performance can directly impact corporate social responsibility model of organizations. It is found from research studies that organizational goals are positively related to financial performance that impacts CSR. In different frameworks, firms need to identify and exploit the opportunities that can serve business productively (Worldwide, F. 2015).  It is true that stakeholders’ eyes’ should not be blurred under the act of corporate social responsibility but accurate picture should be given.

References

Worldwide, F. (2015, November). Financier. Retrieved from The importance of corporate social responsibility: https://www.financierworldwide.com/the-importance-of-corporate-social-responsibility

Flávia Cavazotte, N. C. (2016). A Study of Publicly Traded Companies. Internal Corporate Social Responsibility and Performance.

Guido Berens, C. B. (2005). Corporate Associations andConsumer Product Responses. TheModerating Role of Corporate BrandDominance, 35-48

Soo, Z. (2019, November 11). South China Morning Post . Retrieved from Consumers from China’s smaller cities lift Alibaba to new Singles’ Day record as buyers shrug off trade war: https://www.scmp.com/tech/e-commerce/article/3037137/chinese-consumers-spend-us1-billion-first-minute-alibabas-singles

Jingwen Mi, S. J. (2018). Journal of Management and Sustainability. The Relevance of Social Responsibility and Financial Performance of Listed Companies , 41.

DISNEY, W. (2019). 2019 CORPORATE SOCIAL RESPONSIBILITY UPDATE. The Walt Disney Company.

Gong Ke, Z. Z. (2011). Engineering Education and Management. In C. Z. Liangchi Zhang, In JiLin Province Native Brand Design Thinking (pp. 437-439). Berlin: Springer.

Low, M. P. (2016). Asian Journal of Social Sciences and Management Studies. Corporate Social Responsibility and the Evolution of Internal Corporate Social Responsibility in 21st Century.

Debate on Corporate Social Responsibility Summary(Opens in a new browser tab)

Managing Corporate Social Responsibility(Opens in a new browser tab)

 

Managing Corporate Social Responsibility

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In the first chapter, the author has discussed the basic concept of corporate social responsibility and its relation to an organization’s mission, stakeholders, and its culture. CSR is the deliberate actions that a firm applies as it follows its own mission and accomplishes its apparent compulsion to stakeholders, including staff, the environment, communities, and civilisation as a whole. Internal and external communication is essential for the CSR process. Numerouseconomicallyefficaciousfirms have been slated for making and causing environmental harms that their CSR programs address (e.g., Wad dock, 2007). CSR actions should not be proposed to misdirect open observations or shroud bad behaviours. Or maybe, the choice to grasp CSR is essentially perplexing and ought to be predicated on the information that it will help create and execute a sound hidden procedure. This present book’s procedure situated structure is grounded in a correspondence viewpoint that recognizes a partnership’s association with partners, culture, political frameworks, and financial frameworks. (Timothy Coombs, 2012)

In the second chapter, the author describes and explains strategic CSR. When more prominent organizations incorporate CSR in their organizational plans and goals it becomes strategic CSR. Organizations can gain a competitive advantage using strategic CSR by minimizing wastes, reducing costs, producing organic food, which will ultimately help society satisfy their social concerns. There are 4motives & CSR alongside 2 dimensions of CSR. It is esteem driven, cause-oriented, stakeholder/ partner-driven, or delivered as per the desires. Hence, it can be concluded that it is vital while alongside other relevant conventional business targets. The CSR model is a ceaseless procedure that includes 5 phases. The principal arranges is Scanning and observing, second is leading developmental research, thirdly making the CSR activity, fourthly conveying the CSR activity, and in conclusion, directing assessment, and giving input. (Timothy Coombs, 2012)

In the next chapter, the author has explained the whole CSR scanning and monitoring process. This is the first stage of the CSR model. Scanning is done from the environment to seek threats and opportunities. It causes the associations to occupy their attention on the rising social and ecological issues that could influence the CSR-related impressions of the association. In opposition to checking, observing includes evaluating responses to current CSR activities. Observing is a significantly more constrained methodology than checking in light of the fact that it is limited to winning CSR endeavours. Though, Scanning may distinguish a CSR related issue and rank it generally high as a worry. The two procedures ought to go with consistently to get a preferred position for the association. The stakeholders of the organization should be involved in the scanning and monitoring process. Regular analysis of the CSR issues conducted by the stakeholder committee would help them identify the specific CSR issues that need attention. (Timothy Coombs, 2012)

The next step of the CSR model is Formative Research. The formative research analyses the CSR issues in detail which are selected from scanning and monitoring. It provides all the necessary information required for selecting the most important CSR concern and converting it into a CSR initiative. Not many organizations have the budget and time to deal with all the CSR concerns. Formative research helps management to take action quickly with all the essential info available. The expectations of stakeholders should be met while finalizing the CSR initiatives. This can be done by using two of the approaches that are expectation gap and alignment approaches. The gaps cannot be neglected as stakeholders can become offensive because CSR initiatives will not be aligned to societal concerns. Corporations are mostly interested in only those CSR concerns which will have a positive influence over the stakeholders and society. (Timothy Coombs, 2012)

 

The next chapter discusses the formulation of CSR initiatives, decision making of the top management to shortlist and prioritize CSR concerns. This stage involves the mutual understanding of all the parties taking part in decision making. There can be a clash between the stakeholders due to their different interests and views on CSR which is a natural part of the final decision-making process. Stakeholder concerns should be taken due to three important characteristics. The first factor is stakeholder authority, second is the legality and third is a demand by the stakeholder. These are considered Salience factors. The management should figure out the financial cost and return on investment of the selected CSR initiative. The CSR objectives should be identified as the process of CSR initiative and its outcomes. The stakeholders should also create some assessment methods and standards to analyse the effectiveness of CSR objectives. Stakeholders’ involvement helps the corporation determine their impact on decision making and the effects of outcomes and CSR concerns affecting the Stakeholders. (Timothy Coombs, 2012)

In the next part, after creating a CSR initiative is to present it to all the concerned stakeholders whether external or internal. The employees working inside the organization are the internal stakeholders. Whereas everyone who gets directly affected by the CSR initiative decision or have a mutual interest in the organization. Initially, the internal stakeholders should be informed about the CSR decision. They will help the organization in communicating the decision to the external stakeholders. To avoid any reaction from the internal or external stakeholders before the announcement of the CSR initiative decision, management should make a sound plan to deal with all the opposing acts. Ultimately the management should make a decision of communication method used to deliver and report the final CSR initiative decision. As stakeholders are interested in receiving an authentic report on CSR initiatives so that they can provide their feedback. Currently, there is no hard and fast rule for delivering CSR reports so organizations can provide the information according to their desire. But this step is crucial as it has a vital part for the whole strategic process. (Timothy Coombs, 2012)

The next step is the process of evaluation based on which feedback is provided regarding the CSR initiative decision. The process of evaluation involves systematic procedures for the analysis of the CSR initiatives and the objectives being involved obtained or not. Management should not rely solely on stakeholder concerns but also take into consideration other factors as well. In some cases organizations focus on satisfying the stakeholder’s concerns only. To get a clear understanding of the results of CSR, the outcomes of the objectives should be analysed. It provides a translucent picture of the facts that how efficiently and to what extent CSR initiatives have served the concerns of the stakeholders or the organization. The results would help financial stakeholders get a clear understanding of the exact return on investment. In some cases, non-tangible benefits cannot be estimated after the implementation of CSR initiatives. (Timothy Coombs, 2012)

In the last part of the book, the author has discussed are the problems and issues for fulfilling the CSR initiatives. Problems that arise and affect the CSR initiative can be dealt with easily by taking supportive managerial actions. The CSR initiatives are helping the society in several ways. The supervisors in any organization should do a profound thought process on every process of CSR initiative. There are several benefits of CSR initiatives and their implementation in the corporate sector. It helps to decrease child labour ratio and poverty, improve human rights, pursue social justice, and help people live healthier lives. Many organizations are working together on the same cause to create and implement effective CSR initiatives for the betterment of society. (Timothy Coombs, 2012)

References

 

Timothy Coombs, S. J. (2012). Managing corporate social responsibility : a communication approach. Wiley Online Library.

 

Debate on Corporate Social Responsibility Summary

 

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