Corporate Social Responsibility
Describe about the Corporate Social Responsebility for Self Regulations Forms.
The concept of corporate social responsibility is one of the many forms of self-regulations of a corporate and forms an integral part of the business. The policy mainly functions as being the mechanism of the business wherein it monitors and makes sure that it actively complies with the various laws, rules and regulations that have been laid for the environment in which the business functions. It is governed by the ethical standards and national and international norms. With many of the models being present, the implementation of the corporate social responsibility goes way beyond the compliance and engages itself into the various actions that the company must indulge into so that something good comes and which is way beyond the interests of the firm and which has been required by the court of law. The main idea is to increase the profits of the company and maintain them in the longer term and also increase the trust of the various shareholders through the maintenance of positive public relations.
And also the achievement of the highest ethical standards for the purposes of reducing the risk pertaining to the business and the legal factors and this takes place with the help of management that takes the responsibility of the actions of the corporate. The various different strategies of the company somewhat makes a positive impact on the environment and also on to the stakeholders that invest their time and money in the business and the various stakeholders includes the consumers, employees, investors, communities and many of the others.
Many are of the opinion that the increase in the profits of the company that are long term in nature could be achieved with the help of the corporate social responsibility when the critics are of the opinion that this concept diverts the minds of the business leaders from the economic role that the company plays in the business environment. There was a study that was undertaken during the year 2000 wherein a comparison took place between the econometric studies of the relationship between the social and the financial performance of the company. This concluded many of the contradictory results that were the results of the many of the previous studies and this reported the positive, negative and the neutral impact of the financial on the business. They were allowed to be flawed by the empirical analysis and also stated that the study had adequately specified that the concept of corporate social responsibility had indeed a neutral impact on the financial outcomes of the business (wood, 1991).
Need for Corporate Social Responsibility
Many also questioned the lofty and the unrealistic expectations in the concept of the corporate social responsibility or that the concept was a mere window dressing. Further, it was also stated that it was an attempt wherein the government could act as a watchdog over the powerful multinational corporations. There were many of the political sociologists that were very much interested in this concept when it came to the context of the theories of globalisation, neoliberalism and capitalism. Then there were many of the sociologists that viewed this concept as being the form of the legitimacy in capitalism and also referred to it as the social movement that uninhibited the corporate power that was transformed by the corporations into the model of the business and also ensured the risk management device that raised many of the results that were questionable in nature (Williams, 2001).
This concept aided many of the missions of an organisation and also served as a guide to the company as to what the same meant to its customers. The business ethics were the part of the applied ethics that examined the ethical principles and also the moral and the ethical issues that arose in the business environment. The ISO 26000 was considered to be an international standard for the corporate social responsibility. There have been many of the public sector organisations that complied with the various different principles of the triple bottom line and was also, with many of the similar principles that had no formal act of the legislation (wiley, 2016).
The following are the main reasons as to why we need the corporate social responsibility:
Improves the image of the company in the eyes of the public: the companies helps in the demonstration of the various causes that are perceived to be more philanthropic rather than the companies that had the corporate social responsibility to be non-existent. The public image of the company is at the public and that was the way how the customers were aware of these programs taking place. The customer felt good when the company that they had invested their money in was doing something good for the community. This helped the company in cleaning up its image. When the company makes the public aware of its various initiatives, then the company increases its chances of being favourable in the eyes of the public (Modern Ghana, 2016).
Helps in the media headlines: it is no use as to how much money the company has been investing in the initiatives towards the corporate social responsibility. But it is more important to know the way of forming the various relationships with the local media and how they are more likely to cover and represent the story to the public. The amount of the efforts that the company puts in towards the achievement of the corporate social responsibility in the local communities, the better it is for the company since the better it is for the media coverage. Whereas, in case, the company does some negative things and the media picks up the same and reports the same to the investor, then that would bring negative light to the company. Also, this news would spread faster than the positive news. The media visibility is useful when it shed the positive light on to the organisation (Grazier et al, 2016).
Helps in the boosting of the employee engagement: the employees are working for the company that has a good public image and this is in the media for many of the positive reasons. When the employees are happy, they tend to give out positive output. A study has shown that about 60% of the employees that are proud about the corporate social responsibility of their company are working there. When the companies show that they are continuously working towards the improvement of their respective communities by the way of giving them programs like matching the gifts, then the company is inclined in attracting investors and also keep the, hardworking and engaged employees. On the other hand, if the corporate is philanthropically minded, then the individuals that are hunting their jobs would apply and interviews would be available for the various positions. As and when they are hired, they stay with the company for long and are far more productive on the daily basis and serve as a role model for the others.
Attracts and retains investors: the people or the investors are investing their hard earned money on the company and is helping them to earn profits and so, they actually would want to know the way in which their funds are being used. But this does in no way means that the company is not taking its responsibility seriously and not conducting its business activities in the best manner possible and the budgets but also means that they very much concerned about the CSR. When the companies donate money to the non-profit business organisation, then in one way or the other, they are encouraging the employees to invest their scarce hours and also demonstrate to the investors that they do not care about the profits. They show that they have interest in the well-being of the local and the global community. The investors are very much likely to be attracted and support the companies that care about the society and that shows commitment to the society and not only to the employees and the customers (Management study guide, 2016).
They have the ability of turning the innovation into the social problems, and with this, many of the resistances could be transformed into the resources and also into the functional capacity of the various resources that could be increased with time (Forbes, 2016).
A company that is engaged in the fulfilment of the corporate social responsibility goals would remain free and away from the regulations an controls of the business sin the terms of money and energy and would also restrict its flexibility of decision making. When the company fails to comply with its social corporate responsibility, then it would only attract government intervention and penalties. And the government would then try to regulate and control their activities. Any business man would never want that.
Social corporate responsibility is all about the consume protection. It achieves the protection of the local and the government environment. It helps in avoiding the bribery and corruption. It helps in the promotion of the labour standards of the companies and their business partners (Legal services India, 2016).
It leads to improvement in the working conditions of the workers and in the reduced environmental impacts along with an increase in the involvement of the decision making and this causes an increase in the productivity and also in a defective rate in the company.
The businesses are always linked with the positive financial performances. An improved financial results would help in achieving an efficient and healthy competitive environment and lead to a competitive advantage that could be achieved by the way of building a better reputation of the company. This further helps in an improved employee recruitment and motivation in an increased secure environment to operate in (Simply CSR, 2016).
An increased number of people are saying that the research of the corporate social responsibility would help in the experience of the range of the bottom line benefits which leads to increased sales and share in the market of the company. It further leads to a strengthened brand positioning, an enhanced corporate image and clout (Rangan et al, 2012).
The company whose corporate social responsibility has been undertaken for review is Wesfarmers. The company recently published its 18th annual sustainability report and also had published its report online. This is the report that has been prepared as per the principles and the various initiatives undertaken by the Global Reporting Initiative. The audit firm Ernst & Young (EY) has assured that all the contents of the report are true and fair to their knowledge. London benchmarking is the global standard that helps in measuring and benchmarking the corporate community investments (Wesfarmers, 2016).
The company is actively engaged in the management of the impact on the community and the environment. The principles stated thereunder are related with the issues pertaining to sustainability and have been identified as being the most material to the group. Each one of the various divisions apply these principles in the business and also take into account all the circumstances related with the operating environment and is also encouraged to set down its own internet targets.
The following are the 10 community and the environmental impact principles that the company has undertaken:
People: the main focus is on the relentless focus on the providing of the safe place to work. Further, the company provides employment opportunities to the people and also help them in enhancing their performances and develop their careers. The company provides good working conditions and pays attention to diversity and includes all the people from Australia and Torres Strait Islander.
Sourcing: the company is very strongly committed and respects its various relationships with its suppliers. Further, the company sources its products and is responsible while working with the various suppliers and this helps it in improving the social and the environmental practices.
Community: the company has been making some serous and positive contributions towards the community in which it has been operating. The company also provides its customers with the safe products and ensures that it caters to the different needs of the community.
Environment: the company reduces the intensity of the various emissions involved in the business and also helps in improving their resilience to the changes that takes place in the climate. The company strives to reduce the waster of the non-renewable sources of energy. This is in the sense that it intensifies the business and contributes towards reducing the waster to landfill and the use of the water wherever and whenever possible.
Governance: the company ensures the maintenance of the robust policies of the corporate governance and incorporates the various features of corporate government in its businesses.
The company is very conscious about its responsibility towards the environment and undertakes various measures so that there is minimum impact on it (Wesfarmers, 2016).
Keeping in mind the enormous pressure that revolves in and around the corporate social reasonability, without considering the accounting as discipline, the main question is not whether the corporations engage in this concept but the best way through which the initiatives could be achieved and craft the programs of the corporate social responsibility since it reflects the business values of the company on one hand and addresses social, humanitarian and environmental challenges on the other. There are many drivers in the company and there are many of the different motivation levels that underlie these initiatives. There are many of the issues and problems that would lend themselves to this but then there are many of the elements that would not. The main call is to call for discipline and structure the fragmented components. These are the components that would support the main strategy and in many of the other ways that would appear to be adjacent and discretionary (Front stream, 2016). The main issue with the practice of the CSR is that companies do have a strategy and they just invest in the activities of corporate social responsibility just because they are duty bound to. Each and every corporation must have a strategy that must be followed at all times so that company is able to deliver its maximum towards achieving that concept. The main idea behind the strategy of corporate social responsibility it not to equate the complete absorption into the business processes. But there must be a corporate strategy that has to be consistent followed by the company towards improving the society. There must be an adequate evaluation and classification of the various different practices of CSR that provides a framework for the division of the comprehensive strategy of the CSR and that integrates all its efforts. All this depends upon the various origins of the initiative undertaken by the company towards CSR and also defined the purposes of social and environmental individual organisation (Borgen project, 2016).
Bell, L. (2016). The Benefits of CSR | Simply CSR. [online] Simplycsr.co.uk. Available at: https://www.simplycsr.co.uk/the-benefits-of-csr.html [Accessed 19 Sep. 2016].
Forbes.com. (2016). Forbes Welcome. [online] Available at: https://www.forbes.com/forbes/welcome/?/sites/csr/2012/02/21/six-reasons-companies-should-embrace-csr/&toURL=https://www.forbes.com/sites/csr/2012/02/21/six-reasons-companies-should-embrace-csr/&refURL=https://www.google.co.in/&referrer=https://www.google.co.in/ [Accessed 19 Sep. 2016].
FrontStream. (2013). Why Corporate Social Responsibility is So Important - FrontStream. [online] Available at: https://www.frontstream.com/why-corporate-social-responsibility-is-so-important/ [Accessed 19 Sep. 2016].
Grazier, S., Charles, A., Hensley, L. and Maw, L. (2016). 12 Reasons Why Corporate Social Responsibility is Important. [online] Double the Donation. Available at: https://doublethedonation.com/why-corporate-social-responsibility-is-important/ [Accessed 19 Sep. 2016].
Iiste.org. (2016). Issues in Social and Environmental Accounting. [online] Available at: https://www.iiste.org/Journals/index.php/ISEA/index [Accessed 19 Sep. 2016].
Jstor.org. (2016). Corporate Social Performance Revisited on JSTOR. [online] Available at: https://www.jstor.org/stable/258977 [Accessed 19 Sep. 2016].
Legalservicesindia.com. (2016). Need For Corporate Social Responsibility. [online] Available at: https://www.legalservicesindia.com/article/article/need-for-corporate-social-responsibility-1991-1.html [Accessed 19 Sep. 2016].
Managementstudyguide.com. (2016). Corporate Social Responsibility - Meaning, Need and its Evolution. [online] Available at: https://www.managementstudyguide.com/corporate-social-responsibility.htm [Accessed 19 Sep. 2016].
McWilliams, A. and Siegel, D. (2000). Corporate social responsibility and financial performance: correlation or misspecification?. Strategic Management Journal, [online] 21(5), pp.603-609. Available at: https://onlinelibrary.wiley.com/doi/10.1002/(SICI)1097-0266(200005)21:5%3C603::AID-SMJ101%3E3.0.CO;2-3/abstract [Accessed 19 Sep. 2016].
McWilliams, A. and Siegel, D. (2001). CORPORATE SOCIAL RESPONSIBILITY: A THEORY OF THE FIRM PERSPECTIVE. Academy of Management Review, 26(1), pp.117-127.
Modern Ghana. (2016). The Need For Corporate Social Responsibility. [online] Available at: https://www.modernghana.com/news/254784/1/the-need-for-corporate-social-responsibility.html [Accessed 19 Sep. 2016].
The Borgen Project. (2013). 5 Reasons Why Social Responsibility Matters in Business. [online] Available at: https://borgenproject.org/5-reasons-why-social-responsibility-matters-in-business/ [Accessed 19 Sep. 2016].
www.hbs.edu. (2016). Why Every Company Needs a CSR Strategy and How to Build It. [online] Available at: https://www.hbs.edu/faculty/Publication%20Files/12-088.pdf [Accessed 19 Sep. 2016].
To export a reference to this article please select a referencing stye below:
My Assignment Help. (2018). Corporate Social Responsibility Essay For Self-Regulation Forms.. Retrieved from https://myassignmenthelp.com/free-samples/corporate-social-responsebility-self-regulations-forms.
"Corporate Social Responsibility Essay For Self-Regulation Forms.." My Assignment Help, 2018, https://myassignmenthelp.com/free-samples/corporate-social-responsebility-self-regulations-forms.
My Assignment Help (2018) Corporate Social Responsibility Essay For Self-Regulation Forms. [Online]. Available from: https://myassignmenthelp.com/free-samples/corporate-social-responsebility-self-regulations-forms
[Accessed 22 February 2024].
My Assignment Help. 'Corporate Social Responsibility Essay For Self-Regulation Forms.' (My Assignment Help, 2018) <https://myassignmenthelp.com/free-samples/corporate-social-responsebility-self-regulations-forms> accessed 22 February 2024.
My Assignment Help. Corporate Social Responsibility Essay For Self-Regulation Forms. [Internet]. My Assignment Help. 2018 [cited 22 February 2024]. Available from: https://myassignmenthelp.com/free-samples/corporate-social-responsebility-self-regulations-forms.