Change management remain a crucial process that determines the direction of a business and its subsequent development. On the other hand, social awareness and corporate social responsibility are key elements in the present business world. Apart from being a requirement in the corporate world, CSR assists companies in their marketing abilities as well as creating a positive image amongst the communities or regions under their operation. A limited number of companies practice social responsibilities out of free will despite the benefits underlying therein mostly because of the cost-based challenges it poses to the overall profitability of a firm. The case study presents a classical example of social responsibility and thus sets the page for the rest to follow towards leaving an impact to the societies under operation.
In managing organization change, the case study introduces the involvement of workers, community, and the environment in making a change process a success. The firm in the case study utilizes a different path towards enhancing the change process. Change process is often focused on increasing and gaining a competitive advantage over competitors in a given business segment and thus remains a core goal for many organizations. Leaders and manager often faced with the challenge in businesses explore common change processes that align towards profit making.
Chang management allows for understanding of the workforce and thus allows for a future planning of the business environment. The firm chose to explore the change process through the introduction of a philanthropy group aimed at social responsibility towards building its sales and growing the customer base. The voice of the customer and the workers are facilitated in driving and maintaining a positive culture in the organization.
The firm, instead of exploring the direction taken by other firms in reducing costs of production thought of a divergent opinion and explored the corporate responsibility as a means towards boosting its sales and creating a positive culture in the organization. The firm manages organization change through a consultative and well-structured system that allows all players to contribute and remain part of the work at the company. The firm educates its workers on the importance of change to extents where they become part of the change and contribute immensely to the charitable works involved by the company. As such, the company only has to produce a certain percentage of funds to the charity while the workers through their volunteer opportunities aid in bringing change to the society.
The strategy assists in effective combination of the business model and ethos aspect geared towards a philanthropic mission. The charitable foundation is funded from the sales which in turn deliver smiles to the faces of its employees as well as communities while extending the same ethical standards to the customer communication scheme. Businesses thrive and become successful whenever a combination of efforts emerges from workers, management, the community and general environment. The case relates to the pillar of Dilmah that not only focuses on the economy of the business but also becomes a leader in the social responsibility in a developing country. Thus, the strategy explored seems viable and cost-effective towards developing the image of the organization. In return, buyers in the international market would always love to be associated or deal with a company that produces and acts ethically in its local environment. The locals on the other hand observe the charitable acts and get involved in them as in the case of the tsunami assistance which outlines the ethical standards of the firm as well as the women empowerment programs. Eventually, people tend to view the company as their own and would be proud to work for it and produce ethically towards profitability. Thus, the strategy to change acts positively towards building the production as well the overall sales of the company.
Change management is being evident in the way the process is done. In preparing the employees to adapt to the culture, the management conducts education and training activities in fostering the importance of the deeds towards the profitability and overall sustainability of the firm. The culture of social responsibility is being created and fostered positively by allowing the workers and the community to understand its importance as it is focused in other terms directly to the workers in the lower level of employment. By directly affecting the workers, the culture becomes easy among the workers and thus finds replication in terms of the overall benefits. The benefits accrued thereof spill over to the company’s image in terms of its acceptability to the society and the willing nature of the workers to engage with the individual organization.
Ethics and Corporate Social Responsibility Suitability
Ethics and corporate social responsibility brings lots of feasibility to a business segment if applied in the right manner as done by the company. The company does not focus on a long-term assistance on one program but rather shifts from project to project through its partnership with institutions that require a start off and not a stretching assistance. The strategy becomes of essence as it ceases to carry out recurring expenditures as observed in non-governmental organizations with employed workers. On the contrary, the firm deals with the free-will while assisting in disaster moments, education, and awareness program which do not involve them on a long-term basis.
For instance, the change management strategy explored through charity in assisting the victims of tsunami were effective as it focused on the moment and once the individuals were out of danger, the company ceased its program and shifted focus on other emerging issues. The strategy becomes cost-effective as focus is not given on one specific project but rather touching several elements in the society. The strategy does not eat much on the finances of the company and thus turns out to be effective in implementation of change management for posterity.
Appropriateness for Businesses in other Sectors
A similar focus on other economic sectors such as the manufacturing, transport, and media sectors would equally work positively towards building a positive image on an organization. Corporate social responsibility has not only become a requirement but also an appealing strategy towards development in business organizations. The more an organization is featured positively the more it gains recognition and acceptance in a society where it operates. Regardless of the sector, the change management process if well undertaken yields to positive success in organizations without affecting its profitability standards.
For example, working with the less fortunate on occasions or addressing a catastrophe as it arise serves as a good challenge towards growing once presence in a region. Organizations that get involved in one term projects such as sharing their resources with others without long term commitments project positive change that bolsters their business venture. Furthermore, international brands operating locally derive a lot of acceptance as well as brand recognition whenever they take the initiative to act in support of community and emerging issues such as women empowerment alongside empowering its workers through initiatives.
The manufacturing industry is by law mandated to exercise social responsibility due to the emissions it causes to the environment. As such, extending the favour to focus on humanitarian issues becomes an added advantage towards strengthening the bond and assisting individuals to become ethical and exercise responsibility. Application of similar strategies towards change process becomes profitable in the long run not only to the society under operation but rather the national and international image of an ethically sound organization. Therefore, the manufacturing sectors can engage the strategy towards building and improving their business ventures through improvement of the positive image.
The banking industry is one critical sector that focuses on the wellbeing of it customers and the community in driving success financially. Banks struggle to find strength in the present economic challenges and episodes of failure in the market. As such, customers remain a crucial element in the success of the banking sector. As a result, engaging in ethics and responsible leadership can enhance the acceptability and growth in customer number. Banks need to engage from time to time with the communities in operation to fulfil part of their social obligations to have a direct impact on their business. Initiatives such as loan waivers to the disabled, assistance in times of disaster, and customer education in remote location assist in growing the influence, image, and customer numbers in a given area. Managing the change process effectively in way that customer’s need are met as well as stretching out to the society would create a good image to their business segment thus assist in overcoming the economic crunch experienced in the present times.
Therefore, strategic application of social responsibilities remains beneficial to the society and the business at large. As highlighted in the study, organizations ought to appreciate and implement the CSR activities on their organizational strategy for growth purposes. Organizations should view the activities as strategic not only for moral and legal obligations but also towards expanding the profitability strategy in the competitive world. Remaining socially responsible has become a strategic move that combines both philanthropic move as well as business growth capabilities and thus can be embraced as a change strategy with good implementation.
Recommendation for Practice
Social awareness remains an integral aspect of the present business organization. Apart from meeting the needs of the needs or demands of the market, organizations need to create a social awareness and collaboration as a strategy towards competitive growth. Creating awareness socially involves acts that touch on the well-being of the society while assisting them in making the society a better place. The cost of implementing social awareness programs can be considerably higher but remain better in managing change and reaching a considerable number of people as in the marketing aspect. In fact, CSR serves as a marketing tool that hits both benefits for a company. Despite the strategy being seen as a diversion from its primary objective, the benefits speak a lot as it directly affects the primary purpose through contribution on its profitability.
Change management aimed at embedding the change in organizations depends on the ability and change management strategies among the stakeholders. Change becomes effective whenever all workers and the top management understand and become part of it. As such, it needs to be created and have public education done to verify the need for it and spell the benefits it renders to the stakeholders in the organization.
As explained in the case, it is important to conduct education among workers to emphasize their benefit element from the ordeal. The step allows for inclusion and change on perception regarding the ownership of the project where the workers view it as their own venture and thus engage in the activities freely. In the long run, the strategy turns into a culture which makes the strategy work effectively while generating profits for a company.
However, caution and critical analysis has to be taken to avoid engaging in long-term projects that might affect the profitability and diversion from the primary target of the business. Focus on the social programs that occur seasonally or on need basis serve as the right approach compared to establishing community programs that run all year long. Programs run through partnership seem the best as they do not tie a company to a given project but rather give them a chance to participate as and whenever need arises. The principle of sustainability of a project has to be embraced to avoid costly projects carried out independently fostered by proper leadership that draws relevance to the whole venture.
On the other hand, proper leadership is essential in change management. Individuals sitting in the decision team have to be strategic in their choice of social program to reflect or rather project their firm in the best interest. Programs that touch directly into their business line have to be embraced as well as those that have a public lime light as in the case of the tsunami assistance where lots of people focus their eyes. Selection of programs with international focus such as natural catastrophes and environmental projects put organizations with international markets on the front light towards success and acceptability of their products. Such principles allow for quick recognition and relation of a firm to ethical standards thus growing their acceptance and subsequent customer base.
On the other hand, employees remain a critical element in business growth. The act of touching sections of the employees, more so, workers with low earnings assist in building organizations. The principle of charity beginning at home’ assists in enhancing the culture of change and acceptance of social programs. Assisting families of workers through education, charitable acts, and uplifts assist in cementing the process of change among workers. The act in the long-run yields positive success and moreover attracts direct referrals to customers thus growing a business. While doing so, proper branding must be done to have the society and community realize the firm engaged in the activity as in the case of partnership done in the case study.
Working with the vulnerable in the society can be a strategic move as it attracts more recognition as opposed to projects that focus on energy preservation that might be costly yet yield lesser benefits to the organization carrying out social responsibilities. Customers and consumers upon realizing ethical and social responsibilities of the producers are bound to respond positively through consumption and thus aid firms in positive growth. Organizational culture becomes an important part of growth that has to be implemented in the right manner. Thus, organizations should focus on educating their masses to understand and receive feedback on the need for the change and have it fully run. Employees remain strategic in implementation of strategies and thus have to be entangled in the process of growth.
The process of increasing business opportunities and growth can be tiring and tasking for the management. A combination of social and environmental benefits in creating value chain becomes the best strategy towards success. The use of social responsibility by companies becomes effective whenever implemented towards reaching out to the community needs while driving profits as in the case study. The principles used in the case study in managing change through education, direct benefit to deserving workers, and general social activities have occurred to beneficial to the whole process. Such programs give the locals and international players a sense of pride in organization while building a positive workplace environment. The positive benefit builds high production standards for the employees while growing the customer base and return clients in the distribution system. Employees feel better whenever working for a company that has a true conscience and thus raising their level of enthusiasms whenever engaging in their jobs. The same remains true for the customers who constitute the community who find meaning in the business ability to satisfy their needs and thus increase their purchasing power.
Anderson, Donald L. Organization development: The process of leading organizational change. Sage Publications, 2016.
Arnold, Malcolm F. "Competitive advantage from CSR programmes." In Innovative CSR, pp. 102-130. Routledge, 2017.
Cantele, Silvia, and Alessandro Zardini. "Is sustainability a competitive advantage for small businesses? An empirical analysis of possible mediators in the sustainability–financial performance relationship." Journal of Cleaner Production 182 (2018): 166-176.
Carnall, Colin. Managing change. Routledge, 2018.
Doppelt, Bob. Leading change toward sustainability: A change-management guide for business, government and civil society. Routledge, 2017.
Fifka, Matthias, and Cristian R. Loza Adaui. "Corporate Social Responsibility (CSR) Reporting—Administrative Burden or Competitive Advantage?." In New Perspectives on Corporate Social Responsibility, pp. 285-300. Springer Gabler, Wiesbaden, 2015.
Frynas, Jedrzej George. "Strategic CSR, value creation and competitive advantage." The Routledge Companion to Non-market Strategy (2015): 245-262.
Goetsch, David L., and Stanley B. Davis. Quality management for organizational excellence. Upper Saddle River, NJ: pearson, 2014.
Hammer, Michael. "What is business process management?." In Handbook on business process management 1, pp. 3-16. Springer, Berlin, Heidelberg, 2015.
Hayes, John. The theory and practice of change management. 2018.
Hornstein, Henry A. "The integration of project management and organizational change management is now a necessity." International Journal of Project Management 33, no. 2 (2015): 291-298.
Jiang, Fuming, Tatiana Zalan, H. M. Herman, and Jie Shen. "Mapping the relationship among political ideology, CSR mindset, and CSR strategy: A contingency perspective applied to Chinese managers." Journal of Business Ethics 147, no. 2 (2018): 419-444.
Kaufman, Herbert. The limits of organizational change. Routledge, 2017.
Rosemann, Michael, and Jan vom Brocke. "The six core elements of business process management." In Handbook on business process management 1, pp. 105-122. Springer, Berlin, Heidelberg, 2015.
Saeidi, Sayedeh Parastoo, Saudah Sofian, Parvaneh Saeidi, Sayyedeh Parisa Saeidi, and Seyyed Alireza Saaeidi. "How does corporate social responsibility contribute to firm financial performance? The mediating role of competitive advantage, reputation, and customer satisfaction." Journal of business research 68, no. 2 (2015): 341-350.
Visser, Wayne, and Nick Tolhurst. The world guide to CSR: A country-by-country analysis of corporate sustainability and responsibility. Routledge, 2017.
West, Douglas C., John Ford, and Essam Ibrahim. Strategic marketing: creating competitive advantage. Oxford University Press, USA, 2015.
Yu, Hui-Cheng, Lopin Kuo, and Mao-Feng Kao. "The relationship between CSR disclosure and competitive advantage." Sustainability Accounting, Management and Policy Journal 8, no. 5 (2017): 547-570.