CORPORATE SOCIAL RESPONSIBILITY
With the revolution in business industry at a global level, the trends of business are changing its way. Continuous development in trend of business strategy has shown a relationship between the society, in terms of state and social, with the business has been witnessed. The organizations, uses the strategy of sustainability, by implementing the corporate social responsibility, to gain an advantage of strong relationship with their customers and addresses the well being of social and environmental.
Corporate social responsibility refers to assess of firm’s responsibility in terms of reducing the negative effects of the organization on the environment and society, by approaching the strategy of sustainable development. This course study demonstrates the concept of corporate social responsibility and their importance in terms of organizations. The study evaluates different theories and models of corporate social responsibility in order to possess a concrete concept on the CSR implementation in firms. This study also focuses on the organizations, which have implemented the strategy of CSR, in order to gain the sustainable development in trade and commerce. This study highlights the pros and cons of corporate social responsibility in the organizations.
The thesis statement of the study is to demonstrate the sustainable development of organization and society through approaching the strategy of corporate social responsibility.
Concept of corporate social responsibility
Growth in numbers of organizations at a global level is leading to the high risks of influencing environment and society. In the view of Mason and Simmons (2014, p.76), corporate social responsibility can be an ethical behavior, which are adapted by the organizations, in order to deliver the development concerns and sustainability activities for social and environmental well-being. Corporate social responsibility approach includes the concerns in terms of environment, health, government, and human rights.
In the opinion of Ahmad and Crowther (2013, p.64), implementation of corporate social responsibility in the organization can help to gain a positive brand image, as it deploys the interest of trades and commerce in the sustainable development of the society and environmental, which do not have any direct influence on profit margins of organization. However, as stated by Feldner and Berg (2014, p.118), the organizations have indirect profit on their margins, by approaching the strategy of corporate social responsibility, the CSR implementation helps to gain a high brand image. Different organizations have their own approach of corporate social responsibility. As for an example, the IAG organization of Australia, delivers the social concern and responsibility by helping the customers to gain emergency services, health and safety and other risks, in terms of road safety and climate risks (IAG Australia, 2017).
On the other hand the organization like, IKEA in Australia, uses the approach of corporate social responsibility in terms of supporting the local communities to access gender equality, education and employment, in order to develop the social sustainability (IKEA, 2017).
Theories and models of CSR
Different models of corporate social responsibility can be approached by the organizations, such as:
Figure 1: Carroll Model of CSR
(Source: Hackett, 2017, p.785)
Carroll model of Corporate Social Responsibility
The Carroll model of CSR has been introduced in 1911, which includes four different responsibilities:
- a) Philanthropic Responsibility
The philanthropic responsibility of the Carroll model deploys the requirement of organization to deliver the responsibilities, which helps in social well being. As Hackett (2017, p.22), has commented that, the responsibilities in this segment of Carroll model includes the donation of gifts, helping the poor background communities and people.
- b) Ethical Responsibility
Ethical responsibility of the organization ensures the maintenance of the ethical consideration and values, in terms of their stakeholders, while dealing.
- c) Economic responsibility
Economic responsibility of the Carroll model ensures the exaggeration of the stakeholders’ value in term, of paying them with a good return by the organizations.
- d) Legal Responsibility
Legal responsibility in the organization ensures the maintenance of the land ethics and laws, related to the land.
As Rao and Tilt (2016, p.198), has stated that the Carroll’s model of corporate social responsibility circumscribe the expectations of society in terms of legal, ethical, economical and the philanthropic, from the organization. Implication of the Carroll’s model of corporate social responsibility and sustainability, in the organization can help them to deliver the social, economical and other aspects of well-being expectations of society.
Stakeholders and Stakeholders model
The stakeholder and stakeholder models is based on the corporate social responsibility of the organizations, which has divide in four different quadrants:
Figure 2: Stakeholders and Stakeholders model of CSR
(Source: Schaper, 2016, p.112)
The productivity segment of the stakeholder’s ands stakeholders model beliefs in the profits maximization of the organizations. As Schaper (2016, p.15) has stated that, this segment contentions the aim of organization to gain maximum number of profit, by maximizing the profit margin.
Progressivism quadrant of CSR believes in motivation of corporate behavior of organizations.
Philanthropy segment solely delivers to the social well being of stakeholders’ sustainability, which needs not to have the profitable margin of the organization.
Ethical idealism segment of the model ensures the responsibility of the organization, in terms of donating the profits gained by them for the well-being of society and environment. As opined by Gabriel and Bathurst (2017, p.54), the ethical idealism responsibility of the organization helps to minimize the negative effects and influence on the society and environment, due to the organizational activities.
Apart from these two models of corporate social responsibility, IC models of corporate social responsibility, CC model of corporate social responsibility can be approached by the organizations, in order to perpetuate the sustainability of the organizations.
CORPORATE SOCIAL RESPONSIBILITY
Implementation of CSR in organizations
Implementing the CSR activities as an approach, in the organizations has witnessed to have successful sustainability. As Chan, Watson and Woodliff (2014, p.65), has commented, the organizations, which have implicated and uses the unique approach of the corporate social responsibility, gains a positive image and high value in the marketplace. The organizations like KFC and Unilever of Australia, has evidence of being successful, with the implication of corporate social responsibility, in their organization.
CSR in KFC
KFC of Australia has approached the strategy of corporate social responsibility, which did have not any undeviating influence of the profit margin of the organization. Australia KFC has supported the World Hunger Relief, which helped the United Nations World Food Program, by raising funds. In order to deliver the funds for the World Food Program, the KFC Australia has raised funds, more than of $5.4 Million (KFC Australia, 2017).
- KFC Australia has helped to deliver 740 Million meals, in order to assist the necessity of foods and raised U.S$185 million, through their Internationally Yum!
- Apart from these approaches of KFC Australia, other initiatives have also been taken such as:
- KFC Australia works in a partnership with the Whitelion Employment Programs, in order to recruit the local community people as their employees. KFC Australia has employed more than 40% of people in their organization (KFC Australia, 2017).
- KFC Australia has used the unique corporate social responsibility strategy to recruit the disabled people in their organization. The disabled individuals, in their organization are trained to deliver the services to their customers.
- KFC Australia has opened the Leadership and Energy Designed certified store in the New South Wales. In order to recover the wastes, KFC uses the Closed Loop Recyclable Program in their organization (KFC Australia, 2017).
CSR in IKEA Australia
IKEA Australia is another example in terms of implementing corporate social responsibility in the organization, which helps them to gain the advantage of sustainability. The IKEA of Australia has witnessed to implicate the unique CSR activities in the organizational, such as:
The IKEA Australia supports the local community of Australia by planting 1 Million trees in the areas, where the stores of IKEA are available.
IKEA Perth and IKEA Adelaide deliver the environment improvement, in the areas, where the children lives (IKEA, 2017).
Empowerment and Education
IKEA has used the hourly wages structure, in order to meet the needs of their employees, rather than concentrating on their business standards.
IKEA has provided a program of Talent Focus Week, which helps the people to have an opportunity to work with IKEA (IKEA, 2017).
IKEA provides the employment opportunity to the women. Most of the employees in IKEA are women, which helps to enhance the gender equality (IKEA, 2017).
Pros and Cons of implementing CSR
The CSR implication in the organisation can help to gain a strong brand image. As said by Feldner and Berg (2014, p.87), CSR implication can help to reduce the social cost, with proper satisfaction of the employees and stakeholders.
Implementation of CSR can indirectly help the organization to gain profit. However, on the other hands, CSR implications might have negative arguments. Hackett (2017, p.95) has opined that, the CSR are expensive for the small organizations. The CSR needs to have proper social and ethical obligation, in terms of well-being of society.
From the above study, it can be concluded that, the implication of CSR has evidence of successful organization, in terms of deliver proper well being of society and environment. CSR implication can help the organizations to gain positive image, however, the organizations needs to maintain the legal and ethical consideration of the government.
CSR implementation i n the organizations can help the community and society to enhance their performance, in terms of health, education, environment and other aspects. CSR implication in KFC Australia and IKEA Australia has shown the positive influence on the social well-being with environmental enhancement
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- Feldner, S.B. and Berg, K.T., (2014). How corporations manage industry and consumer expectations via the CSR report. New Zealand: Public Relations Journal.
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