Corporate Social Responsibility What is Corporate Social Responsibility
Corporate Social Responsibility
What is Corporate Social Responsibility Corporate social responsibility (CSR) is a broad term used to describe a corporation's initiatives to assess and take responsibility for the company's effects on environmental and social policies in community and workplace, by respecting the employees’ wellbeing. These efforts can be; donating money to society, implementing environmentally-friendly privileges etc. CSR contributes to sustainable development by delivering economic, social and environmental benefits for all stakeholders. It’s very important for companies, employees and generally for society.
Stakeholders Who is ‘stakeholders’ and why is so important for a business? Stakeholder can be a person, a group of people or another organization that has interest or concern in an organization. Stakeholders can affect or be affected by the organization's activities, objectives and policies. Some examples of key stakeholders are the owners (main/small shareholders), employees, government, directors, creditors, customers, suppliers, unions and the society from which the business draws its resources.
Theories: ‘Shareholders’ Vs ‘Stakeholders’ “Shareholders’ theory”: Companies main responsibility is to maximize profit and return big market shares to their shareholders. In this theory companies follow an accommodative/defensive strategy and they are doing the minimum ethical requirement to be covered for their actions. They also act in a greedy way to improve their short-term performance and profitability.
‘Shareholders’ Vs ‘Stakeholders’ “Stakeholders’ theory”: The companies’ responsibility is to operate actions for the stakeholders and the general interests of society. In this theory the companies follow the proactive strategy in accordance with CSR and they are taking foreseen actions to avoid unfavorable social consequences that are coming from their business activities. However, one of their main economic goal, is still to maximize profit. Furthermore, they act indirectly for the society welfare and they respond positively to social issues.
Benefits of CSR to companies Better credibility, quality and brand recognition Positive business reputation. Increased sales, productivity and customer loyalty. Long-term earnings and operational costs savings Improved financial performance and organizational growth Greater ability to attract talent and retain staff. Easiest access to capital with more satisfied customers Consequently, the practices of Corporate Social Responsibility will bring long-term profits to companies, improve their public image and help for the development of social welfare.
Proactive Actions and Practices of CSR (slides 7, 8, 9) Environmental Sustainability and ‘Green’ Planet: Manufacturing companies is better to use innovative eco-technologies, environmental friendly machines and new ‘green’ strategies to produce non-polluting products. They should also emphasize on recycling and on ‘green’ manufacturing tactics in order to reduce the emissions of greenhouse gases, environmental pollutions especially from PVC plastics and the toxic chemicals. Some of these tactics are the production of recycling green products that can be reused, the usage of sustainable packaging, the storage of clean energy, reusable water and others. Examples: Innovation in alternative transportation such as hybrid vehicles and electric vehicles by companies like Toyota, Nissan, Honda and Tesla Motors in order to curb the greenhouse gas emissions and reduce the environmental hazards. Many companies like IBM, Staples and BP are purchasing Renewable Energy Credits (RECs) in order to support the clean energy projects.
Employees, Customers and Human Rights “Moral rights’ view” in Companies Procedural justice Deals with the equitable implementation of policies and rules. For example: - Condemns violence and sexual harassment in workplace - Protects employees’ privileges and reduces incidents of infractions - Supports the fact, that each person in every level should follow and respect the policy of the company. Distributive Justice: Deals with the equal treatment of people in workplace, irrespectively of their personal characteristics. (e. g. region, sexual identity, age, nationality etc. )
Interactional Justice: Includes the fact, that people should be treated with dignity and respect. For example: - Each customer should be treated by the companies’ members equally. - Customers’ privacy should be protected by the companies. - Companies ought to offer useful services to their customers - Companies need to avoid personalized advertisements and not sell customers’ personal information to other organizations. Career and Work Incentives (Human Resources management): Employees should have the opportunity to improve their work skills, develop their personality and reap experience in workplace. For the achievement of this phenomenon, Companies need to boost their labor’s performance and productivity, by coaching and training their employees. Furthermore, companies should offer work incentives to have satisfied members and also to maintain an enjoyful work environment. Work Incentives/Examples: Free gym , lunch time, work permits for family time, promotion and augmentation in salaries for hard workers, growing access to education and information etc.
Companies can reach humanity Health and safety in work place Volunteer projects from organizations for a ‘healthier’ natural environment Free education centers and opportunities for work experience Replacement of children (cheap labor) with millions of unemployed adults Donates to special charitable institutions like UNICEF, ‘Make-A-Wish’ Foundation, Action. Aid and other similar organizations.
DIMITRIS PYLAZERIS email: demetris_pil@outlook. com THANKS FOR YOUR ATTENTION
Bibliography Print References Books: Michael Anthropelos, ‘Introduction to management’ , Chapter 4 ‘Ethical behavior and social responsibility, BROKEN HILL PUBLISHERS LTD, 2012, pp 131 -164 Chapter 4 /articles: - Linda K. Trevlno and Katherine A. Nelson, ‘Managing Business Ethics’, 3 rd ed. (New York : Oxford University Press, 2004) -Raymond L. Hilgert, ‘What Ever Happened to Ethics in Business and in Business Schools? ’ , The Diary of Alpha Kappa Psi, April 1989, pp 4 -8 -Barbara Ley Toffler, ‘Tough Choices: Managers Talk Ethics’, (New York: Wiley, 1986) -Mary A. Konovsky ‘Understanding Procedural Justice and its impact on Business Organizations’, Journal of Management, vol. 26, 2000, pp 489 -511 -Examples from Carl T. Kulik and Robert L. Holbrook, ‘Social Justice Research’, vol. 13, 2000, pp 375 -402 IAN Mackenzie, ‘English for Business Studies’ Third Edition, Chapter 24 ‘Corporate Social Responsibility, CAMBRIDGE UNIVERSITY PRESS , 2010, pp 119 -123
Electronic References Journal: Leo Sun ( long-time market follower and finance writer), ‘The Role of Stakeholders in Your Business’ websites: http: //www. businessdictionary. com/article/601/the-role-of-stakeholders-in-your-business/ http: //www. businessdictionary. com/definition/stakeholder. html Cisco CSR Report, ‘Focus Area: Environmental Sustainability /Advancing environmentally sustainable growth in a connected world’, 2016 website: http: //csr. cisco. com/pages/environment http: //csr. cisco. com/pages/csr-reports
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