Category: Social Responsibility

Corporate Social Responsibility (CSR) is an essential modern concept that has become popular among businesses. CSR supposes that a corporation should play a decent role in society and take into account the social and environmental consequences of business actions. An example of a business that employs CSR in its model is Unilever, which policies and programs are discussed further. CSR is integrated into the processes of Unilever in several aspects. Climate change, plastic pollution, and inequality are all social and environmental issues that Unilever addresses through its promotion campaigns and proactive decisions. The examples of Unilevers commitment to its CSR policy include reducing waste thrown into the environment, creating a sustainable global food system, and raising living standards by providing people with high-pay jobs. Hence, Unilever promotes social and environmental change toward sustainability as well as supports its promises by taking action in the most critical areas that it can influence. Unilever has several objectives for its development before 2030. The climate action goal of the company is zero emissions in its operations and halving the greenhouse gas effect of the goods over lifecycles. Moreover, Unilever aims to increase the quantity of items sold that provide positive nutrition and ensure that everyone who directly delivers goods and services to Unilever earns a living salary or income. As a result, by 2030, Unilever desires to become a company that does not contribute to harm to the environment but takes action to enhance society. Nevertheless, there are several possible improvements concerning CSR for Unilever. The company can directly participate in providing humanitarian aid for people in need. Unilever is able to spread its diversity campaign experiences as training material for other companies. Thus, Unilever might scale its CSR efforts to more areas that need immediate action.

Social bookkeeping is the way toward conveying the social and ecological impacts of an association’s financial activities to specific intrigue bunches inside society and to society on the loose. It is ordinarily utilized with regards to a business or corporate social duty, albeit any association including NGOs, good cause and government offices may take part in social bookkeeping. As indicated by D.Crowther Social bookkeeping can be characterized as a way to deal with revealing a company’s exercises which focuses on the requirement for the recognizable proof of socially important conduct, the assurance of those to whom the organization is responsible for its social execution and the advancement of suitable measures and detailing procedures.

Social bookkeeping is generally utilized with regard to a business or corporate social duty. It very well may be utilized related to network-based checking (CBM). Social bookkeeping is a wide field and can be isolated into smaller fields. Ecological bookkeeping may represent an association’s effect on the regular habitat while Sustainability bookkeeping is quantitative of social and financial supportability.

In social bookkeeping, the spotlight will in general be on bigger associations, for example, global organizations (MNCs) and their obvious, outside records instead of casually delivered records or records for inward use. Social bookkeeping additionally questions the decrease of all important data to the money related structure. Monetary information is viewed as just a single component of the bookkeeping language. In many nations, existing enactment just controls a small amount of representing socially significant corporate action. As an outcome, a large portion of the accessible social, natural, and manageability reports are delivered deliberately by associations and regularly take after budget summaries. In any case, the presence of pressure between deliberate announcing and responsibility for organizations is probably going to deliver reports preferring their inclinations. Generally, social bookkeeping covers an association’s relationship with the indigenous habitat, its workers, moral issues concentrating upon purchasers and items, just as nearby and global networks. Not at all like in money is related bookkeeping, the matter of premium by definition less obvious in social bookkeeping. This is because of a motivated widely inclusive way to deal with corporate action.

A portion of the social responsibility instruments is Social review, open review, formal proceeding, resident scorecard (CSC), Public use Tracking Survey (PETS), utilization of Citizen Contract, and Use of Complaint Box.

Natural bookkeeping which is a subset of social bookkeeping centers on the cost structure and ecological execution of an organization. It basically portrays the arrangement, introduction, and correspondence of data identified with associations cooperates with the regular habitat. Generally, ecological responsibility is normally embraced as intentional self-announcing by organizations, outsider reports by government offices, NGOs and different bodies pressurize for natural responsibility. Natural bookkeeping portrays the announcing of quantitative and point by point ecological information inside the non-budgetary segments of the yearly report or in a different natural report. Such reports represent contamination emanations, assets utilized or untamed life natural surroundings harmed or restored. For the most part, the essential accentuation is normally positioned on eco-productivity by huge organizations, alluding to the decrease of asset and vitality utilized and squanders creation per unit of item or administration.

Social bookkeeping is the way toward conveying the social and ecological impacts of an association’s financial activities to specific intrigue bunches inside society and to society on the loose. It is ordinarily utilized with regards to a business or corporate social duty, albeit any association including NGOs, good cause and government offices may take part in social bookkeeping. As indicated by D.Crowther Social bookkeeping can be characterized as a way to deal with revealing a company’s exercises which focuses on the requirement for the recognizable proof of socially important conduct, the assurance of those to whom the organization is responsible for its social execution and the advancement of suitable measures and detailing procedures.

Social bookkeeping is generally utilized with regard to a business or corporate social duty. It very well may be utilized related to network-based checking (CBM). Social bookkeeping is a wide field and can be isolated into smaller fields. Ecological bookkeeping may represent an association’s effect on the regular habitat while Sustainability bookkeeping is quantitative of social and financial supportability.

In social bookkeeping, the spotlight will in general be on bigger associations, for example, global organizations (MNCs) and their obvious, outside records instead of casually delivered records or records for inward use. Social bookkeeping additionally questions the decrease of all important data to the money related structure. Monetary information is viewed as just a single component of the bookkeeping language. In many nations, existing enactment just controls a small amount of representing socially significant corporate action. As an outcome, a large portion of the accessible social, natural, and manageability reports are delivered deliberately by associations and regularly take after budget summaries. In any case, the presence of pressure between deliberate announcing and responsibility for organizations is probably going to deliver reports preferring their inclinations. Generally, social bookkeeping covers an association’s relationship with the indigenous habitat, its workers, moral issues concentrating upon purchasers and items, just as nearby and global networks. Not at all like in money related bookkeeping, the matter of premium is by definition less obvious in social bookkeeping. This is because of a motivated widely inclusive way to deal with corporate action.

A portion of the social responsibility instruments is Social review, open review, formal proceeding, resident scorecard (CSC), Public use Tracking Survey(PETS), utilization of Citizen contract, and Use of Complaint Box.

Natural bookkeeping which is a subset of social bookkeeping centers around the cost structure and ecological execution of an organization. It basically portrays the arrangement, introduction, and correspondence of data identified with associations cooperates with the regular habitat. Generally, ecological responsibility is normally embraced as intentional self-announcing by organizations, outsider reports by government offices, NGOs and different bodies pressurize for natural responsibility. Natural bookkeeping portrays the announcing of quantitative and point by point ecological information inside the non-budgetary segments of the yearly report or in a different natural report. Such reports represent contamination emanations, assets utilized or untamed life natural surroundings harmed or restored. For the most part, the essential accentuation is normally positioned on eco-productivity by huge organizations, alluding to the decrease of asset and vitality utilized and squanders creation per unit of item or administration.

INTRODUCTION

Corporate social responsibility (CSR) and holding companies held responsible for carrying out social revolution with their business views, practices, and revenues. In fact, in this modern era of CSR, some will abandon their desired corporations if they believe they are fulfilling their responsibilities towards societal and environmental issues. (Sammi Caramela, 2018)

Corporate Social Responsibility. Sounds good. If it is done right, it is considered as very good for society. CSR should be a serious issue for an organization’s operating attitude, its standards, and its purpose. Every organization should do CSR. Many are doing it skillfully well. Using Corporate Social Responsibility as a supernumerary for the purpose is Corporate Social Irresponsibility. It is the dark side of CSR. The companies that are doing CSR, as a purpose must stop doing it as a purpose because CSR is not a purpose. (Pontefract, 2017)

Process studies following the trend of providing access to data and richness of qualitative methods of inquiry by examining CSR topics that are laborious in the fundamental accomplishments by which a corporation can involve in CSR. (Aguinis, 2012)

CASE STUDY

TATA is an Indian company that deals in automobiles, Steel, telecommunications and now consumer goods. Chairman, Ratan N Tata, took the group to the new height. Tata Sons Ltd is taken over by philanthropic trusts gifted by Sir Dorabji Tata and Sir Ratan Tata, children of Jamsetji Tata. It utilized approximately 8-14 %of its net profit every year for social purposes. It continued these activities even when economy was in recession. In 90’s, it holds growing its CSR used up from Rs.670 M in 1997-98 to Rs.1.36 B in 1999-2000 during recession. It spent 3.37% of its profit on CSR in 2012-13 and 300 crores for the atmosphere welfare. (Majmudar, 2016)

In 2004, Manoj Chakravarti, G.M – Corporate Affairs &Corporate Head – Social Responsibility, Titan Industries Limited stated the importance of CSR in an organization is just like its DNA and believed that if society is prospered then organization will be prospered. TATA group has always been a CSR recognized organization. Its originator always assists the social causes for being a part of the Gandhiji’s campaign in the South Africa. For the empowerment of country growth, Tata group gave many centers for science and research. It follows its principles in all its companies including the TCS (technological segment) following four zones to raise living standards for its employees and society: (Namrata, 2016)

• Leveraging the Company’s fundamental competences in technology.
• Creating volunteering conditions for worker.
• Constructing synergistic association with clients and other partners.
• Financial aids.

Tata took illegally health software from an American company, Epic Systems, endangering its transparency and for this Wisconsin federal has charged $940 million consequence. An immoral case of land of Singur farmers is being surpassed by TATA group for its fitting of new Nano factory plant. Due to this, people has to migrated. Indica, TATA product is under the case of generating pollution along with odd noise pollution. (Majmudar, 2016)

GLOBAL IMPLEMTATION

In this modern era, companies in a global market facing the composite and various interactions of stakeholders. Because of globally influence the (CSR) became more crucial. (oberseder, 2011) .Firms should think out of the box and come out from its conventional borderlines to meet their targets and access the wide markets (kang, 2009). For the prosperity of society CSR is a devotion which put in action through the business executions. CSR has been used by the organizations for societal wellbeing and as goodwill reservoir. Implementation of CSR has been done externally and internally too, as external level incriminates to step forward for minorities, stripping and environmental refinement on the other side the CSR on internal level involves recycling methodology, daycare for employees.

CSR has positive impact on firm’s accomplishment because of efficacious impact of customer beliefs and association ,market direction. (burze, 2015).CSR has negative results too ,as for security purpose of society that would entail heavy cost ,and CSR has to overlook the shareholder’s reluctance and green washing as well and some companies erect the pollution and turn out the uncanny pollution in atmosphere. (lambarodo, 2016) .

CONCLUSION

Above facts and figures collected from the analysis on TATA indicate that the company entails in society’s contribution but at the same time it is also deficient somewhere. There are some substantial aspects which are being scrutinized in the study like Governance, Transparency, Hypocrisy, sustainability and benefits get through strategy in a corporate world.

In Corporate Social Responsibility, TATA group is not facing such surfeit predicaments. This is because TATA is the group which originated the idea of CSR in businesses. According to the CSR Model it has built its strategy. The company keeps it substantive that there should be reciprocated relation between a business and a society. I suppose this is the only reason that the company is soaring rapidly and making vaunted profits.

Beside all these things, the major deterrent of TATA Group is the SINGUR case which proved debacle for the common people whose large slot was disturbed by this. It had dire and deleterious impacts on the society and that was unethical. Now it is more concentrating on making profits and averting from its Corporate Social Responsibility objectives.

References

1. Pontefract, D., 2017. Forbes. Stop confusing CSR with Purpose, November.
2. Sammi Caramela, B. S. W., 2018. Business News Daily. What is Corporate Social Responsibility?, june. wang, t. t. a. g., 2016. CORPORATE SOCIAL RESPONSIBILITY. Academy of Management Journal, p. 11.
3. Majmudar, 2016. India’s Top Companies for CSR & Sustainability 2015. A case study on Corporate Social Responsibility in TATA, january. Namrata, 2016. The Economic Times. A case study on Corporate Social Responsibility in TATA, january.
4. Rana & Neeti, 2016. Future Escape. A case study on Corporate Social Responsibility in TATA, january.

Organizations have a responsibility to safeguard and improve the wellbeing of society and maintain a balance amongst the economy and ecosystems. To improve the wellbeing of society, a corporation may devote some of its human and financial resources to tackle issues of social concern regarding health or the environment. Strong relationships between a corporation and society are also nurtured when a corporation gives back to the community. These types of relationships are important to the organization as it is accountable for contributing in labor but also provides the market for output (Wicks, 2017). Ultimately, those who hold stake in the organization presume organizations to be responsible for their engagements and transparent in their dealings and respect societal norms, and thus organizations need to live up to this presumption.

Teton Grand Corporation, a young organization with just 3 years of operation, is an organization whose primary focus is to train groups on how to appreciate, care for, live in, and sustain parks and natural resources. At face value, their mission to train individuals in these areas is in alignment with what is asked of a socially responsible organization; however, it is imperative that leadership not lose sight of the mission and vision. To remain steadfast towards the vision and mission, Teton Grand organizations should remain socially responsible in its business practices, core operations, and day-to-day activities.

Corporate Social Responsibility (CSR)

Having a culture of social responsibility sets the tone for productivity and helps Teton Grand to engage with the real-life concerns of its instructors, students, and other stakeholders. At the foundation of Corporate Social Responsibility, lies the idea that corporations are obligated to work for social betterment. However, the definition remains cloudy. CSR, in many cases, “means something, but not always the same thing to everybody” (Geva, 2008). Early leaders in the field have created metaphors to explain CSR as a branching tree, and others developed definitions with heavy philosophic overtones, often being narrow in focus. Nonetheless, new academic approaches have sought to create a more inclusive structure of operational and behavioral aspects of corporate ventures, corporation and external environment connections, and also ground CSR theory in a social sciences-humanities discipline (Geva, 2008).

CSR as defined by Carroll refers to a “business’s behavior, that it is economically profitable, complies with the law, is ethical, and is socially supportive” (Geva, 2008) To gain further understanding of this structure, there are three proposed diagrams: pyramid, intersecting circles, and concentric circles (Geva, 2008). At first glance, each model contains the same verbiage, however, once dissected, one begins to understand that each model represents a different meaning and different approach to CSR (Geva, 2008).

The pyramid, intersecting circles, and concentric circles CSR models all comprise the spectrum of what society expects of a corporation’s responsibilities and defines them in terms of categories. The categories are economic, legal, ethical, and philanthropic. The first model, the pyramid model in particular, presents a hierarchy amongst the categories of responsibilities, with “economic” (business turns a profit) being the most essential, then the legal category, followed by ethics, and lastly philanthropy. Note, this hierarchy of the pyramid shows a decreasing order of importance. The second model, the intersecting circles (IC), comes in contrast with the pyramid whereas it recognizes the possibility of interrelationships among CSR domains; and (2) does not hold a hierarchy of importance for the categories (Geva, 2008). The IC model refutes the theory that CSR is a collection of nonrelated topics, instead, the IC model seeks to explicate that the different responsibilities work with one another, and it is the overall responsibility of the corporation to promote harmony and resolve conflicts between them (Geva, 2008). In addition, in contrast with the pyramid model, Specifically, where the pyramid model proposes that economics is a more important domain sitting at the foundation of the pyramid, the IC model seeks to show that social responsibilities of a corporation are not necessarily less important than its economic endeavors. According to Davis’s Iron Law of Responsibility, “an organization is a social creation whose very existence depends on the willingness of society to endure and support them” (Geva, 2008). The third model, the concentric-circle (CON) model of CSR, shares some similarities with both the pyramid and IC models of CSR. For example, much like the pyramid model, it places an emphasis on the importance of the economic role of business in social responsibility, and much like the IC model, it places an emphasis on the interrelationships among the different corporate social responsibilities. However, while similarities exist, there are underlying differences in the true definitions of the domains that are important to understand. For example, the corporate economic role is defined by profitability within the pyramid model, whereas the CON model defines this same role as enhancing the good of society or being constructively profitable, in terms of CSR. To contrast the hierarchy of noneconomic social responsibilities in the pyramid model and the interrelationships of the IC model, the CON model outlines the noneconomic social responsibilities as embracing and intersecting the core economic responsibilities (Geva, 2008). The concentric circles model illustrate how every member of the inner circle, is also a member of the wider outer circle, but not vice versa. Thus, from a corporate responsibility perspective, all economic responsibilities also have legal and ethical aspects. This comparative analysis of the CSR models shows that the same concept of responsibility can carry different meanings creating a lack of common points of reference and the possibility for issues and uncertainty to arise.

While these models often suggest that economics be at the forefront of CSR, there are others who argue to go beyond just business for corporate social responsibility (Kaplan, 2020). Scholars are beginning to call into question how effective focusing on “business” as a focal point of CSR and have argued that it may do more harm than good. The argument here is that a ‘business case’ may not actually motivate managers to act, in fact, it may alienate those for whom the business case is being made, and may create moral struggles for the people who feel they must make the business case to justify social action (Kaplan, 2020). Thus, when CSR is associated with financial performance, it may not have a positive impact on promoting change. It is my recommendation that Teton Grand not focus solely on the economic benefits at the core of its CSR and take a closer look at the concentric circles model.

Continuing the Teton Grand Mission of CSR

As we examine the information provided by Teton Grand and the results from the analysis run on such data, the organization has the opportunity to focus on a few key areas to continually achieve its mission and vision. First, I believe Teton grand should focus on its leadership development. The organization has just under 98 employees, most of whom are its instructors, however, we failed to learn about the company having leadership teams geared towards social responsibility, or about executive leadership. The second area of focus should be on the training and development of its instructors, and lastly, the organization should absolutely practice corporate social responsibility as an organization.

Initially, Teton Grand set out to understand student satisfaction in their Environmental Immersions course held on Monday and Saturday. Overall, Students agreed that they believed what they are doing in their Immersion course is important for the preservation of the Great Outdoors. The results from the survey showed Teton Grand is moving in the right direction for the overall satisfaction of the Environmental Immersion class and there isn’t a large difference between students in the Monday course vs. the Saturday course in regard to responses on the survey presented. The organization will stand to do well with increasing education on the organization’s mission statement and philosophy, which I believe should be a leadership/managerial focus. However, data also showed that an overwhelming number of students disagreed with the statement of receiving regular feedback on how they were performing. This is a learning opportunity for instructors and an opportunity for professional development.

In addition to the survey of satisfaction, we were able to run an analysis on the students and dynamics of Teton Grand course instructors. Thus far, an independent- samples t-test was conducted to compare gender and final exam scores. There was not a significant difference in gender and final exam scores; t(497)= -2.32, p=.131. These results suggest that gender really does not have an effect on how students perform on the final exam. So, there wouldn’t be much focus needed in this area. A one-way between subjects ANOVA was conducted to compare the effect of e-learning, on-ground, and blended teaching strategies on final exam scores. There was not a significant effect of teaching strategies p>.001. Lastly, we sought to understand if there was a correlation between the number of years of experience a teacher had and the final exam scores of the students. A correlation for the data revealed a significant relationship between the number of years of experience of the instructor and final exam scores, r = +1.00, n = 501, p < .01, two tails. This should tell us that Teton Grand ensure that their instructors are properly trained and experienced before going in to instruct their students.

There are several advantages for Teton Grand to be socially responsible. One of the first is reputation and image; organizations with distinctive ethical values and elaborate welfare projects are able to compete effectively in the market. We see that Teton Grand has gotten off to a great start, reputation-wise, and it would be valuable to stay in this light. Staying true to its mission, students will want to return, pledging loyalty to an organization that maintains integrity, good governance, and best practice in their operations (Wicks, 2017). Secondly, compliance; there are laws and regulations organizations must follow which are in effect elements of social responsibility. Third, employees may feel empowered to leverage corporate resources at their disposal to do good. Lastly, formal CSR programs can boost employee morale and lead to greater productivity in the workplace. Social responsibility in the workplace enables an organization to coexist in harmony with the government, the community at large, and its environment (Wicks, 2017).

Abstract:

Institutions in India had a long tradition of being engaged in social activities beyond the financial objectives. Corporate social responsibilities (CSR) activities had gained increasing its importance in the corporate world since the nineties. This study is made to understand the concept of Corporate Social Responsibility and the challenges faced during implementation.

Introduction

The concept Corporate Social Responsibility (CSR) means companies integrate social, environmental and health concerns in their business strategy (policy) and operations. Corporate Social Responsibility can be said as a commitment made by businesses to society that they behave ethically and contribute to economic development along with improvement of the quality of life of the workforce as well as the local community and society This paper is subjected to analyze and understand the need and importance for Corporate Social Responsibility in our society.

According to European Commission (EC) CSR means “the responsibility of enterprises for their impacts on society”. To completely meet their social responsibility, enterprises “should have in place a process to integrate social, environmental, ethical human rights and consumer concerns into their business operations and core strategy in close collaboration with their stakeholders”

The activities undertaken by a company that are voluntary in nature to operate in an economic, social and environmentally are included in corporate social responsibility. The programs undertaken for social responsibility should be connected to the business policy and strategies of the firm.It need to address the well-being of all stakeholders and not just the company’s shareholders. It is the duty of the company to ensure that whether the society is benefitted through their activities

Objectives:

1. To understand the concept of Corporate Social Responsibility.
2. To highlight the challenges in the implementation of Corporate Social Responsibility.

Review Of Literature:

Various research papers have been presented and published under the theme of Corporate Social Responsibilities. The review on some of the papers are as follows:

Gond, Crane (2008), made an analysis on the distortion of corporate social performance concept. The research analyzed that the past research and found some reason of emerging fall in the interest of corporate social performance research among the scholars. The paper also suggested models on the basis of which the researcher explained that why the CSP concept has lost its importance and development. Further, the researcher depicted some model which the researcher can use in their research related to corporate social performance. The paper argued that tensions and contradictions are the starting point to develop the CSP concept. CSP has an umbrella of activities which need to measure differences in order to move the researches from a simple concept to development

Brammer, Jcakson & Matten (2012), study entitled as “Corporate Social Responsibility and institutional theory: new perspective on private governance” in Social-economic review depicted that CSR is not only a voluntary action but beyond that. In this study, CSR had defined under institutional theory. The institutional theory stated that corporate social activities are not only voluntary activities but it is a part of the interface between business and society. Regulation/ governance are necessary for enhancing the corporate performance of businesses through CSR. The theory also suggested that in what form companies should take its social responsibilities whether historical, political or legal form.

Agunis, glovas (2012), Paper entitled “what we know and don‟t know about corporate social responsibility: A review and research agenda” in Journal of management, based on 588 journal articles and 102 books. The study provided a framework of CSR actions that affects external as well as internal stakeholders and outcomes of such actions. The paper also enhanced the knowledge regarding levels, forms of CSR; need to understand CSR with outcomes etc. further the researcher also suggested a framework of research design, data analysis and measurement for future research of CSR

Bibhu Parshed (2012), article presented that CSR is the face of industry face of doing trade. Bibhu said that today, corporate houses took CSR as a medium fulfillment of profit greed of corporate houses. Further, the article explored that companies today invests in a lot of areas like child labour, groundwater, food, education, employment etc. but nobody is aware of the essential need of world‟spoor. The article suggested that profit earning is a natural fact of companies but CSR is beyond the natural and statutory obligation of the companies. At last it was concluded in the article that sustainable development is the development of society as well as the company in a balanced way

The Rationale of CSR:

To understand the best activities done under CSR by firms in developing countries and the considerations that have possibly dictated the imposition of mandatory CSR in India, it is important to understand the merits and demerits of socially responsible activities from the viewpoint of both the society and the corporation. It is necessary to look into the need for regulatory oversight of such activities. At the societal level, there has been an increasing recognition that the economic activity of a corporation needs to be embedded in societal concerns in terms of CSR and social activities. In fact, much of the discourse on CSR is conducted in terms of the relationship between business and society, of the moral and ethical imperative of business that goes beyond legal compliance, to contribute positively to society. One of the first academician Bowen (1953), draw attention to the social responsibility of corporations, He argued that private corporations should be evaluated purely through its “demonstrable contribution to the society’s welfare” in terms of the production of social goods for example higher standards of living, spreading economic progress and security, survival of the free enterprise system etc . A similar argument was forwarded by Steiner (1971) who argued that while businesses are primarily economic institutions, they are also expected to contribute towards achieving social goals, and such responsibilities should increase with the size of the business. This line of thinking, evolved over the years culminating in the stakeholder perspective that argues that a corporation’s goal should go beyond maximising profits for its shareholders and should instead be defined with respect to all its stakeholders (customers, suppliers, employees, community, etc.) including the society at large.

CSR and the Firm:

Stakeholder-oriented CSR is driven by the motivational desire of the firm to serve the interests of all stakeholders of the corporations beyond those of its shareholders. While the shareholder primacy view predominantly focuses on the profit motive, the stakeholder perspective is seen as reconciling the social and economic goals of an organization driven by a motive, which can be said as a moral, of serving the interests of the society at large (Van der Wees, 2009). Many times, a Corporation’s motivation to serve stakeholder interests through CSR, are a reaction to pressures exerted from stakeholders at large (Frynas, 2005). The stakeholder-oriented CSR activities entail a trade-off with profit maximization, which Elhauge (2005) refers to as “sacrificing corporate profits in public interest.”

Issues & Challenges:

Most of the companies have a view that corporate social responsibility is a peripheral issue for their business and customer satisfaction is more important for them. Now they have an attitude that customer satisfaction is only about price and service. So they fail to point out important changes taking place worldwide that could blow the business out of the water. The change is social responsibility which is a greater opportunity for the business. Some of the drivers who drive business towards CSR may include demands for Greater Disclosure. The demand for corporate disclosure from stakeholders, including customers, suppliers, employees, communities, investors, and activist organizations is growing day by day.

The Shrinking Role of Government: The Government, in the past, has been dependent on legislation and regulation to ensure social and environmental objectives in the business sector. However, the reduction of government resources, coupled with a distrust of regulations, has led to the exploration of voluntary initiatives.

The CSR Guidelines that are available is not easily understandable. There are no clear statutory guidelines or policy to give a definitive direction to CSR initiatives of companies. The company’s business size and profile determine the scale of CSR initiatives.

Competitive Labour Markets: In order to hire and retain highly skilled employees, the companies are now ensuring better working conditions. The employees are increasingly looking beyond paychecks and benefits, and seeking out from employers whose philosophies and operating practices match their own principles

Growth of Customer Interest: There is evidence that the ethical conduct of companies exerts a growing influence on the purchasing decisions of customers. The customers also tend to purchase the products of those companies which opt for social responsibility, as they think that it provides them with a platform to contribute to society.

Excess pressure to Investors: Investors are changing the way they assess companies’ performance and are making decisions based on criteria that include ethical concerns. The report of Social investment forum states that in the US in 1999, there was more than $2 trillion worth of assets invested in portfolios that used screens linked to the environment and social responsibility

Besides these the problems of implantation of Corporate Social Responsibility include:

1. Issues of Transparency:.
2. Non-Availability of Well Organized Non-Governmental Organizations:
3. Narrow Perception Towards CSR Initiatives
4. Lack of Consensus on Implementing CSR Issues:

Conclusion:

Corporate sustainability is an evolving process and not an end, a process that would benefit all the stakeholders, and society as a whole. Hence implementation of Corporate Social Responsibility is of utmost significance. However, the challenge for the companies is to determine a strong and innovative CSR strategy that should deliver high performance in ethical, environmental and social areas and meet all the stakeholders‟ objectives

References:

1. Corporate Social Responsibility in India – An Effort to Bridge the Welfare Gap: Jayati Sarkar and Subrata Sarkar
2. Amaeshi, K. M., B.C. Adi, C. Ogbechie and O. Olufemi, 2006. “Corporate Social Responsibility in Nigeria: Western Mimicry or Indigenous Influences?” Journal of Corporate Citizenship, 24 winter, pp. 83-99
3. Basu, K. and G. Palazzo, 2008. “Corporate Social Responsibility: A Process Model of Sensemaking,” Academy of Management Review 33(1), pp. 122-136
4. Besley, Timothy and Maitresh Ghatak, 2007. “Retailing Public Goods: The Economics of Corporate Social Responsibility,” Journal of Public Economics, Vol. 91, No. 9, p. 1645–1663
5. Blowfield, Michael, and Jedrzej George Frynas: 2005. ‘Editorial: Setting New Agendas – Critical Perspectives on Corporate Social Responsibility in the Developing World,” International Affairs 81(3), 499-513
6. Bowen, HR 1953, Social Responsibilities of the Businessman, New York: Harper & Row. Carroll, AB 1979.
7. “A three-dimensional conceptual model of corporate social performance, Academy of Management Review, vol. 4, pp. 497-505. Connelly, J. T and P. Limpaphayom, 2004.
8. “Environmental Reporting and Firm Performance: Evidence from Thailand,” Journal of Corporate Citizenship, 13, Spring: 137-49.
9. Davies, R., 2002. “Corporate Citizenship and Socially Responsible Investment in Asia,” unpublished paper delivered at the Conference of the Association for Sustainable and Responsible Investment in Asia, Hong King, 10 June 2002.

The company that I have chosen to analyze the code of ethics practices is Lowes. They are one of the top leaders of home improvement needs. They have over 1,800 stores in the United States, 300 in Canada and 10 in Mexico. Lowe’s employees over 265,000 employees.

The code of conduct and business ethics applies to everyone that works for Lowe’s as well as third parties who act on behalf of the company. The primary focus of the code of ethics is to help eliminate possible liabilities to the company, such as bribery and corruption, compliance issues of laws and regulations, conflicts of interest, employee relations, maintaining accurate records, social media requirements, and working with confidential information.

The code of conduct and business ethics was put into place for employees focuses on ethical, legal, and regulatory issues; it doesn’t focus on the aspects of Corporate Social Responsibility – most essential relationships with the community, environmental and sustainability commitments, and philanthropic efforts. However, being just as important as the Code of Conduct and Business Ethics, Lowe’s maintains and updates a website on Corporate Social Responsibility annually. It links to the commitments and efforts they have by giving back to local communities by preserving sustainability and excellence in operations

Legal Mandate Compliance

The Code of Conduct and Business Ethics at Lowe’s is set in place to help cover ethical, legal, and regulatory issues. It states who the code is for, what activities are included, and what solutions are required to fix the non-compliant problems. The code of conduct does not cover everything; Lowe’s code of conduct states that any situation that is confusing should be referred to the Chief Compliance Office for advice or understanding.

Lowe’s Code of Conduct and Business Ethics complies with legal mandates such as Sarbanes-Oxley (Canary & Jennings, 2008). It has the expectations for ethical behavior, mandatory anonymous reporting, prohibits good-faith reporting retaliation of criminal or unethical behavior. The code also outlines the role of both external and internal auditors and the consequences of false statements to the auditors. The Code also has a copy of Lowe’s disclosures and financial reports as well as rules for insider training and that it must comply with federal securities laws and regulations, Securities and Exchange Commission requirements, and the requirements of the New York Stock Exchange.

Implications of Non-Compliance

The Code of Conduct and Business Ethics at Lowe’s outlines the consequences for the violation of the codes and applies them equally and fairly to everyone, regardless of their position. The severity of the code violation will depend on how the punishments are handled; they can range from being reprimanded, suspended, terminated, or possible legal action. The code demands that retaliation against good-faith reports creates a code violation, as well as tolerating or failing to report a known code violation.

Legal or Ethical Safeguards

There are many safeguards Lowe’s has in place to make sure their employees are obeying The Code of Conduct and Business Ethics. To be employed at Lowe’s, it is required for all employees to read, review, and understand it, and to make sure other employees do the same. The Code is to be reviewed annually as well as validation of not know of any actual or suspected violations.

If an employee has concerns or a situation arises that requires clarification, the employee needs to talk to the Chief Compliance Office before engaging in the activity. When they become aware of a violation, they must report it to the Chief Compliance Office. There are many methods available for reporting, such as email, phone numbers, and independent third party who is responsible for taking complaints. Lowe’s provides options for anonymous reporting, and no retaliation can be made against employees making good faith reports to ease employee’s minds in making the complaints.

Development of an Ethical Culture

There is a welcome message from the Chief Executive Officer Robert Niblock on Lowe’s code of conduct business ethics page. In this message, he praises the reputation of Lowe’s as a long-time responsible corporate citizen, and the pride they have with this achievement. The welcome message outlines the expectations that the stakeholders have for Lowe’s to deliver these results ethically and responsibly. Having unethical conduct can quickly ruin any trust that the company has built.

Having support from the executive-level of The Code of Conduct and Business Ethics, and having it apply to all employees; will show that the company values this behavior. Lowe’s is proud of this reputation. Niblock feels that having business success is just as important as achieving it ethically.

Raising an Ethical Concern

Unlike organizations that use a progressive path for ethical concern reporting of going to the human resource manager, Lowe’s gives the responsibility for ethical reporting and investigation on the Office of the Chief Compliance. This will allow employees to report any possible concerns at any time day or night, no matter where they are located by using a third-party company. Having a non-retaliation policy in place makes it easier for an employee to make a good faith report.

Available Resources

To report ethical concerns and violations to the Office of the Chief Compliance, Lowe’s makes it an easy process by providing several ways. The first is called Ethics-Point from Navex, a third-party website, available for reporting issues and keeps it anonymous and confidential. Lowe’s also provides specific telephone numbers throughout the country for reporting concerns 365 days a year, 24 hours a day, seven days a week that is kept confidential. The Office of the Chief Compliance also has available direct email and toll-free phone number for reporting ethical concerns and violations.

Preferred Resources

Given these options, I prefer the use of the third-party provider to make a report. The website has the Code of Conduct, and Business Ethics posted and provides easy step by step directions for creating a report. A confidential report is an option that the third-party provider offers. They offer a claim number and password protection to allow a person that reports a concern to follow up on the report. Since this option is available 24-7, and the operation is confidential and private, I feel this is the best option.

Whistleblowing Conditions

It can be stressful and an emotional decision to report an ethics violation, even though organizations forbid retaliation for good faith reporting. Having evidence and facts are the most important for an ethics investigation. If it’s not done correctly, the person who has done the whistleblowing could lose their job, the consequences of filing the report may follow them throughout their career with the company.

Several conditions must be present for an employee to report unethical behavior. An issue that could harm the organization’s reputation, discrimination or harassment, false records or statements violation of a law, breach of a customer or employee’s rights, or a threat of safety violations or violence.

You must consider many factors before reporting any violations. First is to decide how you feel about the situation. Second, is to consider if your power and influence can affect the change and weigh the benefits and risks of making the report. You must decide if the report is undetermined, the person’s reputation can suffer dramatically. If you are concerned about the situation, then it is essential to know what your rights are. Another factor is timing; if it’s not an emergency issue, time can be used to gather more facts to help support the report being made. The last factor that should be considered is to have a contingency plan if the report doesn’t meet the outcome that was expected.

Whistleblowing Process

The whistleblowing process first step is to report the issue to the direct supervisor, especially if the supervisor isn’t aware of the problem. Most of the time, this can be resolved quickly by getting the supervisor involved. If this solution is unsatisfactory, talking with someone uninvolved is recommended such as a counselor, family, or friends. This can serve as a way to help to handle concerns and frustrations and may give some advice to help manage the issue.

If there still isn’t any solution to the issue, further help may be needed; this could be done by calling the organization’s ethics hotline, talking to human resources, or the legal department. If this step is taken, it may be best to research local whistleblowing advisable to examine state and local whistleblowing rules for more guidance. Contacting government agencies will be done if there still isn’t an acceptable outcome, especially if the issue involves violations of laws and regulations. If there are no resolutions, it may be best to leave the company to stay away from the ethical and legal issues.

Advantages and Disadvantages of Paying Whistleblowers

Giving whistleblowers a financial reward will encourage more people to report illegal activity. If the whistleblower knows that they will receive one as part of the government sanction, it could be enough to help outweigh the risk of losing a job. Also, with having anti-retaliation laws, this could entice employees to report the violations.

Disadvantages also come with paying whistleblowers. If it is a low-level fraud with a minimal reward, the whistleblower may allow it to continue and ignore it. A second issue with the reward program might encourage people to report problems that may not be a violation hoping it might result in a reward. The investigations and reports will take a considerable amount of resources and time away from real cases.

Impact of United States Sentencing Guidelines

The United States Sentencing Guidelines have a significant influence on how companies develop and maintain the code of conduct and ethical programs. The company can face penalties with convictions of just one employee. The United States Sentencing Guidelines covers a vast range of federal crimes, such as anti-trust, bribery, money laundering, securities fraud, or tax evasion (Trevino & Nelson, 2014). In rare instances, a company could face liquidation or stop its operations in the United States.

With the possibility of having severe repercussions, companies have an interest in establishing codes of conduct and ethics programs. Maintaining programs that are effective and requiring employees to acknowledge and review them periodically, the company can lessen its legal risk and liability if a company or employee has committed a crime.

Culpability Factors

Like other crimes, an individual or business has aggravating or mitigating factors that can impact a culpability score, as well as its resulting fine. A base score starts at five and can either increase or decrease by five points based on aggravating or mitigating factors (Trevino & Nelson, 2014). This result in a multiplier applied to the base fine ranging from 0.05 to 4.00.

Reasons for an increase of a culpability score above five can include the size of the company, the level of involvement, or ignorance of leadership. A company that has more than 5,000 employees where the leadership may be involved in criminal activity can have an increase up to five points. Hindering an investigation or being prosecuted can increase up to three points. Another factor is the history of the company if they have had civil or criminal findings in the past five years; the culpability score can increase up to two points.

An organization can take to lessen the culpability score in a few ways. They can admit fault for criminal activity, cooperate with the investigation, and self-report violations, this can result in a culpability score decrease up to five points. Having a code of conduct and an effective ethics program that recognizes and puts a stop violation can decrease up to three points.

Sources

1. Canary, H. E., & Jennings, M. M. (2007). Principles and Influence in Codes of Ethics: A Centering Resonance Analysis Comparing Pre- and Post-Sarbanes-Oxley Codes of Ethics. Journal of Business Ethics,80(2), 263-278. doi:10.1007/s10551-007-9417-1
2. Trevino, L. K., & Nelson, K. A. (n.d.). Managing Business Ethics: Straight Talk about How to Do It Right 7th edition | 9781119194309. Retrieved from https://www.vitalsource.com/products/managing-business-ethics-straight-talk-about-how-linda-k-trevino-katherine-a-v9781119298519

Corporate Social Responsibility (CSR) is a form of total self-regulation of private business that extends to social purposes of a supportive, lobbyist or valuable nature whether through participating in or sponsorship of cooperative or ethically planned methods. While once it was feasible to depict CSR as a different leveled scheme inside or as a kind of extensive CSR is a sort of widespread private business self-rule that hopes to add to social goals of a liberal, protester, or charitable nature or by taking an interest in or sponsorship volunteering or ethically orchestrated practices.

Summary

In summary, our outcomes demonstrate that manages high CSR similitude are bound to finish effectively and more rapidly. Given that fruition, speed is a basic segment of post-merger joining Feldman and Spratt (2001), the outcomes in this area are predictable with the idea that similitudes in CSR approach ease merger incorporation and are probably going to add to an M&A arrangement being increasingly profitable to the procuring firm.

Discussion

There is some exchange of how well KLD information measure CSR and CSR’s endogeneity with other firm qualities. This issue is of less worry here on the grounds that our examination centers around likeness, instead of the degree of the CSR score itself. Indeed, even in an outrageous situation where these measures are not simply illustrative of CSR as such, they are yet intelligent of cognizant and exorbitant choices by the executives. The degree to which KLD factors are unseemly for estimating chiefs’ choices (i.e., are simply clamor) predispositions against us discovering noteworthy outcomes.

Conclusion

In this article, we estimate a proportion of likeness between two firms’ CSR approaches by computing the pairwise closeness of any two firms’ multidimensional CSR foci utilizing the data on the individual segments of the KLD natural, social, and administration (ESG) scores. Utilizing this measure, we demonstrate that organizations with comparative CSR approaches are bound to choose to combine, total their arrangements even more rapidly, experience more prominent merger cooperative energies and improved long-run execution, and experience fewer changes in CSR strategies after the arrangement is finished. Our outcomes are steady with the idea that mergers between socially comparative firms experience smoother post-bargain incorporation with respect to bargains between socially far off firms.

References

1. Bereskin, F., Byun, S. K., Officer, M. S., & Oh, J.-M. (2018). The Effect of Cultural Similarity on Mergers and Acquisitions: Evidence from Corporate Social Responsibility. Journal of Financial & Quantitative Analysis, 53(5), 1995–2039. https://doi.org/10.1017/S0022109018000716

Introduction

In this paper, I will be talking about best buy stocks. I’m going to take you through the company’s overview of there stock market and triads. Also, talk about if we are able to trade with them stocks. In this paper, we will talk about the social responsibility of the company records. Also, talk about whether the company should be more socially responsible. This will definitely learn about there ethics of there company and much more. I’m not really sure how their social responsibility is for sure there might be a good discovery. The more we know the more we have to understand in one way or another. Best buy has been with us for many years with us in this world and I think it would be nice to see what they been up to.

Overview

This company was first founded in the U.S in 1966 there were at least 1,800 stores that were going to be created worldwide as well. This took place in Minnesota where they announce it as a music store for people that need to buy an instrument or buy radios. These were some of the items that were sold in the store best buy also it was called “best buy co” but they decide to name it best buy by the end of 1983. It was really international in Canada, Mexico, and also China they were a free market they would trade with anyone their stock market. Which is pretty cool and very profitable for the best buy economical investors. In their history, it seems that they are able to trade with anyone its a free market after all the company benefits from it

Social Responsibility

The social responsibility of the stock that best buy have they have the responsibility of the e-waste. That should be one of the responsability that they might need to face in order to sele more of there products. I have a feeling that should be the biggest responsibility at all cost because most of our waste is really affecting people. For example, most of the e-waste is going to other places like japan or china shanghai and are killing people. Although the best buy does take care of it so that’s their social responsibility there is no other way to show that they are taking this seriously. E-waste is a very critical problem because people died by the toxic chemicals that some of the computers contain. Although best buy does take that social responsibility and have the programs of e-waste recycle properly.

Socially responsible

They are socially responsible because ethical there purpose is to serve their people there community and also their environment. They work to give other people the right treatments they have to help their employees with mental health coverage and backup child care and pay part-time workers. Best buy had also impacted many communities so they have a teen tech center to support them with modern technology they might need in the future its a fact their many jobs now out there that use more of the modern tech. They are also doing something for the environment there socially responsible for there costumers to reduce the customer’s impact on how they do it by providing the energy star product that lets them save money on electric bills have something really good.

Conclusion

In conclusion, best buy had a very successful company they are really on the spot there are many reasons to trust the best buy companies. I’ve seen that best buy had many if the points I pointed out very well prepared. In the beginning, I thought that best buy had stock and might not be a free stock market but they are and there international. Funded in 1966 in Minnesota which I thought was really nice to discover that. I was really proud to choose this as my company because they are really prepared their ethics are really good they help people by giving them a job they also have part-time jobs. They have health coverage and even backup child care for people that might need helo with that. The most important of all best buy also help the environment by restoring e-waste and making new ones to help the environment from pollution. However, there are many other companies that have not taken this into consideration and it looks bad to see how they are not doing anything to stop pollution from happening. Although best buy has all the right choices to help everyone and everything.

Works Cited

1. ‘Best Buy Investor Day Details ‘Best Buy 2020: Building the New Blue’ Growth Strategy.’ Business Wire, Sep 19, 2017, ProQuest. Web. 17 Feb. 2020.
2. Michael Liedtke, Associated P. ‘Best Buy to Recycle e-Waste: Salt Lake Telegram.’ Deseret News, Jun 03, 2008, ProQuest. Web. 17 Feb. 2020.
3. Rudd, Lauren. ‘Retailer Best Buy is Still a Best Buy for Investors: [all Edition].’ Sarasota Herald-Tribune, Jun 18, 2006, p. D6. ProQuest. Web. 17 Feb. 2020.

Companies are investing heavily in protecting their reputation and ensuring societies expectations are met. Corporate Social Responsibility (CSR) has grown increasingly prevalent in recent years due to the impacts of globalization and deregulation since the 1980s (Jenkins, 2005). The key drivers of globalization including the outsourcing of firms have highlighted the need for CSR initiatives to protect company stakeholders and the environment. CSR can be defined as ‘business’ commitment to economic development, social and environmental sustainability to develop a means to benefit all its stakeholders’ (Blowfield, 2005:517). The commitment of business to contribute to sustainable economic development, working with employees, their families, the local community and society at large to improve their quality of life, in ways that are both good for business and good for development’ (Blowfield, 2005). CSR is the product of neoliberalisation and the increased significance of reputational capital. This essay will focus on the CSR initiatives within Transnational Corporations (TNCs) and how this impacts on companies’ traditional performance drivers. This essay uses the case study of Schneider Electric: a global specialist in energy management and automation in homes, buildings, data centers, infrastructure, and industry. It will link the key theories and concepts of CSR to the workplace and the impacts this has on the financial performance of Schneider Electric. This essay will critically analyse literature surrounding Corporate Social Responsibility and provide the conclusion that CSR is becoming a reality within business reverting from the idea of ‘greenwashing’ for public relations (PR) spin.

Corporate Social Responsibility has been increasingly prominent in recent years because of trade being conducted globally at a growing rate. A geographical dispersion of production networks (Locke et al., 2013), rising in the 1990s has led to environment and labour issues. It is the change in global production that has created both opportunities and challenges for employees, the environment and society (Egels-Zandén and Lindholm, 2015). National governments are struggling to control these firms as this activity is happening on such a multinational scale, that promoting social and environmental values is unsustainable (Blowfield and Murray, 2014). In response to the need for corporate sustainability, the UN Global Compact created 10 principles to promote fundamental responsibility in 4 key areas: human rights, labour, environment, and anti-corruption (UN Global Compact, 2018).

Corporate Social Responsibility is often more easily implemented in developed countries considering that there are usually stricter regulations and laws already in place. In comparison, developing countries are less regulated, thus there is more potential for worker and environmental exploitation. Governments in developed nations are focused on making the market a more efficient provider of social and environmental goods rather than regulating companies outright. In contrast, TNCs operating in developing countries are not influenced by government regulations (Egels-Zandén, 2015) which leads to non-compliance towards corporate social responsibility.

Companies are facing increasing pressure to maintain profitability and act in socially responsible ways. CSR can affect purchasing decisions and ultimately impact on a company’s bottom line (Mohr et al. 2005). Overall, this essay provides an optimistic approach that Corporate Social Responsibility is not just a PR spin, companies are concerned with managing reputational risk and enhancing their brand value and that CSR is imperative to improve traditional performance drivers and maintaining customer satisfaction (Delbard, 2012).

Wider Context

A TNC is a firm which has the capability to manage and regulate operations in more than one country, even if it does not own them (Dicken, 2015). Using this broad definition, TNCs are by no means a new phenomenon, looking at trading company Hudson’s Bay and even further back the East India Company in the 1700s they were some of the first established and globalized companies. The modern TNCs are simply new variations on the past models. The advance of communication and industrial processes provided the growth for transnational operations (Vernon, 1992).

An optimist view implies that globalization has allowed governments to work with TNCs to enhance local infrastructure. In the last two decades, TNCs have been one of the key drivers in large-scale shifts in foreign-investment activity. The difference between TNCs now and the early models is now we are in a stage of ‘industrialization by invitation’. During the 1950s Sir Arthur Lewis proposed the strategy to allow the Caribbean economies to increase their competitive advantage. He suggested that the capital and markets for this industrialization be sourced from already established foreign TNCs (Hosein and Tewarie, 2015). He emphasized that to improve prospects in the global economy the foreign market was necessary. Governments have set up Export Processing Zones to attract FDI from the developed world using free trade zones, tax -free incentives, and a barrier-free environment. Job creation, the growth of industrial networks and technological advancement are the main impacts of government investment. (Murray, 2016). Export processing zones have distinct geographies to them. They employ 66 million workers in 130 countries worldwide (ILO, 2010). Lewis’ initial strategy for industrialization by invitation was designed for the Caribbean so majority exist here, along with East Asia, whereas there are a lot less in Africa. It could be argued that government investment into export processing zones has been ineffective, Olawoyin (2017) provides the conclusion that even though there are 66 million people employed in EPZs, it is a small proportion of global vulnerable employment which accounts for 1.4bn people worldwide.

CSR provides an understanding that codes are necessary for public relations (PR) and good business practice. Corporations must tackle sustainability within their business practices and be held responsible for their ethical issues and work to resolve all issues to benefit the community. CSR is a contested issue and this essay aims to deliver an optimistic approach, CSR is not just a PR spin, it is imperative to improving traditional performance drivers and to maintain customer satisfaction.

The concept of CSR was first devised in the 1930s and defined as ‘managers of TNCs [who] are responsible for the shareholders and the public’ (Morschett et al., 2005). This suggests that the CEOs have a position in which they must be accountable for the harmful effects of their business on the environment. Businesses must learn to limit the negative output and start to be sustainable in society.

The growing interest in CSR by the consumer and a focus on the ethics of TNCs has stemmed from increased media speculation of forced labour and non-environmental compliance. (Kim et al., 2015). An increased investment towards social issues has been made by TNCs, for example, Giving USA estimated a $5.29 billion increase from 1999 to 2002 (Kotler, 2005).

These effects of this investment can be questioned, however. CSR can be manipulated or ‘greenwashed’ (Kotler, 2005). Corporate Watch in the US has found several cases of greenwashing occurring as well as businesses using the United Nations for a public relations advantage. Greenwashing occurs as companies want good PR; businesses will do this without necessarily having to change their behaviour. This is a way for companies to still exploit the underdeveloped nations whilst looking on as an ethical business on the surface.

Exploitation of CSR initiatives provides evidence that President Truman’s speech in 1949, where his vision stated the shift from old imperialism in the modern world economy, is false. This comes as most TNCs are paired with ideas of neo-liberalism, meaning that the global North continues to exploit the South.

This essay will aim to assess the impacts of CSR strategies on traditional performance drivers as companies’ priority is to both serve a purpose and create profit. From this, we can provide the conclusion that balance is key to determine both benefits for the company and customer satisfaction.

Schneider Electric CSR policy

Schneider Electric is a global specialist in energy management and automation in homes, buildings, data centres, infrastructure, and industry. Operating in over 100 countries they serve customers, helping them to manage their energy and process in ways that are safe, reliable, efficient and sustainable. CSR forms a key part of the company ethos, ‘…we insist on the importance of responsibility and its place at the core of our corporate governance’ (Jean Pascale Tricoire, CEO Schneider Electric, 2014). Schneider Electric’s top priority is customer satisfaction and the major principles it subscribes to are the UN Global Compact, OECD, human rights and the International Labour Organisation (Static.coorpacademy.com, 2013).

From the analysis of Schneider Electric’s Sustainability report for 2017, they have a clear vision for the future and both the well-being of employees and customers, and environmental sustainability forms a key aspect of their approach to their company performance and ethos, which is providing innovative solutions to energy problems. Schneider Electric’s company performance corresponds closely to Alex Edman’s research conclusions that companies perform better (financially) if they adopt a CSR policy. In 2017 Schneider Electric ‘increased organic revenue 3.2 percent, launched more than 100 new products and acquired new companies that strengthen our position as the global specialist in energy management and automation’ (Sdreport.se.com, 2017). According to Schneider Electric’s CEO ‘in working for a more sustainable world, we not only ensure a healthier planet for future generations, but we also promote innovation and prosperity here and now. What’s good for the climate is good for the economy.’ In 2014 Schneider Electric launched a CSR strategy to use Mobiya Solar Lamps across the world to provide lighting in peri-urban households with no or poor access to the grid, this not only was profitable for the company but delivered on providing innovative solutions for its customers. Adhering to their sustainability strategy, Schneider Electric can provide strong value for shareholders, who recognize that Schneider Electric is forward thinking and provides a long-term business view.

Literature Review

This section will outline academics’ perspectives on Corporate Social Responsibility, primarily focusing on the main theories and concepts of CSR that have developed through history. Foucault’s lectures on his conception of governmentality in 1978 and 1979 emphasized that governance can be used as an ethical power allowing for self-regulation. This means that governments can play a much smaller and more effective role in society. The idea of corporations self-regulating is agreed by many stakeholders today, namely governments, local communities, and non-governmental organizations (Morris 2016). O’Laughlin (2008: 946) furthered this concept with the idea that companies are ‘moral agents’ with a ‘social conscience’ meaning that the market and society are part of the ‘same moral order.’ Thus, while currently, states are those responsible for the actions of TNC’s, Muchlinski (2001) discusses whether there is an increasing need for TNC’s to be held accountable for human rights responsibilities, as this will have an overall impact on its traditional performance drivers.

In response to these ideas, the UN attempted to create a universal code of conduct whereby TNCs could be regulated at a national level to support developing countries. Negotiations about this code ended in 1984 where a mutual decision could not be reached due to the fast-paced nature of development occurring worldwide, meaning that countries had different priorities and were unable to agree (Weiss, 1989). While companies have begun to set up their businesses to have a reduced negative impact on developing countries e.g. reducing global poverty (Lall and Streeten, 1977; Martinussen 1988:1992), it is also mutually beneficial for their brand image and thus their private business (Jenkins 2005).

There are variating perspectives associating to different schools of thought on the concept of CSR. Martinussen (1997) believes that neo-classical economists generally favour CSR, developmental economic views are varied, while Marxist researchers focus on negative impacts. Blowfield (2005) suggests that capitalists are favourable of CSR within codes of conduct as it follows international capitalism, where technological innovation, particularly communications and data processing, is enabling the global production of CSR. On the other hand, there are also schools of thought that support Friedman’s idea that ‘business is business’ and that profit is not about being morally correct, thus eliminating the need of codes of conduct within TNCs. Before the 1980s there was an expectation that TNCs operating in the global south would generate solely benefits, however, this has been tarnished due to the exploitation of employees and the environment (Blowfield, 2005). The negative media attention, as a result, has caused vertically integrated companies to apply similar societal and environmental ideals in developing countries as western countries. This is still an issue contested by economists in support of Friedman who proposes ‘business is business’ and CSR is not time efficient (Frynas, 2005).

There are various perspectives on the derivation of CSR. Jenkins (2005), Morris (2016) and Lund-Thomsen (2013) believe that CSR dates to the 1990s, this coincides with the advance of globalization and the ‘race to the bottom’. Cedillo Torres et al. (2012) believes CSR on an academic level stems from the 1960s and consists of four connected aspects: economic, legal, ethical and philanthropic responsibilities. This is shown through the 1960s civil rights movements, women’s and consumer rights and environmental movements. The evolution of CSR into a complex concept makes it a key element of corporate financial decision making.

Lund-Thomsen (2013) provides an optimistic view that foreign investment from TNCs has benefitted developing countries. He uses Nike as an example to point out that outsourcing has created millions of jobs in developing countries, raising incomes of impoverished workers and families who would otherwise be worse off. However, Lund-Thomsen is aware that these benefits are accompanied by poor working conditions due to the absence of national labour laws. Therefore, it is evident that while most companies have basic CSR initiatives in place, giving some support to workers cases, they are not comprehensive and do not adhere to governmental regulations. Furthermore, despite an increased emphasis on corporate responsibility in literary examples, it is hard for companies to quantify the true impact of initiatives, especially customer satisfaction. Schneider Electric has aimed to overcome this through commitments to environmental sustainability. “A 2014 CDP study of 500 industry leaders found that organizations actively managing and planning for climate change secure an 18 percent higher return on equity or investment versus non-committed peers.” (Sdreport.se.com, 2017).

Lund Thomsens’ (2013) ideas link with those of Jenkins (2001), as his literature explains how the lack of large corporate investment in developing countries means weak CSR as there is no investment or initial catalyst to pursue environmental protection. Weak legal frameworks by governments will also create weak environmental CSR; if there are no guidelines for protection, companies will not invest time and money into protecting an environment, leading to production often at the expense of the environment. Bond (2008) uses the example of the energy company, SUEZ, to evaluate a lack of environmental protection and CSR in South Africa. This has caused major social implications including the spread of disease and infections due to a dysfunctional and degrading water system. This contests the idea that CSR initiatives are becoming a ‘reality’ within a business and shows a clear gap between CSR standards in developed and developing countries.

According to Morris (2016), almost all Fortune 500 companies have CSR initiatives relating to environmental sustainability – countries in the Global North cannot ignore the impact of their activities on the environment due to increased negative media/public attention (Jenkins, 2001). This creates a need to regulate their environmental activity. Therefore, Lund Thomsen (2013) agrees that CSR pushes companies to include environmental care, protection, and responsibility in their policies. Frynas (2005) extends this point, stating that this increased awareness of the environmental impacts and CSR publicly in developed countries has caused many corporations to increase investment in technologies to reduce environmental harm. For most globalised companies including Schneider Electric who operate in over 100 countries worldwide it is imperative to implement CSR policy in developing countries to reduce the risk of social and environmental corruption.

Looking forward, Lund Thomsen (2013) & Morris (2008) suggest that environmental regulation could be greater in developing countries if there was an implementation of assessments for environmental impact by national governments and international organizations, limiting environmental degradation. However, literature has implied this is not yet a universal commitment within CSR, so it can be argued that CSR initiatives do not work in the globalized world. Environments in developing countries have not always been protected through CSR until recently due to increased public attention and still face consequences of environmental degradation.

Conclusively, most examples of literature focus on the positive enforcement of CSR initiatives in developed countries. This creates fair working conditions, environmental protection and stronger CSR monitoring due to governmental regulation, trade unions, and consumer awareness. Unfortunately, this is not the case in developing countries where these factors are relatively weak.

Large-scale privatization of state-owned companies and global market forces have caused TNCs to have greater power. This creates the need for improved regulations controlling TNCs in the form of CSR, as researched by Frynas (2005). He states that the increasing power of TNC’s and large-scale privatization has caused CSR to become more sophisticated. This is a result of weak government regulations especially in developing countries, making responsible business practices of TNCs, in the form of CSR an unambiguous and required feature of a globalized world. This takes power away from the state and into the hands of corporations, which requires a set compliance of fundamental human rights according to Muchlinkski (2001) seen within CSR practices.

However, early literature tends to disagree that CSR initiatives do not work in the globalized world. Freidman (1962) emphasizes how CSR does not benefit the company, employee or consumer. He argues how corporations are artificial and cannot yield moral responsibility for individuals, hence gaps having to be tackled by government and society on ethical issues like worker standards and environmental protection. Friedman firstly argued that the only responsibility for businesses is to provide shareholders with the highest dividends possible, CSR is averse to this duty because it only reduces profits. He also argued that businesses have no expertise to handle social activities and as a result, by pursuing CSR it will make itself less competitive globally (Morris, 2016). Alex Edmans’ (2015) research into the social responsibility of business at The London Business School disagrees with Friedman’s notion of ‘profit at all costs’. The key point of his research found out that 100 of the best companies to work for create 2-3% more profit. This agrees with research conducted by PWC in 2002 that revealed 70% of global CEOs believed that CSR was vital to company profitability. From this, Friedman’s idea of CSR diluting businesses’ primary purpose is outdated, and in fact, today CSR practices are seen by stakeholders as initiatives that achieve a fair-to-good profit return (Morris, 2016).

CSR Impacts on Traditional Performance Drivers and Companies Bottom Line

The fact that CSR has a positive impact on financial performance is an ever-contested issue between academics and CEOs. This is because of the difficulty in quantifying the impacts of CSR initiatives as it is imprecise due to many factors influencing the relationship between CSR and a firms’ performance. Corporate social responsibility has evolved into a complex concept that is now a key component of the corporate decision making of many multinationals that are the frontrunners in integrating CSR.

Stakeholder theory has played a fundamental role in CSR research. This has been used to determine the impact CSR has had on an organization’s bottom line. CSR has evolved into an influential core business function that is necessary to fulfil an organizations strategy mission and vision.

It can be argued that companies on ‘thin ice’ as a result of potential reputational damage usually become leaders in CSR implementation. A key example of this was Coca-Cola operating in India. Governmental organizations made allegations against Coca-Cola for selling products containing unacceptable levels of pesticides, extracting vast amounts of water and polluting water sources. To combat this, in 2007 Coca-Cola launched its ‘Live Positively’ campaign to improve its sustainability practices (Cedillo, Torres et al. 2012). However, this is a contested issue. Many economists argue that an economic downturn can lead to a cut in CSR budget, this may have a multiplier effect on the attraction and retention of its employees; a company’s greatest asset.

Today company stakeholders and CEOs have reverted from Milton Friedman’s notion of profit being the main motive for firm performance. Modern CSR initiatives have adapted from corporate scandals, socio-political and environmental challenges and the increasing gap between government resources and the needs of society. Key stakeholders such as governments, local communities, NGOs and consumers expect corporations to self-regulate and contribute to the triple bottom line- people, planet, profits. Schneider Electric’s slogan ‘Life Is On’ is a key message which aims to clearly articulate how the company helps customers around the world transform the way they access and consume energy. To comply with environmental CSR, their main strategy for energy management is through electrification and digitisation. This provides opportunities for economic growth and the creation of a sustainable and energy efficient planet. Additionally, Unilever a CSR industry leader has stopped reporting quarterly earnings to demonstrate its commitment to long-term initiatives to preserve stakeholder wellbeing. (Edmans, 2015). In summary, most investors favour financial figures over CSR initiatives, but if companies engage in corporate social responsibility figures and publish their CSR figures, they will gain a competitive advantage. The key for firms is to look at the long-term value, not short-term gains.

Conclusion

It is evident that CSR policy is a cemented part of business policy and has a direct link between purpose and profit. If a business maintains its purpose to obey the triple bottom line; ‘planet, profit, and people’. However, Friedman, 1962, argues that corporations should not have to yield moral responsibility for individuals as ‘business is business’. Friedman has a short-term view which suggests that CSR dilutes businesses’ primary purpose, yet this is outdated. It is in the long-term self-interest of the company to be socially responsible.

Firstly, this essay discussed the impacts of globalization on CSR. The growing number of production networks, alongside the injection of FDI into developing economies has led to the need for regulation. This is due to the intensive media speculation of environmental and labour issues occurring within TNCs. As a result, companies have heavily invested in CSR initiatives primarily to safeguard their company from negative PR. More recently, however, there has been a shift in CSR being an imperative for company performance drivers, including profit. Companies have noticed that they can yield increased profits if they implement a coherent CSR strategy. A case study of Schneider Electric agrees with this concept. Its CSR policy sits at the heart of the company ethos and as a result, has increased revenue by 3%.

In summary, companies are reverting from past concepts that CSR is a threat to performance drivers and the dividends that shareholders receive, towards the concept that CSR provides a positive contribution to the triple bottom line: planet, people and profit.

Walmart is a multinational retail company that has started as a small discount store with their mission to sell more items for a cheaper cost. They first opened for business in 1962 in the United States in Rogers, Arkansas and later established a Walmart Canada in 1994. They are located in 27 different countries with their Canadian headquarters located in Mississauga, Ontario. With over 11000 retail units worldwide, it is no wonder why Walmart is deemed the world’s largest retail chain. Their continuous success can be attributed to the various products/services they offer and due to their incredibly low prices. Their slogan, “Save Money. Live better.” is exactly how people feel when shopping at Walmart and is also what makes them a return customer. It has become a norm for everyone to shop at Walmart for their everyday needs that include, groceries, clothing, electronics, pharmaceuticals, as well as photo, finance, and wireless services. To add, Walmart is a company who has hired approximately 2.2 million associates across the globe. With this many people on their team, they are also one of the leading retailers who provide such a large amount of people with employment. Another interesting fact that holds true to Walmart is the fact that in their fiscal year that ended at the end of January 2019, they have reported a total revenue of 514.4 billion dollars. Lastly, with all of Walmart’s success, it is important to note the fact that Walmart has not always succeeded when entering a foreign country. For example, Walmart was not able to open stores in Germany as the Germans were not fond of the American culture that was imposed onto them. As a result, this major blow to Walmart cost them almost a billion dollars and also lost them the chance to do business with the country that has the largest economy in Europe.

In order for any business to thrive, they must follow what it means to be socially responsible. Corporate social responsibility refers to an organization’s obligation to conduct their business in a way that satisfies their own interests as well as the interests of society as a whole. Walmart does this exceptionally well through a number of different ways. For one, Walmart is very engaged in giving back to the community with efforts in regards to issues such as disasters and hunger relief. A more specific example comes from the fact that Walmart and the Walmart Foundation have invested approximately 100 million dollars towards Feeding America since 2005. Feeding America is a U.S. based company that is a country wide chain of food banks. Another significant way Walmart gives back to the community is through assisting in the recovery after natural disasters take place such as the tragic hurricanes in Puerto Rico and much of the Southern U.S. This event that took place in 2017 showcased how much Walmart helps when it truly matters as according to their 2018 Global Responsibility Report, “In FY2017, Walmart and the Walmart Foundation pledged $25 million in cash and in-kind donations to support disaster preparedness and relief through FY2021” (Walmart, 2018). Their generosity does not stop there as they do not only want to just help with the situation at hand, but rather have a more permanent impact. Thus, to combat such disasters they also try to make the entire community more prepared for these types of catastrophes by providing them with innovation and technology. To add, Walmart also does what they can to maintain the environment for future generations to come. This directly relates to the concept of an organization being an open system. This term introduces the idea that the activities that go on in a company directly impacts the environment and in return affects back onto the business. One phenomenal way that Walmart adjusts to protect the environment is through their program called Project Gigatron in which Walmart encourages their suppliers to accompany them in reducing emissions by 2030 by 1 billion tons (Gigatron). This is equivalent to taking 211 million cars off the road for an entire year.

I believe that it truly does make a difference when it comes to whether or not I want to shop at Walmart. Knowing all the things they do to give back, while also being mindful of their impact on the environment makes me feel that this company deserves my business. It is reassuring to know that where I choose to spend my money is a place that does not only care about making a profit off of me but also genuinely cares for the world around them. I also find it intriguing that a vast corporation like this even makes an effort to contribute back to the world even though they do not necessarily need to in order to keep their business successful. In addition, quite frankly I do think their decisions to be so socially responsible comes in to play when attracting new customers. Despite the minor disadvantages such as losing short-term profits and an increase in costs, I personally believe that the advantages such as the satisfaction of helping others as well as long-term increase in profits outweighs them.

After learning about how much Walmart does for the world, I have come to the conclusion that working for a company that is extremely socially responsible with a strong corporate culture, is something that truly resonates with me. Joining an incredible team like Walmart, gives me the opportunity to only learn the skills that fall along with my job title but also provides me the chance to contribute on a global scale that has everlasting effects. In contrast, a company that could be considered polar opposites of Walmart, who does not care for interests of society is something that I hope to stay away from. In a time that arguably needs it the most where global issues such poverty, crime, unemployment, and pollution are more prominent than ever, I believe that it is my duty to involve myself in a corporation that builds bridges to find solutions instead of finding ways to break them down. Overall, for these reasons I would most definitely work for Walmart if given the opportunity to join such a corporation.