Suncorp-Metway Limited Corporate Social Responsibility Strategies

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Table of Contents

Purpose
Background
Discussion
Recommendations
References

Purpose

The purpose of this paper is to convey to the Board of Suncorp-Metway Limited approaches that will be used in implementing the corporate social responsibility (CSR). This implies that corporate social responsibility strategies are applied differently across different industries and variably by companies within the industry. It involves complex decisions that include trade-offs by businesses.

Difficult decisions include the moral duty of the company to do the right thing, the company commitment to sustainability as well as the need to maintain the company operations besides safeguarding its reputations.

In the justification of this noble course, Suncorp-Metway Limited will set CSR boundary according to their core value propositions. As part of the ideal strategies, the company will tend to take initiatives that generally strengthen business undertakings while advancing societal goals and environmental conditions.

Background

Profit generation or corporate financial responsibility has been the historical obligation of many corporations over centuries. Even today it is still the main reason why businesses are set up.

However, as the public, consumers, governments, civil organizations and even the corporations themselves are increasingly becoming more conscious of the power of large firms, the need of establishing the concept of corporate social responsibility turn out to be more essential.

Many corporations today see CSR as a smart business strategy while some have stagnantly remained in the past when CSR was seen as a mere business idealism.

These companies continuously involve themselves in incidents that find them act outside their legal obligations. That is, they go beyond the legal compliance and involve themselves in major scandals that ushered in the decade of legal mistrust and downright hostility by the stakeholders.

Basically, that is why it is a good strategy for us as a company to continuously demonstrate that we are ethical and always act according to the legal requirement.

The shared lack of enthusiasm and public mistrust has made the executives of the larger corporations to justly rise above simple legal compliance and display to the public their respective company commitment to moral values, devotion to moral standards and consistent implementation of better CSR practices.

In the remarkable 21^st century, CSR and ethical leadership cannot be divorced. Some business administrators still consider corporate social responsibility as an advancement of business ethics. CSR still has its foundation in the fundamentals of company ethics and integrity which must begin from consistent ethical leadership.

The government and the society at large have raised their expectation and standards for companies that are continuously in need of doing business. It is our obligation as a company to comply with the standards set by corporate regulatory bodies such as World Business Council in charge of Sustainable Development (see the appendices).

The implementation of CSR might seem to be costly but it is imperative that we look at it in its entirety. The benefits of CSR go beyond the monitory value. It ensures sustainability, competitiveness and an enormous comparative advantage. CSR is considered as a positive business ideology that addresses basic business ethics. Moreover, CSR provides significant ethical guidelines for businesses and define their social accountability.

It addresses the way businesses should satisfy the requirements or the obligations of governments and societies. CSR further specifies how companies should ethically treat key stakeholders such as the suppliers, employees, customers and the community to win their confidence.

Discussion

Corporate social responsibility persists as one of the issues that are currently hitting the headlines in the business world. The symbiotic relationship between business and society leads to the appreciation of CSR by all participants in the economic world. There is more than enough evidence indicating that entrepreneurial activities will only survive when there is support and appreciation from the society.

The success determinants for a business such as stakeholders and corporate strategies have been influenced by the societal desire to have a closer relationship (Warwick, 2008, p.20). Factors influencing the market namely social, environmental and economics reflect the central position of the major stakeholders in the CSR impasse.

According to Porter and Kramer (2006, p.1) CSR refers to the organization constant obligation to act morally and continuously grow economically while at the same time improving the general life of its employees as well as their families and the society at large. McWilliams et al. (2005, p.6) suggests that businesses should take on charitable activities around the communities where they operate.

Other important obligations that corroborate CSR include economic, legal and moral responsibilities. The practical tasks of corporate social responsibility deals completely with environmental issues that correlate to the natural surrounding, economic and social issues that will finally go towards the development of the communities and the government.

The organizations’ case for corporate social responsibility is influenced by several factors such as changing public expectations, company image, business resources and legal regulations.

Warwick (2008, p.20) asserts that CSR is the moral obligation both in social, economic and legal expectation that the society has of any particular organization be it small business or larger corporations. It reflects the organization efforts in managing its functions that will generate overall positive effects on the public. Companies are at present competitively succeeding in international market.

To do extremely well in this competitive market, the company must be morally service orientation towards the stakeholders that include its clients, employees, suppliers, management, the general public and other interested groups.

Regardless of the need to devote more resources in terms of time and capital so as to put into practice the best CSR activities, business have appreciated its consequence in determining their image and differentiating it from competitors.

Warwick (2008, p.37) further stresses that the foundation of CSR in any business or organization arise from the five basic elements. These basic elements are closely linked to value addition, product improvement, the public sense, long-term projections in addition to being sensitive to the policies in place.

Product originality connotes steady introduction of new products in the market in order to service consumers as well as increase the company competitive advantage. Being sensitive to society or the public implies the legal responsibility a business has to the community considering reverence, necessities and provisos of services and commodities that are in accordance to social, economic and environmental issues.

Adding value to the product is an element of CSR which is very significant in all businesses activities since it creates trust and merit in marketplace as well as in the judgment of the most vital stakeholders to the business. These include suppliers, investors, customers and employees (McWilliams et al., 2005, p.16). From this point of view, it becomes imperative for business organizations to generate value through their operations.

Indeed corporation that are working more for community services more willingly than profit the reasons enhance their competitive advantage which is essential in determining their endurance (Porter and Kramer, 2006, p.1).

All businesses organizations must operate under corporate control or legal procedures that is aims to guard them against adverse issues such as financial misappropriation. Therefore, all firms are indebted to abide by the guiding principles set by the regulating bodies like the government agencies.

Additionally, businesses are continuing processes that are supposed to be sustained by bearing in mind the needs and expectations of all the stakeholders of interest.

Corporate social responsibility has an important role in promoting company reputation and brand image (Cavett-Goodwin, 2007, p.1). It is preferably supportive in improving sales in addition to customer trustworthiness. It is also an essential tool used in attracting and retaining best employees. Consequently, CSR is a prerequisite of the company increased capability which in turn ensure sustainable development.

CSR is one of the most essential tools that play important role in any business operations despite of its size. To flourish in the current aggressive business environment, business organization needs to reimburse the public in form of corporate social responsibility (Ludescher, 2009, p.1).

Albeit businesses and the general public are inter-dependent as well as inter-linked in one way or the other, their involvement in CSR are a sign of goodwill (Ludescher, 2009, p.1)

Recommendations

It is to the best interest of the company to forge ahead and implement the CSR strategies to remain sustainable and competitive. It likely that the Suncorp-Metway Limited will continuously gain from good relationship built with the community and customers because of the embracing CSR best business practices.

As we forge a head it is important to be cognizant of those measures that will give our company a rare competitive edge and sustainable profitability. However, as we will continuously replicate the promotion and development of CSR business programs, the real benefits the company will get from these programs is harder to foresee.

References

Cavett-Goodwin, D. 2007, “Making the Case for Corporate Social Responsibility”. Web.

Ludescher, J. 2009, “Corporate Social Responsibility: From Corporate Strategy to Global Justice”. Web.

McWilliams, A., Siegel, D. S. & Wright, P. M. 2005, “Corporate Social Responsibility: Strategic Implications”. Web.

Porter, M. & Kramer, M. 2006, “Strategy & Society: The Link between Competitive Advantage and Corporate Social Responsibility”. Web.

Warwick, M. 2008, “The Five Dimensions of CSR”. Web.

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