Research Articles Base: Corporate Social Responsibility Samples

CORPORATE SOCIAL RESPONSIBILITY OF MCDONALD’S UK

CORPORATE SOCIAL RESPONSIBILITY OF MCDONALD’S UK   I.      Introduction.. 3 II.     Corporate Social Responsibility: A Definition.. 4 III.        Implication of Corporate Social Responsibility on the Company   5 A.    Buying Behaviour. 6 B.    Financial Performance. 8 C.    Market Share. 10 IV.       The McDonald’s Experience: CSR case study.. 10 A.    The supply chain. 11 B.    Information. 11 C.    People. 12 D.    Environmental practices. 12 E.    Ronald McDonald Children’s Charities. 12 F.     Football Programmes. 13 V.    Analysis of the McDonald’s Case.. 13 VI.       Conclusion.. 14     I.             Introduction The sole intention of profit-seeking among organisations has now been increasingly superseded by the need to acquire the favour of customers: both existing and potential customers. Companies that intend to be at the top of their respective industries, or even survive, need the favour of the public. They could do this by presenting a positive image through marketing or they could touch a more profound aspect of their target market particularly those applicable to the morals and principles of the public. This need spawned what is termed as corporate social responsibility (CSR). It is an attempt of the company to address the more pressing issues regarding their role in society in general. However, there are lingering debates on why, regardless of the requirement of corporate social responsibility in legal or societal terms, there appears to be companies who seeks to circumvent this responsibility. This paper intends to talk about this area of responsibility among companies. First off, a theoretical discussion on the definition, need, and implications of the CSR on the company will be provided. The second part of the discussions will be an analysis of an existing organisation’s CSR. For this study, the focus will be the CSR of the leading fast food chain in the world, McDonald’s. After providing a discussion on the said case, an analysis will be provided with arguments and observations based on past and existing literature on the company’s CSR. In the end of the paper, a summation and conclusion based on the observations made by the writer will be provided.         II.           Corporate Social Responsibility: A Definition Corporate social responsibility (CSR) has definitely been a part of modern business culture. Numerous studies and books have been published in an attempt to document the requirements held by implementing such in a company. In the work of  (2003, 4) he indicated that the lack of such responsibility among companies have triggered scandals and even downfall of large companies. Missteps in market trading and even deception on ways of disposing the company’s waste appear to be among the most discussed topics in the existing literature on CSR. Sims called the breach of this social responsibility among businesses as a “business ethic missteps.”(p4) This represents an omission of a company in considering the existing values and morals in a particular society. In this context,  (2003) drew a couple of general claims. He stated that society has given keen interest on issues of corporate social responsibility in the last four decades. In the same way, he also indicated that having such an interest rested on such occurrences, headlines relating to these breaches tend to add-up as attention grabbing scandals. ()   As compared to the business environment in the earlier part of the 1900s, the stakeholders appear to be more involved in the workings of an organization. Earlier studies on corporate social responsibility indicated it as a means to battle the “social cost.” (1995)  In the said study, they found a positive correlation between social responsibility and financial performance. Though it is not seen as a constant outcome, majority of the studied companies tend to display such.   Thus, for the purposes of this paper, the operational definition of corporate social responsibility would be based on the two indicated definitions above. It will be used to define measures that will keep companies from engaging in business ethical missteps and a means to deal with the social costs of the company. Thus, the following discussions will be presenting arguments why companies tend to implement more than that of what is legally required of them. This will be manifested on the case study of McDonald’s UK later on this paper.   III.         Implication of Corporate Social Responsibility on the Company Improving their image as a corporate citizen will entail certain strategies to adhere to accepted principles of social responsibility. The actions that these companies show reflect how they intend to treat their customers. The strategies used in luring people into buying their products do not clearly present malice on the part of the companies. If a glimmer of questionability appears on their midst, then companies should compensate it to other aspects such as the services offered or even how they deal with the environment when they discard their wastes. That does not make questionable marketing strategies more acceptable; however it does ensure that the public is getting their money’s worth. The following discussion will be indicating how CSR have positively affected the company in improving several aspects of its operations: the buying behaviour of the consumers; the financial performance of the company; and the overall market share.         A.  Buying Behaviour Numerous studies have been made indicating the effect of CSR on the buying behaviour of the target market of the company. A recent addition is the study of  (2001). In their discussions, they indicated that for buying behaviour and CSR to have a positive correlation, several criteria has to be met. The consumers have to become aware of the “level of social responsibility” held by the company. ()  This means that the making the public know what the company is doing comprise of a huge bundle of how it could positively affect the purchasing behaviour of the public. Effective marketing and advertising comes to play on this category. The employment of mass media or any other tools would be the key in informing the public of their activities.    (2001) called this activity as “cause-related marketing.” It is in indicating the need for awareness that they presented the factor as a major inhibitor of responsiveness among the target market of the organisation. Another criteria indicated in the study would be “consumer appreciation.” () This means that it is not enough that the consumers are aware of the activities held by the company. The consumers must also realise the importance and implications of such activities in society in general.   On another study, it appears that “corporate reputation” similarly has its indicated to have an effect on the buying behaviour of the consumers. (2005) Nevertheless, the said study indicated that during the periods when a consumer is shopping for a particular commodity, whether the CSR of the company is reputable is not a major part of its decision making factors. Brand image and consumer fairness still appears to be at the top of the consumer’s priorities. However, this could possibly change with proper marketing. According to the studies of  (2006) and  (1991) television commercials has been the main tool of marketers to promote their food. Constant exposure to such advertisement could lead to retention of information and thus consequently persuading a person that such products are great. ( 2006)   All in all, the ability of the company to provide information on the activities that they hold in accordance to their CSR highly represents capability of the company to actually influence consumer behaviour. In this end, not only does the company need to present the public that they are doing their share in society as good companies. They have to present that they are also willing to provide extra effort in making the world a better place to live in. Though it appears that doing such activities and programmes do entail added expenditures on cause-related marketing and, of course, with the actual CSR project itself, companies now realise that the return of investment on these activities are highly lucrative. This even comes to the point where the marketing of these activities are subject to abuse of unscrupulous marketers using unethical means of marketing. ()   B.  Financial Performance As stated in the earlier parts of the paper, the work of  (2003) indicated that financial performance does have a positive correlation with the company’s CSR. However, recent studies indicate that the problem with this claim is that the return of investment held on these activities is merely represented in terms of social ROI. (2005) This means that regardless of how effective or grandeur the project a company makes, immediate financial returns may not be readily observed.   According to the said study, inherently there are several factors that drive companies in implementing CSR programmes. These include “managing risk and reputation; protecting human capital assets; responding to consumer demands; and avoiding regulation.” (Doane, 2005, 215) Seen at this level, the implementation of such programmes is indeed lucrative. It represents an investment worthy of the risk.   The problem, according to the study, of this emerging trend is that the use of CSR becomes more driven by business as that of actually promoting the betterment of society. (2005) “Business-driven” CSR represents everything that is imperfect in the realm of business. All is driven by the all mighty pound. Everything has to have a price, even good deeds made to society.   As  (2005) this trend has triggered companies and commercial organisations to make CSR programmes based on economic decisions. Improvements that these programmes tend to create manifests only in areas where actual profit could be made. To illustrate,  (2005) pointed out the case of the tobacco companies, the big dog of sin products. In considering the said case, the CSR initiatives held by tobacco companies tend to improve the Dow Jones Sustainability Index of their shareholders, not as much as to improve the wellbeing of the major consumers. A similar case is seen in the creation of supermarkets by Tesco. (2005) The study claimed that the major societal implications of such companies would be greater traffic and possibly liquidation of local businesses. It claimed that the CSR programme of providing computers for schools is a considerably distant cry from the actual improvement needed by society from that company.   Fortunately for such companies, as stated in the earlier part, this aspect of social responsibility is not at the top of the priorities of the consumers. There will be less people thinking of the major inconveniences provided by the company like a more congested neighbourhood. As long as companies have an arsenal of marketing tools to use, they could always find a way to spin this on their favour.   C.  Market Share As seen in the discussions prior to this part of the paper, the CSR does have an impact on the overall performance of the company. It is thus unsurprising that it would have a positive effect on the market share of the company. Even in earlier studies on social responsibility, this has been seen as a fact. (1993)   In the said study, it is indicated that managers see the implementation of CSR as a basic ends in favour of their interests as well as the company’s. (1993) This means that a socially responsible company would have a greater capacity to acquire a much larger market share than those who are perceived to be otherwise.      IV.        The McDonald’s Experience: CSR case study The company to be looked at in this paper will be one of the leading fast-food chains in UK, McDonald’s. The presented case would be based on the annual CSR report of McDonald’s UK acquired in their website. Specifically, the discussions will be divided into several parts. Each part will be discussing the performance made by the company concerning the required social responsibility they have. These include the supply chain; information; people; environmental practices; Ronald McDonald Children’s Charities; and the Football Programmes.   A.  The supply chain The company have acquired their supplies from over 17,000 farmers in UK. The supplies range from beef, eggs, chicken, onions, potatoes, rapeseed oil, and milk. The report also indicated that the company works closely with the Red Meat Industry Forum and the NFU in seeking high quality supplies for the individual branches all over UK. Moreover, the standards held by the company are based on the McDonald’s Agricultural Assurance Programme (MAAP) which specifically indicates the level of quality needed from the suppliers of the company.      B.  Information In the context of information, the company reported that it has provided leaflets indicating the nutritional information of the menu offered by the organisation. They have also exploited other mediums as complex as the internet and as simple as the back of their trayliners. Other informational products include the publishing of leaflets concerning their salads and Happy Meal combinations along with a promotional leaflet encouraging parents to feed their kids five portions of fruits and vegetables daily. C.  People In the context of their employees, the report indicated that they have given them the chance to develop through training and development. In this initiative, the company have helped most of its unskilled personnel to acquire higher capabilities for the company. On the other hand, the report also indicated that they continue to adhere to a diverse workforce.     D.  Environmental practices On a more pressing level, specifically the environmental element, the company has reported to have worked closely with the Department of Environment, Food and Rural Affairs, the Local Government Association, and Tidy Britain Group. They have similarly started the “just bin it” campaign throughout UK. It is a clean up campaign seeking to establish a more sanitary environment.   E.  Ronald McDonald Children’s Charities The said programme is focused primarily on giving children with hospitalisation assistance, particularly on the case of accommodation of the families of a hospitalized child. The funds acquired come from the donations of the public and from fund drives held by the company.   F.   Football Programmes This project intends to encourage children to do sports. In the case of McDonald’s UK, it encourages physical fitness among the youth by encouraging the top game played in the country, football.   V.          Analysis of the McDonald’s Case The company is apparently doing its share in improving the social state of UK. It is providing its consumers with quality food supplies coming from the top suppliers in the country. This shows not only does the company ensure the quality of the food offered; it also helps the local agricultural industry in the process. Moreover, it provides the information that the customers needed regarding the nutritional content of the menu. In this manner, the customers are given the opportunity to exercise due diligence in their consumption. In the same manner, they have given the consumers the encouragement to seek healthy foods like fruits and vegetables through their CSR initiative. The most notable indication that McDonald’s is becoming socially responsible is shown in the support of physical activities among children. The issue of obesity and unhealthy foodstuff has been the bane of the company’s existence. In this context, the company is apparently doing its share in providing opportunities for kids to become physically fit.   VI.        Conclusion The fast food industry is one of the leading industries in the world. Aside from the delectable menus offered by the players operating in the fast food industry, these companies have acquired specific marketing strategies such that they could acquire majority of the existing market share. Thus, the fight among the players of this industry is not limited to the provision of an innovative set of menu or service, the means in which the target market is reached accounts most of the reason why companies like McDonald’s are among the most notable brand names in the industry.   Credit:ivythesis.typepad.com

CORPORATE SOCIAL RESPONSIBILITY OF MCDONALD’S UK

CORPORATE SOCIAL RESPONSIBILITY OF MCDONALD’S UK I. Introduction .. 3 II. Corporate Social Responsibili...

The Decent Work Enterprise: Worker Security and Dynamic Efficiency

The Decent Work Enterprise: Worker Security and Dynamic Efficiency

Corporate Social Responsibility and Corporate Governance

Corporate Social Responsibility and Corporate Governance   Introduction             Corporate governance encompasses the importance of developing and maintaining effective intra and inter-business relations particularly for firms seeking internationalisation or already operating in the global market based on the context that cultural orientation and political standpoint constitutes the differentiating factor for international business players ( 2001). Applying a sound corporate governance system constitutes a motivating factor for the members of the organisation as well as investors. This then enhances the competitiveness of the company and the business position of the firm.             Recently, globalisation has resulted to the creation of an international business setting that considers the wider responsibility of companies extending to the natural environment and the community. The liberalisation of economies that boosted growth in business activities has resulted to global environmental issues such as the global warming phenomenon, natural resource scarcity, accumulating volume of non-biodegradable waste and social issues such as labour market abuses, community displacements, and health problems due to minimal safety standards in the workplace. Due to the growing propensity of these issues and the recognition that the business sector constitutes a big player in slowing down or addressing these issues, business competitiveness has to a certain extent included the acceptance of environmental and social responsibility by firms as a added value to the firm based on the perspective of some investors and consumers.     Financial & Non-Financial Objectives in Corporate Governance              In corporate governance, business firms apply important basic principles such as honesty, integrity, trust, accountability and responsibility (2001). Corporate leaders and decision-makers apply these principles in developing a governance model able to balance conflicts of interest based on the priorities of the company and enhance accountability in financial reports based on the parties in interest. These principles encompass not only the financial but also the non-financial aspects. This means that as much as the company wants to maximise its profit margin, it cannot do so based on the consideration of cost-saving activities alone because its social responsibility also has an influence on its profitability.             A case in point is the recent merger of the British retail company Body Shop and the French cosmetics company L’Oreal. The board of directors of Body Shop decided on the merger based on financial reasons. The value of the merger for Body Shops is £652 million ( 2006) and an added retail network for L’Oreal. At first glance, this is a good deal for both companies because of capital infusion and wider market reach translating into greater revenue. However, as the news of the merger spread, Body Shop has experienced criticisms especially from the green consumerism advocates. This is because of the differences in the corporate values of these companies that amount to the reversal of its previous advocacy against animal testing. Body Shop developed as a green company. One of its campaigns is against animal testing in the cosmetics industry so that in 1996 Body Shop petitioned the European Union to ban animal testing in European Union member countries ( 2007). L’Oreal emerged on a different light because it engages in certain forms of animal testing for its cosmetic products ( 1999). The irreconcilable divergence in business values, when widely recognised by Body Shop’s consumer base could cause a decrease in sales of Body Shop if the company does not address this issue. This case shows that financial and non-financial considerations are both necessary factors in corporate governance decisions. Unaddressed consumer concerns, which constitute a non-financial concern, regarding the company could affect its financial performance.        Corporate Social Responsibility             The policy reflection of the consideration of both financial and non-financial concerns in corporate governance is termed as corporate social responsibility. As a business strategy, corporate social responsibility encompasses the way that firms integrate economic and socio-environmental issues in their respective corporate culture, operations, and decision-making to achieve accountability and transparency (1995). As such, the existence of corporate social responsibility serves as basis of best practices of firms as well as the catalyst of value creation (2003) on the perspective of consumers and the community that the business firms directly serve.               Two views of corporate social responsibility exist that covers business firms. First perspective considers corporate social responsibility as “defensive and business focused” (2001) by focusing on improvements in firm operations and performance. Second perspective explains corporate social responsibility as “positive and broadly focused’ (2001) because the firm takes the responsibilities of a community leader concerned over socio-environmental issues. This means that corporate social responsibility of business firms depend upon the extent of responsibility that it assumes. This can be purely internal such as taking responsibility for the well-being of its employees and the environmental friendliness of its operations or including external concerns such as the environmental conservation, providing employment opportunities, and sponsoring children’s learning.             Another conceptualisation of corporate social responsibility is as the business “commitment to improve community well-being through discretionary business practices and contributions of corporate resources” (2005). This implies a voluntary action on the part of the business firm to take an active part in improving the community constituting their market or their immediate area of operation. Moreover, a voluntary and active involvement in community concerns requires resource allocation such as labour, time and money.                The essence then of corporate social responsibility is business firms consciously developing policies that address social and environmental issues within the business organisation or extending to the immediate community of the firm. The goal of engaging in corporate social responsibility is to develop consumer patronage to the company as well as acceptance especially on the part of international companies entering domestic markets.             A multinational company that engaged in corporate social responsibility is McDonalds, due to the rising concern over the escalating rates of obesity in children exposed to the fast food culture. The company also faced environmental concerns changing some of its food containers to biodegradable materials. In an attempt to support efforts against obesity, the company introduced healthy options in its menu. McDonalds also implemented other corporate social responsibility activities such as the exclusion of beef products in India because of the cultural reverence for cows and in Hong Kong, the company established the Ronald McDonald House that provides shelter to children and their parents from the rural areas or distant locations seeking medical care in a nearby children’s hospital. McDonald’s also provides scholarships, employment and skills development in various countries. (2006) Due to the implementation of corporate social responsibility, McDonalds experienced acceptance in the Indian and Chinese markets. These markets comprise the coveted consumers of most international companies because of the sheer size of the market. Since McDonalds was able to receive significant degrees of acceptance in these markets due to its corporate social responsibility activities, it stands to gain in terms of revenue and market base.             However, corporate social responsibility is not without criticisms, especially the perception that this is an unnecessary allocation of resources.(1970) explains that businesses only carry responsibilities towards stockholders because this group meets the capital needs of the firm. Any additional assumption of responsibilities is unnecessary. A business firm is amiss in its responsibilities only when it fails to meet its role relative to stockholders.  (1991) adds that even the firm’s moral responsibility should be only towards stockholders.  (2001) further provide that corporate social responsibility would likely “make people in general poorer” () because of the spread of resources. These perspectives indicate that the decision to engage in corporate social responsibility largely depends on the context of business needs and objectives. McDonalds applied corporate social responsibility because it served its purposes of gaining market entry.    Importance of Corporate Social Responsibility             Although, there are opposing perspectives on corporate social responsibility, there are important benefits derivable from engagement in this strategic policy-making.  (2001) identify ten benefits that business firms can gain from corporate social responsibility. First is the ability to anticipate and manage risks. Business firms engaging in corporate social responsibility become aware of the social and environmental risks that it could potentially face by carefully studying changing community issues. Second is the capability to improve form reputation management. Researching on corporate social responsibility issues allows that firm to gather information on the perspective of the public about the company to derive areas requiring change to enhance its market reputation. Third is the capability to enhance human resource management particularly the development and retention of employees by strengthening business values targeting employee satisfaction and well-being. Fourth is the achievement of tools to improve the competitive position of products, brands or firm name through value adding CSR activities. Fifth is the capability to improve the operations and cost-efficiencies of the firm by allowing the firm to anticipate the impact of social and environmental issues and implement preventive actions. Sixth is the ability to enhance supply chain efficiency by developing good working relations with local suppliers, who constitute members of the community. Seventh is the ability to improve change management competence since engaging in corporate social responsibility would likely involve varying levels of change in business culture. Eight is obtaining legitimacy to operate within different communities by seeking the acceptance of its members as employees, consumers or investors. Ninth is the ability to make capital accessible since value-adding activities provide motivation to investors to contribute capital to the firm. Tenth is gaining the ability to improve links with regulatory authorities since compliance with social and environmental regulations places the firm in good business standing.          Engaging in Corporate Social Responsibility             Companies successfully implementing corporate social responsibility policies expect to incur one, more or all of these benefits, with the effect of improving competitive position and profitability. A number of general principles exist to ensure success of corporate social responsibility activities. The implementation of these general principles depends upon the contextual appropriateness of these principles in particular firms. The multi-stakeholder and holistic approaches encompass the various success factors of corporate social responsibility.             Multi-stakeholder approach pertains to the integration of business, government and community into a partnership to address social and environmental issues. Collaborative partnership is based on the recognition that no single sector can curb these issues on their own. ( 2001; 2001) As an example, the problem of obesity involves a number of parties in interest spanning the cause and solution to this problem. Parties in interest include families, schools, healthcare facilities, government departments, non-government organisations and other health advocates, and business firms especially in the food sector. The causes of obesity rests upon the failure of these parties in interest to recognise the risk early on or the allowance of the proliferation of activities that results to obesity in the long-term such as unhealthy food and lack of exercise. As such, the solution to this problem also depends upon the concerted action of these groups. From the perspective of the business firm such as McDonalds, the success of its corporate social responsibility rests upon its partnership with the other parties in interest for its activities to gain acceptance, support and following. From this, financial benefits ensue.             Holistic approach refers to the consideration of a string of preparatory and implementing programmes that support the achievement of the objectives for the planned corporate social responsibility activity ( 2001). As an example, Australia and New Zealand Banking Group Limited (ANZ) recognised the importance of a holistic approach in optimising the benefits derivable from corporate social responsibility. An important thing implemented by ANZ is changing its business perspective to perceive all its stakeholders as a single integrated system that experience issues in an interconnected manner. This allowed the company to develop policies directed towards sustainable results for all stakeholders. Moreover, this approach also flowed through its products and partnerships resulting to a strong and clear message of trustworthiness and social concern to the market. ( 2006) Again, improved financial performance followed.   Conclusion             Corporate governance systems primarily concern the responsibilities of the directors and board members in ensuring the effectiveness of corporate policies and practices and efficiency in its collaborative processes. Due to many key players, the challenge to corporate governance is the development of a sustainable and balanced relationship between and among key players, maintenance of the soundness and stability of its regulatory reforms, and application of accountability on the impact of its activities and business process results to the company, its investors and other parties in interest.             Businesses would at one time or the other engage in activities directed towards social and environmental issues. In these instances, it would be a rational corporate governance decision for firms to transform these efforts into corporate social responsibility exercises to maximise costs and optimise results, including the achievement of sustainable and balanced relationship with stakeholders.                     Credit:ivythesis.typepad.com

Corporate Social Responsibility and Corporate Governance

Corporate Social Responsibility and Corporate Governance Introduction Corporate governance encompasses the importa...

Videoconferencing as a viable alternative in Meetings and Its Contribution to Corporate Social Responsibility

Videoconferencing as a viable alternative in Meetings and Its Contribution to Corporate Social Responsibility Introduction The technology proved its hold unto the society, not only in the corporate world but in the social world of the individuals. The advocate in the contribution of social progress of the business activities emphasizes the value and creation through the high-tech solutions. And with this vision, there is a fulfillment of the firms’ corporate responsibility with regards to the environment and other concerned factors.  Corporate responsibility does not only evolve around the environmental issue. There are other responsibility that the corporate world is expected to satisfy and most of them are regarding to the society, economy, and human rights. Corporate Social Responsibility Corporate social responsibility or CSR is one of the strongest issues in the corporate world and being environmentally responsible is part of the companies’ core philosophy (2009). They have the focus in fulfilling their social responsibilities and in the use system such as communication in the interdependence among the environment, organization, and sustainable development. The system theory emphasizes the options of the organizations in the potential environment consequence the activities, process the planning stage, and ensuring the implementation. The environmental issues are only recognized when the organization unable to control the impact of their activities on the environment ( 2008). In addition, there are many approaches to the corporate social responsibility that encourages the organizations to have responsive social responsibilities. The growing trend towards the corporate social responsibility reporting encourages the companies to be more transparent and increase their focus on the non-financial matters of the firm such as the environmental issues. The companies are concerned in catching the sustainable trend development and to satisfy this requirement the firms should move another innovative step toward the changes and remain competitive (2005). Changing Trends in Meeting Industry Most of the researchers and organizations considered the growing interest on environmental issues and the corporate social responsibility. The issues the revolves in the round table of the business leaders are regarding to the ethics, organizational structures and processes, the impact of the environment on the organization, and many others. And in the past years, there are many recorded impacts of the organizations activated on the environment (2008). Through the integration of the sustainable and create connection in the global process of change and communication, the use of the technological access has been part of the movement for corporate social responsibility. Video conferencing is the applied communications technology that integrated with the video and voice connection. This can be only accessed through the webcam attached to the computer and is connected to the Internet connection. The idea of the video conferencing allows the people to be connected in the real time, even if they are in other places. With the use of the video conferencing, the natural conversations are well managed. Although there are certain challenges that included in the video conferencing, still the firms and business leaders value its worth as a solution or practice to deliver a great trend in industry meetings (2005). Videoconferencing Investing in the videoconferencing can contribute not only on the communication because it is viewed as an effective alternative to travel that help lessen the gas emissions of the engines therefore; the organizations can satisfy their responsibility in the environment (2005;  2009;2009). The videoconferencing is expected to provide solution if the system applied if suitable to the communication environment of the firms. Furthermore, videoconferencing is also applied to provide lectures in distance education and expected to contribute in solving social issues because it can connect the people in many field in everyday lives. Conclusion In the generation of the corporations, the business leaders are aware in the responsibility being involved in taking the participation to bring back all of the efforts to the environment. The leaders in the corporate world are very pleased in the utilization of the resources that are available in the environment and therefore, they are aiming to deliver all the efforts back to the environment. In the introduction of the communication technology, the corporate find another alternative solution that can help the company fulfill its responsibility in the environment, while saving the mileage of the other business associates, and sustaining the development of the company. The videoconferencing helps to the leaders to provide solutions within the business setting and in fact, there are other opportunities that are available in utilization of the videoconferencing. Credit:ivythesis.typepad.com

Videoconferencing as a viable alternative in Meetings and Its Contribution to Corporate Social Responsibility

Videoconferencing as a viable alternative in Meetings and Its Contribution to Corporate Social Responsibility Introduction The technolo...

Strategic Issues Affects Social Responsibility

Introduction Towards the end of the twentieth century, it became apparent that fundamental changes were afoot in the world economy that profoundly affected business, politics, society, citizens and the ways in which various stakeholders interacted with each other. This process became known as globalization, which became a frequently overused and contested term that came to mean all that was good or bad in the world economy. For those who welcomed the supremacy of markets and economic liberalism, globalization offered the possibility of boundless growth and prosperity, not only for developed countries but also for those developing countries brave enough to embrace rather than resist globalization in all its manifestations (Johnson & Turner 2003). For others, globalization threatened rising inequality, economic anarchy and a surrender of political control. In developed countries, job losses and the unraveling of social progress were anticipated as a result of greater competition from low-cost countries whereas developing countries feared that their former colonial subjugation had been replaced by the dominance of market forces and its agents in the form of multinational enterprises (MNEs) (Johnson & Turner 2003).   Many firms begin the internationalization process when they are relatively small and develop their overseas presence gradually. They establish themselves in their domestic market first and then start to move abroad via a series of incremental steps. This movement abroad tends to occur earlier in the case of companies established in small domestic market. The biggest obstacles to internationalization are lack of knowledge and resources. Incremental learning reduces the perceived risk of overseas investment and continuing internationalization is encouraged by presence in a foreign market (Johnson & Turner 2003). The impact of an internationalized business upon the economy depends upon the prevalence of an entrepreneurial culture. This varies across space with some regions or localities well known for generating ‘clusters’ of dynamic firm that benefit from information spillovers as well as other intangible factors. The development of clusters can be of special importance to different business allowing them to bypass some of the financial and other practical problems that they would otherwise face in their development (Johnson & Turner 2003).   International businesses create a different kind of impact to the environment. Once founded in newer markets, the tendency for other firms is to improve their strategies to counter the threat of international companies. Their emergence leads to a tougher competitive environment but the company’s tend to focus on the better delivery of services to their clients. International organizations are affected by various things in its environment. They are affected by the situation in the environment. Most business would want to go international because of the privileges acquired from internationalization. The paper will discuss about two strategic issues that international companies perceive as vital components in showing that a company has corporate responsibility and has strategies pertaining to it.   Example of international organization Apple was founded by Steven Jobs and Stephen Wozniak in 1976; Apple Computer Company revolutionized the personal computer industry and epitomized the rise of clean industry in the New West (Birzer & Schweikart 2003). In 1984, Apple introduced the Macintosh, which was aimed at the business and education markets, by which time the company had already not only changed American industry but had reshaped entire areas of the West around silicon. In 1996, after a series of CEOs failed to keep Apple profitable, Steve Jobs returned under the rubric interim CEO and soon launched a new marketing and licensing relationship with Microsoft. In 2000 his direct sales concept, the Apple Store brought the company back to profitability (Birzer & Schweikart 2003).In 1994 Apple computers launched a new line of computers based on the PowerPC processor chip. The creation of the new chip was a joint venture between Apple Computers, IBM, and Motorola, and because the new chip was capable of being compatible with the market leading Intel chip, it was marketed as a major breakthrough in computer technology. If emulation software was purchased by a consumer, the consumer could run both software made for Apple computers and software made for Intel PCs on the same Apple machine. The machine was even being called a PC with a free Mac inside (Gottinger 2003).   Apple computers had controlled about 8-10 percent of the personal computer market since 1984, and recently it had been struggling financially (Gottinger 2003). Those at Apple hoped that compatibility with the Intel-based PC and its 85 per cent market share would dramatically increase the market share of Apple computers. The results from the introduction of the new product were not everything Apple had predicted or had hoped for. The increased competition from the PowerPC chip forced Intel to slash the price of their Pentium chips by 40 per cent. Thus Apple did not live up to its promise of cheaper computers (Gottinger 2003).   Apple Computers Inc is considered to be one of the businesses that created a huge amount of change and improvements in the computer industry. It brought about different changes to the industry; these changes are still visible in the present and it still provides benefits to different people even at this times.   The products of the company provide benefits not only to the clients but to competitors as well. The company’s products were used as a basis by other computer company’s in designing the specifications and physical characteristics of their product. It also serves as a meter of how products are designed. The company offers various products for the different market it targets. Apple Computers Inc. has made products for its consumers found in various parts of the world. It has reached places not reached by its competitors and it tries to satisfy all the needs the needs of their clients wherever they are. The company considers 2 issues as the ones they believe as an important component in addressing social responsibility for businesses. The two aspects that the company considers contribute to the participation of business in showing that they have social responsibility. These issues are discussed below.   Strategic Issues that international firm perceive as important Economics The economy of Apple continues to improve as the years develop. This can be a good thing for the industry and for the company. The company and the industry can take advantage of the improvement in the economy through it inviting more investors to put their stakes in the company. The investors would provide a more stable financial source for the company.  This would increase the capital of Apple computers Inc and more I-pod mp3s can be made. This also means the products of the company can be improved for the benefit of the clients. With more finances comes better technology that can create better products.  The improving economy can also help the company attract more clients. A better economy can attract the citizens of Australia to buy the I-pod products from the company. The improvement in the economy is important because it helps in addressing what will be the limit for the budgets that will be used in providing corporate social responsibility. With better economy means a better chance for the company to use higher budgets in doing activities that promote corporate social responsibility.   Technological Apple Inc. makes use of various technological innovations that help in increasing productivity and improving the quality of their products. The technologies that used by the company passed international standards and its benefits were proven by various companies. The company can make further use of technology by using it as a means for the organization to provide easier way for the clients to transact business with them. Technology such as the internet can be used by the company as an alternative means for them to do business with their clients. Apple Inc. offered changes in the sector it belonged to.  It made sure that it made known newer ideas that will be popular in the music player industry. Technology is the other issue that businesses in the international setting believe as a vital factor in addressing issues pertaining to social responsibility. Technology must be top of the line and it must have lesser flaw so that it can be used to engage in actions pertaining to corporate social responsibility. The technology will help in performing corporate social responsibility faster and with more efficiency.  The technology will also be the one that will be used to perform social responsibility. Without technology places that are hard to reach cannot be accommodated and the company cannot perform social responsibility on that place.   Corporate social responsibility and international firms Business is a social phenomenon. Societies have developed various kinds of social rules, such as legal rules, or even the rules of etiquette, which act as a framework or guide to behavior. Moral rules are sometimes regarded as just another set of social rules, but societies are structured around moral rules in a peculiarly fundamental way. In fact moral precepts are frequently used to criticize the other kinds of social rules which guide human conduct. Most notably there can be clashes between moral rules and legal rules.  Corporate social responsibility involves the idea of business being proactive in its relationship with a range of social actors and doing more than just trying to avoid breaking moral rules. Managers of corporations are merely agents of the shareholders in the companies they work for (Theaker 2004). The owners of businesses, the shareholders, are the only people to which managers are accountable and the only responsibility managers have is to act in their interests. This means maximizing profits so that the shareholder will make as much money as possible from their shares. The practice of corporate social responsibility is usually regarded as a public relations function because this is where the company meets the public outside the usual roles of producers and customers. If the beneficiaries of corporate social responsibility are to be treated as ends in themselves, then they should be accorded equal status in defining the relationship between the corporation and themselves. In respect to corporate social responsibility programs it would mean that all stakeholder groups including the potential beneficiaries of such programs should contribute to the decision-making process. This would demonstrate that companies are treating the beneficiaries of corporate social responsibility with good will and as ends in themselves (Theaker 2004).   Taking the comprehensive CSR perspective can be a legitimate move and is of utmost importance to the corporate sector. It is legitimate for two reasons. From a global governance point of view, integrating social and ecological concerns into business strategies is a necessary and important corporate contribution to efforts at moving to some form of governance in these fields. From a corporate governance point of view, CSR is a convincing stakeholder model in the ongoing debate about defining adequate new forms of relationships and decision making within a company, as well as between a company and its environment. Even though neither of these two governance perspectives is usually explicitly associated with CSR, it seems that this is what the new paradigm is essentially about (Möckli & Wenger 2003). Ethics and Corporate social responsibility provides a better relationship between companies and other people in its environment. Ethics and corporate social responsibility contributes to the success or failure of a firm. International organizations need to have corporate social responsibility that will help them develop a good relationship with their clients and other people in their surroundings.     The Corporate social responsibility strategies of the company focus on using the issues of economy and technology to determine what activity can be done to point out that they have corporate social responsibility. The economic stature and technological considerations constitute a big part of how the company wants to show responsiveness to social situations. With limited economic and technological resources come limited actions. The economy and the technology give Apple the opportunity to create strategized actions that will help them show that they care for the society and they can provide assistance to those needing in the society.  The strategized actions will depend on the economic situation of the company and the technological capabilities it has.   Conclusion Just like other international companies Apple Inc considers 2 issues as the ones they believe to be vital factors in showing that they have social responsibility as a company. One of factors Apple believes to be a vital factor in showing they have responsibility is the economy, the other factor is technology. The improvement in the economy is important because it helps in addressing what will be the limit for the budgets that will be used in providing corporate social responsibility. Technology is the other issue that businesses in the international setting believe as a vital factor in addressing issues pertaining to social responsibility Technology must be top of the line and it must have lesser flaw so that it can be used to engage in actions pertaining to corporate social responsibility.   Bibliography Barclay, LA 2000, Foreign direct investment in emerging economies: corporate strategy and investment behavior in the Caribbean, Routledge, London.    Birzer, BJ & Schweikart, L 2003, The American west, Wiley, Hoboken, N   Emadi-Coffin, B 2002, Rethinking international organization: deregulation and global governance, Routledge, London.   Gottinger, HW 2003, Economies of network industries, Routledge, New York.   Johnson, D & Turner, C 2003, International business: themes and issues in the modern global economy, Routledge,  London   Möckli, D & Wenger, A 2003, Conflict prevention: the untapped potential of the business sector, Lynne Rienner, Boulder, CO.   Rao, CP 2001, Globalization and its managerial implications, Quorum Books, Westport, CT.   Sims, RR 2003, Ethics and corporate social responsibility: why giants fall, Praeger, Westport, CT.   Theaker, A 2004, The Public Relations Handbook, Routledge, New York. 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Strategic Issues Affects Social Responsibility

Introduction Towards the end of the twentieth century, it became apparent that fundamental changes were afoot in the world economy that ...

General Electric :Corporate Social Responsibility

Corporate Social Responsibility   General Electric             GE is a services, technology and manufacturing company operating in more than 100 countries and employs 313,000 people worldwide. The company traces its beginnings to Thomas A. Edison, who established Edison Electric Light Company in 1878. In 1882, a merger of Edison General Electric Company and Thomson-Houston Electric Company created General Electric Company. GE is the only company listed in the Dow Jones Industrial Index today that was also included in the original index in 1896. GE ranks as the 5th largest U. S. company in the Fortune 500 and is ranked as the 8th largest in the world, as of 2000.          GE is one of the largest and most diversified industrial corporations in the world. GE has engaged in developing, manufacturing, and marketing a wide variety of products for the generation, transmission, distribution, control, and utilization of electricity since its incorporation in 1892. Over the years, GE has developed or acquired new technologies and services that have broadened considerably the scope of its activities. GE’s products include major appliances; lighting products; industrial automation products; medical diagnostic imaging equipment; motors; electrical distribution and control equipment; locomotives; power generation and delivery products; nuclear power support services and fuel assemblies; commercial and military aircraft jet engines; and engineered materials, such as plastics, silicones, and super-abrasive industrial diamonds. GE’s services include product services; electrical product supply houses; electrical apparatus installation, engineering, repair and rebuilding services; and computer-related information services. Through its affiliate, the National Broadcasting Company, Inc., GE delivers network television services, operations television stations, and provides cable, Internet and multimedia programming and distribution services. Through another affiliate, General Electric Capital Services, Inc., GE offers broad array of financial and other services including consumer financing, commercial and industrial financing, real estate financing, asset management and leasing, mortgage services, consumer savings and insurance services, specialty insurance and reinsurance, and satellite communications (Blacconiere & Hopkins, 2002).   Stakeholders             Organizations must recognize the rights of interests of various stakeholders – not only stockholders and employees but also outsiders affected by the company’s actions (Sims 2003). External stakeholders include customers, suppliers, governments, unions, competitors, local communities, and the general public. In general, stockholders claim appropriate returns on their investment: <ul style="margin-top: 0in; margin-bottom: 0in" type="circle"> <li class="MsoNormal" style="text-align: justify; line-height: 200%">Employees seek broadly defined job satisfactions</li> <li class="MsoNormal" style="text-align: justify; line-height: 200%">Customers want what they pay for</li> <li class="MsoNormal" style="text-align: justify; line-height: 200%">Suppliers seek dependable buyers</li> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> Governments want adherence to legislation</li> <li class="MsoNormal" style="text-align: justify; line-height: 200%">Unions seek benefit for their members</li> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> Competitors want fair competition; local communities want the company to be a responsible body</li> <li class="MsoNormal" style="text-align: justify; line-height: 200%">The general public expects the company’s existence to improve quality of life. </li> </ul>             Stakeholders are the people who are affected by or can affect the activities of the firm. There are two types of stakeholders – primary and secondary. Primary stakeholders are those who have formal, official, or contractual relationship with the organization. The secondary stakeholders are other societal groups who are affected by the activities of the firm. One of General Electric’s top stakeholders is the consumers.               Consumers expect General Electric to produce quality, safe and reliable products. Consumers are also becoming assertive in issues such as safety and they are becoming more concern about the impact of the product on their health and to the environment. Consumers also demand data and information about the products and the risks involve in using them. GE recognizes the importance of the consumers. They are increasingly becoming collaborators in the product development cycle. In order to make sure that the consumers are actively involved in the creation and development of products, GE established programs such as “Dreaming Sessions” which helps the organization look to the future about what the consumers need. GE is also using “Net Promoter Score”, a metric GE has adopted to tract customer perceptions of performance strengths and weaknesses (GE 2007 Citizen Report). The organization also inform and educate the consumers about product use issues. The organization makes sure that its products are safe and of the highest quality. General Electric produces products that are considered as controversial. In order to respond to the demands of the consumers to be informed GE increases transparency and addresses concerns by illuminating its approach to these products. One line of products that are controversial is GE’s nuclear-grade equipments. GE also informs the consumers about the possible health risks in its products. For example, GE produces lighting products that contain small amounts of mercury. GE in its commitment to produce risk-free products is actively engaged in research to further reduce mercury content and to develop next-generation, energy-efficient, mercury-free lighting technology (GE 2007 Citizenship Report).   Corporate Social Responsibility (CSR)             The organization has different obligations to society. Corporate social responsibility is the interaction between business and the social environment in which it exists. Corporate social responsibility according to Sims (2003) is an organization’s obligation to engage in activities that protect and contribute to the welfare of society. CSR refers to an organization’s moral obligation toward others who are affected by the organization’s actions (p. 44).   Responses to Social Demand         Corporate social responsiveness is the ability of an organization to respond to social demands. Corporate social responsiveness focuses on the individual and organizational processes for determining, implementing, and evaluating the firm’s capacity to anticipate, respond to, and manage the issues and problems arising from the diverse claims and expectations of internal and external stakeholders (Epstein 1987).   Proaction             Proaction is considered as the highest level of responsiveness to social issues where companies actively seek to improve and contribute to society. Companies with proactive philosophy will try to carry out discretionary responsibilities (Deresky 2003 cited in Harila and Petrini 2003). Proaction is an approach to corporate social responsibility that includes behaviors that improve society. Organizations that assume a proaction strategy subscribe to the notion of social responsiveness. Proaction according to Carroll (1979); Joyner and Payne (2002) involves actively addressing specific concerns of stakeholders and anticipating social problems before they arise or are officially recognized, and developing strategies to deal with these issues.             General Electric takes a proaction strategy in responding to social demands. GE actively addresses concerns of stakeholders and anticipate social problems before they arise. For example, one proaction strategy of GE is educating and informing consumers about the possible health hazards of its products. In order to solve problems that are likely to arise, GE is committed to produce risk-free products through research and development and developing next-generation, energy efficient, mercury-free lighting technology (GE 2007 Citizenship Report).   Accommodation                 Accommodation is an approach to corporate social responsibility that adapts to public policy in doing more than the minimum required. Accommodation according to Joyner and Payne (2002) is doing the right thing because it is the right thing to do.   Defence             A company with a defensive philosophy will only fulfill its legal responsibilities in relation to the social issues that it faces (Deresky 2003 cited in Harila and Petrini 2003).  Organizations that pursue a defence strategy respond to social challenges only when it is necessary to defend their current position. Defence according to Carroll (1979); Joyner and Payne (2002) involves doing only the minimum legally required to address stakeholder issue in order to avoid being forced to do so.             GE’s defensive approach is evident in its response to its remedial responsibilities. There are issues regarding the environmental contamination caused by Plycholrinated biphenyl (PCB) in the Hudson River. Only when the Environmental Protection Agency (EPA) required GE to dredge the Hudson River did the company take efforts to do so. The company claimed that PCBs were being broken down by microorganisms and that PCB levels in fish have decreased since 1977 (www.cleanupge.org).   Reaction             Reaction is the philosophy with the lowest responsiveness, indicating that companies simply react to eventual crises that might occur (Deresky 2003 cited in Harila and Petrini 2003). Reaction according to Carroll (1979); Joyner and Payne (2002) involves either fighting against addressing stakeholder issues or completely withdrawing and ignoring the stakeholder.   Obstruction             There are firms that take an obstructionist approach to social responsibility. Obstructionist organizations choose to push socially responsible envelope as far as they can. They consciously engage in questionable and at times illegal acts, in the hope that they will not get caught, the fine imposed will be less than the benefits incurred. These firms often work to prevent knowledge of their behavior becoming visible (Sims 2003).             GE’s obstructive strategy was evident in their response to the PCB issue in the Hudson River. GE was pin pointed as the cause of the PCB contamination in the Hudson River. It has been reported that between 1940s and 1976, GE discharged about 1.3 million pounds of PCBs into the Hudson River. The contamination had a tremendous impact on the river. The Environmental Protection Agency (EPA) proposed that GE dredge the Hudson River in order to take out the PCBs that it discharged. Federal law requires EPA to consider local opinion before it issues a final Record of Decision. In order to counter the dredging plan, GE used sophisticated, proactive, multi-layered legal, political and public relations campaign. The most visible part of the campaign have been the millions of dollars GE has spent on television commercials, a half-hour infomercial, radio ads, full page newspaper ads, billboards, bus signs, newsletters and websites (www.cleanupge.org). This can be considered as an obstruction since GE used different means in order to mislead or to hide the truth to the general public.   Social Responsibility             Corporate Social Responsibility according to Carroll (1979; 1991) encompasses the economic, legal, ethical and discretionary (philanthropic) expectations that society has of organizations at a given point in time. The figure below presents the types of social responsibility as defined by Carroll (1979; 1991):   Economic Responsibility             An organization has to make a profit in order to survive. The organization is obliged to its shareholders to maximize earnings, and operate efficiently. This forms the foundation on which all else is built (Van Dongen 2006).   Legal Responsibility             Am organization is obliged to comply with the rules and regulations that the government imposes (Van Dongen 2006).               GE is committed to investing in its employees to provide challenging opportunities to shape their careers (GE 2007 Citizen Report). GE maintains constructive statutory and contractual relationships with hundreds of employee representatives throughout its global operations. The employees representative arrangements take various forms, but can be generally described as trade unions or work councils. Relationships with these employee representatives are structured based on applicable laws in the countries in which GE operates. GE respects employees’ rights to freedom of association and to bargain collectively within the requirements of local law (GE 2007 Citizen Report).               Ethical Responsibility             Ethical responsibilities are considered important. They consist of the expectations, demands, and needs stakeholders place on an organization. Ethical responsibility is often vague and under public debate regarding its legitimacy. In essence it is the obligation to do what is right, just and fair (Carroll 1991 cited in Van Dongen 2006).             GE operates in more than 100 countries around the world. GE’s commitment the governments in which it is under starts with the local communities. GE strives to engage with local governments, communities and civil society on issues of mutual interest. Through national or regional executives, as well as through other corporate and business personnel with country, regional or international responsibility, GE provides its perspectives to local governments, communities, and civil society (GE 2007 Citizenship Report).   Discretionary (Philanthropic) Responsibility             Philanthropic act is often labeled as being socially responsible, however, compared to ethical responsibility, it is not expected from the organization to commit to a philanthropic act, in the sense that they will be found unethical when they do not reach the desired level (Vamn Dongen 2006).  General Electric is committed to its philantrophic responsibilities especially in the areas of healthcare and education. GE is capable of impacting communities where employees work and live. General Electric uses its philanthropic resources to extend the impact to communities around the globe and focus on two central themes: education and healthcare. By integrating Foundation grants, product donations, Company contributions and volunteer resources, GE employees drive substantive, systematic change while fostering deep, personal connections that encourage and inspire communities (GE 2007 Citizenship Report). The general public expects that the organization contributes to the betterment of the society as a whole. The organization is expected to take the initiative in dealing with environmental and social issues. GE aims at building products and solutions that will benefit its consumers and the society. Ecomagination is GE’s vision and commitment to harness GE’s unmatched products and services to address the world’s pressing environmental issues (GE 2007 Citizenship Report).   References Blacconiere, W. and Hoprkins, P. (2002). General Electric: Investment Accounting          and Consolidations. Issues in Accounting Education, 17(3), 315+.   Carroll, A. B. (1979). A Three-Dimensional Conceptual Model of Corporate Performance. Academy of Management Review, 4, 497-505.   Carroll, A.B. (1991) The Pyramid of Corporate Social Responsibility: Toward the Moral Management of Organizational Stakeholders. Business Horizons, 34, 39-48.   Caroll, A. B. (1996). Business and Society: Ethics and Stakeholder Management. Thomson Learning.   Deresky, H. (2003). International Management (4th ed.). Upper Saddle River: Prentice Hall.   Epstein, E. M. (1987). The Corporate Social Policy Process: Beyond Business Ethics, Corporate Social Responsibility and Corporate Social Responsiveness. California Management Review, 29(3), 99-114.   GE Citizenship Report: Investing in a Sustainable Future (2007). General Electric. Retrieved May 5, 2008, from http://www.ge.com/company/citizenship/downloads/pdf/GE_2007_citizen_07rep.pdf   Harila, H. and Petrini K. (2003). Incorporating Corporate Social Responsibility: Case Studies of Four MNCs. Lulea University of Technology. Retrieved May 9, 2008, from http://epubl.luth.se/1404-5508/2003/064/LTU-SHU-EX-03064-SE.pdf   Joyner, B. E. and Payne, D. (2002).  Evolution and Implementation: A Study of Values, Business Ethics and Corporate Social Responsibility. Journal of Business Ethics, 41, 297-311.   Sims, R. R. (2003). Ethics and Corporate Social Responsibility: Why Giants Fall. Westport CT: Praeger.   Toxics on the Hudson: The Story of GE, PCB’s and the Hudson River (2008). Clean up GE. Retrieved May 5, 2008 from             http://www.cleanupge.org/pcbarticle.pdf                         Credit:ivythesis.typepad.com

General Electric :Corporate Social Responsibility

Corporate Social Responsibility General Electric GE is a services, technology and manufacturing company operating in more ...