...Social Responsibility The benefits and suggestions to adopt CSR The essay will discuss the topic of social responsibility. It will explain the how companies in controversial industry sectors maintain reasonable, socially responsible standards whilst making their strategic decision, and present what benefits they can gain from them. Throughout this essay, empirical research and examples from academic literature will be described to substantiate the discussion. This essay uses the definition of corporate social responsibility used by Enz (2010) conceptualizing CSR as‘ CSR is concerned with the integration of environmental, social, economic and ethical considerations into business strategies and practices’. It is generally believed that social responsibility plays more and more important role in organization. Firms with good social responsibility may attract better employees and raise current employee’s loyalty, commitment and motivation to the company. A sociallly responsible company can act ethically and be willing to improve society. There are four types of corporate social responsibility: the economic responsibility , the legal responsibility, the moral commitment and the discretionary responsibility. (Enz 2010) Economic responsibility means that the company has the duty to be profitable and productive and meet the consumer demands of society. Legal responsibility, such as the achievement of economic goals within the limitation of written law. Moral commitment observed by unwritten...
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...CALL FOR PAPERS Special issue on “Corporate social responsibility (CSR) in controversial industry sectors” The deadline for submission is December 1, 2011. Guest editors: Adam Lindgreen (Cardiff Business School), Martin Hingley (Harper Adams University College), and Jon Reast (Hull Business School) Corporate social responsibility (CSR) has gained unprecedented prominence in academic and business spheres alike (Kotler and Lee, 2005; McWilliams, Siegel, and Wright, 2006); more than ever before, it is necessary for organizations to define their roles in society and apply social, environmental, ethical, and responsible standards to their businesses (Lichtenstein, Drumwright, and Braig, 2004; Lindgreen, Swaen, and Johnston, 2009). Beyond the moral arguments and value-based debates that characterize the complex landscapes of CSR-related concepts and ideas (Garriga and Melé, 2004), corporate commitment to socially responsible management practices is associated with a conviction that the failure to meet basic social rules or expectations pertaining to the way organizations should behave can result in perceptions of those organizations as illegitimate (Campbell, 2007; Sethi, 1975). Increased engagement in CSR-related policies and initiatives, and the associated communicative efforts, therefore provide a way for organizations to circumvent situations and practices that might be perceived as unethical or unsustainable and “alienate the organization from the rest of society, resulting...
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...Based on the notion that weapons manufacturers, in addition to other ‘sin industries’ such as gambling, tobacco and alcohol, have unreasonably been excluded from corporate social responsibility (CSR) research, Halpern and Snider (2011) conduct a study on US defence firms’ CSR. In accordance with the overall academic view that industry’s CSR is a result of managers’ CSR orientation (Carroll and Shabana, 2010), they evaluate US managers’ views and find their orientations to be predominantly similar to nondefense counterparties. Therefore, Halpern et al. (2011) suggest that weapons manufacturers ought to be included in the pool of CSR research and practice. Primarily, the article presents the underlying controversy and ideological bias against defence firms and points to the anecdotal arguments presented by researchers and mainly by Byrne (2007) in his publishing ‘Assessing Arms Makers’. Following this discussion, the four-domain model and its background is introduced, together with Aupperle’s (2008) CSR orientation research on chief executives of Forbes Directory. When discussing CSR and defence firms, Halpern et al. present their main argument that CSR should be empirically assessed and consistently with nondefense industries, i.e. using people’s orientations rather than subjective moral assessments. They pose the rhetoric question as to beyond what extent or purpose a product becomes harmful and thus socially irresponsible. What is more, they touch on the idea that rationale...
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...extent CSR benefit to a company’s performance? Over decades, corporate social responsibility (CSR) has been gaining magnitude in terms of corporation strategic decision. Public perception of CSR gradually evolves from oversimplified notion of social contribution into the integration of both social good and corporation interests. In 2004, Business for Social Responsibility (BSR) defined CSR as “achieving commercial success in ways that honor ethical values and respect people, communities, and the natural environment.”(Arumugam, Selvakumar& Sivamurugam, 2014). Simultaneously, heated debates on impact that CSR imposed on corporation performance is long lasting without reaching universal consensus. Nevertheless, implementing CSR initiatives on business strategy has becoming a remarkable trend and rages across major corporations globally. Therefore, this essay aims at constructing overall positive correlation between CSR and corporate performance whereas acknowledging complexity of the relationship due to intra-industrial variance of corporation natures and inter-industry difference in corporate ability. To better structuring the justification, the essay elaborates on financial performance and operational performance separately from multiple dimensions of stakeholders, including employee, customer, shareholder and government. 1.Financial performance To demonstrate the correlation lies between CSR and financial performance, this part examines the effects on corporate accounting...
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...Companies use Corporate Advertising to increase awareness of Corporate Social Responsibility Therefore Increasing Profitability Erika Jean-Pierre Saint Leo University Abstract This review of literature will explore seven peer reviewed articles that report on results from research conducted on how companies use corporate advertising to increase awareness of corporate social responsibility thus increasing profitability. More specifically focusing on the advantages of corporate social responsibility and the positive benefits in profitability. This review of literature will incorporate various companies and industries from coffee, grocery, amusement parks, cars, oil production, alcohol, and casinos. It will analyze how corporate communication of corporate social responsibility enhances market share and drive increased profits. Companies use Corporate Advertising to increase awareness of Corporate Social Responsibility Therefore Increasing Profitability Numerous studies have been conducted on corporate advertising to increase awareness of corporate social responsibility and increased profitability for business. Companies use corporate advertising to strengthen their identities and create a favorable mental picture in consumer’s mindset. On average, companies spend millions of dollars each year in their marketing budgets toward corporate advertising. With corporate advertising, companies are not necessarily looking to sell a product or service, but rather the...
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...TABLE OF CONTENTS: * Part one: Introduction A Brief Description of CSR 9 A Brief Description of CSR Practices by Bangladeshi Companies 10 A Description of Reporting Practices Including Reporting of CSR Activities 12 * Part Two: Statement of the Problem Emphasis on Business Involvement in CSR Activities 15 Theoretical Discussion on CSR Practices 19 Why The Reporting Necessary in relation to CSR Practices 22 Standard of Listed companies in Bangladesh with Regard to Social Audit 23 * Part Three: Objectives, Scope & Methodology of the Study Objectives 26 Scope 27 Methodology 28 * Part Four: Findings of the Study Sample Enterprises 30 Areas of Social Responsibilities Discharged 33 Reporting Practices 36 Evaluation 37 * Part Five: Conclusion Summary of the Findings 39 Future Directions 40 References 42 Part one: Introduction A Brief Description of CSR Corporate social responsibility (CSR), also known as corporate responsibility, corporate citizenship, responsible business, sustainable responsible business (SRB), or corporate social performance, is a form of corporate self-regulation integrated into a business model. Ideally, CSR policy would function as a built-in, self-regulating mechanism whereby business...
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...Corporate Social Responsibility and Accounting - A Literature Review Master thesis in Financial Accounting Fall semester 2012 Supervisor: Kristina Jonäll Author: Ulla-Christel Götherström Abstract Master Thesis in Financial Accounting, School of Business, Economics and Law, University of Gothenburg, fall semester 2012 Author: Ulla-Christel Götherström Supervisor: Kristina Jonäll Title: Corporate Social Responsibility and Accounting - A literature review. Background and problem: Corporate Social Responsibility (CSR) is an area which has gained much attention the last 10-15 years. To satisfy various stakeholders, corporate social responsibility has increased its importance and often constitutes a substantial part of the firms´ financial reports, in spite of the fact that there are no legal requirements. However, to perform strategic CSR-reporting has become more or less compulsory for firms. The research question is: What research has been performed in the area of corporate social responsibility and accounting? Aim: The aim is to provide a structured overview of the literature in the area of corporate social responsibility and accounting regarding the years 2002-2012. The overview will provide a basis for future research and constitute a framework for focused research question. Delimitation: The focus of this study is on research published in scientific journals from 2002 until 2012. Method: A literature review was performed including peer-reviewed papers...
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...Chapter 1: What is CSR Organizations can be classified in 3 categories: 1) For profits: Seek gain for their owners 2) Government: Exists to define rules and structures of society within which all organizations must operate 3) Non-profits: Emerge to do social good when the political will of the profit motive is insufficient to address societies needs Stakeholders: Includes all those who are related in some way to a firm “A stakeholder in an organization is any group or individual who can affect or is affected by the achievement of the organizations objectives” could range from clearly defined customers, employees, suppliers, creditors, and regulating authorities, to other more amorphous constituents such as local communities CSR is both critical and controversial; It is critical because the for-profit sector is the largest and most innovative part of any free societies economy. However CSR remains controversial; In spite of the rising importance of CSR today for corporate leaders, academics, and bureaucrats alike, many still draw on the views of the Nobel Prize- winning economist Milton Friedman, who argues against CSR because it distracted leaders from economic goals. Friedman believed that the only “social responsibility of a business is to increase its profits”- that society benefits most when businesses focus on maximizing their financial success. David Packard, a co-founder of Hewlett-Packard however, believes “a group of people get together and exist as...
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...Mining Industry Case Analysis | Business Ethics in a Global Context | Presented To: Dr. Jang Singh | | | | Executive Summary This report will examine the Mining Industry via ethical perspectives. This report includes a brief overview of the industry followed by an evaluation of the Mining industry’s value chain; including an environmental analysis of a mining company, as well as an evaluation of the industry’s corporate social responsibility, corporate social responsiveness and finally the corporate social performance. The Mining Industry is one of the World’s largest industries. The ‘idea’ of mining dates back to the beginning stage of civilization. Some examples of early mining can be found in Egypt, Europe and the Philippines. As of now, top mining countries are South Africa, Russia, Australia, Ukraine and Guinea. This industry faces constant technology advancement, consequently it is an expensive investment, with large profit. The Mining Industry can be controversial when looked through an ethical lens. This Industry is analysed through four perspectives. * The utilitarianism perspective, an act is morally right if the outcome benefits the greatest amount of people; * The rights perspective, basically, important entitlements that should be respected and protected in every action; * The justice perspective, fair treatment of individuals in a situation where everyone is involved and gets what they deserve to; * The virtue perspective, morally...
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...International Journal of Contemporary Research Vol. 2 No. 3; March 2012 Corporate Social Responsibility in Higher Education Institutions: Istanbul Bilgi University Case Gresi Sanje Dahan, PhD Assistant Professor Istanbul Bilgi University Advertising Department Kazım Karabekir Cad. No:1 34060 Eyup Istanbul, Turkey Isil Senol, PhD Teaching Assistant Istanbul Bilgi University Advertising Department Kazım Karabekir Cad. No:1 34060 Eyup Istanbul, Turkey Abstract Universities, especially private ones are in need of strong corporate strategies in order to be successful in the highly competitive education industry. In this respect, Corporate Social Responsibility (CSR) becomes one of the highly preferred strategies by higher education institutions for gaining a good reputation and a competitive advantage. This study aims to analyze Istanbul Bilgi University, in the context of social responsibility practices. The major finding of the study is that in order for an institution to be successful in CSR strategy, CSR actions has to be internalized and must be supported by the management. Keywords: Corporate social responsibility, higher education, competitive advantage, reputation. 1. Introduction Corporate social responsibility (CSR) is defined through the ethical relationship and transparency of the company with all its stakeholders that has a relationship as well as with the establishment of corporate goals that are compatible with the sustainable development of society, preserving...
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...Organizational Systems & Corporate Responsibility – Pfizer Assignment 1 – Group MIMTG09 Does the company operate in business/industries that are by their nature socially or environmentally sensitive? Does the business as a whole face pressure from certain stakeholder groups? Pfizer is a research-based, global biopharmaceutical company. It claims to have two segments: biopharmaceutical and diversified. The latter involves animal health products, healthcare products and other personal care items (Pfizer.com/about). In the past decade Pfizer has received a lot of pressure from governments, medicine & food authorities and customer groups on mostly socially sensitive issues. It seems that the industry is characterized by corporate social responsibility issues and Pfizer seems to have contributed significantly to this image in the past (justmeans.com). Multiple tragedies in the pharmaceutical industry in the 50’s and 60’s resulted in various regulations, guidelines, and laws on the introduction of new medical products. Globalization caused a rapid increase of multinationals in the industry, but sadly coercive pressures remained national. It was in 1990 that the International Conference on Harmonization of Technical Requirements for Registration of Pharmaceuticals for Human Use (ICH) was created (Castner et al., 2007). This group is composed of more than six parties that represent various regulatory bodies in the United States, Japan, and Europe. Multinational enterprises...
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...voluntary option. For these ends it will employ several actors such as the Global Compact in order to demonstrate the organisations who are leading the way in Corporate Social Responsibility. However, as the report will show, due to its predatory nature, financial sector requires more than voluntary organisations. The crux of the argument is that regulation needs to be international due to the interconnectedness and interdependence caused by globalisation, and it needs to be mandatory due to the predatory nature of the financial system. Introduction: In light of the 2008 financial crisis, this report will argue for international mandatory regulations in the financial sector to enhance its Corporate Social Responsibility (CSR). The banks for International Settlement and the Basel Committee have made positive steps to enhance understanding of key supervisory issues and improve the quality of banking supervision worldwide (Banks for International Settlement , 2012, [Online]). However, the crisis of 2008 and its devastating effects, not only showed that more effective mandatory regulation needs to be applied to control a predatory industry that is encompassed by unethical practice; but it also exposed the fact that we live in a globalised world. Initiatives such as the Global Compact have championed change in CSR, but are restricted by their...
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...Apple's Social Performance BUS475 Professor xxxxxxxx 02-07-2016 Apple’s Social Performance Social Performance Management (SPM), as defined by Myers (2013), is the process of effectively managing an organization so that the institution can achieve a desired social mission. SPM is a management technique that pays significant focus on the customer as the core indicator of its operations' decisions. It starts with a clear social strategy which is executed by the board, management, and employees of the institution. Corporate Social Responsibility is intertwined with Social Performance as it involves the firm utilizing its resources to respond or solve a social problem and achieve a social goal at the same time (Myers, 2013). The discussion highlights the elements of social performance and responsibility linked to Apple Inc, and shares insight on various corporate social responsibility concerns associated with the firms' past operational practices. Apple Products Over the last decade, Apple has managed to build a recognized brand in the communication industry. The electronics industry is very competitive with various companies offering diverse and innovative products and services (Myers, 2013). Apple Inc is an established American Hi-tech firm that has been in operation for over four decades with its headquarters in Cupertino California. The multinational corporation offers general hardware products, but it specializes in software and technology relied on...
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...2011, pp. 113–125 Adrian Pyszka Michał Piłat Cracow University of Economics Applying trompenaars typology of organizational culture to implementation of csr strategy 1. Introduction Nowadays many authors declare Corporate Social Responsibility (CSR) in strategic terms as it is no longer seen as the invention of some social activist but important source of competitive advantage. However various researchers still struggle to figure out what shape and utility should the tools of CSR have and what implementation model could be the best to fulfill the business objectives. The study aims to demonstrate whether Trompenaars bipolar model of organizational culture could prove useful while implementing CSR strategy and to propose some good practice in this case. 2. Theoretical framework Culture A lot has changed in world of management since 80s and many leaders tend to ask a question whether corporate culture is still important. However high interest in that area seems to be a sufficient prove that it still is. According to a recent survey by management consultancy Bain & Company, 9 of 10 senior executives believe that corporate culture is as important as strategy for business - - - - - Electronic PDF security powered by www.IndexCopernicus.com 114 Adrian Pyszka, Michał Piłat success1. Corporate culture is described as general constellation of beliefs, mores, customs, value systems and behaviors that are unique for each corporation (Tunstall, 1983). By...
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...CHAPTER 1 INTRODUCTION 1.1 BACKGROUND INFORMATION Corporate Social Responsibility (CSR) as a concept entails the practice whereby corporate entities voluntarily integrate both social and environment upliftment in their business philosophy and operations. A business enterprise is primarily established to create value by producing goods and services which society demands. The present-day conception of corporate social responsibility (CSR) implies that companies voluntarily integrate social and environmental concerns in their op¬erations and interaction with stakehold¬ers. The notion of CSR is one of ethical and moral issues surrounding corporate decision making and behaviour, thus if a company should undertake cer¬tain activities or refrain from doing so because they are beneficial or harmful to society is a central question. Social issues deserve moral consideration of their own and should lead managers to consider the social impacts of corporate activities in decision making. Regardless of any stake¬holders’ pressures. However, some arguments that the contri¬bution of concepts such as CSR is just a reminder that the search for profit should be constrained by social considerations (Manuel and Lúcia, 2007) and increasingly CSR is analysed as a source of competitive ad¬vantage and not as an end in itself (Bran¬co and Rodrigues, 2006). In effect, the concept of CSR has evolved from being regarded as detrimental to a company’s profitability, to being considered as some¬how benefiting...
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