...In today’s business environment, a firm’s survival is dependent on how it responds to its stakeholders; CSR is a way that response is communicated. This paper explores whether CSR is necessary for the survival of Banyan Tree in today’s environment. We will evaluate the possible ways that CSR benefits the company and show that CSR is not necessary for Banyan Tree’s survival but it does play a strategic role in building brand equity along with a sustainable business. Introduction Corporate Social Responsibility (CSR) There are multiple interpretations of what CSR means, and while there is no set principle, we have defined CSR as the duty of a corporation to create wealth in ways that avoid harm to, protect, or enhance societal assets for the purposes of discussion. Prevailing approaches to CSR were disconnected from strategy such that it obscured many opportunities for companies to benefit society . The outlook of CSR has changed since and modern business organizations have started to incorporate CSR, both internally and externally into their operations, aiming to achieve sustainable business development. This evolution arose due to increasing governmental regulations and societal expectations regarding the operation of companies, thus creating a divergence in business performance and expectations. CSR facilitates businesses in narrowing their performance-expectation gap . In the modern business environment, companies do not only compete on price and quality of...
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...Corporate Social Responsibility and Employees An insight into the relationship between CSR and companies’ own employees Corporate Social Responsibility vs. Employees Most of the current researches and data available today regarding Corporate Social Responsibility (CSR) initiatives are on the cause and effect of CSR initiatives on the customers’ perception of the company. According to those data, it is apparent that the more companies are involved with CSR initiatives, the better they perform in terms of customers’ brand and product evaluations (Klein). There is also quite a bit of information on how customers nowadays view company’s CSR with increasing weight and importance. However, there seems to be a shortage of information on how companies’ CSR initiatives affect their own employees. Because employees are the primary stakeholders who directly contribute to the success of the company, understanding employee reactions to CSR is helpful in discovering potential effects of CSR on firms and causes leading up to these effects (Bauman). Through observing employees’ perception on CSR and their attitude change due to their company’s investment in CSR, we can delve deeper into the intrinsic motivation behind companies’ CSR initiatives, rather than purely focusing on the results. The purpose of this research paper is to address this specific topic: relationship between CSR and companies’ employees. In addition to providing you with great insights on CSR’s impact on employees...
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...2. A Young Company’s CSR Motives 3. The Potential for Backfire 4. CSR Development: The Three Phases 5. A Mature Company’s CSR Motives 6. Vice Industries CRS Initiatives 7. Other Schools of Thought 8. Conclusion 1. Introduction Scholars explain the surprising fact that companies in the United States alone spend $9 billion annually on philanthropic causes by investigating the motives behind such apparent generosity (e.g. Cone et al., 2003). The critical importance of CSR derives from the fact that CSR practices have considerable influence on a company’s reputation and “the reputation of a firm is arguably the most valuable asset” (Peloza, 2006: 69). The term “corporate social responsibility,” or CSR, can be defined broadly as a firm’s charitable contributions and social initiatives, such as “philanthropy, cause-related marketing, environmental responsibility, and humane employee treatment, among others” (Ellen et al., 2006: 148). Researchers have found that over the past 30 years CSR correlated positively with corporate financial performance (CFP) (Orlitzky et al., 2003). “At its simplest, some argue that this ‘trend’ is purely self-serving marketing or philanthropy to offset concern over organizations’ increasing profit or corporate scandals.” (Brock, 2005: 58). By examining the motives behind CSR as purported by a broad spectrum of scholars, this paper will argue that companies initially implement CSR initiatives in an effort to increase...
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...STRENGTHENING STAKEHOLDER-COMPANY RELATIONSHIPS THROUGH MUTUALLY BENEFICIAL CORPORATE SOCIAL RESPONSIBILITY INITIATIVES C.B. Bhattacharya Daniel Korschun Sankar Sen Forthcoming: Journal of Business Ethics Abstract Corporate social responsibility (CSR) continues to gain attention atop the corporate agenda and is by now an important component of the dialogue between companies and their stakeholders. Nevertheless, there is still little guidance as to how companies can implement CSR activity in order to maximize returns to CSR investment. Theorists have identified many company favoring outcomes of CSR, yet there is a dearth of research on the psychological mechanisms that drive stakeholder responses to CSR activity. Borrowing from the literatures on means-end chains and relationship marketing, we propose a conceptual model that explains how CSR provides individual stakeholders with numerous benefits (functional, psychosocial, and values) and how the type and extent to which a stakeholder derives these benefits from CSR initiatives influences the quality of the relationship between the stakeholder and the company. The paper discusses the implications of these insights and highlights a number of areas for future research. 1 STRENGTHENING STAKEHOLDER-COMPANY RELATIONSHIPS THROUGH MUTUALLY BENEFICIAL CORPORATE SOCIAL RESPONSIBILITY INITIATIVES Corporate social responsibility (CSR), or “a commitment to improve community wellbeing through discretionary business practices and contributions...
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...New balance is the second largest manufacture of athletic shoes in the United States and it is currently the number four largest manufacture of athletic shoes in the world. The company has over 4000 employees worldwide. The company was the only global footwear manufacturer with production in the United States. Sales for its products were estimated to be over $2.0 billion. The company prides itself as the only footwear manufactures to with production factories on US soil. The current CEO is Robert De Martini. New-Balance athletic company still remains a privately owned company. The company owns five factories in the Unites states. Two in Massachusetts and three in Maine. What makes New-Balance company rise above other companies in terms of CSR, is the current owners James and Anne Davis; continued commitment being socially responsible and “giving back” to stakeholders. Under The stewardship of the Davies, New-Balance Company had always strongly braced corporate philanthropy, encouraged employee volunteering and ensured compliance in factories overseas. There are four areas existing or emerging issues with high potential to affect Footwear Company in the foot industry: • Concerned human and labor rights issues. Issues such as maximum work hours, health and safety in factories, use of temporary workers, transparency, responsible purchasing practices and “exit strategies” when closing factories overseas...
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...CSR Report 2011 detailed version CSR Enlightenment CSR Enlightenment Sony is engaged in a variety of efforts in line with its belief that a solid in-house organization and a high level of employee awareness is essential to ensuring the effective coordination of its CSR initiatives. Organization for Promoting CSR (Updated on August 31, 2011) Sony has established an office for CSR that is responsible for formulating policies concerning Sony's social responsibilities, implementing these policies throughout the Group and communicating with third parties through, among others, the sharing of information. The CSR office also handles CSR-related disclosure, promotes dialogue with stakeholders, ensures feedback reaches management and any pertinent Sony department (e.g., legal, compliance, environment, product quality, procurement, human resources, marketing) as well as interdepartmental meetings, and is incorporated into management's actions. The relevant departments promote CSR activities throughout the Group by ensuring policies and initiatives thus incorporated are conveyed to Group companies. Encouraging Awareness (Updated on August 31, 2011) Recognizing the importance of raising employee consciousness with regard to the effective promotion of CSR, Sony offers a variety of educational programs based on a three-level approach, whereby employees are encouraged first to learn about CSR, second to participate in CSR activities and third to incorporate CSR into...
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...The issue of corporate social responsibility (CSR) has become an increasing concern among individuals and society. CSR has thus become an integral part of arguably most businesses in light of topical issues. However, much skepticism towards businesses’ agendas underpinning their CSR initiatives is abounding. This may be justifiably so. Evidence suggests that CSR initiatives undertaken by both large businesses as well as small and medium enterprises (SME) are largely resultant of strategic and profit driven imperatives rather than humanitarian and altruistic aspirations. This essay will explore the underlying factors that compel Australian businesses’ CSR ventures by analysing their stances on CSR as well as extrinsic drivers of CSR, further citing CSR’s pertinence to businesses’ financial performance, hence evincing that altruistic reasons are not the foremost impetus for the undertaking of CSR for corporations in Australia. Definitions of CSR differ widely in literature (Truscott, Bartlett & Tywoniak, 2009). This essay will draw upon Carroll’s (1979) construct of CSR, comprising of economic, legal, ethical and discretionary responsibilities assumed by business entities, as a yardstick in determining the degree of CSR undertaken by firms. Economic dimensions of CSR encompass profit generation through effective business management, legal dimensions entail compliance with codified law, ethical dimensions embody adhering to ethical and moral parameters and discretionary dimensions...
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...Responsibility (CSR) play important role in organizations. In Indian industry one can easily notice a paradigm shift from corporate philanthropist to being socially responsible. The importance of CSR is increasing in Indian corporate scenario because organization have realize that ultimate goal is not profit making beside this trust building is viable and assert able with societal relationship. The compulsion of CSR has emerged in last two decades when Indian organization realizes the importance of sustaining in this cutthroat competition era. Before this Indian industries had materialistic culture. In the hue and cry of LPG (Liberalization, Privatization and Globalization) companies were only focused toward profit maximization which led social backwash. To overcome this fashion CSR play an important role in sustainable development which is only possible when there is a balance between profit and lowering social backwash or eradicating it. The problem with Corporate Social Responsibility is that nobody is very clear about what exactly it encompasses. The Indian government has been trying to make it mandatory for companies to spend at least 2% net profits on CSR. Today CSR to some companies means providing lunch to their employees or tackling global warning issues. Now a day’s company have become more transparent in their balance sheet. They are displaying public reporting in their accounting. Companies are incorporating their corporate social responsibility initiative in their...
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...society extremely seriously and their CSR programs reflect this. It is a clearly crafted strategic imperative with outcome based goals. The CSR programs that have been chosen reflect the quirky brand personality – the...
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...Publications, 2012 DOI: 10.5829/idosi.ajbas.2012.4.3.1593 Corporate Social Responsibility Initiatives of Major Companies of India with Focus on Health, Education and Environment Anupam Sharma and Ravi Kiran School of Behavioral Sciences and Business Studies, Thapar University, Patiala, India Abstract: Corporate social responsibility (CSR) is emerging as a new field in the management research. In India, many firms have taken the initiatives of CSR practices which have met with varying needs of the society. The present study has made an attempt to understand the status and progress and initiatives made by large firms of India in context to CSR policy framing and implementation. Data has been collected from the official websites of the firms, in-person interviews and through structured questionnaire. The CSR initiatives in context to health, education and environment sector to be rated by the interviewee were identified from the literature. Based on the information and discussions mentioned a matrix of various policy factors has been prepared. All initiatives factors have been rated on the scale of 1 to 5. Results of the study depicts that IT and Auto industry is more going for taking up CSR initiatives while FMCG sector has focused yet not too much into the social responsibility initiatives. Although India has entered or taken a transformational change by involving into new CSR initiatives, but still a lot has to be done in this area. Key words: Globalization Liberalization Policy-framing...
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...Contemporary Review on CSR Theories and International Standards Chapter 1: 1.1 Introduction The concept of CSR has been traced through the corporate system for centuries throughout the world; however a formal writing of CSR has been into the limelight since 1950s ie the 20th century and hence has been named as the modern era of CSR. Through years, lot of researches had defined and explained CSR based on their empirical research, understanding, alternative themes and frameworks. In short the entirety of CSR can be understood from the three words contained within its title phrase- ‘corporate,’ ‘social,’ and ‘responsibility' viz a viz “Corporates are being responsible for the Society". This article aims to explain the meaning, underlying concepts and theories of corporate social responsibility. Let us now understand the meaning of CSR and why is it important in modern days. Definitions of Corporate Social Responsibility (CSR) The broadest definition of CSR defined by The Prince of Wales International Business Leaders Forum is, ‘‘CSR means open and transparent business practices that are based on ethical values and respect for employees, communities, and the environment. It is designed to deliver sustainable value to society at large, as well as to shareholders’’ (http://www.iblf.org/csr) Emergence of CSR The concept of Corporate Social Responsibility started late back in 1950’s. Howard R Bowen (1953), who rendered an early and seminal definition to CSR as "the obligations...
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...CSR and EDUCATION 1A Kalyani, Assistant Professor, NBN SSOCS, Pune Dist, koukuntla.kalyani@gmail.com 2Dr. K E Balachandrudu Professor & HOD-CSE, PRRMEC, SHABAD – R R Dist. Kebalu.chinni@gmail.com 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. 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. In India companies like TATA and Birla are practicing the Corporate Social Responsibility (CSR) for decades , long before CSR become a popular basis. In spite of having such good glorious examples; In India CSR is in a very much budding stage. A lack of understanding, inadequately trained personnel, coverage, policy etc. further adds to the reach and effectiveness of CSR programs. Large no. of companies are undertaking these activities superficially and promoting/ highlighting the activities in Media. Keywords: Corporate social responsibility, higher education, competitive advantage, Societal Marketing, reputation. Introduction In a societal structure, we have many stakeholders, one amongst them are companies or Corporate Houses. These Corporate...
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...and executive vice-president, administration (Veleva, 2010, p. 2). James Davis saw great growth potential for the company after trying out the shoes himself (Veleva, 2010, p. 2). New Balance experienced enormous growth and its sales increased more than 600% between 1991 and 2008, achieving $1.61 billion in that year (Veleva, 2010, p. 3). The owners, James and Anne Davis had always operated New Balance in a socially responsible way, but did not have a formal CSR department or strategy for the business and did not advertise their CSR activities to the public (Veleva, 2010, p. 5). In 2006, James and Anne Davis formally integrated CSR into New Balance’s mission and values (Veleva, 2010, p. 5). Katherine Shepard, the company’s communications manager was promoted to the role of social responsibility manager in 2007, and her goals included maintaining its socially responsible culture when taking over new brands, increasing transparency to increase stakeholders’ trust, and becoming a CSR leader in the industry to keep up with CSR activities of competitors (Veleva, 2010, p. 1). Shepard joined the company after learning that their shoes are made in the United States (Veleva,...
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...WHAT IS CSR? WHAT CORPORATE SOCIAL RESPONSIBILITY? IS 8 QUESTIONS & ANSWERS JULY 2002 21ST CENTURY CORPORATE SOCIAL RESPONSIBILITY: ADVANCING FAMILY PLANNING AND REPRODUCTIVE HEALTH W HAT IS CORPORATE SOCIAL RESPONSIBILITY? 8 QUESTIONS & ANSWERS JULY 2002 CATALYST Consortium is a USAID-funded family planning and reproductive health activity focused on working in Asia and the Near East, Europe and Eurasia, and Latin America and the Caribbean. Composed of five equal partners — Academy for Education and Development, The Centre for Development and Population Activities, Meridian Group International, Inc., Pathfinder International and PROFAMILIA/Colombia, CATALYST is dedicated to working in partnership with the public, private and NGO sectors in developing, expanding and sustaining quality family planning and reproductive health services and healthy practices through both clinical and non-clinical programs. Special Acknowledgments CATALYST extends its appreciation to the Health Team of the Asia and Near East Bureau, USAID/Washington for its encouragement, support, and contributions in the development and production of this material. Credits Principal Author/Project Manager Zynia L. Rionda, MPA Contributors Victoria Baird, MBA Christina Kramer, MBA David Wofford, MS Photography Zynia L. Rionda, MPA Graphic Design De Val Grafik Source, LLC 202.362.7600 © July 2002, CATALYST Consortium This material was made possible through support provided by...
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...improving the quality of life of the society and it must come voluntarily from the corporate houses and their top management. Thus, for a fast growing economy like India which is striding fast to become a developed country, the participation of the business houses in strengthening the economy has become indispensable.CSR is not new to India, even before CSR became a popular cause, it did exist in India. Companies like TATA and BIRLA practiced it in the form of social initiatives. In the light of the above, the paper attempts to explore the CSR initiatives and best practices of various selected Indian companies in Agricultural sector. Objective: The objective of this paper is to examine the nature and extent of corporate social responsibility (CSR) initiatives under taken by selected Indian companies in Agricultural sector and to study its relevance in business. Research Methodology: The research paper is an attempt of exploratory research, based on the secondary data sourced from websites, journals, magazines, articles and media reports. To study the above objectives 8 agro based companies were selected based on the CSR Report in their website. Limitations The main limitation of this paper is that this study has only focused on a small sample of Indian companies. Secondly, information was collected from print literature, websites of these companies and no primary data were collected directly from the stakeholders through interviews or surveys. Introduction: ...
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