Corporate Social Responsibilities

This report discusses the importance of Corporate Social Responsibilities (CSR) for corporations and society. It analyzes the remarks made by Tony Abbott on the involvement of corporates in public matters and political subjects. The report identifies the advantages of CSR for both corporations and society, including increased revenue, customer loyalty, and a positive brand image. It also discusses the disadvantages of CSR and the boundaries that companies should not cross. The subject is relevant to business and management courses.

Running Head: CORPORATE SOCIAL RESPONSIBILITIES
Corporate Social Responsibilities
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Executive summary
From the remarks by Tony Abbot: “the big banks should have focused on treating their
customers ethically rather than spending time “virtue signalling” on “politically correct
subjects”. This has brought about the need for the public to understand what CSR means and
how it impacts aa country as huge as Australia. This has brought us to this report that will
significantly address the issue, identify the advantages brought about by the CSR within a
company to the society and also identify some of the boundaries the businesses should not
cross under the name of carrying our corporate service responsibilities. The remarks by Tony
Abbot had some major impact to the country as well as the corporate sector hence a well
educative report will help clearly place the impact associated with CSR.

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Table of Contents
Introduction...........................................................................................................................................4
Understanding CSR...........................................................................................................................4
Analysis of tony Abbots remarks.......................................................................................................6
Importance of Corporate social responsibilities.....................................................................................7
Importance of CSR to the community...............................................................................................7
Importance to the corporation............................................................................................................9
Disadvantages of C0rporate S0cial Responsibilities............................................................................12
Conclusion and Recommendation.......................................................................................................13
References...........................................................................................................................................13

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Introduction
Understanding CSR
Understanding the importance of CSR from a customer’s perspective or a business
perspective calls for a clear definition of the terms and a well-illustrated example that will
help drive ones understanding in relation to the point of concern. CSR is the abbreviation for
the terms Corporate social responsibilities. Other terms also include corporate sustainability,
sustainable business, corporate conscience, responsible business and finally a corporate
citizenship. CSR fall under the international private business self-regulations. The perfect
definition of this can be: the social regulating business models that help a company b socially
accountable to both the shareholders and the public (Babiak & Trendafilova, 2011). A good
example can be the extra activities a business or a corporate venture in so as to specifically
not make profits but affect the public or the community as well as the environment around it.
For instance, a company may decide to operate in a clean environment and the management
of the company would come up with a program that would be fully funded by the company,
where the company approaches the community around it and engage them to a cleaning
environment program. The company invests its resources and ensures the environment
around it and the community around it are clean. Such activities in most cases are not profit
motivated ventures of the company but they fall under the CSR of the company. There are
multiple other examples such as the education scholarships (Davidson, 2016). This is one of
the most practised CSR programs by many companies or corporates. The company provides
scholarships to the public where the learners are fully or partially sponsored by the company
resources. CSR helps the corporation as well as the community in some many ways but on
the other side utilizes the corporate profits. For other cases this has had a negative take by the
shareholders and other key members of the corporate who fail to adapt to the regulations of
CSR and clam that a business should abide to the governing laws of the business and

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generating of revenue but not the indulgent in social responsibilities of the public (Visse &
Tolhurst, 2017).
Different opinions are experienced where some tend to concur with the fact that this helps
while others decline, the argument being that the only responsibility a corporate has is to
obey all laws as seen earlier and to maximise the corporate profits and anything in contrary of
that affects the maximization of profits (Jackson & Rathert, 2016).
For this report a clear analysis of the remarks by Tony Abbot in relation to corporates and
their involvement with the political subjects among other public matters that are not directly
associated with the corporates field of operations which are both;
“I’m very disappointed in the banks and you wonder how much better the banks would have
been if they had been focused on doing their core business honestly and ethically rather than
running around the place virtue signalling on any number of politically correct subjects,” Mr
Abbott told 2GB radio
“big banks should have focused on treating their customers ethically rather than spending
time “virtue signalling” on “politically correct subjects”.
For the analysis a deeper understanding of the remarks will be analysed which will shed light
on the relevance and the importance of CSR as the point of concern. Then the report will go
on and give a well analysis of the relevance of CSR in the corporate industry by focusing on
both sides the public and the corporate sector. As the report progresses an over view of the
drawbacks o CSR will be covered and help understand the boundaries CSR as regulations
should work within, later in the paper we will get to marry the analysis of Tony Abbot’s
remarks and the understanding attained by the analysis of the relevance of CSR to both the
corporates and the public. At this juncture one will be in a position of either support the
remarks by Tony Abbot or disapproving the remarks.

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Analysis of tony Abbots remarks.
After reading the remarks by Tony Abbot in relation to the corporates involvement to public
matters and political subjects, it is evident that the remarks are filled with some level of anger
and frustration. He goes ahead and claims that the banks need to stick to their line of
operations and worry more about the services and the ethical treatment of customers which is
currently missing. This shows a neglect of responsibilities by the banks a clear breach of the
corporates requirement. It is the responsibility of the of the banks to ensure that the services
offered to the customers are satisfactory as well as the business should be carried out
ethically. These points required more emphasis since clearly as per Tony or other interested
parties before adapting a CSR the company structure and response to the law and its
responsibility to the corporation should be met. On the other hand, legally there is no
restriction that prevents the corporations from getting entangled with the public
responsibilities. The political matters fall under the publics domain which implies that the
banks had all the rights to nose in the public matters. According to the definition and
adaptation of CSR covered in the introduction, the corporate can take up social
responsibilities and effectively impact the life of the public. This would significantly affect
the company’s position in the market. This leads us to the next important aspect of the report
which involves understanding the importance of CSR
Importance of Corporate social responsibilities.
As identified in the introduction, CSR is a broad term that is used to describe the company’s
efforts to improve society in different ways, these efforts can range from donation of money
to bob profits to implement environmentally friendly policies and other activities directed to
developing and growing the community. This bring about multiple advantages of CSR
(Brammer, Jackson, & Matten, 2012). The advantages can be understood as the importance
of CSR. These can be categorized into both the society and the corporations.

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Importance of CSR to the community
In respect to society, CSR programs have helps it in the creation of a better ambience
between the people and the corporation. It impacts multiple thing in connection to the
responsibilities the corporate takes up (Wang et al., 2016). For instance, donation of money to
the cancer project. Such a project under CSR by the company impacts the lives of so many
people in the society, the move helps in the fight against cancer and helps the community
member suffering from the condition receive treatment. This move has a great impact on the
health status of the society. This improves the living standard of the people within the
community. CSR regulations that sees a company or a corporate investing in promoting
education in the society, this is done through different moves such as building schools or
providing educational scholarships to the community (Rasche et al., 2017). This advances the
level of education within the community making it appreciate the corporation more. Other
corporates advance the security of the community by provision of security lights among other
security measures within the communities around this. This impacts the community’s security
levels of the community residents and all in regards to the CSR policies and regulations.
Other CSR regulations are for the natural environmental protection which involves the
plantation of trees for instance around the community (Kiessling, Isaksson & Yasar, 2016).
Such cases help in the preservation of the forests and the natural rivers around the
communities. Also, such moves by the CSR shows the value for the communities’
environment hence significantly impacting the residents within the community around the
community. CSR also provides the customer support and care regulations such as the
production of quality produces for the community and providing theses products r services to
the community at a subsided price (Tai & Chuang, 2014).
CSR impacts the lives of the people and its customers a lot which paves the way for a health
relationship between the community and the corporation. Companies invest in educating the

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public in relation to technology for instance by offering classes. This advances the technology
know how of the community. Some skill sets attained in such programs open ways to the
community members and gives them chances to turn their life around which is very
important. The minute the corporation is identified in line with such work, the CSR body
integrated and applied by the corporation really helps the growth of the community as well as
the corporations’ image.
The image below is a diagrammatic representation of the advantages associated with the CSR
programs for the corporations.

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Figure 1. Benefits of CSR to the community (Visser & Tolhurst, 2017)
In reference to our case, Tony abbot calling for the corporations to get off the political issues
within the country since this fall off there are of operations means the curtailing of all the
mentions important aspects of CSR to the community, this indirectly cripples the community
in relation to the multiple projects currently under CSR programs of different corporations.
Importance to the corporation
On the other hand it is important to address the importance of CSR to the corporation. One of
the most important advantages brought about by the adaptation of the CSR to the corporation
is the increase in the revenue income for the company, the company by serving the
community increases the number of loyalty customers as well as increases the number of
customers that are willing to buy products and services from the company. Within the
community this happens via the change in the community’s perspective towards the company
or corporation, a research by (Herrera, 2015) which interviewed a number of customers in
relation to why they ick different companies over the other showed that most of the
customers picked a company that showed a since of care and love for the people. This was
evident from the different programs the companies were engaging with the people such as the
covered discussion above. Customers feel more appreciated and valued buy the company
hence this in return leads to customer loyalty. In relation to the incomes generated by the
company, the business manages to increase its profit margins as the level of losing any
customers reduces (Jackson & Rathert, 2015).
The company also manages to establish a brand in the industry. CSR involves the creation of
an amicable relationship between the corporation and the customers who are the community
served by the company. CSR gives a company an image as to what they do and how
effectively they do this. Indirectly, the customers start associating the company with the

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different CSR projects the company handles hence creating an image for the company. A
well-established image impacts the company’s market share as well as number of loyalty
customers the company manages to have. Company image helps the company increase its
profit margins as well.
In relation the productivity of the company, CSR programs such as employee training
increases the productivity of the company employees. The company may conduct an
advanced technology integration program for the employees, such a program significantly
impacts the company’s productivity, this enlightens its employees on the needed information
and how to apply it in the production cycle of the company (Buhmann, 2006). The awarding
mechanism after such programs among other program motivates the employee’s loyalty to
the corporation. It manages t retain its employees for long since they are comfortable at their
place of work hence no need to transfer from the company. This has been seen in some
companies and with this the company manages to have a skilled workforce team that
manages t elevate the quality of services and products the company has to offer the
customers.
With such performance records as well as the well-integrated CSR model, the company
manages to attract investors. According to (Bondy, Moon, & Matten, 2012) investors are
willing to invest in such a business since most of the appreciate the work the company does
to the community. The investors provide operational capital for the company and help grow
the business further. Different business opportunities also emerge in the prosses of receiving
more investment. With the availability of funds to run the company, the production rate for
the company also is significantly amplified hence taking the business at a high level of
competitiveness with any competitor company (Jamali, El Dirani, & Harwood,2015). Also,
this helps in the improvement of the relations with the investors. Companies with best CSR in

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most case manage to satisfy the investors since they see the funds generated by the company
are put into good use.
The diagram below is a diagrammatic representation of the of the benefits of a CSR model
which has been effectively integrated in the company.
Figure 2: Benefits of CSR to the corporation (Visser & Tolhurst, 2017).
Disadvantages of Corporate Social Responsibilities
There are a number of disadvantages which are associated with the implementation of a CSR
within a corporation. For instance, with our case Tony Abbot representing the government
body may feel threated that the corporation is overstepping its boundaries in relation too the
matters they are supposed to handle, in case of such a case this brings about a conflict of
interest between the corporation and government or the public (Öberseder, Schlegelmilch, &

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Gruber, 2017). These cases have been seen severally and have been the leading issues in
relation to the limits that CSR is not expected to go beyond. The other challenge is the use of
corporation funds, stakeholders may feel that the company is stepping out of line in relation
to its requirements which are the generation of profit but not the use of these profits
(Bachmann & Ingenhoff, 2016). This has also been a challenging disadvantage of the CSR
model; different bodies have been fighting over the used funds in the CSR projects such as
the construction of roads or other finance depleting ventures.
Conclusion and Recommendation
CSR is one of the most important things among corporations that should not be overlooked.
In regards to Tony Abbots remarks there was a misunderstanding in relation to the good
associated with the continued implementation of CSR by the banks. The banks have done
nothing wrong to chip in an contribute to the public affairs and help out where possible. But
at the back f our minds these corporations should ensure they first meet their responsibilities
such as ethical treatment of the customers. In relation to the report one would recommend a
few things in relation to CSSR, the public and corporations need to embrace the impacts
associated with the integration of a CSR model to the company and its associative advantages
as well. This will help create an understanding of the benefits of CSR and avoid any other
cases such as that of Tony Abbot from reoccurring. In case of any limitations that CSR
should operate on then these should also be identified an opinion that may vary from one
person to the other.

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References
Babiak, K., & Trendafilova, S. (2011). CSR and environmental responsibility: motives and
pressures to adopt green management practices. Corporate social responsibility and
environmental management, 18(1), 11-24.
Bachmann, P., & Ingenhoff, D. (2016). Legitimacy through CSR disclosures? The advantage
outweighs the disadvantages. Public Relations Review, 42(3), 386-394.
Bondy, K., Moon, J., & Matten, D. (2012). An institution of corporate social responsibility
(CSR) in multi-national corporations (MNCs): Form and implications. Journal of
business ethics, 111(2), 281-299.
Brammer, S., Jackson, G., & Matten, D. (2012). Corporate social responsibility and
institutional theory: New perspectives on private governance. Socio-economic
review, 10(1), 3-28.
Buhmann, K. (2006). Corporate social responsibility: what role for law? Some aspects of law
and CSR. Corporate Governance: The international journal of business in
society, 6(2), 188-202.
Davidson, D. K. (2016). The importance of context in understanding CSR. The Research
Handbook on Corporate Social Responsibility in Context, Edward Elgar Publishing
Limited, Cheltenham, 32-45.

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Herrera, M. E. B. (2015). Creating competitive advantage by institutionalizing corporate
social innovation. Journal of Business Research, 68(7), 1468-1474.
Jackson, G., & Rathert, N. (2016). Private Governance as Regulatory Substitute or
Complement? A Comparative Institutional Approach to CSR Adoption by
Multinational Corporations☆. In Multinational corporations and organization
theory: Post millennium perspectives (pp. 445-478). Emerald Publishing Limited.
Jackson, G., & Rathert, N. (2015). Multinational Corporations and CSR: Institutional
Perspectives on Private Governance. Research in the Sociology of Organizations.
Jamali, D. R., El Dirani, A. M., & Harwood, I. A. (2015). Exploring human resource
management roles in corporate social responsibility: the CSR‐HRM co‐creation
model. Business Ethics: A European Review, 24(2), 125-143.
Kiessling, T., Isaksson, L., & Yasar, B. (2016). Market orientation and CSR: Performance
implications. Journal of Business Ethics, 137(2), 269-284.
Matten, D., & Moon, J. (2008). “Implicit” and “explicit” CSR: A conceptual framework for a
comparative understanding of corporate social responsibility. Academy of
management Review, 33(2), 404-424.
Öberseder, M., Schlegelmilch, B. B., & Gruber, V. (2017). “Why Don’t you care about
CSR?–A Qualitative Study Exploring the Limited Role of CSR in Consumption
Decisions. In The Customer is NOT Always Right? Marketing Orientationsin a
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(2017). The changing role of business in global society: CSR and beyond. Corporate
social responsibility: Strategy, communication and governance, 1-28.

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Tai, F. M., & Chuang, S. H. (2014). Corporate social responsibility. Ibusiness, 6(03), 117.
Visser, W., & Tolhurst, N. (2017). The world guide to CSR: A country-by-country analysis of
corporate sustainability and responsibility. Routledge.
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