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Corporate Social Responsibility: A Key Aspect of Organizational Development

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Added on  2023/06/12

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This paper discusses the importance of Corporate Social Responsibility (CSR) in organizational development. It highlights the key areas of CSR practices, benefits of CSR activities, and aligned theories and models to illustrate CSR activities.

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Running head: CORPORATE SOCIAL RESPONSIBILITY
CORPORATE SOCIAL RESPONSIBILITY
Name of the Student
Name of the University
Author Note

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1CORPORATE SOCIAL RESPONSIBILITY
Table of Contents
1. Introduction..................................................................................................................................2
2. Corporate Social Responsibility..................................................................................................3
2.1 CSR practice..........................................................................................................................4
3. A benefit of CSR activities..........................................................................................................6
3.1 Aligned theory and model to illustrate the CSR activities....................................................8
4. Examples of companies from different countries and their CSR reports..................................12
4.1 Ford CSR and Sustainability Report....................................................................................12
4.2 Nestlé’s CSR and Sustainability Report..............................................................................17
5. Conclusion.................................................................................................................................21
References......................................................................................................................................22
Appendices....................................................................................................................................25
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2CORPORATE SOCIAL RESPONSIBILITY
Topic: Corporate Social Responsibility is the prime commotion of corporate practice.
1. Introduction
Corporate Social Responsibility (CSR) is the social beneficial programme that
implements the programmes and practices of the organisation to develop the culture of the
organisation. There are some strategies that CSR used to take for the further development of an
organisation and to make a good position in the globalised business market. There are some
challenges that company governance has faced and CSR department has to take care of that. The
most important part of this process is to deliver positive feedback for the company so that
management can get to know the situation of the market and what permissible steps need to be
taken for the sustainable development of the organisation.
The paper is entirely based on the key understating of CSR roles and responsibilities to
work in an efficient way so that three practices of their commitment will perceive in a suitable
way. The practices are influencing the increase employee loyalty and deliver the positive
reputation of a company. The environmental consciousness and the social concerns are
encouraging in that case and that somehow deliver the better situation analysis of the
organisation. Profit, People and Planet are the three important factors that CSR department. In
that case, the major accessibility is to highlight all these sections to clarify the outrange activities
of the company, that people trust on. In this paper, two companies form two sectors have chosen
(Schwartz 2017). Ford is a multinational company headquartered in the US and another is Nestle
headquarter in Switzerland. Both these companies are formed diverse section and they have
different CSR strategies altogether, and that is the reason their CSR importance is the right way
to deliver the aspect. The sustainable strategy for the long run in business culture is the main
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aspect of CSR process and amalgamation of business understanding is the best process to
evaluate their business.
2. Corporate Social Responsibility
There are some key areas that CSR department and they maintain their keen observation
and monitoring over these. The first responsibility they consider is corporate governance and that
fact is entirely based on the improvement of the company. The next aspect focuses on the ethics
and compliance, where company's ethics is the key aspect of the organisation (Tai and Chuang
2014). Human resource is the next aspect after this and in most of the cases; the better human
resource can develop the infrastructure of the company. Responsibility supply chain is the key
aspect of the organisation and through the supply chain; the entire process has been maintained.
Quality and service is another important aspect that needs to be mentioned in that case and
organisation is delivering their best quality product and services for the development of the
organisation. The environment is one of the concern aspects for CSR, and they put their entire
focus over that to make the process in a sustainable way. An organisation is the accumulation of
community and in most of the cases, their engagement with is the path of developing progress.
Through the community development, all genres of people work together and make some
innovative move to the organisational success (Carroll 2015).
In case of gaining more advantages from the competitive market, CSR is the advanced
version of implementation. The environmental supervision, eco-efficiency, responsible source of
the process, social equity, good and understandable management and anti-corruption measures
are the additional responsibilities that CSR department needs to take in an efficient manner. The
process is good in such range, whereas operational cost saving and presenting the company as

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easy approach to marketing is effective for the organisation as well. The process is challenging in
most of the cases when people are not engaging with the concerned company, then CSR
department has to think about the alternative way (Aguinis and Glavas 2012). For the
development of environmental safety, security and upgradation, the CSR has put their effort in
that, and through their practice and efforts, the approaches are quite impressive for the
organisation.
2.1 CSR practice
Universally, CSR is the intentional determination of Corporate to activate in an
economic, social and environmentally justifiable manner. In practice, ample of the CSR actions
completed so far has been motivated by the concerns of stockholders, companies, operation
groups and consumers built in the world’s richest nations. In consequence of that, the CSR
practices that are mostly mounted in rich nations are then internationalized and conveyed
through businesses and social backgrounds by mode of international employment, investment,
and expansion assist. The establishment of this model and the diminuendos of the rendezvous
therein were arrived by following a counselling process by fetching with all stakeholders that
staple (Cheng, Ioannou and Serafeim 2014). By doing this process, the government grabbed a
constructive discussion with all apprehensive stakeholders to attain at the most applied and
effective explanation of CSR that could also be moved out in an operation mode. In case of
better approaches, the practices are important for the development of the organization.
There are some practices that need to be a highlight in that segment to understand the
situation of the better practice in the organisation. Setting measurable goals is the first approach
that companies can set for their positional development. An organisation and their respective
CSR team need to understand their limitation and then propose their plan for to set goals that are
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measurable. Improving better recruitment, employee policies, decrease the turnover ratio and to
develop the bonding in an effective manner of organisation development. Stakeholder
engagement in a proper way is maintaining the proactively, values, mission, and strategies and
delivers the innovation of the process in a right way (Kim, Park and Wier 2012). In case of
potential crisis, supports from stakeholders are important and in case of moving forward of
business the influencing manner are coming in an effective way of development. The mapping of
sustainability issues is also important. Some of the key issues need to be narrow down by the
CSR team so that effective process needs to be introduced. In case of mapping, some major
priorities will not be taken, and that signifies these priorities are not effective enough for the
particular organisation. To ensure the environmental social and economic concern a framework
development is needed for the sustainable posting of the organisation.
CSR is a notion whereby companies not only reflect their productivity and evolution but
also the attentiveness of society and the environment by taking accountability of the effect of
their actions on stakeholders and all the associates of community range. The use of this process
is quite practical as the achieving nature of meeting goals and objectives are the concerning
aspects of that (Dhaliwal et al. 2012). In case of a better decision-making process, effective
manner and touch of innovation is the right way to ensuring the achieving process of the
company. Lifecycle assessment and cradle-to-cradle approach is the effective way of enhancing
company's creativity and innovation. In this sectional approach creativity matters and through
that process better organisational maintenance can be done. Re-using of products and build
customer rapport is the concerning aspect of this section and the product disposal rate identifies
the position, source and quality of a company and through this process more life cycle
assessment is done. Sustainability or engaging with the stakeholders' initiation with the company
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is the concerning aspect of this stage (Bank 2012). An environment-friendly approach is the
highlighting aspect of this practice and CSR executives evolve this aspect in their promotions to
justify the positives of the company and delivering the best way of self-regulation also.
Transparency is another key aspect of CSR practices, as they need to be transparent for the
development of the organisation. Many cases are there where financial transactions are being
taken place; in that case, CSR department needs to take the initiative to process those cases. So,
transparency is the key objective in that case. Sustainability branding is the key aspect of practice
in that case and alignment of market share is important in those cases (Crane, Matten and Spence
2013). Consumer savvy market and remaining use of the competitive form is the major concern
for any of the organisation and the way CSR design their market structure with the use of
customer base process.
Create stakeholders involvedness with CSR is the best outcome of this process and
through this process, media consumption habits and incorporation strategies have discussed.
Communication with the stockholder's group is important as they managed the entire scenario of
the management. Thus, their intervention will help the business practice to understand
organisational limitation and state their future plan according to this.
3. A benefit of CSR activities
There are some benefits that organisation has found to have for the better position of the
organisation and in such cases, their involvement with the organisation helps them to influence
the positive changes in the organisation. An effective change has been noticed in that process and
genuinely organisation is being developed by the process of CSR activities. 93% of world largest
250 companies publish their CSR report; this is an indication to show that the organisation is

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monitoring all three aspects of business like product, price and planet (Servaes and Tamayo
2013). In case of planet and people, the main attraction of peoples' satisfaction has come in that
place. $17.8 billion amount has been invested by different companies in this last year and that
showcases companies are trying to promote their brand and make a connectivity to join such
situation that allows a better deal for the organisation. Employees who are convoluted with their
company's CSR programs will be more creative and job consummation levels will grow. This is
good for conservation rates as well as employing successful future employees. Effective
programs lead to happier staff, communal influence, and ecological sustainability (Aguinis and
Glavas 2012). Possible clients and customers take a footnote of that and it generates a much
stronger bond with them. The consumer is more expected to employ their money on a company
that has a robust CSR program and activity. Some of the benefits are really important for the
organisation as well as for employees.
Improvement of public image is the concern matter for the company and through the
programmes; companies are promoting their brands and make a good shape of creating an image
of the company in the mind of people. Through this donation process of a seminar, fair or any
kind of volunteerism, the companies are enhancing the field that involves more people with them
and that is the reason the organisation uses this process.
Another benefit that organisation can claim is the increasing media coverage. Through
the community and social responsibility better benefit will be avail in the process for media uses.
Though controversies or the bad news are spreading in the fastest manner the use of media
coverage can help in publishing some good work also. Media visibility has shed some positive
light on the work of the organisation.
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Employee engagement is the correct way to enhance the CSR process of the organisation.
Nearly 60% of the employees are improving their engagement issue with the organisation and
delivering process helps to enhance the situation as well (Edmans 2012). Employees are the asset
of the company and their involvement will rich the company by innovativeness, workplace and
positional aspect in a globalised business field.
Investors are the concern benefit for an organisation. Investors are considered here as the
stakeholders also so their initiation is needed for the development of the business. When
companies are donating a huge amount of money to a non-profit organisation or charity function
a huge promotion of the product has been done and free sample tasting is also there (Jo and
Harjoto 2012). This process needs to be implemented for the better development of the
organisation.
Operational cost saving and easier access to capital are the two most concern reason that
consequently increase sales and provide customer loyalty to manage better organisational
development and make completive advantages form the environment and people (Aguinis and
Glavas 2012). The process can also surface greater ability to retain talent and staff management
and these processes are also indulging some experience and innovativeness in business and
considered as benefits for the CSR.
3.1 Aligned theory and model to illustrate the CSR activities
Some of the models are justifying the core management issues and participate in the integral part
of the action and values. The foundation of corporate values affects the situation and dynamic
change in their model deliver a combined effect on business (Mousavi et al., 2013). A mutual
influence has come in that section to justify the real reason of CSR model and agreed with the
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applied principle of the model. In case of pyramid model is show the hierarchy and separate the
responsibilities, whereas intersecting circle model is the non-hierarchical set of responsibilities
and the last one is the concentric model and it shares all things in a central core. The theoretical
assumptions of these three models are:
Assumptions CSR Pyramid Intersecting Circles Concentric Circles
Nature of CSR Responsiveness is
normative and that
restrains in some cases.
The framework is class
in sense of no
normative guidance is
applied over the
framework.
The model signifies
incurred obligation for
the social development.
Scope of
Responsibilities
The scope is narrow in
that case.
This work in a split
form and opportunities
are also getting split in
that section.
This has a wide range
of responsibilities.
Total CSR The form of total CSR
is a conjunction and
formed in a compact
way.
This is a disjunction
form of CSR process.
The integration process
is persisted in that
section.
Importance The basic importance
of this model is to
place in the hierarchy
form and economic
responsibilities will be
considered as the best
form of this process
(Khan, Muttakin and
Siddiqui 2013).
There is no such
hierarchical order has
been placed so the
importance is quite
clear in that from.
This is an inclusion
system so the factor of
the economy is placed
in the middle of the
model.
Role of Philanthropy The assumption is
placed to garnish the
Subsumed under the
economic process and
This is an integral part
of CSR and in that

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process, as there is an
extra effort that
philanthropic process is
doing on.
that process as the
ethical responsibilities
are the concerned
aspect of this model.
case, the addressed role
is the correct form of
business as well.
Relationship The relationship is
positive in that case.
In this case, the
relationship varies as the
aspects are intersecting
each other so there is a
chance to have the mix
and match the emotions
(Emeana 2013). So
positive negative or
neutral relationship may
be persisted.
This is the process where
a non-linear relationship
is formulated.
Justification for CSR This is ethical pay for
maintaining the situation.
The process of strategic
consideration is persisted
in this section.
A normative obligation is
present in that case and in
most of the cases, this
applied range has
established.
Table 1: Assumptions of CSR aspects
(Source: Jo and Harjoto 2012)
The use of triple bottom line process is the concerning aspect of this process and that is
the reason three aspects of accounting framework is aligned with. The three aspects are social;
environment and economic process are the main aspects of performance evolution. These are
inter-related in some cases and that term is consisting al the process. In case of the social aspect,
charitable consideration is the best process to define the matter (Jo and Harjoto 2012). In consist
of trade and employee welfare also. The social upgradation is required in that case as the
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proposed thinking of social lining is important in that case. The next section of the triple bottom
lining process is environment aspect.
Figure1: Triple Bottom line Model
(Source: Created by author)
The environmental matters are segmenting their process into three sections also. The
resource consumption is the main process in business and through the aspect of environmental
safety; all the companies are doing same at the moment. The next concern is the waste
management and organisation needs to take concern over the process (Kitzmueller and
Shimshack 2012). At the initial level of business understanding most of the companies are
concerned with their profit aspect but now the situation has come when they have to take care of
the environment as well. The relationship is so mandatory that every organisation now taking
their CSR initiative for the further development of their company. The land use is the concerning
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aspect of environment process; if the concerned industry somehow wastes the land then media
people will ruin the position and culture of the company. CSR department takes care of this
section to make a profitable process for the company as well as for the environment. The last
section of triple bottom line is economic. The section of economic access is crucial as the bottom
line signifies the profit or loss at its best marginal level and after that process; the thing will not
be processed in a suitable way. Cost, Revenue generation and the final growth are the concerning
aspect of business and through the process of the growth, a company can claim a better position
in the market.
4. Examples of companies from different countries and their CSR reports
In this aspect, companies from the different country are the evaluating aspect of these.
This is the concerning aspect, which CSR report will be different but the real eye of business to
make the profit is the same. Ford is an American multinational company and Nestle is a
Switzerland multinational and both are dealing with separate products. Ford is basically dealing
with motor car industry whereas Nestle is dealing with different kinds of food products.
4.1 Ford CSR and Sustainability Report
Ford is one of the prestigious automobiles companies in America and all products they
deliver are the new way of innovation. The aspect of innovation is the concerned process that
Ford has implemented in their company and through these process products like the luxury
vehicle, automobiles, commercial vehicles and automobile parts is generated by the company.
The net income of the company shows the hike and the amount is US$7.605 billion in 2017. The
total asset of the company will be US$257.809 billion and CSR department needs to monitor that
case so that company procedure will be placed in the right way (Corporate.ford.com 2017).

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Strategies for development
The sustainable strategy of the organisation is not just selling more numbers of cars rather
they want to make improve people lives and change for the better. The major responsibility of
the company is to address the proper issues that affect people and planet. They want to mitigate
those issues and bring high growth mobility that develops the company strategy. They redesign
the companies to transform the growth of the company in a smoother way (Corporate.ford.com
2017). The value creation aspect of the company is to make profitable and sustainable growth
that improves the structure of an organisation. The priority is on the growth aspect, which also
connects people and their disruptive processes. The stakeholders initiation and develop the
effective relationship with them help the company to evolve their nature to make more
engagement with the organisation. Some of the regulatory processes have implemented in that
case like electric cars, automatic cars, which do not affect the environment and ensure the health
and safety process for people. Due to the better CSR system, the process is formulated and that is
the reason most of the technical amendments are done in that organisation. A strong CSR aspect
presents in the organisation and that will provide support in case of efficiency and better
management. There is integrated sustainability process is executed in that case and organisation
is fortified to follow the better way of management. Some of the important aspects are:
The process of changing climate is the concerning aspect of The Global Environment
Monitoring System (GEMS). Involvement of CSR is the right option for the company as
they deliver the right process to save the environment and to gain competitive advantage
at the same time (Corporate.ford.com 2017).
Ford reduces their vehicle emission through their products. The alternative use of fuel is
persisted over here and that affects the global environment also. For the sustainable
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development of the organisation light weighting structure of the vehicles are the concern
aspects of the company.
The art of manufacturing process has been changed through this involvement of reducing
global co2 system and cars are not fuel formatted rather these are originated in form of
electrical (Corporate.ford.com 2017).
Ford has identified the market trend and this movement revises their engine trend and
makes cars that can move in affordable fuel engagement. This is the process major trend
in market follows and Ford follows the same but in a different way as their products are
unique and effective in the market.
Business opportunities
Ford is expanding their market by the use of the changing organisation pattern for
business and in case of global mobility; the process is impacting the most. They have identified
most of the pollution has occurred in crowded cities. So maintaining or mitigating these process
better and effective technologies need to be used from Ford, as the priorities have been changed
at that moment (Corporate.ford.com 2017). Nature is at the verge and that is quite easily
understood by the company as well so they have made some alternative way to reduce waste
factor in the environment and mentioned that their car does not pollute in a higher range. There is
three emerging opportunity has introduced by Ford.
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Emerging Opportunities
Electrification Autonomy Mobility
Figure 2: Emerging opportunities for Ford
(Source: Created by Author)
These three aspects are emerging for Ford and they develop their marketing standard for
the development of the positional analysis in this globalised business management. The CSR
expertise is the concerning aspect of this company and commercializes the scale is the best effect
that technological determination has taken place. That value process of customers and the
transformation of customer experience is the main aspect of this. In case of marketplace
orientation and appreciation, a paramount responsibility is persisted for the company. All the
governance values and amendments are the major concept that changes for the initiation of
stakeholders and manages or operates the process in a right aspect (Corporate.ford.com 2017).
Vehicle environment matters for the company and that is the reason most of the mobility
strategies are executed in the right form. Ford's leaders are planning for business plan review and
for the better sustainability approach of the organisation. The major aspect of this state is to
review the process in a right order and has a special attention review for the development of
actions.

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Sustainability in business
For the sustainable condition for the company, some of the aspects are quite essential.
Strategy and governance, customers and products, operation process and implementations,
People and communities and performance and data are the main aspects of this process and most
of the positive aspects are coming in that case. "The purpose of any company should be to make
people's lives better. Otherwise, they shouldn't exist." opined by Bill Ford. The company is
taking care of nature and environment and they try to implement the same policy in their market
(Corporate.ford.com 2017). The implication of climate change is very profound and it has been
noticed for years. Climate change all the issues are threatening the human existence and rather
devastated in some places. The solution needs to be made as the process is so harmful that no
such resources will leave in that case for the development of business or to survive either. The
proper way of buying a right thing that may curtail the environment hazards –that influence the
thought of the electric car or automatic car concept. 82 facilities around the world are true zero
waste to landfill.20 million pounds of aluminium recycled per month (Corporate.ford.com 2017).
From the concept of the recycling process, they manage the waste controlling. Ford is the world's
most ethical company and them proud to declare that moment.
Train each other is the process that they occasionally happened in between that and
communities’ engagement is the right way for the company to deliver more innovative products
for the organisation. The company is so concerned with the environment they develop the
automation car and originate soy-foam seats for the passengers. The emission of co2 reduces 20
million pounds a year. That huge amount of emission signifies the total amount of pollution level
for the organisation and thus they try their hard to change the scenario for the company as well
(Corporate.ford.com 2017). Smart vehicles can deliver real environmental benefit and this
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opportunity to create future here for the next generation. The environment will be clean and able
people to move around the world and this evolution in the world will provide them with an
impressive sustainability and they have found the obligation that world they have a lot healthier
than what they live. This is the entire sustainability process that Ford has done in their career till
now.
4.2 Nestlé’s CSR and Sustainability Report
Nestle is one of the most recognised food companies in the world. The form of
transactional food is the main asset for the company from Switzerland. In the Forbes global 2000
list of the accumulation of largest companies, the company stands at 33rd position. All the
necessary food like baby food, medical foods, cereals, breakfast, coffee and tea, confectionaries,
dairy products, pet foods, frozen foods, snacks and many more are the unlimited version of foods
and the new products are also enriching day after day (Nestle.com 2017). So this is the major
influencing factor for the organisation to have the better position in the market. As the company
deals with the food products thus CSR intervention is very much required in this aspect. The
revenue has made a good rise in 2017 as CHF89.8 billion was earned in that year.
Creating Shared value of Nestle
The approach of the operation process of doing the business for so long is the major
aspect of this business shared value. The company considers that purpose of the business is to
enhance the quality of the life and contribute healthier future for people. For maximising the
value of the company, three aspects are highlighted in that case like nutrition, rural development
and water.
Value Creation
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Nutrition The nutrition process is important for the company and the deliver their best
product as children live are related to that (Nestle.com 2017). If people
become happy and healthy by consuming their product then only they
enlisted as the existing customer of the company. Strong individual
nutrition and nutrition for the family is the concern reason behind that.
Rural
development
Communities’ development is another aspect that related to the matter as
better livelihood and support in work is persisted in that case. Rural
development in an aspect of quality of food development, health and safety
all these aspects are related to the healthier future.
Water The aspect of lynchpin of food security is the concerning aspect of this
situation. All these issues need to access by Nestle for the development of
their marketing as well as people health and security issues.
Table 2: Created shared values for Nestle
(Source: nestle.com 2017)
Global Opportunities and Challenges
The global opportunities are found in individual and family cases, for the entire
community cases and for the environment or planet. The situation assemble all three aspects of
CSR as the main responsibility of CSR is to concern with profit, people and plant and these
threes aspects are highlighting in this case. In case of individual and families over and under
nutrition factors are addressed by Nestle. There are several diseases that children and adults have
faced with iron-deficiency anaemia, deficiency in vitamins and minerals are the concern factor
for this process (Nestle.com 2017). Increasing personalisation is a high-end experience that
provides effective support for people. In case of community development managing human
rights is the concern issue for the management. Global agriculture is the kind aspects that
development that help in sustainable agriculture. In case of youth, employability is another

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process to innovate in the organisation. In the aspect of water security, population growth and
urbanisation is the concern effect that maintains the population (Nestle.com 2017). In case of
Nestle, they need to understand the density of the nation and this is needed for the company to
get an assumption right.
The shared value of Nestle through a timeline
Year Shared values that enhance CSR activities
2006 The value chain framework of the organisation had been done in this
year and effective use of the CSR over goods, products, and
customers had been implemented in that year.
2007 Focus on the nutrition, water and rural development.
2008 Sustainability and compliance of shared valued launching is the key
aspect of the company.
2009 The first shared value forum held in New York.
2010 Second value shared process held in London (Nestle.com 2017).
2011 GRI reporting process framework was adopted and on the basis of
rural development third forum held in Washington DC.
2012 Meeting on global water challenge and the fourth form was done in
India.
2013 Nestle assembled their market in society for that reason focus on
nutrition and looking forward to better commitment had found in the
company.
2014 The sixth forum has been done in Switzerland and entire meeting
follows the trade and development issues in the market and the
possible effects on human over this (Nestle.com 2017).
2015 The creating shared value comprised of the public commitment and
the entire progress has highlighted the manner in this meeting.
2016 The overreaching ambition for 2030 was introduced in that session of
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For Individual and Family For Communities For Planet
Nutrition, Health and WellnessRural Development, Human Rights and ComplianceWater & Environmental Sustainability
a forum that had taken place in Abidjan, Cote d'Ivoire. The Agro-hub
process was first introduced at that time (Nestle.com 2017).
Table 3: Shared value timeline for Nestle
(Source: Nestle.com 2017)
Contribution to Global agenda
The ambition of Nestle for individual and families is to enable a happier life through their
products. The product signifies the quality and also delivers good food to maintain a good life.
For the development of communities, thriving and resilient communities is the taken global
agenda for the company (Nestle.com 2017). For the planet or the issue of environment
stewarding resources are the key aspects of this process. The Shared value for the customer
signifies in that case and impact on the areas of following:
Figure 3: Impact of all the CSR approaches
(Source: Created by Author)
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5. Conclusion
Therefore it can be concluded that CSR is one of the most important aspects of the
organisation to get the better result and make productivity in long run. The three aspects of
profit, people and people are the concern issues that need to take care of the organisation and that
is the reason CSR has been implemented in a company. Here, Ford and Nestle – both the
companies are taken to evaluate the sustainability report of these organisations and also
maintained a possible opportunity that CSR can find for the betterment of companies.

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References
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Appendices
Appendix 1
Figure 1: Models of CSR
(Source: Crane, Matten and Spence 2013)
Appendix 2
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Figure 2: Stakeholder interest and impact on Nestle
(Source: nestle.com 2016)
Appendix 3:
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Figure 3: Materiality and the Sustainable Development Goals of Nestle
(Source: nestle.com 2016)
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