(Doc) Assignment: Corporate Social Responsibility

Running head: CORPORATE SOCIAL RESPONSIBILITY
Corporate Social
Responsibility

CORPORATE SOCIAL RESPONSIBILITY 1
Contents
Introduction................................................................................................................................2
Literature Review.......................................................................................................................3
Case Study..................................................................................................................................5
Conclusion and Recommendation..............................................................................................8
References................................................................................................................................10

CORPORATE SOCIAL RESPONSIBILITY 2
Introduction
Corporate Social Responsibility (CSR) is known by different names such as corporate
sustainability, sustainable business, and corporate citizenship. It refers to the act of
companies in order to be socially accountable. It means that the company is operating in a
way that is beneficial for the society and enhances the environment, thereby reducing
negative impact.
The company, which follows CSR activities, gains trust in the eyes of its various stakeholders
like customers, employees, government, suppliers etc. By CSR, a company achieves a
balance of social, economic and environmental imperatives. According to Corporations Act
2001 (Cth) it is now mandatory for the companies to contribute minimum percentage of their
net profit towards CSR.
In the below case study the Corporate Social Responsibility challenge faced by Coca Cola is
described. The company is facing a CSR issue of dealing with packaging waste of bottled
cans. The company has to focus on recycling in order to make a litter free tomorrow. Since
the early 2000’s Coca Cola has been facing criticism over health effects, environmental
issues and employee issues. The company managed to get over these with time but the
biggest challenge still prevails of packaging waste. The packaging used in Coca cola results
in a significant environmental impact. The company did not adopt any methods to resolve the
issues such as introducing containers, bottle-recycling deposits. Many reports were generated
against Coca Cola of doing vague promises and false solutions (Holme and Watts, 2009).
It can be said that the challenge faced affects the whole society. The litter happens to affect
the environment in a huge manner and it affects the health of the public. The stakeholders
have been chosen is the public who has been affected from the activities of companies. The
organisations must carry out business with ethical measures and moral standards. In this
report, the literature review and the various implications of corporate social responsibility
will be discussed. The recommendations are also been provided to the company as what steps
should been taken to solve the issues that has risen.

CORPORATE SOCIAL RESPONSIBILITY 3
Literature Review
CSR has now become an imperative. According to the Douglas and Emily (2014), the
business environment is now changing and to survive in this scenario, businesses have to
adapt various strategies into their business model and most important of them is CSR.
According to Bendell, (2018) CSR is all about how an organisation responds to its internal
and external environment along with achieving its business goals. Moreover, corporate social
responsibility also contributes to increasing profits. It helps in earning customer loyalty,
earning respect in the marketplace and attracting higher sales.
According to Campbell and Updike, (2015) if a company is engaged in CSR it is seen as the
company, which cares for the needs of its employees, customers. It helps the organisation to
improve the customer database. It helps to create loyal customers that will help the
organisation to grow. The company is engaged in earning the trust of their stakeholders that
includes customers, shareholders, partners, employees and the public.
It initiates an ethical culture in the organisation. According to Preston, (2009), it has been
said that the company must focussed on the responsible and ethical supply chain
relationships, food and water supply security, water and waste management.
As per Robbins (2013) the firms, which follow CSR, attract personnel that are more qualified
and in turn increase the efficiency performance of the company.
The internal factors are an important part of any organisation and these factors must be
incorporated in the well-established manner (Tai and Chuang, 2014). The companies must
use a holistic approach for managing the corporate social responsibility in the company.
Corporate Social Responsibility for the companies is an important factor that generates
profits for the company with the corporate social responsibility. The companies are required
to do social works to make goodwill in the market. Many companies are involved in the
corporate social responsibilities and trying to motivate the moral values in the company
(Ghobadian and Hopkins, 2011). The companies have the responsibility to deliver something
good for the societies such as establishing schools for the children, hospitals, protection of the
environment and many other activities that can help the society to develop. Coca Cola must
also make policies and follow practices in order to be environment friendly.