Corporate Social Responsibility - Assignment

CORPORATE SOCIAL
RESPONSIBILITY

INTRODUCTION
Corporate Social Responsibility is a responsibility in which companies manage their
business processes in order to produce an overall positive impact on society by performing social
activities (Frynas and Yamahaki, 2016). Present study is based on The London Clinic. It is a
private healthcare organisation located in central London, which is one of the largest private
hospital in London. Project report comprise of definition of CSR, description of changing
attitudes to CSR. It includes benefits of CSR to employees and impact of CSR on supply chain,
business performance and marketing strategy. A review of The London Clinic CSR policy is
been done. Lastly, report contains impact of changes in CSR policy in business performance.
LO 1
1.1 Definition of Corporate Social Responsibility
the London Clinic has received has ben in negative publicity because of some CSR
issues
Corporate Social Responsibility
Corporate Social Responsibility is a self-regulatory business model that helps a company
to be more accountable and responsible towards stakeholders and the society. Practice of
corporate social responsibility is often called corporate citizenship. Companies have to be
conscious about the kind of image they are portraying in the society, considering each and
every aspect such as social, economic and environmental (Nicoli and Komodromos, 2019).
Periodically company should ensure that it is enhancing the society and having a positive and
inspiring effect on the society , instead having a negative impact on the society.
In healthcare corporate social responsibility refers to an ethical obligation which is
required to be fulfilled by hospitals and other organizations in order to do something beneficial
issues like delivering of quality health care to everyone who is being entitled to the organization
or hospital.
1.2 Background and changing attitudes towards CSR
CSR emerged in 1970's in USA when the Committee for Economic Development
declared a social contract between society and business in 1971. the social contract was framed
on the notion that business is functioning because of public consent, therefore the business is
under an obligation to serve the society. It is often called license to operate thereby contributing

towards society also rather than just having sole motive having profits. The very early CSR
adopters were big organizations such as Johnson & Johnson, Hershey in first half of the 20th
century.
At top end CSR has fantastically improved . Today the investment in social responsibility
has improved and has grown to $ 13 trillion global industry. Energy efficiency saving contests
are being held between the big energy users. The theory has changed that maximizing profits is
the best possible outcome for the society. CSR is growing very rapidly nowadays and is amongst
the strongest in last on hundred years. A survey was made in 2018 by global tech Ricoh of
attitudes towards CSR in 24 countries on 2550 business owners. Around 56% complying
environment regulations helped them out as an enabler of success, where two third considered
sustainability as an success factor for their businesses.
1.3 Regulatory framework for CSR
Corporate governance based on UK law ,unless otherwise stated as at 1st February 2010.
UK Corporate Governance Code is not directly linked to Corporate social responsibility but there
are few recognitions that duties of companies extend even beyond than just solely towards its
shareholders (Amos, 2018). Values and standards are are to be laid down by the respective
company's board to have an clear understanding of its obligations towards its shareholders and
others.
According to the Turnbull guidance , it makes clear that risk assessment should not only
cover financial risks but also those risks which are related to health, safety and environment,
business probity and reputation issues. As per the companies act 2006, the pressure is being
added to the directors of the organization that they have to regard community and environmental
issues when they are considering their duty to promote the success of the company
from the point of view of organization, it have several benefits for the company too. Acts
are being mandatory to follow, so the company can promote its products and services in such a
way that it shows the use of CSR which can be used in marketing
Turnbull Guidance lays that risk assessment should not only be restricted towards
financial risks but should also extend to matters considering safety, health, reputation business
probity issues , safety etc.. The Companies Act 2006 has made new inclusions where directors
are required are required to show concerns towards community and environmental issues in
addition while considering their duty towards success of the company. The British Insurers

Association laid down that members owning more than 20 percent of companies on London
Stock Exchange are required to publish guidences on CSR issues for stakeholders and
companies. Companies Social, environmental and governance risks should be highlighted in the
company's annual report as per 'Socially Responsible Investment Guidelines', 2007.
1.4 Environmental issues covered by a policy
To be aware that products and services contribute towards the effective use of water
resources core focus should be towards environment pollution mitigation. Reusability, high
efficiency and utmost care to be taken towards development of superior products with least
damage to the environment.
Seeking ways to minimize consumption of energy and waste generation , using more of
the resources that do not harm the environment.
Encouraging its clinics all around to maximize use of green energy and use of Eco-
friendly products will be encouraged.
Efforts to be made towards social responsibility all around its clinics.
Using recyclable products or using recycled waste.
The London clinic is facing several social and community issues which must be
undertaken by the administration, these issues includes improper disposing of waste by the
hospital staff which is not good for the near areas, they can face a issue of cleanliness in the area
and this issues is not letting the organization to fulfill its CSR. Another environmental issue
faced by the organization is carbon neutrality and recycling.
1.5 Economic and political issues in CSR
Regulatory compliances changes with the change in the governance ,as the companies are
using resources of the society the new govt may come with more stricter compliance
requirements, which may not be possible for all the companies to comply and it may lead to
evasion of responsibilities towards the society, companies may be required to perform more
towards environmental projects social engagements which may increase the costing of their
products.( Zebregs and Moratis, 2017)
CSR do have an economic impact, the impact is positive towards CSR that have reduced
externalities which are negative as compared to positive externalities. Benefits of CSR have
increased in recent years , the companies are performing much well as a result their productivity

is increasing ,businesses are expanding creating new employments, growth prospects making
market shares to raise also benefiting the shareholders along with the society as a whole.
The parking of visitors at The London clinic is not appropriate at the hospital as the local
area people are getting disturbed with this issue so this should be undertaken by the
administration and overcome the problem of parking.
1.6 Social and Community issues in CSR
Community and social issues can be referred as employees, shareholders and society as a
whole. Some companies do not perform CSR activities for which they might not get public
recognition. Nowadays companies are more focusing towards public recognition through CSR
non compliance with it may have negative impact on the company and it may effect the market
share of the company. Companies are now investing in social contributions such as financial
contributions to support a local charity, sponsoring local event ,clean-up projects.
The issue which is being faced at London clinic is poor working conditions for the
cleaning staff, this shows poor behavior of hospital staff towards cleaning staff and inequality is
being seen, so administration should focus on this issue.
LO 2
2.1 Benefits of CSR to employees
Corporate Social responsibility is a concept where a business organisation consider the
interest of society by taking responsibilities for the impact of their activities on customer,
suppliers and as well as employees of the organisation. The London clinic is a organisation
where its employees are also having benefits of CSR. CSR can increase employees creativity
involvement, which includes generating new and practical ideas, originality and creative problem
solving. When, The London clinic express their values and passion through CSR, employees are
inspired to develop new and better ways to their work (Frynas and Yamahaki, 2016).
Generating new and practical ideas
CSR brings new ideas to employees because a positive environment is being created in
the organization. They feel proud for the organisation and work effectively and efficiently which
generates new ideas.
Improve Retention and organisational commitment

Positive implementation of CSR make the employees to be with the same employer for a
long period of time and increases their overall commitment to the organisation.
Improve employee relationship
As employees think that they are doing the right thing that seems that they are more
likely to do the right thing themselves. When organization is involved in implementation of best
practices in CSR, employees are more likely to engage cooperative behaviour which helps in
building employees relationship.
The London clinic has implemented the best ethical practices in their organization, This
has assisted them in attracting more people towards them and following this practice has helped
them in making their consumer base stronger. CSR enhances employees identification with the
London clinic, as the employees of The London clinic feels that there company is been
responsible ethically , where they have engaged in having a huge sense of identity with the
organization they are working in. (Jamali, Karam and Blowfield, 2017).
2.2 Impact of CSR on supply chain
Supply chain management is a process which is used by firm to distribute one material
from one place to another. They have the main functions of doing like packaging and
assembling, are the main aspects of supply chain management. CSR is responsible for
establishing ethical practice in London Clinic which will help them to create goodwill in market
and society. Organisational practices includes determining CSR goals for purchasing functions,
providing relevant training in CSR to suppliers and implementing a mechanism in Clinic to
receive feedback from stakeholders regarding CSR practices (Wang, Dou and Jia 2016).
Practices of environmental include purchasing and using of recycled material in
packaging, putting special efforts on producing reversible and recyclable materials in production
and design it will help clinic to develop a status of eco-friendly firm. Ethical practices accepted
by Clinic will include not giving out wrong information, giving protection to the personal
information and data of employees and customers. Practices establishing relationship with
society includes supporting of sports activities and public education, actively participating into
and organising activities through which profit is not been generated.
CSR played a major role in overcoming the problem of executing ethical practices in
supply chain that were faced in starting stage. CSR helped The London Clinic in establishing its

name in the market through investing more in Corporate social responsibility which resulted in
attracting more consumers to their services. CSR influenced in a positive manner to The London
Clinic as this allowed its employees to work more effectively because they were having proud on
their organization as their company is involved in taking more initiatives of improving societal
lifestyles. The London Clinic determined all those issues which were faced in supply chains
operations, and through implementation of CSR, all those ethical practices that were lacking by
the company, were overcome and all those practices were executed in order to become more
ethical in its supply chain operations.
The usage of recycled material was a significant step that helped London clinic in
attracting more consumer to its services as they are more environment conscious. This is the
major factor which influence the company in decision making through implementing all the
ethical practices in a significant manner and usage of environment friendly products impacted in
reducing the expenses and helped in preventing any cause to environment by using any materials
that harms it.
2.3 Impact of CSR on business performance
CSR helps in building up the goodwill in the society. It helps in increasing the
profitability and revenue asset of company. CSR is a set of practices that elaborates the role of
good management, business practices and activities. CSR is something more about transparency
of The London clinic and disclosure to stakeholders. CSR can assist firm in setting financial
feasibility. CSR practices will help the clinic to do its work more ethically. Employees will not
be using unfair means for achieving targets which will be keeping its quality up and good.
Quality products will be attracting new and retaining the old ones. Organisation with good CSR
will keep employees motivated which will enhance their performance.(Jamali, Karam and
Blowfield, 2017).
CSR has come forward as a view which helps in increasing the overall financial
performance of The London Clinic recommends different ways of decision making of share
holders and top management of the organisation. CSR's implementation is raising the sense of
taking care of society and environmental relationships in both shareholders and stakeholders.
CSR implementation increases productivity and effectiveness of working of employees, as CSR
plays a positive role in The London Clinic

2.4 Impact of CSR on marketing strategy
Corporate Social Responsibility impacts businesses on social, economic and
environmental issues, there has been a increasing amount of pressure from stakeholders to make
CSR as an integral part of The London clinic's business strategy. According to some feedbacks,
it is being analysed that more than 80% of consumers are preferring services, because clinic
advocated for the issues they cared about. CSR is helping the clinic to promote its business for
taking the green initiatives in its operations. Clinic has changed its way of responding to
customers after implementation of CSR policies. London clinic is focusing to establish good
relations with its customers for marketing its business further. The major reason of CSR
initiatives falling short is that they feel in-genuine to employees and consumers. This happens
when the main driver is marketing (Wang, Dou and Jia 2016).
Stakeholders, shareholders, Administrators, and executives must practice ethical
behaviours and join the community in promoting responsible marketing efforts. Marketing
strategies plays a major role in The London clinic profitability. A good marketing effort leads to
more consumers of organisations services. Marketing strategy of the London clinic is to be
design in that manner that CSR is being highlighted so as to attract more consumers to The
London Clinic services. This strategy will result in completing CSR as well as a marketing
strategy for The London Clinic. London Clinic is following market development strategy for its
business as it is having patients arriving from different regions. Adopting this strategy will help it
to develop its brand awareness in different regions of the nation.
2.5 Conflicts arise while satisfying needs of different stakeholders
Customers, suppliers, shareholders and employees are primary stakeholder groups. Each group
of stakeholder has interest in how an organisation performs and interacts with them. These
stakeholders can be affected with The London Clinics success and can be harmed by its
mistakes. Generally shareholders are least interested in CSR as the money being invested in CSR
is affected directly to shareholders profitability. Primary stakeholders of London clinic are its
employees and customers
Customers Customers wants quality services for the prices
paid by them. It is expected from clinic that it
provides best services to its clients so that it
can maintain its existing client base and for

building new customer base.
The another requirement of customers is they
receive proper responses for their queries. Any
query of the customer must be responded
effectively by the clinic. It may be an
emergency which requires immediate
response.
Employees Employees want an healthy and safer work
environment as they are working for the clinic
so it is the responsibility of the clinic that it
makes necessary safety arrangement for it
employees.
the another expectation of employees is that
their work is being recognised as work
recognition is important for motivating
employees to maintain the efficiency in their
work.
Creditors Creditors of company require that their dues
are cleared on time. They seek that they do not
have to give reminders for their payments as
they break their cash flows.
Maintaining timely payment cycle will
improve the relations and will encourage
healthy trade between them.
LO 3
3.1 Review on CSR policy of the london clinic
CSR for The London Clinic is about how they align the activities with the expectations
of stakeholders in relation to economic, social and environment impacts. The London Clinic

maintains internal control adequate to ensure standards are met, and where possible, exceed all
relevant legal requirements (Scherer and et.al., 2016).
The London Clinic endeavours to behave with honesty, act fairly and integrity in its
relationship and dealings with its customers, suppliers and other stakeholders, which extends its
own value to relationship with these parties, working only with companies that upholds high
standards of fair practices and ethical conduct, with all these business ethics The London Clinic
organises its operations.
The London Clinic is being committed in achieving equal opportunities for all its
employment polices, practices and procedure. The London Clinic respects employee human
rights and responsibilities, and recognises the benefits of a diverse workforce. The London clinic
follows that all rules and regulations have been followed by employees. They are purely against
discrimination and unfaithful practices. (Watson, 2015).
The London Clinic has mad The London Clinic provides employment opportunities
equally to disabled people. The London Clinic makes every effort to make sure that disabled
employees are treated fairly and without prejudice. Clinic makes sure that every employee is
been provided with the opportunity which is equal. It performs all the activities with the proper
rules and regulations. The London Clinic encourage and enable the staff who wish to undertake
voluntary activities to do so, which give them opportunities to participate in charitable events.
In order to acknowledge a responsibility to the environment, The London Clinic
encourages participation and train employees in environment matters. The London Clinic work
towards the conservation of energy, stationary, water and consumables in all operations, dispose
of waste thoughtfully which develop an attitude of reducing, recycling and reusing, this not only
saves the environment, it saves a lot of money which helps The London Clinic to work
economically (Scherer and et.al., 2016).
3.2 Extent of voluntarism in CSR policy
CSR is not the responsibility of a single it is to be undertaken by everyone from
beginning to end. Companies can motivate employees for accepting the ethical values in business
so that they do not take any move which will affect society. Employees will be performing their
task keeping in mind their effects on society. For meeting the demand of customers companies
and increased competition it uses resources. So the government should lay down proper
legislative framework to be performed by companies. For having a greener environment it is

important that every individual voluntarily take its responsibility towards CSR they should not
accept goods of companies which are not following CSR practices.
3.3 Changes in CSR policies towards stakeholders
Suppliers
Suppliers needed the compliance of CSR throughout the supply chain. To have more
focus on occupational health and safety, to apply fair trade practices that do not impact the
environment and the society, to have proper code of conduct throughout the supply chain. To
have the supplies in accordance with the UN Global Compact, and ISO rights and standards.
Customers
London Clinic provided customers with stable supply of goods and services. To meet the
expectations by providing right product, services with desirable quality at right time , at right
place and at reasonable prices. Standards of living to be increased by providing quality good and
services, and giving proper response to customers on their complaints. London Clinic provided
Environment
The London Clinic goal is to have no accidents and mitigate impacts on the environment
by working with The London Clinic's stakeholders, peers and others to promote responsible
continuous improvement and environmental practices. The London Clinic uses maximum natural
resources in order to meet CSR towards environment.
Community
The London Clinic follows duties and obligations to the community which include
cooperation, respect and participation. The London Clinic encourage and enable the staff who
wish to undertake voluntary activities to do so, which give them time and opportunities to
participate in charitable events.
Employees
The London Clinic CSR is in the form of training, fair wages, proper selection,
comfortable working conditions and participation management. The London Clinic is giving
employment opportunities to disabled people(Holdaway, 2016). Disabled employees haves an equal
opportunity to be get selected for promotion and receive training to aid their career development.

3.4 Impact of CSR policies on business performance
With the implementation of new CSR policies London Clinic is going to have an
organisational stability. This would be providing the organisation with new and improved
supplies , the Clinic would be able to gain higher satisfaction level that would help out in
retaining the old customers and adding the new ones to the group. Employees would be more
satisfied and that provide effective and efficient outputs. The Company will be having free
camps to make more aware about their health and providing free checkups would increase the
recognition of the clinic and increase its client base. Environment savvy steps would help the
Clinic meeting its regulatory requirements giving a positive impact in the society. The company
would be able to gain stable cash flows as it is the lifeblood of any organization (Ogrean and Herciu,
2018.). Being socially and ethically responsible it would be easier for the companies to avoid its
litigation costs and other negative impact due to non-compliance of CSR policies
CONCLUSION
From the performance of the above tasks it is concluded that in today's environment CSR
is playing an important role on the businesses. As the businesses are using the resources of the
society it is their duty to serve back to the society and not only concentrating towards the sole
benefit of its stakeholders. And any business investing towards CSR activities are having more
positive responses in the society as compared to ones which are not taking any step for the
benefit of the society. Everyone is becoming aware for the environment today and any business
not going wit the flow may have to suffer.

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