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Corporate Social Responsibility (CSR) | Essay

   

Added on  2020-01-23

23 Pages4109 Words184 Views
Corporate Social Responsibility (CSR)Identify and discuss the characteristics of CEOs and Boards that helplead to more socially responsible companies

1.IntroductionBusiness organisations function with a motive to earn more profitsand market share without sharing any returns or benefits with society. Ifthis aspect is inculcated in strategies by companies, then such businesspractises are considered as corporate social responsibility (CSR).Corporate image of a company is developed according to the responseprovided by different stakeholder groups. Often company headsperceive that there is no big difference made on the performance if CSRis adopted (Muller, 2014). They consider it as a draining situation inwhich benefits are shared and profits are decreased at the owners' andshareholder's end. Despite of this fact, there are some CEOs and Boardsthat have been leading their firms with incorporation of CSR.This essay presents the characteristics of CEOs and Boards wholead socially more responsible companies. The analytical viewsconcerning this issue will be presented ahead which shall help indeveloping an understanding whether majority of businessorganisations can lead the markets with CSR approach (Servaes andTamayo, 2013). Furthermore, there are some theoretical concepts whichfigured out to enhance the understanding. These include agency theory,stewardship theory and stakeholder theory. Companies like Thomas1

Cook Group, EE Limited, ASDA have been working with an objective todevelop their approaches and strategies with an orientation to achievesustainability. The reason behind this strategic thinking is growingenvironmental concerns and increasing ecological disturbances.Every action and decision taken by business organisation hassome sort of effect on the environment and society (Hopkins, 2016). Thenature of impact helps in determining whether the action was beneficialor not. In the long run every organisation, irrespective of their workingstyle should adapt to CSR principles and dedicate some resources forupliftment of society (Christensen, Mackey and Whetten, 2014). Aliterature review regarding above stated fact and other analyticalfindings has been presented in this essay. It will help in strengtheningthe thought process regarding characteristic features of CSR. 2

2.Critical analysis of CSRWhen a company seeks resources from the society for personalbenefits and profits, then it becomes an unsaid responsibility of theparticular organisation to return back these resources in some form orthe other (Saeidi and et. al., 2015). This is the basic essence of CSR. TheCEO of Thomas Cook had developed CSR strategies in company'scurrent functioning because he wanted to set an example for otherorganisations of this industry to work for the betterment of nature andsociety. Travel and tourism is all about the ecological beauty of therespective destinations (Mousavi and et. al., 2013). But this beauty isbeing damaged by unethical practises like littering waste or hurtingculture and traditions of the local markets. This example depicts theimpact CSR activities of a company can have on the environment and itsstakeholders.This serious effort for conserving the ecological balance hashelped the enterprise to gain positive corporate image and customershare (Dam and Scholtens, 2015). Moreover, individual perceptiontowards this organisation has changed. Social awareness and sense ofresponsibility is one important characteristic feature of CEOs who leadcompanies towards CSR. They do not neglect the harsh realities that3

come along side business activities. For instance, productmanufacturing units especially the ones where plastic or chemicals areinvolved might be emitting dangerous effluents which are contributingto global warming and green house effects. In such cases, if CEOsconsider their responsibility of modifying production methods then theyare leading with CSR.Apart from environmental impact, society is another aspect whichis to be considered as a part of CSR. Businesses with philanthropicapproach have genuine CEOs and Boards behind their leading back(Cavico, 2013). Pedigree the leading company for producing dog food isnot only focused on its products but has developed a unique approachtowards welfare of society. The organisation funds and sponsorsnational adoption drives which run for homeless dogs. About 1000shelters and breed rescue operations have been conducted by thecompany. This implies, organisation holds a strategic CSR approachtowards the society. On the contrary, the Boards of Body Shopdeveloped a unique CSR strategy that focuses on animal rights,environment protection and builds self-esteem for those deprived ofhuman rights. 4

Such activities in the business processing can be initiated onlywhen leaders are concerned regarding the subjects. If a companydoesn't care to make any efforts regarding society welfare, then therewill not be as such any deep impact over its functioning (Moon, 2014).CSR is a technique through which brand value is enhanced. In countrieswere factors like poverty or ecological disturbances are prominent,business organisations must consider developing strategies which shallhelp in improving the status of individuals in the society.CEOs and Board members are considered significant forincorporating CSR in their governing structure because they are mainlythe decision makers for every situation of the organisation (Mousavi andet. al., 2013). This implies the level of authority or power with thesepeople is quite high. There is a probability that company might enhanceits strategic position if they are led towards sustainability. The majorcharacteristic trait that influences CEOs for making decisions withregards to welfare of society is ability to visualise or establish a vision.This vision or aim is just not limited to business operations but extendedto external environment and the markets and society where operationsare taking place. Hence, it is important for organisations to recruitleaders who are competent and thoughtful towards developing a betterplace in terms of both businesses and the society as a whole5

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