Corporate Social Responsibility Impact

This assignment explores the crucial role of Corporate Social Responsibility (CSR) in business success. It examines how CSR practices influence a firm's competitiveness, long-term growth, and relationships with various stakeholders. The analysis delves into the challenges businesses face while implementing CSR policies and highlights the positive effects on both firms and their stakeholders.

Corporate Social
Responsibility

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
1.1 Define corporate social responsibility (CSR)...................................................................3
1.2 Describe background and changing attitudes to CSR......................................................4
1.3 Describe the regulatory framework for (CSR).................................................................4
1.4 Explain environmental issues in (CSR)............................................................................5
1.5 Explain economic and political issues in (CSR)..............................................................5
1.6 Explain social and community issues in (CSR)...............................................................6
TASK 2............................................................................................................................................6
2.1 Assess the benefits of CSR to employees.........................................................................6
2.2 Analyse the impact of CSR on the supply chain..............................................................7
2.3 Explain how a CSR policy impacts on business performance........................................7
2.4 Explain how CSR impacts on marketing strategy............................................................8
2.5 Assess the potential conflicts which may arise between the needs and expectations of
different stakeholders.............................................................................................................8
TASK 3 ...........................................................................................................................................9
3.1 Review the CSR policy of a specific business.................................................................9
3.2 Assess the extent of voluntarism in CSR policy............................................................10
3.3 Recommend changes to CSR policy to benefit different stakeholders..........................10
3.4 Assess the potential impact of changes in CSR on business performance.....................10
CONCLUSION .............................................................................................................................11
REFERENCES................................................................................................................................1

INTRODUCTION
The drastic change in image of business in recent years has influenced initiative of social
responsibility in the business environment. With an increasing pace of industrialization and high
market dynamics with immense competition has lead employers to be more concerned about loss
of productivity due to avoidance of health and safety measures leading to accidents and sickness
or stoppage of work due to bad relationship. Thus, to overcome these problems and to integrate
economic,social and environment imperatives of their business activities employers follow CSR.
Corporate Social Responsibility is an approach that address various topics related to human
rights,health and safety, corporate governance, environmental effects etc. that helps in
development of society, business and its stakeholders. This assignment will explain the current
CSR issues that are being faced by a business along with its impact on the interest of its various
stakeholders. Report will also recommend for potential responsibility of business practices
(Bartlett and Devin, 2011.).
TASK 1
1.1 Define corporate social responsibility (CSR)
Corporate Social Responsibility is a legal framework which contributes to the sustainable
development of a business by improving and enhancing economic, social and environmental
benefits of all its stakeholders. It is an approach which is being followed by a firm to solve
various issues that are been faced by society and to provide certain additional services to its
people. It involves concept of development that cater present requirements of people without
compromising on future needs of next generation. CSR overlaps many features including
corporate sustainability, responsibility, citizenship besides HRM practices, health and safety ,
environmental protection, community development, consumer an labour protection, business
ethics etc. Thus, CSR aims towards leading a business with obligation to do what is correct, just,
fair and to obviate or reduce any harm done to stakeholders, society or planet. Thus, CSR is the
responsibility of every firm to minimize the damage that has been created by conduct of its
business activities on environment and society and to work towards a holistic approach for
fulfilling firm's economic, social, legal, ethical and philanthropic duties.

1.2 Describe background and changing attitudes to CSR
Organization for economic corporation and development conventions was established in
1960. The sole purpose of legislations is to attain high sustainable economic growth and
employment. Besides this it also aims towards enhancing standard of living of people of the
member nations and also to maintain overall financial stability. Since then till today CSR has
now developed into CSP. Corporate Social Performance is a function that perfectly balances
between nature of social issues and it corresponding structures and strategies. Thus it leads to
intergeneration of various elements including stakeholder management, issue management and
corporate social responsiveness that a firm is required to undertake (Benn and Bolton, 2011).
1.3 Describe the regulatory framework for (CSR)
ISO 26000 Social responsibility- voluntarily guidance:
The ISO 26000 is an intentional standard that aims towards encouraging business to
apply social responsibility practices for improving negative impact of business on its workforce,
environment and society. This indicates business to perform in an ethical and clear manner and
to function in a socially accountable manner.
Environmental Protection:
CSR and environmental management provides practical resources for an increasing no of
firms that are concerned with social and environmental accountability for sustainable
development of a business. In accordance with regulatory framework of CSR, a firm is
responsible and adhered by its duty to work towards protecting environment from the impact of
its business activities.
Health and Safety Legislation:
CSR comprises a number of legislation for health and safety of human being and
animals. It involves several provisions and benefits that relates to occupational injuries and
illness of workers that a firm is adhered to apply and provide to its staff. Also it involves various
penalties and punishment for a business in case of breach or non compliance of the laws.
Human Right Legislation:
It provides a shield to employees to get protected from experiencing any kind of
discrimination based on caste, gender, religion, nationality etc. at their workplace. An employer
is forbid to differentiate between any of its employee and is under obligation to provide equal

opportunities for growth and development for each if its staff member (Brik, Rettab and Mellahi,
2011).
Compliance with employee legislation:
Employee legislation is a mandatory concept under CSR framework where in employers
are bound to adhere by all the rules, regulations and laws incorporated by federal, state or
national government authorities. It involves a range of practices involving hiring, health and
safety , labour relations,performance appraisal, compensation and benefits etc. where a firm is
required to apply all the legislation that are enforced by government.
1.4 Explain environmental issues in (CSR)
Environment protection is one of major pillars of CSR that is associated with concept of
meeting basic social requirements of both present as well as future generations. Various
environment issues that are involved in CSR involves recycling of plastics or other disposable
items that comprises of firms by waste so that society could be protected with negative and
harmful effects of it. Also, it is important for company to identify that major factor of illness is
pollution that is been circulated in environment by firms in form of various chemicals that are
being disposed in water, air and on land. Thus, it provides guidelines for business to use eco-
friendly packaging materials that is biodegradable. It thus allows to identify problems and
requirements of a firm in relation to environmental affect; to indicate possibility of eradication or
reduction of impact and to evaluate effects of pro environmental actions and strategies that are
been taken and to adopt the policy of reduce, reuse and recycle in its production and
manufacturing process to reduce the carbon footprints from the planet (Campopiano and De
Massis, 2015).
1.5 Explain economic and political issues in (CSR)
A business is subject to many economic and political issues that are incorporated in its
CSR responsibility. For instance; location of suppliers. In case of multinational companies where
in there is wide physical distance between suppliers and end customers, it becomes difficult for a
firm to manage both economic and political attributes from CSR perspective. In this case,
suppliers will provide support to local society and nation rather than to host party thereby
avoiding their CSR. However, there are various firms that as a part of their CSR, invest fund in
developing economies rather than in host nations. This give rise to various political and
economic issues raise by host nations against the company. Fair trade that in recent time is

promoted by government that gives equal significance to political, economical, social and
environmental responsibilities. It highlights importance of this type of trade for all developing
and under developed economies CSR for different products and services. Although,as many
global agreements like Kyoto protocol etc. are not accepted by every business firms due to
differences in business interests it lead to various issues for CSR.
1.6 Explain social and community issues in (CSR)
Social constraints and community give rise to various issues in CSR. For instance, when
an organisation employees socially disadvantaged and disabled people, they pay equal
remuneration to them along with all other benefits like pension etc. By fulfilling its CSR along
with compliance of labour laws like Equity Act 2010 etc.,company tries to build its brand image.
Also, there are firms that offers certain sponsorships to students and kids of its employees to
motivate them. Also, it provides internships, training and scholarships to employees, students
and also sponsors various society welfare programs and projects as a part of their CSR
(Epstein ,2018).
TASK 2
2.1 Assess the benefits of CSR to employees
CSR approach is applied by a firm to providing benefits and welfare of society as well as
to its employees too. Mentioned below are benefits of CSR for employees: Improved working condition: CSR induces firm to provide safe, healthy and clean
working environment to its employees as a responsibility of a manger. Thus, it provides
workforce with safe drinking water, clean workplace, facilities, proper tea/coffee breaks
etc that add on to their job satisfaction. This ultimately results in enhancement in firm's
productivity and profits. Lack of discrimination: CSR compel organisation to follow various legislation like
Equity Act 2010 and various other anti discrimination acts. This provide security to
employees to get protected from any kind of discriminatory practices undertaken by
employer. Thus, it helps in developing trust and cordial relations between management
and workforce. Compliance with legislation: CSR make it mandatory for an enterprises to adhere by
various legislations like Data Security Standard, Health insurance portability and

Accountability act etc. This provides employees with right to avail these benefits and to
report any non compliance in this regard to higher authorities or regulatory bodies.
 Whistle blowing: CSR provides an employee with right to notify or report any kind of
wrong behaviour,any type of harassment, unlawful acts to the council or regulatory
bodies which is known as whistle blowing.
2.2 Analyse the impact of CSR on the supply chain
With emerging and crucial importance of environment , firms have started adopting several
strategies and changes in ways business is conducted. By adopting CSR in its supply change
management a firm ensures Ethics in production: This involves conducting manufacturing process staring from
purchasing activities in according with CSR principles and also to consider them in
decision making process. It includes complying with standard on environmental issues
and to purchase recycled, reusable eco-friendly materials. Also, to adopt technology that
consumes less energy and produce less waste (Fransen, 2011). Responsible sourcing: In taking decisions related to choice of sourcing there are two
types of supplies i.e. ordinary that are affordable and are subject to encounter obligation
infringement. Another one is capable suppliers that are excessive and comply to
obligation standards. Reduce transport cost: Application of CSR in this respect involves opting for local
transport companies for reducing costs, carefully monitoring traffic laws, gas emission,
applying mechanism for safety and security performance.
 Reduce Carbon footprints: By adopting latest trends like digitalization and internet a
firm can retain its carbon emission .
2.3 Explain how a CSR policy impacts on business performance
CSR policies are designed in way that they ensure positive impact on a firm's
productivity, performance and profits. Mentioned below are the probable impact of CSR on
firm's behaviour: Improved Sales : CSR helps a firm to improve and enhance its brand image and
developing trust toward company's product and services by providing quality products at
reasonable prices for fulfilling the basic requisites of society people. Thus, it helps in
increasing sales volumes of firm and to capture large market share.

 Improved profits: With enhancement in its sales and large market share company is to
gain maximum profits. Conflicts of interest between stakeholder: CSR give advantage of reducing interest
conflicts between various stakeholders of a company. It is because with large demand
suppliers will have to supply more products and other stakeholders will also be notified
about each and every activity of a firm.
 Competitive edge: CSR will help a company to be figurehead in the industry thereby
enhancing its goodwill and brand image. This will help firm to gain an edge over its
business rivals as they will be able to capture huge market share even without spending
much on its promotional; activities (Hiller, 2013).
2.4 Explain how CSR impacts on marketing strategy
A company following CSR has a positive impact on its marketing strategy. CSR enables
a firm to adhere by ethical conduct while formulating it various business related policies and
strategies. It helps a firm to stand ahead of its market rivals thereby making it easy for firm to
capture large target audience through differentiating its products and services with that of other
substitutes available in market. As by applying CSR company products are viewed as eco
friendly it helps firm to justify an increase product cost and to induce consumers to willing pay
extra for its it by communicating its associated benefits to them as well as to the society as a
whole by using various marketing campaigns and promotional strategies (Minch 2011).
2.5 Assess the potential conflicts which may arise between the needs and expectations of
different stakeholders
It becomes crucial for an enterprise to mange and adjust to the interests and expectations of all its
stakeholders. This lead to emergence of a number of issues like :
 Shareholders expect that business will reap many benefits and get an arrival on their
venture.
 Financial representatives and specialists might require detailed information about how
firm reacts to society issues before investing funds in business.
 Also customers expect reliable, affordable and accurate products.
Stakeholders conflicts emerges when interest and expectations of some groups
compromises expectations of others. An employer might have to make certain choices that are
disapproved by some stakeholders. For instance, the cheapest option of suppliers goods that can

help a firm to produce low price products must not come on the cost of ethical practices bys
supplier or product safety.
Also there might be the case that some activities might not earn immediate profits or ROI
but supports business compli8ance to ethical standards. Thus, a business faces issues in
communicating, explaining and getting approval of all stakeholders on such policies (Kim and
Park, 2011).
TASK 3
3.1 Review the CSR policy of a specific business
Walmart is the largest and the top leading brand in grocery chain by revenue – approx
US$489 billion in 2017. It was established in 1962 with the mission “to save people money so
that they can live better”. It has 3121 international stores all across the world. Besides being
world's largest grocery brand, Walmart is well known for its CSR. Walmart since its
commencement apply global responsibility approach where in its provides its customers with
convenient access to safe, reasonable and quality food and other products.
Its 11th annual Global Responsibility Report highlights firm's progress. By applying
latest innovation, Walmart has manufactured detergent that reduces 25% of water content in
every dose of detergent. This has lead to saving of around 45 million gallons of water in UK and
US.
It has also reduced its plastic bottles that resulted in company generating less waste.
Under Walmart foundation, company take several initiatives for empowering women and their
economic conditions. Walmart is one of the largest company to employ around 2.2 million
people thereby becoming one of the major source of employment generation (Melo and Galan,
2011).
Walmart under its CSR policies to provide benefits to its stakeholders distributes
dividend of around $12.8 billion to its shareholder share purchasers.
3.2 Assess the extent of voluntarism in CSR policy
Volunteerism is all about standing out among most important human conduct and is not
just a foundation for common society associations and social,political development but in
addition to involves numerous well being , ecological projects, training and a scope of other
public, private and society programs. All around the world. Thus, it forms indispensable part for

a firm. Due to negative impact of worldwide budgetary, conditions has changed a little. CSR and
manageability methods that are adopted by firm in addition to current measures that are implied
are not sufficiently powerful to actuate a considerable change as to more dependable firm's
conduct. International participation at various social activities, responsibilities to all pre
determined standard are regularly ineffective with regard to speculation choices. It is observed
that over 20 years of routine international measures it is high time to appraise quality of
corporate conduct in business (Mason and Simmons, 2014).
3.3 Recommend changes to CSR policy to benefit different stakeholders
Mentioned below are recommendation for company to make change in its CSR policy: Customers: Company is required to produce quality products at affordable prices. Shareholder: These are people that have interests , rights in a business and its activities.
They always tries to manage their self interest in reference to emerging changes in a
business and always follow code of conduct . Local community : They expect least harm to done to them and society by the business
and its various activities. Suppliers: Company could adopt latest technology in its supply change management that
will support suppliers to easily deliver goods to the end users.
 Owner: To keep on revising its business and products in accordance with market
dynamics and to adopt strategies that have minimum harmful impact on environment and
society.
3.4 Assess the potential impact of changes in CSR on business performance.
CSR has great influence on business and its performance and productivity. It helps in
enhancing goodwill and brand image of a firm a company that works for society and invest its
funds in its development is seen as major benefiter thereby earning respect and trust of its
people. Also it helps in gaining edge over its rivals and to improve hiring and retention of its
employees by properly following CSR for employees benefits without any discrimination
(Matute‐Vallejo, Bravo and Pina, 2011)
CONCLUSION
The project undertaken concludes that CSR approach is of high importance for a firm to
gain competitiveness and growth for long term. Also CSR policies has a major impact on firm

and its stakeholders. There are various issues that are been faced by business while implementing
its CSR policies.

REFERENCES
Books and Journals
Bartlett, J. L. and Devin, B., 2011. Management, communication, and corporate social
responsibility. The handbook of communication and corporate social responsibility,
pp.45-66.
Benn, S. and Bolton, D., 2011. Key concepts in corporate social responsibility. Sage.
Brik, A.B., Rettab, B. and Mellahi, K., 2011. Market orientation, corporate social responsibility,
and business performance. Journal of Business Ethics. 99(3). pp.307-324.
Campopiano, G. and De Massis, A., 2015. Corporate social responsibility reporting: A content
analysis in family and non-family firms. Journal of Business Ethics. 129(3). pp.511-
534.
Epstein, M.J., 2018. Making sustainability work: Best practices in managing and measuring
corporate social, environmental and economic impacts. Routledge.
Fransen, L., 2011. Corporate social responsibility and global labor standards: Firms and
activists in the making of private regulation. Routledge.
Hiller, J. S., 2013. The benefit corporation and corporate social responsibility. Journal of
Business Ethics. 118(2). pp.287-301.
Kim, S.Y. and Park, H., 2011. Corporate social responsibility as an organizational attractiveness
for prospective public relations practitioners. Journal of business ethics. 103(4). pp.639-
653.
Mason, C. and Simmons, J., 2014. Embedding corporate social responsibility in corporate
governance: A stakeholder systems approach. Journal of Business Ethics. 119(1).
pp.77-86.
Matute‐Vallejo, J., Bravo, R. and Pina, J.M., 2011. The influence of corporate social
responsibility and price fairness on customer behaviour: evidence from the financial
sector. Corporate Social Responsibility and Environmental Management. 18(6). pp.317-
331.
Melo, T. and Galan, J.I., 2011. Effects of corporate social responsibility on brand value. Journal
of brand management. 18(6), pp.423-437.
Minch, M., 2011. Corporate social responsibility. In Encyclopedia of Global Justice (pp. 195-
197). Springer, Dordrecht.
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