Corporate Social Responsibility (CSR) Assignment

Corporate
Social
Responsibility

Executive Summary
As per the below report it is summarises that Corporate social responsibility plays
important role in the business. There is applying several models and approaches to conduct
business activities in proper manner.

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
(A) Range of Businesses social responsibilities SME's.........................................................1
(C) Apply Models, practical models......................................................................................2
(D) Ethics and analysis ethical sustainability standards.........................................................4
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6

INTRODUCTION
Corporate Social Responsibility is a management concept that supports an organisation to
become socially accountable for its stakeholders and the public. It is the integration of socially
salutary programs and practices into a corporation's business model and culture. The aim of the
CSR to increase long term profit for offline as well as online business (Tschopp and Nastanski,
2014). It is effectively manage the business procedure in order to present positive effect on the
society, economic as well as environmental factors. There are consisting of sustainability, social
impacts and ethics and many more. This report consist of concepts of the range of businesses
social responsibilities, define ethics for the business. Along with analysis sustainability
standards, apply different model and practical model.
MAIN BODY
(A) Range of Businesses social responsibilities SME's
Friedman v freeman theory
Friedman argued that neoclassical economic theory advise that the main reason of a
company to generate profit through accountability and their shareholders. By doing activities
organisation contribute to wealth for itself and society at large. From the point of view Friedman
defined that organisations are obligate to generate a profit to fulfil the expectation of
shareholders and contribute role in continuous positive growth. It is suggested that the
stakeholders of company are “those groups without whose support the organization would cease
to exist”.
The freeman stakeholder theory given by the R. Edward Freeman in 1984 and Friedman
theory introduced in 1970 for new york times. Freeman Vs Friedman theories defined that how
to conduct activities of business and virtually opposite belief as what business have
responsibility. Freeman consider that a company has a stake that will play important role of
involvement in the business entity and decision. Friedman consider that business only liable for
those that actually own stock in the organisation such as owners or stakeholders. So both theory
suitable for SME's in effectively manner and work on that (Christensen, Cottrell and Baker,
2013).
Stakeholder theory
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This theory has been developed by Edward Freeman and others, is the reflector image of
corporate social responsibility. Stakeholders are those person who are relating with organisation
in direct manner and contribute their part in the company to achieve organisational goals ans
objectives. Due to start of any business require to look out into the world to see what ethical
responsibilities are there, stakeholder theory starts in the world. Stakeholder theory is a view of
capitalism that stresses the integrated relationship among a business and its clients, staff
members, suppliers, investors, communities and other who have stake in the organization. This
theory defines that a business should develop value for all stakeholders not just shareholders.
This theory is not apply on the Small and medium size company but large size organisation
proper utilise this theory (Williams, 2014). It carry lists and define those persons and groups that
influenced by the business action. In broad manner, Stakeholder theory starts with those living in
the encompassing community who may find their atmosphere after that discuss about the
business ethics that apply in SME's to operate activities. Small business activities mainly handle
by the individual person and not working more people similarity in medium size enterprise
people working about 100 people.
Triple bottom line (TBL) theory
This theory recommends by the business to concentrate on the social and environmental
concern for the profit. SME's are focusing on the Triple bottom line rather than to one bottom
line. It is applying by the most of the business in order to evaluate the performance of the
business and generate profit. The advantage of this theory to motivate business to think about the
business to measure business performance through profit, Motivate CSR reporting and supports
to measurement of environmental impact & extent of sustainability. These three lines are
classified into profit, people and the planet. In profit consist of familiar to manager, recognised
through income statement and audited. In planet includes measure the impact of business activity
on the atmosphere and more tangible. In people involves business work to provide response to
social activity and complex to compute & report consistently. The aim of these lines to analysis
the performance on the basis of social, financial and environmental performance in certain period
of time (Soltani, 2014).
(C) Apply Models, practical models
CSR Pyramid Model: It is a framework that supports to argue how and why companies
should meet with their social responsibilities. CSR develop for the profit due to give priority to
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profit. This model will work for the requirement of the business to assure that it complies with all
laws & regulations. It supports to argue how and why company should acquire their social
responsibilities. The main elements of this pyramid such as:
 CSR is develop on the foundation of profit due to give priority to profit.
 It will apply to analysis the requirement of business to assure about rules & standards. It is categorised in to four parts such as Economic, legal, ethical & philanthropic.
Economic Responsibility: In this responsibility business focus on the economic factors
that impact by this model in direct manner. This responsibility defined that business wants to
make profit (Ngwakwe, 2012).
Legal responsibility: There are consisting of some responsibilities to conform laws and
other standards. Such as competition, employment, health & safety.
Ethical responsibility: It is based on the morally and ethically where entity should go
beyond through narrow necessities as per the law. Like Treatment of staff members and
distributors.
Philanthropic responsibility: This responsibility based on the society activities where
business provide good discretionary but still essential. Such as Charitable, donations, staff time
on projects.
CSR in a Excellence Model:
This model connected with the social responsibility in order to analysis the growth and
development of the business. For this model focus on the socially responsible business,
procedure of ethical and corporate responsibility. So it is effectively use in the particular model
to effectively analysis the performance of staff member and apply all appropriate tool.
EFQM Excellence model
This model is a non descriptive company excellence set up for organizational
management. It is addressed as the EFQM and developed to support business to survive in the
competitive environment. It supports to users to analysis the the efficiency of each staff member
through improvement tools to acquire business objective and stay long time in the market. It is
most widely applied by organisation for the improvement tool and in the context of size or
sector.
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(D) Ethics and analysis ethical sustainability standards
Ethics is a system and moral of business that depended on the well established standards
of right and wring that prescribe human ought to do, in terms of obligation, rights, advantage to
society, fairness or specific virtues (El-Firjani, Menacere and Pegum, 2014).
Ethics in business: Business ethics is a study where know about the business policies as
well as practices in the context of potentially controversial subject like corporate governance,
bribery, corporate social responsibility and many more. Through the laws direct to business
ethics but is offers a basic guideline that select by the business in order to follow for achieve
public approval. It is mainly created by standards of moral and ethical responsibility not only in
particular world but also around the world. There is demand for moral and ethical behaviour in
all feature of domestic and global business communication and partnership has motivated for the
development and development of business ethics.
Ethical Standard: It is a set of principle that set up by the founders of a business to
interact with its underlying moral values. It will provide a set framework that can be utilised as a
references for decision making processes. These standards are adopted by the organisation in
order to advertise values like trust, good behaviour, fairness and kindliness. These are important
to set organization culture and set a particular parameter of behaviour that owners and top
executives expect from staff members and also from distributors to create relation within the
business entity.
 Integrity: It is one of the important values that owners seek in the staff members that they
hire. It is that hallmark of an individual who demonstrate dependable moral and ethical
value at work. Integrity is defined as practice of being trustworthy and present
consistency to create and connect strong moral and values.
 Confidentiality: It is defined as workplace where set rules in numbers and take prescript
to present in front of customer, clients and staff members to set a level of general
courtesy by securing their data. It will applied by the organisations to keep information
secure and prevent sensitive information from being leaked (Yamey, 2014).
 Objectivity: Objectivity in ethics is based on the morale and activity of the business.
Every business set particular objectives for this prepared proper guideline that are based
on the rules & regulations. If any law is not fulfil the expectations so apply another law
but require to follow the object of the company as per the rules & standards.
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 Competency: In the ethics it is defined as ability of an individual yo utilise a suitable
problem solving and apply appropriate decision making method in order to face several
problems to identify the ability to develop, arrange ans use applicable procedure, tools
and execution to operate relating moral problems.
CONCLUSION
As per the above report it has been concluded that for the business social responsibility is
important part where is required to follow set rules & standards in appropriate manner. These
standards are set according to structure and size of the organisation. For SME's set specific range
any in CSR use specific model that utilise to attain organisational objectives and evaluate
performance. Business based on ethics where set standards to conduct business activities.
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REFERENCES
Books and Journal
Bhasin, M .L., 2015. Creative Accounting Practices in the Indian Corporate Sector: An Empirical
Study. International Journal of Management Sciences and Business Research. 4(10).
Bloom, M., 2013. Double accounting for goodwill: A problem redefined. Routledge.
Christensen, T., Cottrell, D. and Baker, R., 2013. Advanced financial accounting. McGraw-Hill.
El-Firjani, E., Menacere, K. and Pegum, R., 2014. Developing corporate accounting regulation in
Libya past and future challenges. Journal of Accounting in Emerging Economies. 4(1).
pp.22-56.
Hillier, D., Ross, S., Westerfield, R., Jaffe, J. and Jordan, B., 2013. Corporate finance (No. 2nd
Eu). McGraw Hill.
Momin, M .A., 2013, June. Social and environmental NGOs’ perceptions of corporate social
disclosures: the case of Bangladesh. In Accounting forum (Vol. 37, No. 2, pp. 150-161).
Taylor & Francis.
Ngwakwe, C. C., 2012. Rethinking the accounting stance on sustainable development.
Sustainable Development. 20(1). pp.28-41.
Soltani, B., 2014. The anatomy of corporate fraud: A comparative analysis of high profile
American and European corporate scandals. Journal of business ethics. 120(2). pp.251-
274.
Tschopp, D. and Nastanski, M., 2014. The harmonization and convergence of corporate social
responsibility reporting standards. Journal of Business Ethics. 125(1). pp.147-162.
Ward, K., 2012. Strategic management accounting. Routledge.
Williams, J. W., 2014. The private eyes of corporate culture: The forensic accounting and
corporate investigation industry and the production of corporate financial security. In
Corporate Security in the 21st Century. (pp. 56-77). Palgrave Macmillan, London.
Yamey, B. S., 2014. The Development of Company Accounting Conventions, by. In Evolution of
Corporate Financial Reporting (RLE Accounting) (pp. 243-252). Routledge.
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