Corporate Social Responsibility (CSR) Assignment - Essay

CORPORATE SOCIAL RESPONSIBILITY:
IDENTIFY AND ANALYSE PARTICULAR
SUSTAINABILITY ISSUES IN THE CONTEXT
OF A MULTINATIONAL MANUFACTURING
COMPANY

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
MAIN BODY..................................................................................................................................1
CONCLUSION................................................................................................................................3
REFERENCES................................................................................................................................1

INTRODUCTION
Corporate social responsibility is the regulation or framework implied for private
organisation in order to ensure ethical business practices. Incorporating CSR framework is
essential for the business to manage safe and valuable business practices with regard to
environmental concerns. The essay will outline sustainability issues in multinational
manufacturing company on the basis of social, economic, and environmental perspective. The
essay will help in developing critical understanding over different issues faced by manufacturing
organisation.
MAIN BODY
CSR is approach of business which contributes in sustainable management of services
with regard to social, economic, and environmental benefits. Implying to CSR is effective
approach a it helps the organisation in protecting interest of stakeholders and maintaining ethics
business practices. Social responsibility can be fulfilled by multinational organisation by taken
initiative for sustainable supply chain, business ethics, environment safety, etc. It important for
the multinational organisation to comply with CSR framework as it helps the enterprise in
maintaining employee satisfaction by focusing on human rights, occupational health and safety,
and managing diversity at workplace (Wright and Nyberg, 2017). On the other hand, responsible
framework helps the firm in acting ethically, responsible purchasing and providing equal access
to services to consumers. Further, with respect to environment CSR helps the business reducing
carbon footprint and innovating circular economy. Managing sustainability in manufacturing
organisation is a global concern where it is necessary for the organisations to focus on product
quality, profits and market share.
Sustainability and Corporate social responsibility
Sustainable practices in business world are increasing rapidly and aim at meeting
challenges in responsible way. CSR helps the organisation in managing integrity in services
which supports profitability and responsible business practices. It is platform which supports
exchange of ideas of working together and helps the business sin comprehend various issues
which can restrict growth of firm. According to Brondoni, 2014, it is an inevitable process of
managing stable forms of growth and development with regard to changing lifestyle, way of
managing business and human civilization. It is necessary for organisation across the globe to
1

focus on sustainability issues with increasing globalisation because it is the only process which
ca in maintaining balance between environment and use of resources. The process aims at
protecting environment by focusing exploitation of resources, carbon footprint and unethical
business practices. However, Silvestre, 2015, articulated that sustainability is avoidance of
depletion of natural resources with the motive of maintaining ecological balance. The scholar
discussed about incorporation of CSR framework which can assist the firms in managing
sustainable practices as it focuses on all the issues which are faced by organisation for
maintaining ecological balance. There are four dimension of suitable development that is social,
environmental, economic and environment where social focuses on equity, health, education,
housing, security and population. However, environmental sustainability aims at atmosphere,
land, oceans, seas, fresh water and biodiversity. On the other hand, economic sustainability
focuses on economic structure and production, manufacturing and consumption patterns. Lastly,
institution sustainability is based in institution capacity and framework.
Sustainability in multinational manufacturing organisation
Manufacturing is a continuous process where managing and building is key focus of
organisation which aim at growing to achieve objectives. It goes through continuous changes
because of invention, innovation and spirit of innovation in global environment. For example,
food manufacturing companies undergo tremendous issues like food safety, prices and security
which are major barrier to interest of stakeholders (Gregory, Rana and Platts, 2009). Forno and
Graziano, 2014, outlined that sustainability is and part of multinational manufacturing
organisation. It is focuses on three approaches that is ecocentric, technocentric and
sustaincentric. Sustaincentric in international manufacturing organisation is based on industrial
advancement which helps the firm to grow with conflicting interest of society and industry.
Sustainable development with reference to CSR ae focused on financial responsibility, social
responsibility and environmental responsibility.
Sustainability issues for internal manufacturing organisation incorporating safe
environment polices as per different framework of different countries. The compliance is
necessary and therefore it is important for the firm to ensure restructuring of strategic compliance
with changing framework. For example, manufacturing firm incorporates use of natural
resources for which it is important for the enterprise to focus on environmental policies like use
of resources and emission of gases. According to Epstein, 2018, the major environmental
2

sustainability issue faced by multinational organisation is pollution and disposal of waste. It is
the crucial point if concern where it is necessary of the organisation to ensure proper process of
recycling to ensure least damage to nature (Chen, Olhager and Tang, 2014). Further, emission of
harmful gases is another concern which hampers living condition and climatic changes of
particular region for. However, it is necessary for the organisation to ensure making proper and
optimum use of resources. Further, social sustainable issues faced by organisation are based on
consumer which have different requirement according to condition and living style of society. It
is necessary for manufacturing business to focus on demands and purchasing ability of buyers in
order to protect cultural ideologies and manage stability with regard to business ethics. In
addition, Burritt and Schaltegger, 2014, outline global economic sustainable issues faced by
manufacturing organisation that is climate and security. Further, as per economic evaluation it is
necessary for the firm to create employment opportunity of the local people and to comply
minimum wage standard of the region in order to ensure fair way and diversity at workplace.
Economic sustainability issues faced multinational manufacturing organisation
Economic sustainability issues plays a major role which affect the operational; efficiency,
productivity and performance of the manufacturing industry. Change in government policies and
non compliance of various laws, rules and regulations affect the operational efficiency of the
organization. Manufacturing industry has to comply with all the laws and regulations of the
country in which it operates. This pose a major burden on the industry to comply with all the
laws and standards and leads to increase in cost and lower productivity and operations of
manufacturing industry.
Change in inflation rate, currency value and interest rate affect demand and supply of the
manufacturing industry which leads to lower profit margins and success. Recession and
economic downturn leads to ineffective operational efficiency. Inflation affect the economy as
there will be more expenses and rise in price of goods and services affect buying behaviour of
the customers (Epstein, 2018). High interest rates affect manufacturing industry and discourage
them for further expansion and diversification. Change or fluctuations affect manufacturing
industry as it affects the import and export of goods and services from one country to another
which leads to higher expenses. This hampers the competitive position of manufacturing industry
and leads to lower profit margins and increase in cost. Unemployment leads to ineffective
3

operations and leads to higher loss of production and lower income capacity and eventually leads
to lower spending.
Social sustainability issues faced multinational manufacturing organisation (500)
While maintaining economic sustainability, it is also very important for manufacturing
companies to maintain high ethical or social standards. The manufacturing organisations face
various challenges due to their potential for harming consumers and employees. When operating
a manufacturing business, an individual needs to be aware that there is a potential for the chances
that the products are unsafe for customers and there are possibility of injuries to the workers.
Implementing procedures, controls and policies to reduce these risks or issues in not not social
but also a legal requirement. There are various social issues faced by manufacturing companies
which can be discussed as below -
A socially sustainable or ethical business needs to prioritize safety in the workplace. In a
manufacturing environment, the presence of raw materials and machines make proper safety
processes both socially and mandatory important (de Sousa Jabbour and et.al., 2018).
Additionally, basic safety rules for example wearing protective gear and refraining from getting
engaged into risky behaviour, the major problems relate to a reasonable balance between
productivity, safety and inconvenience. Implementing too many rules or policies can develop
compliance issues, while not addressing safety challenges can lead to major injuries. If
manufacturing companies provide employees a role in creating safety regulations for a
production line, it can assist in the implementation of effective rules that can develop the right
balance. The best example of ethical manufacturing can be Ford motor company, it has recently
introduced F3T – Ford Freedom Fabrication technology which is a new technology that allows
prototypes to be produced and tested in few hours which is very time consuming. It plays a major
role in helping workers in the production process.
Duty to provide safe products is another big issue faced by companies in manufacturing
industry. These companies face liability once their product leave the factory. The safety of the
products is governed and controlled by legislation, and social or ethical concerns mean that the
manufacturing organisation should on ship products that are already been tested safety. While
knowingly shipping dangerous products is unethical and illegal, the utilisation of the products
also may have harmful and unintended impacts. Going beyond legal requirements to thoroughly
4

test each and every aspects of the utilisation of the products reduces the company's exposure to
possible laws and fulfils the social or ethical duties.
Ageing workforce or skill gap is another factor which affect manufacturing industry.
When highly skilled and experienced workers reach to their retirement age, they leave the
workforce and take their hard won experience and skills with them. Younger workers are not
available readily for replacing these retirees, and those new ones which are available do not
possess necessary skills for many important roles in the manufacturing company. The production
companies may require to work with schools in their societies to make sure that the educational
system consist the topics and skills training those younger worker need to fill this roles in he
manufacturing organisations. In addition to this, the companies may require to be more flexible
with their ageing workforce, they can allow employees to be comfortable by doing part time jobs
rather taking retirement such as SSAB, a Nordic and US based steel company which provides
flexible shift to the older employees ensuring they do not leave the company(Factors Affecting
Economic Growth & Development of an Industry. 2014).
Environmental sustainability issues faced multinational manufacturing organisation
Environment sustainability is one of the core aspects which companies across the world
are adopting in the era of globalisation and 21st century. Sustainability has become a new need
for the people across the world because of the environmental awareness and the issue of global
warming and climate change. Below mentioned are some core issues and challenges
manufacturing companies across the world are facing in order to maintain environmental
sustainability:
The product design which manufacturing industries follows across the world are as per
the needs and requirements of the consumer and the people which they are serving on large
scale. In order to maintain sustainability, it becomes hard for the companies to produce designs
which are as per the needs and requirements of the consumers and are fulfilling their
sustainability needs as well. In order to ensure that proper sustainability is taking place, the needs
and demands of the customers cannot be addressed properly by the companies. For example,
organizations such as Cadbury which produces Chocolate and related products for its consumers
have to ensure that its products are services are being made as per the consumers needs and
demands(Di Giuli and Kostovetsky, 2014).
5

During the time while designing new products and services, it is hard for the company to
ensure that its products are sustainable as well. In order to do that Cadbury has to minimize the
use of chemicals and sugars while the production of its chocolates. It is not possible for the
company to do in order to maintain the quality and taste of its chocolate along with ensuring
product sustainability.
Managing the product lifestyle along with ensuring sustainability is one of the main
issues which companies are facing. For example, the pre-manufacturing, delivery, recycling and
disposal tends to make it difficult for companies such as General Motors to produce its products
and services along with maintaining the lifestyle of the products. The cars of the company when
are in pre-manufacturing stage needs to be carefully designed and produced as per the
organizational needs and requirements to maintain its standards. In order to ensure sustainability,
the General Motors in this stage of product have to minimize the usage of electricity and have to
make use of fewer chemicals as well which are causing the environmental damage.
General motors tend to face difficulties in order to maintain such sustainable environment
because it makes the company face issues in maintaining its own standards and later observing a
rise in lack of profitability and growth of the firm. The company in order to maintain its own
growth face difficulties in ensuring environmental sustainability. Also, it creates the difficulty for
both the environment and the company as well. Waste disposal is another issue which the
company faces in its manufacturing process. The organizations waste products are very harmful
and there's a risk if these chemicals and products are disposed in the environment. They can
cause harm to the flora and fauna. In order to ensure this, the organization has to make use of
machines which can purify the waste first so that it can be dumped in a safe place without
causing the harm to the environment and its flora and fauna.
Measures to resolve economic, social and environmental sustainable factors for effective
CSR practice.
Manufacturing industry should comply with all rules, regulations and standards of the
country for effective operational efficiency and productivity (Meixell and Luoma, 2015). They
need to practice ethical measures to protect the interest of general public and make people aware
about various laws. Manufacturing industry should comply with various standards which helps
in reducing carbon emission and focus on clean and green environment to protect environment
from harmful gases. They should take necessary measures improve social sustainability and
6

should take into consideration culture and ethics of various countries in which it operates.
Manufacturing industry should comply with all rules, laws and standards for smooth functioning
of manufacturing industry in legal manner. Manufacturing industry aim at developing internal
policies for the manufacturing industry for safe and healthy work environment which encourages
work life balance, training and equal opportunities which helps in retaining talented and
prospective employees in the organization for higher productivity and performance and helps
achieve long term goals and objectives of the company. Manufacturing industry should work in
compliance with health and safety laws to protect employees from any hazardous activities. They
should also comply with employment act and regulations for more satisfied workforce. Hence,
implementation of effective CSR practice helps in increased operational efficiency and
productivity of manufacturing industry.
CONCLUSION
The study summarized about integration of corporate social responsibility to manage
sustainability issues within organisation. Further, the essay was specific to sustainability issues
faced by manufacturing multinational organisation like environmental where it is necessary for
the business to focus on waste disposal, emission, etc. Further social issues outlined by are
incorporation of ethical business practice to manage customer satisfaction and accessing equal
availability o services to buyers. Thus, it concluded with economic challenges like diversity and
compliance with fair pay standards.
7

REFERENCES
Books and Journals
Burritt, R. and Schaltegger, S., 2014. Accounting towards sustainability in production and supply
chains. The British Accounting Review. 46(4). pp.327-343.
Epstein, M.J., 2018. Making sustainability work: Best practices in managing and measuring
corporate social, environmental and economic impacts. Routledge.
Chen, L., Olhager, J. and Tang, O., 2014. Manufacturing facility location and sustainability: A
literature review and research agenda. International Journal of Production
Economics. 149. pp.154-163.
Forno, F. and Graziano, P.R., 2014. Sustainable community movement organisations. Journal of
Consumer Culture. 14(2). pp.139-157.
Silvestre, B.S., 2015. Sustainable supply chain management in emerging economies:
Environmental turbulence, institutional voids and sustainability trajectories. International
Journal of Production Economics. 167. pp.156-169.
Brondoni, S.M., 2014. Global Capitalism and Sustainable Growth. From Global Products to
Network Globalisation. Symphonya. Emerging Issues in Management. (1). pp.10-31.
Wright, C. and Nyberg, D., 2017. An inconvenient truth: How organizations translate climate
change into business as usual. Academy of Management Journal. 60(5). pp.1633-1661.
de Vargas Mores, G. and et.al., 2018. Sustainability and innovation in the Brazilian supply chain
of green plastic. Journal of Cleaner Production. 177. pp.12-18.
de Sousa Jabbour, A.B.L. and et.al., 2018. Industry 4.0 and the circular economy: a proposed
research agenda and original roadmap for sustainable operations. Annals of Operations
Research. 270(1-2). pp.273-286.
Meixell, M.J. and Luoma, P., 2015. Stakeholder pressure in sustainable supply chain
management: a systematic review. International Journal of Physical Distribution &
Logistics Management. 45(1/2). pp.69-89.
Di Giuli, A. and Kostovetsky, L., 2014. Are red or blue companies more likely to go green?
Politics and corporate social responsibility. Journal of Financial Economics. 111(1).
pp.158-180.
Online
1

Gregory, M., Rana, P. and Platts, J., 2009. Exploration of corporate social responsibility (CSR)
in multinational companies within the food industry. [Online]. Available through: <
http://www.csringreece.gr/files/research/CSR-1342168766.pdf>.
Factors Affecting Economic Growth & Development of an Industry. 2014. [ONLINE]. Available
through:<http://ecolonomics.org/factors-affecting-economic-growth-development-of-an-
industry/>
2