Corporate Social Responsibility Assignment Conclusion

CORPORATE SOCIAL
RESPONSIBILITY
PART 2

Table of Contents
INTRODUCTION...........................................................................................................................3
Task 1...............................................................................................................................................3
Description and summary of the organization-..........................................................................3
Task 2...............................................................................................................................................4
Factors responsible for company's rank with regard to CSR- ....................................................4
Task 3...............................................................................................................................................5
Corporate actions taken by the company that enhanced its ranking- .........................................5
Task 4...............................................................................................................................................6
Company's CSR approach and its impact on purchasing decision of people- ..........................6
Task 5...............................................................................................................................................7
CSR as an relevant component in current business environment-..............................................7
CONCLUSION................................................................................................................................9

REFERENCES................................................................................................................................9
INTRODUCTION
Corporate Social Responsibility is a business approach that is meant to contribute
towards sustainable development by delivering economic, social and environmental benefits to
stakeholders and public. Through CSR , company can benefit the society and also create their
good brand image. There are four types of social responsibility- Environmental Sustainability
Initiatives, Direct Philanthropic Giving, Ethical Business Practices. The Organization been
adopted for study in this report is Cadbury Plc . The report will highlight the different
components of CSR and their impacts on business, the effect of CSR on purchasing power of
people and the current practices of CSR in the companies.
Task 1
Description and summary of the organization-
Cadbury is a British multinational confectionery company which was founded by John
Cadbury, in 1824 and currently owned by Mondelez International. Consisting its headquarters in

Uxbridge, London, England, Cadbury operates in more than 200 countries all over the world and
has 71,657 employees working for it. Cadbury is popularly known for its “Dairy Milk” and
sells a wide variety of products related to chocolates, ice creams, health drinks etc., and has
developed a strong product line. The reason for choosing 'Cadbury Plc' is that the products of
Cadbury are available in rural as well as urban areas all over the world. Also, Cadbury has won
Green award for its best green packaging for Eco-Eggs and the company is shortlisted for
ICAEW Corporate Responsibility award at the National Business Awards in 2007/08. Due to the
strong distribution strategy used by the Cadbury, the company has created a strong customer
base and been earning huge profits out of it and Cadbury is considered as the second largest
confectionery brand in the world(Unit B, 2015).
Task 2
Factors responsible for company's rank with regard to CSR-
Environmental Sustainability Initiatives- Environmental sustainability initiatives being
performed by the companies generally includes limiting pollution and reduction of greenhouse
gases. As due to the increasing awareness of environmental issues, organizations that takes steps
to reduce air, land and water pollution considered as their performing duty of Corporate social
responsibility towards environment and accordingly creating its good brand image(Crane and
et.al., 2019).
Direct Philanthropic Giving- Philanthropic components include the donation of time. Money or
resources to local, national or international levels. This donations may be for disaster prone
areas, education facilities for poor and needy students, donations in making hospitals in rural
areas and other funding for the development for the communities.
Ethical business practices- These practices include provide fair remuneration to the employees
for their work and providing them many benefits for their welfare. It also includes using of better
raw materials for manufacturing products that does not harm the consumers, working conditions
of employees and labours.
Focus on economic responsibility- These activities include sustainable use of resources that
leads to company's economic growth. For example- company may use the recycled products as
input to manufacture new products, this will not only save the cost for the company but also
solve the problem of scarcity of resources(Grayson and Hodges, 2017).

Task 3
Corporate actions taken by the company that enhanced its ranking-
The Cadbury foundation- The Cadbury foundation was set up for the recognition of the
company founders and their investments in employees welfare and benefits. The program also
focussed on the benefits to the society and communities of people all over the world. The
Cadbury foundation donated the very first amount of £40 to Stirchley Girl's Club on 8th
November 1935. Later the company initiated the program of “ Helping Others to Help them”.
This program enabled the charity activities across UK and Ireland and also motivated the
employees to share their time and skills with the wider communities around them. Accordingly
The Cadbury Foundation has donated about £8 million to many well deserving causes. The
foundation also supports various a wide number of inspirational organisations such as The
British Paralympic Association, Youth Sports Trust and Help for Heroes. The Cadbury
foundation are working with the team and funding these sports fest, which include a series of
free events that give people to participate in Paralympic sports and take the activity to the next
level(Voegtlin and Greenwood, 2016).
The launch of “Eco-Eggs” and “Purple Goes Green” programmes– This program conducted
by Cadbury supports the company's commitment to reduce its global environmental footprint.
Cadbury made an absolute commitment regarding the reduction of 50% carbon footprint of the
company by 2020, through its Purple goes green program. This program also targeted on the
commitment of Cadbury in 10% reduction in standard packaging and 25% reduction in seasonal
packaging by 2020. “Eco-Eggs” has saved- 117 tonnes of cardboard- which is equivalent to
approximately 200 trees and 283 tonnes of PVC which is equivalent to 6.74 million plastic
bottles (about 77.6% of PVC). Cadbury reduced the use of plastic in its Boxed egg range product
and the use of cardboard in the secondary packing of the product. These activities lead to the
progress of Cadbury on Corporate Social Responsibility and Sustainability through the
commitments of the above programmes.
The Fair trade component- The fair trade price is for the farmers which is calculated price for
their production, helping and protecting them from the economic fluctuations in the world
market prices. Cadbury CSR adopted this fair trade issue as the company was largest buyer of
Cocoa beans being produced by the farmers. The company provided fair trade premium to the

farmers which provides them additional sum of money to grow their business and also invest in
their communities by building roads, schools and hospitals. The activities also includes
supporting those communities in gaining knowledge on operating successfully in global
economy, improving their working conditions, environmentally sustainable farming methods etc.
These policy helped 55000 farmers in Ghana to take part in farmer training, provided them
necessary equipments to increase their productivity, health checks in 100 communities have
taken place and also community projects with major focus on water and sanitation had been
implemented(Cramer, 2017).
The other programs of Cadbury CSR are -
 Promote responsible consumption- Contribution to consumer's diet, health and lifestyle
solutions. This was managed by the Sustainability Strategy group and being advised by
the Global Nutrition Advisory Panel.
 Prioritise Quality and Safety
 Nurture and reward colleagues so that they are proud to work with Cadbury, Focussed on
their commitment and remain engaged in their tasks.
 Reduce Carbon, Water usage and Packaging.
Task 4
Company's CSR approach and its impact on purchasing decision of people-
Yes, the CSR approach will influence the decision of people in purchasing the product
due to following reasons-
11 There is in rise in awareness of environmental issues such as global warming, greenhouse
gases, pollution level and carbon emission and all the nature related issues, among the
people. Cadbury follows the CSR approach of contributing towards environment and
nature and thus creates its good image in the eyes of people. Thus the buyers purchase the
product of Cadbury as they are totally aware about the company's contribution and they
also tends to be a part of it(Saeidi and et.al., 2015).11 The Cadbury foundation has been contributing to several communities for their health
and education facilities. People being a part of society also wants to contribute the
society, so they turn out to be product buyers of Cadbury and accordingly provide their
contribution.

11 There is the rise in use of plastic and its harmful effect on environment and people.
Cadbury has stated the commitment to reduce its 50% usage of plastic in its Purple goes
green program. SO the people prefers to buy Cadbury products as they will avoid the use
of plastic in packaging and benefit the society and environment.11 Cadbury also delivers best quality of its products to consumers in relation to their health
and safety, so the people would prefer to buy Cadbury products in order to attain such
benefits.11 Cadbury design the packaging and timely innovates the products in preference to
consumer's culture, interests and their tastes resulting in customer satisfaction. These
things automatically turns up the people to purchase Cadbury products.11 Cadbury is also providing more employment opportunities and favourable working
conditions for the employees, and also providing fair remuneration to them. This will in
turn increase the standard of living of the particular community and also develop their
positive interests towards company and accordingly make people to buy Cadbury
products.11 Company's overall CSR approach will create its good brand image in market, through
benefiting the society, employees, environment and customers. This will create a faith in
the minds of people for they company and accordingly they will prefer to buy its
products.11 People like to buy more products of the company they like, and this likeness and good
impression is made through company's CSR(McWilliams, 2015).
Hence it is justified that, people being a part of society achieve the benefits being gained by the
Company's CSR and it can influence their decision to buy more products of the company
performing the approach.
Task 5
CSR as an relevant component in current business environment-
Yes, CSR approach is totally relevant in current business scenario. The reasons are as
follows-

1. CSR improves the public image of the company- For growth and survival of any
business or company, its public image plays an important role. CSR activities of
Philanthropy will create the good positive image of company in the yes of customers and
enhancing their willingness to buy the company products(Ioannou and Serafeim, 2015).
2. Boosts engagement of employees in the company- CSR towards employees which
include favourable working conditions, good remuneration for their work, rewards and
appraisals according to their performance and many other health benefits. All these
activities will motivate the employees to work with the company and make some extra
efforts resulting the company's growth. Also it will keep them engaged with the same
organisation for longer duration.
3. Attract the investors- Company's good image will create more customers buy its
products and accordingly make strong customer base in the market. More customers will
generate more sales revenue, resulting in uplifts of the profits of the company. More
profiting organisation generally attract the new investors as the investors try to invest in
higher profit making companies so as to get higher return on investment. This will make
strong financial position of the company by getting more investment in it. Apart from this
company's good relation with its shareholders and its CSR towards them which includes
timely payment of their dividends(Crowther and Seifi, 2018).
4. Satisfied Customers- Using CSR approach in benefiting society and customers which
include providing best quality products to the customers, various donations in cultural
activities will automatically lead to customer satisfaction and attracting new ones.
5. Costs savings for business- Company's CSR towards environment which will include,
optimum utilisation of resources, reducing wastages and several other emissions which
will reduce the costs too. This will help to make costs savings and utilize it in other
activities.
6. CSR benefits to society- Along with the company CSR will also benefit the society in the
following ways
1 Higher standard of living.
2 Social activation
3 Better employment opportunities.
4 Increased Health

5 Sense of Security.
6 Economic development.
7 Education.
8 Technology and infrastructure.
9 Natural Environment Protection
10 Improve quality products.
CONCLUSION
From the above study it is noted that what does Corporate Social Responsibility actually
means, its components and factors and how these factors creates impact on Business
organizations in various ways. Further it was observed various aspects that are needed to identify
company's CSR ranking. In addition to the report, the different programmes which were initiated
by Cadbury Plc in order to establish its CSR ranking were observed. The influence of company's
CSR approach in relation to purchasing decisions of the people was being discussed. Lastly the
report consisted that why CSR is relevant in current business scenario through its different
benefits to society and the company. Hence it is concluded that companies can not only
concentrate on its primary goal of profit maximisation, but it has to bear the social responsibility
towards its stakeholders in order to grow and expand its business.
REFERENCES
Books and Journals
Crowther, D. and Seifi, S. eds., 2018. Redefining Corporate Social Responsibility. Emerald
Group Publishing.
Unit, B., 2015. Corporate social responsibility.
Grayson, D. and Hodges, A., 2017. Corporate social opportunity!: Seven steps to make
corporate social responsibility work for your business. Routledge.
Crane and et.al., 2019. Corporate social responsibility: Readings and cases in a global context.
Routledge.
McWilliams, A., 2015. Corporate social responsibility. Wiley encyclopedia of management.
pp.1-4.
Saeidi and et.al., 2015. How does corporate social responsibility contribute to firm financial
performance? The mediating role of competitive advantage, reputation, and customer
satisfaction. Journal of business research, 68(2), pp.341-350.

Ioannou, I. and Serafeim, G., 2015. The impact of corporate social responsibility on investment
recommendations: Analysts' perceptions and shifting institutional logics. Strategic Management
Journal.36(7) pp.1053-1081.
Cramer, J., 2017. Corporate Social Responsibility and Globalisation: an action plan for
business. Routledge.
Voegtlin, C. and Greenwood, M., 2016. Corporate social responsibility and human resource
management: A systematic review and conceptual analysis. Human Resource Management
Review. 26(3).pp.181-197.