Corporate Social Responsibility: Key Drivers, Reasons, and Consequences

This document discusses the key drivers, reasons, and consequences of corporate social responsibility. It explores the changing landscape of business practices and the importance of sustainability. The document also highlights the potential consequences for companies that ignore sustainability and shares best practices and lessons from Walmart.

Corporate Social Responsibility

Table of Contents
Answer 1....................................................................................................................................3
Answer 2....................................................................................................................................4
Answer 3....................................................................................................................................5

Answer 1
Key drivers in the Age of Responsibility (Wayne Visser)
According to the Wayne Visser, the traditional techniques of business doesn’t work anymore
as a significant change has been assessed in the marketing and management practices of the
business. The key variants of Age of Responsibility are creativity, scalability, responsiveness,
circularity and glocality. Walmart’s transformation to organic cotton can be related to
scalability initiative by the organization (Lozano, 2015). Glocality is referred to as assuring
the right solution through developing an appropriate local solution. The same was adopted in
SC Johnson in Kenya who reformulated cleaning products in order to accept local consumer
conditions. Wayne Visser explains how the traditional approach of corporate social
responsibility is being put back by the 2nd generation movement. The 2nd generation
promotes the advance technique of CSR due to the significance of public relations to an extra
interactive, stakeholder-driven model.
Reasons due to which companies are taking sustainability seriously
The business is taking sustainability seriously due to environmental scarcity and climate
changes, as these variants develop unpredictable risks in the business value chain which
influence not only environmental risks but also covers business risks. Apart from this the
consistent nature of ecological threats as also effect into cascading risks. Competitiveness, as
well as corporate strategy, is the most important force for sustainability. Although the
investment community does not consider tangential of sustainability in a significant manner,
associates of the business community consider it as a basis of competitive advantage in a
significant manner (Saunila, Ukko, and Rantala, 2018).
Consequences for companies which ignore sustainability as a driver
Sustainability is now embedded in plan and is considered as a major business force as well as
risk alleviation. However, it is very important to the development in the upcoming phase.
Globally, Black rock is referred to as the major asset managers that use to post shockwave
throughout the corporate world. Within the business world currently, it has been declared that

in case a business wants to get its support it is important to think more about the contribution
which is made to the community instead of just profits. (Schaltegger, and Burritt, 2018)
The sustainability tale doesn’t end with Blackrock only. VW’s suspension of its head of
sustainability for permitting the exercise of monkeys in vehicle release tests illustrates legal
responsibility for careless practices which goes down towards the individuals. Thus,
ignorance of sustainability variant eventually leads to loss to companies (Visser, 2017).
Answer 2
In behavioral science, it has been recommended that customers must be directed towards
environmentally friendly options without conversing openly regarding sustainability. Just by
guiding towards the correct direction is very helpful. Presently lots of effective nudges are
functioning worldwide that are grown by the association of scientists, policy makers and
practitioners and those are as follows-
The functioning of norm-based messaging, objective setting as well as techniques that help in
decreasing the costs of decision making is one of the effective nudges. The same was applied
in the South Africa as well as united states about how their energy or water utilization in
contrast to others in their society decrease the use of energy and water up to 5 % within
randomized forced trails. For saving the energy, it is important to allow individuals to make
the aim of energy reduction (Lehner, Mont, and Heiskanen 2016).
According to the von Kameke, and Fischer (2018) furthermore, within the UK, behavioural
insights team has been made by the government which further referred as the Nudge Unit for
discovering and rapidly distributes the behavioural nudges for communal strategy. For
ascertaining an effective strategy involvement BIT (Behavioral Insights Team) plays a great
role within three years after its come into existence. For developing into a private-public
association, it is being spun off. By considering the success of BIT, the new behavioural unit
is launched by the U.S federal administration inside the executive branch (Pilaj, 2017).
Plan for nudging
customers in the direction of sustainability:

Assessment of existing reality – The present realism of the circumstances is planned by
considering together the behaviour itself with contextual aspect like social standard and state
of affairs where the behaviour is there. Furthermore, it is together examined by the lens of
behavioural insights to conclude what partialities and heuristics are at play and what
obstruction to the target behaviour are there within the situation (Pagell, and Wu, 2017).
Evaluation of target behaviour: For behavioural insight target behaviour is described and
chosen in order to decide what knob and motivator might direct towards the target audience
for demonstrating the target behaviour. Further, success metrics are recognized; that facilitate
dimension of increase in required behavior next to the well-known baseline.
Intervention Design: Throughout the design stage the insight increase from present
behaviour and target behaviour stage are coordinated to push system that will offer the most
probable in directing a target audience to display the planned behavior. Lessons erudite from
preceding interference and tale of achievement are scrutinized to tell this phase. The record of
possible interference method is prioritized by assessing possible efficiency, reach, and cost
competitiveness.
Pilot and Monitor: The intrusions chosen from the Intervention Design stage are suggested to
be piloted and observed with a sample inhabitant next to randomized manage groups. The
significance of this phase is strained by practitioners with the elucidation that primarily view
the results of a pilot and further contrast it to the managing group.
Evaluation: The channel is assessed alongside with the earlier resolute baseline to determine
achievement of the nudge interventions. The result of this stage is applicable to notify the
design of future interventions in addition to which interference to prioritize.
Feedback: Lessons erudite from the pilot and assessment phases might be a pointer into an
additional iteration of piloting for creating a powerful pilot and to notify a reconsideration of
the present truth.
Scale Up: Finally when an intervention is winning and might be simulated with reliable
efficiency. The nudge interference might be brought up to have a greater reach and effects in
known inhabitants.

Answer 3
Visser accessed Walmart as a company worthy of emulation as the company has responded
potential in order to fulfil the needs of the participants, consumers and their community by
relating their business model towards great communal requirements. It is possible that in case
they maintain sustain with the same principles, then it might be incredibly good. An efficient
effort has been to assure to provide sustainable lives within the business (Gallagher, 2018).
The issues which are faced by companies in order to introduce sustainable products and
services into the market place is that in various situations it yet adds to their bottom line
(Laszlo, and Cescau, 2017 ). Such cost savings are being incorporated within their business;
therefore throughout the good as well as bad times, sustainability will keep on to be a part of
its corporation and their culture.
The best practices which can be learned from Walmart is that it does not differentiate
between the business model of daily low prices and each day’s low costs, and further is an
additional sustainable company. In the Walmart Corporation, there are above 60,000
suppliers worldwide. They have greater chances to associate with them in a manner that are
best for their companies, their clientele and their society. There is as well a great chance for
their suppliers to execute better and more sustainable commence (Youn and et al., 2017).
Walmart pursues sustainability even if its primary objective is profit because its objective can
be attained with ease if it emphasizes sustainability in a significant manner. The major
objective of Walmart is to supply by the renewable energy completely, however, the same
does not contravene with the sustainability objectives as well as bottom line (earning profit).
In addition, its solar and wind energy objectives are operational to decrease the waste of
sources in the organization. The strategy works on creating a supply chain more
environmentally sustainable due to which it has been able to compete with companies like
Amazon, Kroger etc.

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