This document discusses the concept of corporate social responsibility and its impact on businesses. It explores the trade-off between responsiveness and scalability, the benefits of glocality, and strategies for nudging consumers towards sustainability. The document also includes references to relevant research studies.
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Running Head: CORPORATE SOCIAL RESPONSIBILITY1 Corporate Social Responsibility Name: Institution
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Corporate Social Responsibility2 Questions: 1.What does it mean to be responsive in the Age of Responsibility? Provide examples, and explain the trade-off between responsiveness and scalability. Responsiveness in the age of responsibility is simply taking the obligations and duties of engaging in sustainable practices by an organization. It involves all actions that are geared towards facilitating social responsibility (Visser & Kymal, 2015). For example, Walmart Company pushes its suppliers to embrace social responsibility by ensuring that they use green energy. Similarly, Eco-Patent Commons is an innovative company that provides technological patents that assist in the reduction of global warming (Servaes & Tamayo, 2013). Such innovations encourage other organizations to move towards sustainable practices. In the age of responsibility, corporates are driven by consumer behavior towards sustainability. The contemporary consumer is not only concerned with the quality of product and services of a company but also in how the company engages in activities of environmental conservations, community empowerment, and green energy. The consumers check how organizations contribute to the attainment of sustainable development goals. By embracing sustainability, the business builds a good reputation for its brand. Business has the obligation of responding to community needs. The sustainability problems that are being witnessed such as climate change, poverty, and environmental degradation are all addressed by the responsiveness of the stakeholders in practicing sustainability (Visser, McIntosh & Middleton, 2017). Scalability ensures that sustainable practices have achieved their objectives. For example, Walmart achieves scalability in their operations by ensuring most of its service rendering is driven by conservation and sustainability.
Corporate Social Responsibility3 Responsiveness results directly to scalability. Scalability in this context is the level the company wants to achieve in its sustainable practices. It involves the results of sustainable engagement by the company. By being responsive, companies can achieve scalability by indulging in sustainable practices (Vinopal & McCormick, 2013). The application of sustainability in an organization sustainability operations is directly proportional to the outcome in terms of scalability. For example, the responsiveness of Walmart in adopting green practices resulted in the reduction of the environmental carbon footprint. 2.What is glocality, and how would you apply the concept to any product or service of your own choosing? What is the benefit to business of glocality? The term glocalization comes from the combination of two terms which are globalization and localization. It involves the definition of a production that has its placement in the global market but it is made to fit into the requirements of the consumers in the local market. This means the products or services are tailored to conform to the need of the local markets. For example, Starbuck Company has embraced glocalization in its China market by offering ‘zongzi’ in its product mix. ‘zongzi’ is glutinous rice wrapped in reed and it is a traditional delicacy for the Chinese people. The company has therefore met the expectations of the local market. Additionally, Starbucks offers coffee blended with tea in the United Kingdom in line with the customs of the Britons. Glocalization is an effective strategy by global organizations to increase the consumer base and build customer trust in the local market there exist two main conditions that facilitate effective application of the glocalization strategy. First, the company has to have an overview of the local market it plans to expand to. Second, the company has to create the right balance
Corporate Social Responsibility4 between its global and local brand differences. It is important to note that while glocalization customizes the international global brand to fit the local market, it must take important caution to prevent cultural appropriation. I would apply the concept of glocalization in the car industry. The car manufacturing industry is marked with intense global competition and the manufacturers are seeking strategies to position themselves significantly in the global market (Flammer, 2013). I would ensure I make cars that are appropriate for each market. For example, cars will be tuned to suit the lanes of different countries. Some countries such as America uses the right side of the lane while others such as the UK use the left. I would make cars specifically to match the lanes of the countries that they are being shipped to. Glocalization has numerous benefits to the business. It helps the business to connect emotionally to the needs of the consumers by offering products or services that are specific to the local culture. Additionally, glocalization is that it brings revenue to the local market and offer employment opportunities to the local community. Glocalization has also lead to the advancement of communication. This is with the intent of bringing countries together and facilitating global trade. Information is now accessible from any corner of the world giving companies the advantages of making informed investments decision. This has directly influenced direct access to information and products. Additionally, it has supported the operations of e- commerce. Additionally, glocalization helps to improve the reputation of the business. A business that enters the global markets gains the prestige of being referred to as international business, thus attracting more investors into the business.
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Corporate Social Responsibility5 3.Human bias is a serious impediment to forming beliefs that map on to reality. Corporations create impacts on the environment and community, and we sometimes ignore such impacts for the sake of gain and allow negative externalities to accumulate into a mixed bag of unintended consequences. The way we talk about environmental and social problems has been a challenge to business, but how can we convince others (customers) that sustainability is a desirable end? Refer to the best/latest science or behavioral economics in describing a plan for nudging consumers toward sustainability. The implementation of sustainability is not just as easy as any other operation but it needs to incorporate the stakeholders to ensure the success of the intervention. The most important group in sustainability operations are the employees, communities, and customers. The managers, therefore, have to come up with strategies to convince the customers towards sustainability(Badulescu, Saveanu & Hatos, 2018). Some of the strategies include; equipping people with knowledge on the importance of sustainable practices. People are hesitant in trying out new things and need motivation and reassurance (Visser, 2016). The managers should be persistence and explain the overall benefits of sustainable practices. Sustainability should also be made easy for customers to easily adapt. For example, putting recycle bins in a place where it can be easily accessed will increase its usage. If the product is not readily available, people do not make the effort of seeking it out. Another way of capturing the attention of others is making sustainability enjoyable. Incorporating sustainability meetings with team building activities and snacks will attract the attention of others better. Sustainability formulation programs should allow open participation to encourage the sharing of ideas. This will enable the stakeholders to contribute directly and feel more obligated to implement the policies.
Corporate Social Responsibility6 Behavioral economics suggests that customers can be made to make sustainable choices without necessarily communicating about such practices. A nudge in the preferred direction is all that is needed to incorporate this. This idea works because they do not intrude into the consumers and people have the liberty of making their own choices. It is based on the ideas that humans want to make choices by themselves. Nudge give the people the benefit of choosing between choices. In sustainability, nudging can be used to increase conservations (Nwagbara, & Reid, 2013). For example, using visual representations such as clips that shows the aftermath of environmental pollution can make individuals make a choice of conserving the environment. Organizations can use the principle of scarcity by giving information on the scarcity of natural resources to encourage people to turn to green energy(Cheng, Ioannou & Serafeim, 2014. Due to the high number of choices that people are faced with on a daily basis, they tend to simplify things by choosing the easiest choice. Therefore, when sustainable practices are presented as an ‘extra,’ the possibility of them being embraced is low. One way to curb this is by making the default option the sustainable one. For example, in utility services such as power companies, the manufacturers can make the low light emitting option as the default.
Corporate Social Responsibility7 References Badulescu, A., Badulescu, D., Saveanu, T., & Hatos, R. (2018). The relationship between firm size and age, and its social responsibility actions—Focus on a developing country (Romania).Sustainability,10(3), 805. Cheng, B., Ioannou, I., & Serafeim, G. (2014). Corporate social responsibility and access to finance.Strategic management journal,35(1), 1-23. Flammer, C. (2013). Corporate social responsibility and shareholder reaction: The environmental awareness of investors.Academy of Management Journal,56(3), 758-781. Khan, A., Muttakin, M. B., & Siddiqui, J. (2013). Corporate governance and corporate social responsibility disclosures: Evidence from an emerging economy.Journal of business ethics,114(2), 207-223. Nwagbara, U., & Reid, P. (2013). Corporate social responsibility communication in the age of new media: towards the logic of sustainability communication.Revista de Management Comparat International,14(3), 400. Servaes, H., & Tamayo, A. (2013). The impact of corporate social responsibility on firm value: The role of customer awareness.Management science,59(5), 1045-1061. Vinopal, J., & McCormick, M. (2013). Supporting digital scholarship in research libraries: Scalability and sustainability.Journal of Library Administration,53(1), 27-42. Visser, W. (2016). 19. The future of CSR: towards transformative CSR, or CSR 2.0.Research Handbook on Corporate Social Responsibility in Context, 339.
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Corporate Social Responsibility8 Visser, W., & Kymal, C. (2015). Integrated value creation (IVC): beyond corporate social responsibility (CSR) and creating shared value (CSV).Journal of International Business Ethics,8(1), 29-43. Visser, W., McIntosh, M., & Middleton, C. (2017). Corporate citizenship in Africa: lessons from the past; paths to the future. InCorporate citizenship in Africa(pp. 10-17). Routledge.