Corporate Social Responsibility: How Seriously is it Taken by Large Corporations?

This report critically discusses the extent to which Corporate Social Responsibility (CSR) is actually taken seriously by large corporations. It covers the concept of CSR and its impact on the performance of the organisation. The report also highlights the four pillars of CSR, the benefits of CSR, and the tools that can be used to monitor the CSR initiatives. The report concludes that CSR is not only beneficial to the society and environment but also to the company as it increases potential buyers and recruitment of talented candidates.

Business Law and
Ethics

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK ..............................................................................................................................................4
Critically discuss the extent to which Corporate Social Responsibility (CSR) is actually taken
seriously by large corporations...................................................................................................4
CONCLUSION ...............................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
CSR in ordinary language means through a particular business what are the impacts on the
society, environment, economy structure of the State. Corporate Social Responsibility is long
term, continuos enhancement for society which can be obtain through the organisation which are
positively promoting the social, economic, and environmental impact. Activity of organisation is
not only impacting social, economic, and environmental impact but also impacting their own
personnel (Adnan, Hay and van Staden, 2018). The value and ethics of the particular
organisation on which activities of company operate is the Corporate Social Responsibility. This
report will cover the concept of corporate social responsibility and its impact on the
performance of the organisation.
TASK
Critically discuss the extent to which Corporate Social Responsibility (CSR) is actually taken
seriously by large corporations.
The definition of CSR by the UK government is given as “Organisation is having the
responsibility for repercussions of their decisions on society and environment by mode of ethical
behaviour. Organisational main strands for the CSR activities are:
Society: Optimistical view for the welfare and development of society can be promoted
and support to the local vendors by the organisation.
Environment: Reduction of repercussions on the environment and the ways to manage
the waste, emissions and consumption of natural resources.
People: Manage and encourage the workers and promote the diversity, equality,
inclusivity for all at the work place.
Economy: Impressions made by the products and services and the trading should be with
ethics and values of the company and it should reflects the value chain similar as CSR value.
CSR evolved into extensive system of business management, mandatory CSR can be
classified as general legal duties perform in well organize manner. Under the corporate law the
duties and obligations of the CSR are mentioned. Every challenges are impossible to be solved
by the government or non-profit organisations so the purpose of having CSR mandatory is arouse
(Chijoke-Mgbame, 2021). Every company, despite of their size or the nature of business have to
make an positive impression on all stakeholders- i.e. employees, communities, clients, the planet

via CSR. The main objective of the CSR is not only to promote just ethical and continual activity
but also generate a good will and optimistic reputation. The broad scale motive of CSR is to give
to the the committee, to take part in philanthropic clauses and to provide propitious social values.
Validating the CSR strategy can enforce the organisation to evaluate their social, environmental
impact, and the surplus of the organisation,as responsibility of the business does not only
restricted to their owner or shareholders but also to the society which revolves around it. Some of
the cases are there which represent the responsibility of the CSR, for instance, the recent decision
was taken in the Supreme Court of UK in case namely, Vedanta Case , in which case lies upon
the fact that whether the parent company is having obligations towards its subsidiary company
located in foreign state, court held that parent company is having the CSR to subsidiary company
as well.
CSR plays very important role as it contain the responsibility of making a valid and
optimistic impression on social, economic, and environment. As the development are increasing
day by day there are more strategic plans for the business are also taking birth, aligning the
strategies regarding the human rights, labour, environmental, and anti-corruption whichever are
the possibilities to protect the society and environment are taken by the Organisation.
Progressively, CSR is observed as the best practice by City of London as well as by the
UK government. The guidance relating to the CSR issues for both companies as well as investors
are published by the association of British Insurer, whose members own more than 20 percent of
the companies on London Stock Exchange (Cvenkel, 2018). The myth is spread all over the
universe that the CSR is only for the huge corporations, but the reality is CSR initiatives can be
adopted by anyone who is in the trade, irrespective of being, public sector, sole traders, Small
and Medium Enterprises (SMEs) and many more (if any). Some instances of CSR initiative
which can be done by above mentioned organisation are:
 Donation to the local charity from the surplus obtained by the business.
 Donating the unsold items to the charity or providing the foods to the needy
people the society.
 Sourcing raw material or stock items from the local vendors
 Implementing the environmental policies.
 Examine the HR polices and the procedure with the object of CSR impact.
 Taking the use of renewable energy sources as well as investing in it.

 Encouraging the recycling, composting at workplace.
CSR can also be promoted through the customers too. If the customers verify the CSR
credentials of any organisation. As the customer is having the power to change the scenario of
the business they can use their money to invest or purchase the goods and services from those
organisation who is impacting socially, environmentally, and economically.
There are perception that some business's CSR efforts are for the motive of obtaining
optimistic public relations, rather than for promoting the moral and ethical values. However it is
mere skeptical thoughts of people or group of people as there are many organisation which are
solely based on the CSR policy ethically and socially responsible to the public at large. It not
fully wrong to assert that their the company who are in the business only for mere profit but
having the CSR credentials can add the positive value to business, which not only beneficial to
the society but also provide incentive to the organisation. Increase in profit can obtained from the
CSR implementation, which will result increased percentage of surplus as well as gratification to
the shareholders, creditors and others.
CSR can advertise a business in better form which will interact the more customers.
Some CSR forms can attract the potential customer from the society. This will give opportunity
to the customer as well as organisation to get the direct feedback for the betterment of the
organisation and applause for the USP of the business (Cvenkel, 2018). Customers being the part
of social responsibility can express their viewpoint to the upcoming customer with more clarity
and transparency.
CSR can be beneficial to the below mentioned areas:
For Communities: By supporting the community project and creating the short term
employment opportunities for the constructions or maintenance of local parks and sporting
facilities etc.
For the environment: Organisations which are utilising the recycling methods or the
products made from the waste or the sustainable resources will be beneficial to the environment.
For Employees: CSR credentials helps to sieve the talent as those people can only
promote the social issues as through the study it was observed that only few employees take the
responsibility of the societal issues rest of them alleged their organisation is not sufficient
enough or not having any social responsibility but only having the profit making motive. A

Glassdoor survey found that there are the employees age range between 18 to 34 wanted to
stimulate their employer to take stand for the societal issues.
CSR benefits are not just restricted to these but also beneficial to the organisation in the areas
such as business sustainability, competitive merits, easier compliance along with the regularity
requirements.
While creating the CSR strategy, organisation has to take acknowledgment of the internal
environment to get the surety that the reflection of CSR does not infringe the working and
internal management of the business and will secure the reputation of Company as well. Some
instances for better understanding of what things should be avoided before creating the
Corporate Social Responsibility business model are mentioned- below:
 Donation should be from the organisation's corporate account but if donation are
raised from the employees or customers but name used by the organisation then
such organisation will be considered as the dubious practice as far as CSR is
matter of subject.
 Organisation should follow themselves before promoting it further under CSR
initiatives, hence it will also considerable as the dubious practice.
 Organisation who use the CSR values for the benefits in the reduction of taxes
rather than spreading goodwill to the society will be considered as the dubious
value.
Organisation which are promoting the CSR values to the general public should be
followed by the owner and stakeholders or internal management of the organisation. For opting
the the CSR values one should follow the English phrase teach what you preach. If any
organisation does not follow CSR in the internal working but support the CSR value that act can
hamper the reputation of the company tremendously (Orazalin and Baydauletov, 2020). The
company which are constantly following internally as well externally CSR values gain the
loyalty as well as foster long-term corporate sustainability.
Mere performance will not add value to the company its result does to monitor the act
organisation can use following tools:
 By comparing the successful ethical practices and CSR initiatives of the similar
companies can give the benchmark to own organisation for improvising.

 By prioritising and identifying the the issues can help the organisation to resolve
and make impact on the Economy, society and environment.
 Setting goals and key performance indicators helps to flaunt the CSR strategy in
optimistic form on the business as well as on community (Zhang, Oo and Lim,
2019).
 For the successful completion of CSR initiative feedback from the employees,
customers, stakeholders, investors are important.
CONCLUSION
This report is concluded as the business needed to be the functioning of internal as well
as external working of the organisation. Corporate Social Responsibilities gives the light to
impacts on the society, economy, environment, employees of the organisation. CSR is not
mandate as the legislation but the initiative of the CSR gives increased percentage of surplus and
recruitment of talented people. Corporate law promote the Corporate Social Responsibility by
obligations to the employers, investors, and shareholders. The four pillars of the Corporate Social
Responsibilities Are Society, Economy, People, and Environment. Only government, and non-
profit Organisation can not hold societal issues lonely for the contribution to the resolution of the
environmental and societal issue, Organisation can take initiative of Corporate Social
Responsibility. This will not only beneficial to the society and environment but also to the
company as increased the potential buyers and recruitment of talented candidates.

REFERENCES
Books and Journals
Adnan, S.M., Hay, D. and van Staden, C.J., 2018. The influence of culture and corporate
governance on corporate social responsibility disclosure: A cross country
analysis. Journal of Cleaner Production, 198, pp.820-832.
Chijoke-Mgbame, A.M., 2021. Corporate Social Responsibility in the UK. In Current Global
Practices of Corporate Social Responsibility (pp. 399-417). Springer, Cham.
Cvenkel, N.R., 2018. Employee well-being at work: Insights for business leaders and corporate
social responsibility. In Stakeholders, governance and responsibility. Emerald
Publishing Limited.
Maali, K., Rakia, R. and Khaireddine, M., 2021. How corporate social responsibility mediates
the relationship between corporate governance and sustainability performance in
UK: a multiple mediator analysis. Society and Business Review.
Orazalin, N. and Baydauletov, M., 2020. Corporate social responsibility strategy and corporate
environmental and social performance: The moderating role of board gender
diversity. Corporate Social Responsibility and Environmental Management, 27(4),
pp.1664-1676.
Zhang, Q., Oo, B.L. and Lim, B.T.H., 2019. Drivers, motivations, and barriers to the
implementation of corporate social responsibility practices by construction
enterprises: A review. Journal of cleaner production, 210, pp.563-584.