CSR Impact on Business Performance

This assignment analyzes the impact of Corporate Social Responsibility (CSR) on Sports Field Ltd. It examines how changes in CSR policies have affected the company's brand image, sales/profit, competitive edge, employee retention, and risk management. The analysis highlights positive outcomes such as enhanced public image, increased sales, a competitive advantage, improved staff loyalty, and strengthened risk management capabilities. The assignment concludes by emphasizing the importance of ethical business practices and CSR for all organizations.

CORPORATE
SOCIAL
RESPONSIBILITY

Table of Contents
INTRODUCTION...........................................................................................................................3
PROJECT 1......................................................................................................................................3
TASK 1 ...........................................................................................................................................3
1.1 Definition of CSR.................................................................................................................3
1.2 Description of the background and changing attitudes to CSR............................................3
1.3 Regulatory framework for CSR............................................................................................3
1.4 Environmental issues in CSR. ..............................................................................................3
1.5 Economic and Political issues in CSR. ................................................................................4
1.6 Social and community issue in CSR. ...................................................................................4
TASK 2 ...........................................................................................................................................4
2.1 Benefits of CSR to employees. ...........................................................................................4
2.2 Analysis of the impact of CSR on supply chain...................................................................4
2.3 Impact of CSR policy on business performance. .................................................................5
2.4 Impact of CSR on marketing strategies. ..............................................................................5
2.5 Conflicts that occur while satisfying needs of stakeholders through CSR. .........................5
PROJECT 2 ....................................................................................................................................6
TASK 1............................................................................................................................................6
3.1 & 3.2 CSR policies of Sports Field Ltd. ..............................................................................6
TASK 2............................................................................................................................................6
3.3 Recommending changes in the CSR policies. ......................................................................6
TASK 3............................................................................................................................................7
3.4 Impact of changes in CSR on business performance. ..........................................................7
CONCLUSION ..............................................................................................................................7
REFERENCES ...............................................................................................................................8

INTRODUCTION
Corporate Social Responsibility is a capability of the organisation to maintain the well
beings of the environment while practising business in the society. CSR is used to improve
society in some manner. One of the major aspect of social responsibility is to protect the
environment. This report is based on, all the activities, environmental issues, political or
economic issues, benefits – limitations of the corporate social responsibility.
PROJECT 1
TASK 1
1.1 Definition of CSR
Corporate Social Responsibility is a concept of providing sustainable development. This
can be done by offering social, economical and environmental comfort to all shareholders. It is a
corporation that takes authority of all the consequences that can occur while practising business
in the social environment (Clapp, 2014).
1.2 Description of the background and changing attitudes to CSR.
As, per the cited case the organisation in not practising CSR effectively. The head
officers of the organisation are not concerned about the well being of their workers. They have
reported about abuse, low wages and poor physical working environments. The organisation
should follow CSR practices for the well being of their workers and the society. It is beneficial
for the organisation as well as the environment. These days CSR is considered as an occasion to
ensure growth of the organisation.
1.3 Regulatory framework for CSR.
There are certain regulatory framework and guidance to help company for implementing
a proper Corporate Social Responsibility: ISO 26000: It offers guidance on socially responsible behaviour or possible actions. This
was launched by International Organisation for Standardisation. It is very beneficial for
company as it is been developed through multi-stakeholder process. Environment Protection: It refers to protecting natural environment and reduce down
human impact on nature. Company should follow the rules and regulations established by
government and reduce their carbon impact over it. Health and Safety Legislation: Corporate Social Responsibility is about serving all
stakeholders, including employees Company should provide a proper working

environment to their employees and assist them by providing training of maintain health
and safety at workplace.
 Compliance with employee legislation: To apply effective social responsibility company
should comply with all the legislations. These includes; health and safety at workplace,
employee legislation, etc.
1.4 Environmental issues in CSR.
There are certain environmental; issues which Sports Field Ltd needs to address these
are; Recycling policies: Company needs to formed effective policy and allocate resources
which help in recycling waste material produced by firm. Use of packaging materials: Sports Field Ltd needs to change their packaging material as
its harmful for environment and affects ocean ecosystem. Scare resources: Company must effectively use all the resources available to them to
attain efficiency and sustainability.
 Lack of sustainability: To be successful in long run Sports Field Ltd needs to formulate a
policy for sustainable development. Quoted company should make a CSR that meet
needs of chosen enterprise and stakeholders.
1.5 Economic and Political issues in CSR.
There are economic and political issues which act as barrier in fulfilling Sports Field Ltd
CSR these are: Location of Suppliers: Sports Field Ltd operates in different location like; China,
Taiwan. Mexico. Quoted firm needs to address a proper code of conduct for all the
suppliers and provide means to adhere to it. Fair Trade: It refers to help producers of developing nations to achieve better trading
conditions. Thus, chosen firm needs to build a policy which help in adhering to fair trade. Non-acceptance of global agreements: To implement a proper Corporate Social
Responsibility company should comply to international protocols like Kyoto Protocol.
1.6 Social and community issue in CSR.
It is the responsibility of the organisation towards society to follow all the ethics while
practising business. The social responsibility is consisting of three major responsibilities:

economical-legal-ethical. It is important for the organisation to concentrate on these factors
while performing business. Sports field Ltd should recruit disabled employees and modify their
environment for them to work in it. Employees must be trained to be the part of fulfilling CSR of
established entity.
TASK 2
2.1 Benefits of CSR to employees. Improved working condition: Effective CSR policy benefits organisation as well
employees. It helps employees in getting improved working environment where all needs
and demands of them are fulfilled. Lack of Discrimination: An effective CSR policy of a company will helpful for
employees because it will help them to avoid discrimination and as a result it directly
creates positive impact on company's image. Compliance with legislation: CSR policy will always comply with government and as a
result it will directly creates impact on company's brand image. If all employees adopt
law that are prescribed by government that it will be benefited for workers.
 Whistle-blowing Policy: This policy is basically designed to encourage employees and
others to discuss their issues related to company and this act will contribute and help to
suspect any misconduct within a company.
2.2 Analysis of the impact of CSR on supply chain. Ethics in production: Listed Company should follow a proper code of conduct to ensure
that the production function are not harmful to consumer or society. Responsible sourcing: Chosen firm should take into account social and environment
consideration while opting for raw materials that will be used in production. Reduced transport cost: Through proper CSR strategy Sports Field Ltd would be able to
reduce their transportation cost and make their supply chain stronger. Reduced carbon foot print: Corporate Social Responsibility will help company to ease
the pressure and reduce of their carbon footprint.
 Use of the latest technology: Transaction cost and risk can be potentially reduced by
social responsibility activities. Variable weights can penalized risk and outflow. The
model helps in identifying role of diverse decision makers in supply chain and to regulate
the most effective parameter to produce outcomes. The activities which are related to

social responsibility can reduce the factors of risk and can increase in ratio of production
and sale.
2.3 Impact of CSR policy on business performance.
CSR can increase growth and ensure profit to the organisation. It is an old saying that if
you will do good, good will happen to you. Conducting fair business practices will result into
efficient growth of the organisation. These days most companies are engaging in CSR practices
for increasing company's profit. It will help in setting and achieving goals. According to the
some surveys and reports it can be said that impact of CSR on business has mixed results. It can
add or take away profit or value from the organisation.
2.4 Impact of CSR on marketing strategies.
The impact created by Corporate Social responsibility on marketing strategies of Sports
and Field Ltd are as follows: Brand Differentiation: Introducing of CSR in marketing policies help in building a
different image for the brand. Contributing towards betterment of society creates a
different image of Sports Field Ltd in the eyes of their stakeholders and act as source of
attracting more customers to purchase their product. Ethical Policies: Listed company can create an example of following ethical policies and
practices which create a positive image of Sports Field Ltd. CSR will help quoted firm to
adhere to laws and rules of employment legislation.
 Recognising Different Culture: Corporate Social Responsibility focuses on fulfilling
social, environmental and cultural issues. This help listed organisation to connect to
different culture and help in addressing their needs and problems.
2.5 Conflicts that occur while satisfying needs of stakeholders through CSR.
For and organisation CSR is a social obligation. The main role of CSR is to contribute in
environmental and social well-being. Freeman and Reed has broad description about
stakeholders. It a person or a group that has direct or indirect connection with the organisation
and affect the working of the organisation. Criteria of considering each stake holder is different.
Creditors, buyers, workers and legislation is considered to be the key stakeholder of the
organisation. In general words stakeholders are the one who has power to affect the working of
the corporation . The implementation and creation of firms strategy depends on the influence of

stakeholders. Such strategies also have impact on the working of plans and policies. The main
aim of the firm is to increase profit and reduce risk for sustainable growth and development.
PROJECT 2
TASK 1
3.1. CSR policies of Sports Field Ltd.
Corporate Social Responsibility has become an integral part of Sports Filed Ltd. Listed
company has used modified their current CSR policy to serve the needs and demands of their
stakeholders. Earlier, Sports Filed Ltd has code of conduct for their suppliers which was not
followed due to lack of resources. Further, it only has made ethical practice for their supplier but
no code of conduct for other stakeholders including employees, customers, etc. Quoted firm
needs to evaluate their current policy and modified them to meet demands of customers and
society as whole. Employees grievance must be review and policies should be made to reduce
down the abuse.
3.2. Voluntarism in CSR policy.
The term voluntarism refers to voluntary contribution made by firm towards improving
conditions prevailing in society. The effectiveness of voluntarism in CSR policy can be measure
in two ways: Response to Pressure Groups: These groups include trade union, social activist and
government agencies. Sports field ltd should practice a CSR policy which looks into the
demand of all the above mentioned groups. Listed firm should voluntary contribute
towards upliftment of employees and provide them with proper working environment.
 Effectiveness of voluntary policies: It refers to measure the effectiveness of voluntary
policy which firm established in accordance to effectively implement Corporate Social
Responsibility. Sports Field Ltd can evaluate changes through the response they get from
different groups of stakeholders. Establish entity needs to evaluate it brand awareness and
how people treat firm.

TASK 2
3.3 Recommending changes in the CSR policies.
After consulting with all the members it has been seen that suppliers and not satisfied
with current CSR policies because it is leading towards delay in their payments. Suppliers are the
one who play crucial role in the proposition of the company. According to many cases and
studies link between the customer and CSR is positive but in present case customers are not
happy with services provided by the CSR. They think that quality of their services is not up to
the mark. Considering the feedback it has been noted that employees are not satisfied with their
current pay-scale and that's why they feel demotivated. The business is also endeavouring some
harmful affects on the environment. The scenario of all the feedbacks received from the different
communities is not as per the desire (Tran, 2018). It is recommended that for motivating
suppliers organisation should maintain their their financial ratio, customers can be satisfied by
offering quality of services. By increasing the wages organisation can motivate their employees.
Factors that are affecting the environment adversely can be eliminated by the business. Activities
and contributions of the CSR to the community can increase their level of satisfaction.
TASK 3
3.4 Impact of changes in CSR on business performance.
To evaluate the impact of changes of CSR on Brand is as follows: Enhanced Public Image: Modification in CSR policy helps in improving brand image of
Sports field Ltd and listed company was recognized as best firm for fulfilling CSR
policy. Inc arsed Sales/ Profit: Better image of brand was build through altered Corporate Social
Responsibility polices which attract consumers. Employees were encouraged and
motivated with new CSR policy and this leads to increased productivity. Competitive Edge: Established firm get a competitive edge over other organisation in
sports manufacturing industries. Brand image was improved which builds better equity
for the quoted firm and they were able to increase their market share. Improve retention of staff: CSR policy has build a sense of loyalty among employee and
they are been motivated to work for Sport Field ltd. Staff members has build up a strong
faith in company as their grievances are been addressed by established organisation.

 Risk Management: Corporate social Responsibility has increased Sports Field Ltd risk
management capacity as established firm can now manage their staff and other
stakeholders more effectively.
CONCLUSION
The above study conclude that CSR is very important for each and every business. It is
essential for the organisation to follow all the ethics while practising business in the
environment.
REFERENCES
Books and Journals
Clapp, J., 2014. Corporate social responsibility. The Essential Guide to Global Environmental
Governance. Routledge: London, pp.42-44.

Pedersen, E.R.G., 2015. Corporate social responsibility. Sage.
Poussenkova, N., 2016. Corporate Social Responsibility.Russian Analytical Digest (RAD).181.
Tai, F.M., 2014. Corporate social responsibility.Ibusiness. 6(03). p.117.
Tran, B., 2018. Corporate social responsibility. In Encyclopedia of Information Science and
Technology, Fourth Edition (pp. 671-681). IGI Global.