Impact of CSR activities on organizational goodwill

The study analyzes the impact of CSR activities on organizational goodwill and provides recommendations for Cochlear Limited to maintain corporate governance ethics and social activities. The study identifies the benefits of CSR activities and suggests implementing effective CSR activities like community involvement program, providing remaining food to the poor community, manufacturing free products for the community, education backpack activities, environmental education development project and establishing effective and firm organizational policies.

Running head: ETHICS AND CORPORATE SOCIAL RESONSIBILITY
Ethics and Corporate Social Responsibility
Name of the Student
Name of the University
Author’s Note

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ETHICS AND CORPORATE SOCIAL RESONSIBILITY
Executive Summary
The study has decided to make detailed analysis on how corporate social responsibility is highly
effective in maintaining organizational goodwill. Cochlear limited is one of the most prestigious
ASX brands occupying a predominant place in the realm of healthcare industry. People
belonging to various geographical backgrounds and attitudes are associated with the business
services of Cochlear limited. Therefore, the organization needs to maintain proper ethical
considerations and corporate governance structure at the workplace. The entire study would be
completed within 12 weeks. In order to reach the research goals and objectives the study would
focus on making critical literature review along with using primary source of data collection
technique. After conducting detailed research method the study is expected to get positive
outcome. The limitations that would be identified while conducting the study would be overcome
in future.

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ETHICS AND CORPORATE SOCIAL RESONSIBILITY
Table of Contents
1. Introduction:................................................................................................................................4
1.1 Background of the research:......................................................................................................4
1.2 Aim and objectives:...................................................................................................................5
1.3 Research scope:.........................................................................................................................5
2. Methodology:...............................................................................................................................6
3. Discussion:...................................................................................................................................6
3.1 Concept of Corporate social responsibility (CSR)....................................................................6
3.2 Benefits of Corporate social responsibility (CSR)....................................................................7
3.2.1 Satisfied employees................................................................................................................7
3.2.2 Happy customers....................................................................................................................8
3.2.3 Reduction in capital investments............................................................................................8
3.2.4 Development of effective partnership....................................................................................8
3.2.5 Effective Volunteer Participation...........................................................................................9
3.3 Important Corporate social responsibility (CSR) Activities......................................................9
3.3.1 Community Involvement Program.........................................................................................9
3.3.2 Providing remaining food to the poor community.................................................................9
3.3.3 Manufacturing free products for the community..................................................................10
3.3.4 Education Backpack Activities.............................................................................................10
3.3.5 Environmental Education Development Project..................................................................10
3.3.6 Establishing effective and firm organizational policies........................................................11
4. Conclusion:................................................................................................................................11
5. Recommendation:......................................................................................................................11

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Reference List:...............................................................................................................................13

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ETHICS AND CORPORATE SOCIAL RESONSIBILITY
Topic: Impact of CSR activities on organizational goodwill
1. Introduction:
The overarching term corporate social responsibility is a business approach which
enables the organization in taking responsibilities for social and environmental wellbeing for all
stakeholders. CSR is the organizational policy in rendering goodwill in order to maintain
business sustainability in market. Maintaining corporate governance ethics, social activities,
government sponsorship, health and safety issues are part of corporate social responsibilities that
organization has to face. Cochlear limited is one of the most prestigious ASX brands occupying
a predominant place in the realm of healthcare industry (cochlear.com 2018). While expanding
the brand in international market Cochlear limited has decided to conduct several corporate
social responsibilities for maintaining organizational image and reputation. In last few years it is
observed that business experts are not following corporate governance ethics properly while
dealing with the employees properly. As a result, the rate of employee attrition has been
increased enormously. As a result, Cochlear limited has decided to be involved in several social
activities for the wellbeing of both internal as well as external stakeholders for regaining their
organizational image and reputation.
1.1 Background of the research:
In last five years, it is observed that Cochlear limited is facing immense challenges in
maintaining organizational glory and reputation due to immense employee turnover at a time.
People belonging to various geographical backgrounds and attitudes are associated with the
business services of Cochlear limited. Therefore, the organization needs to maintain proper
ethical considerations and corporate governance structure at the workplace. Somehow it was

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identified that employees belonging to diverse cultural backgrounds were facing immense
challenges in getting accustomed with the work environment. Business experts were not
cooperative enough in resolving the linguistic barrier faced at the workplace (Tai and Chuang
2014). As a result, both the customers and the service providers are facing immense difficulties
in communicating with each other. Employees are unable to maintain an effective rapport at the
workplace. As a result, employees failed to show their interest in providing effective services.
Automatically, the organization has lost their organizational glory in the health care industry
(Flammer 2015). In this situation, the study has decided to make detailed analysis on how
corporate social responsibility is highly effective in maintaining organizational goodwill.
1.2 Aim and objectives:
The aim of this very specific research is to evaluate the impact of CSR activities on
organizational goodwill. The objectives of this very specific research are as follows:
 To critically understand the impact of CSR activities on organizational goodwill
 To highlight some of the major barriers in maintaining effective corporate social
responsibilities at the workplace
 To provide some of the major recommendations for overcoming the barriers for
implementing CSR at the workplace
1.3 Research scope:
As already stated the study has focused to make detailed research proposal based on the
impact of CSR activities on organizational goodwill. The entire study would be completed within
12 weeks. In order to reach the research goals and objectives the study would focus on making

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critical literature review along with using primary source of data collection technique. While
conducting the entire study the researcher would focus to make detailed data analysis by using
proper data analytical tools. Respondents involved in the data collection technique would not be
forced for providing necessary information. The researcher would like to accept the spontaneous
participation of the respondents. After conducting detailed research method the study is expected
to get positive outcome. The limitations that would be identified while conducting the study
would be overcome in future.
2. Methodology:
Methodology is one of the most significant tools for collecting appropriate data and
information from various sources. In this very specific study the researcher would like to select
positivism research philosophy with deductive approach. As a result, based on the existing
theories on CSR the data would be evaluated with keen observation.
In order to collect appropriate data survey would be conducted by involving 100
employees of Cochlear limited. Qualitative data collection technique is not used in this study as
the research issue needs to collect response from the employees primarily (Clapp and Rowlands
2014). In addition, while analyzing data and information the study would like to conduct
effective select regression analysis for proving two major variables of research.
3. Discussion:
3.1 Concept of Corporate social responsibility (CSR)
Schwartz (2017) depicted that corporate social responsibility (CSR) is a concept where an
organization take business initiatives that put impact on the society, internal and external

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stakeholders and also on the environment. Crane., Matten and Spence (2013) on the other hand
stated that CSR delivers economic, social and environmental benefits to all their stakeholders
and most of the times company opted for some major CSR activities like promoting education to
the backward community, promoting gender equality, improving material health, empowerment
of women and eradicating poverty and hunger.
3.2 Benefits of Corporate social responsibility (CSR)
According to Tai and Chuang (2014) there are several types of CSR activities-
environmental CSR which emphasizes on eco-friendly initiatives, community based CSR that
focuses on the quality of life of the people, philanthropy in which company donate money to
external corporation for some goodwill and HR based CSR that is adopted for wellbeing of the
staff. Bondy, Moon and Matten (2012) stated that companies implement CSR activities for the
following reasons:
3.2.1 Satisfied employees
Brammer, Jackson and Matte (2012) stated that if an organization adopts effective CSR
activities, the employee of the same company started having positive attitude towards the
company. The prime reason for the sense is that employee intends to work with an ethical
company that not only thinks about their profitability but also for the betterment of the
community. Some companies include their employees for voluntary works like helping senior
citizens and backward society and also offer paid training to these employees.

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3.2.2 Happy customers
Low and Ang (201) depicted that people also intends to associate with such organization,
who adopted initiatives for the advancement of the society through their business functions.
Kitzmueller and Shimshack (2012) furthermore stated that strong record of CSR helps in
attaining efficient customers’ attitude towards the company. This approach will moreover result
in strong customer base and more word of mouth promotion which will enhance the number of
customers further (Bondy, Moon and Matten 2012).
3.2.3 Reduction in capital investments
Implementing efficient CSR activities and process in the business helps the organization
to retain their employees for longer times which reduces the cost involvement required for
recruitment and hiring (Schwartz 2017). Moreover, investing one time capital for implementing
energy savings programs leads to reduces costs of electricity and wastage. Crane, Matten and
Spence (2013) also portrays that the company on gaining the label of an ethical company have to
less investment for traditional advertising.
3.2.4 Development of effective partnership
Kim, Park and Wier (2012) stated that company, who already associated with CSR
activities; desire to choose only those stakeholders, who are ethical in their business terms. In
addition to that, the companies also provide training effective sessions to their stakeholders in
order to align their business objectives resulting effective partnership and developing more
organizational to adopt CSR activities for the advancement of the community and their people.

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3.2.5 Effective Volunteer Participation
Volunteer grants are the source to lending helping hands to different community and
eligible nonprofit organizations. Inyang (2013) stated that there are several organization that
provide some financial amount based on per hour associated with the voluntary works. Some of
the organizations also provide effective recognition to the employees (Baumann-Pauly et al.,
2013). These aspects allow the organization to get more numbers of voluntary participation of
the employees.
3.3 Important Corporate social responsibility (CSR) Activities
3.3.1 Community Involvement Program
Community involvement program indicates that organization involves some of their
working personnel for performing voluntary activities like blood donation camps, rescue teams,
environment protection works and activities related to recycling (Servaes and Tamayo 2013).
The employees will get benefits like paid leave of absence, social service leave and financial
benefits, if they are associated with these programs (Cheng, Ioannou and Serafeim 2014).
3.3.2 Providing remaining food to the poor community
Jo and Harjoto (2012) stated that every company provides food to their staffs. In order to
utilize the daily remaining food of the office to the poor community people so that they can also
get enough food for the survival. This activity will enhance the organizational reputation and
image in the market.

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3.3.3 Manufacturing free products for the community
Apart from developing products for the customer aiming to attain profitability, the
organization can develop a range of products for the community people at free of cost. Chin,
Hambrick and Trevino (2013) stated that this voluntary activity allows the organization to reach
to many community in times of need. Kim, Park and Wier (2012) also depict that serving
community with free products can be done during the time of crisis and any political turbulence
in the society.
3.3.4 Education Backpack Activities
One of the most effective ways to do Corporate Social Responsibility Activities is to
sponsor education to the children (Grayson and Hodge 2017). Another way to accomplish this
activity is to donate a percentage of the profit in the academic institutions. Hopkins (2012) stated
that company can supply pencils, pens and notebooks for the students. Sponsoring money for the
knowledge development of the future generation in enhancing the economic stability of the
nation as the education will help them to get the employment in reputed organization.
3.3.5 Environmental Education Development Project
In order to raise the awareness of social and environmental issues, company can also
provide training and meeting sessions concerning environmental practices. Crane, Matten and
Spence (2013) furthermore stated that companies can also promote this session to the nearby
educational institutions and universities or in public so that school students and the general
public can get knowledge about the environmental concern and the actions that the company is
planning to curb the adversity.

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3.3.6 Establishing effective and firm organizational policies
Rexhepi, Kurtishi and Bexheti (2013) stated that setting standards for the organization
and value those policies also showcase the CSR activities concerning the internal stakeholders.
Grayson and Hodges (2017) furthermore depicted that policies like safe and fair working
conditions and guiding principles for avoiding discrimination also motivate the employees to
associate with the organization for longer time.
4. Conclusion:
The study has focused to make detailed overview about the importance of CSR and
corporate governance ethics at the workplace. Maintaining corporate governance ethics, social
activities, government sponsorship, health and safety issues are part of corporate social
responsibilities that organization has to face. People belonging to various geographical
backgrounds and attitudes are associated with the business services of Cochlear limited.
Therefore, the organization needs to maintain proper ethical considerations and corporate
governance structure at the workplace. While conducting the entire study the researcher would
focus to make detailed data analysis by using proper data analytical tools. The study would like
to focus on giving proper recommendation for overcoming the research issue. In addition, the
business experts need to maintain anti-discrimination act, gender equality act at the workplace.
After conducting detailed research method the study is expected to get positive outcome.
5. Recommendation:
After conducting the entire study, it is evaluated that the Cochlear limited is unable to
maintain proper corporate social responsibility due to some of the most specific reasons.
Economic constraint is one of the most effective reasons due to which the organization has to

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face difficulties in conducting effective social activities for the wellbeing of human. However, it
can be recommended that Cochlear limited should enhance their budget for the purpose of
corporate social responsibility (Saeidi et al. 2015). In addition, the business experts need to
maintain anti-discrimination act, gender equality act at the workplace. Automatically, the
organization would have to focus on dealing with the customers effectively the employees
coming from diverse cultural backgrounds would not have to face challenges in surviving at
workplace. Moreover, as per corporate governance ethics the business experts need to implement
health and safety act at the workplace. Health and safety act would help the employees in
getting proper assistance from business experts when they have to face health issue at the
workplace.

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