Corporate Social Responsibility

The assignment provides an overview of corporate social responsibility (CSR), its significance in modern business, and its impact on stakeholders. It also highlights the need for CSR policies to be designed based on external factors such as general public, shareholders, and others, not just internal purposes. The summary concludes that CSR is essential for all-sized organizations, including small and medium-sized companies, and can help improve credit scores by fulfilling responsibilities to each factor.

INDIVIDUAL REPORT
ON (Corporate Social
Responsibility)

EXECUTIVE SUMMARY
This project report summarise about meaning of literature review and corporate social
responsibility. As well as it abstracts about the literature review on the CSR( Corporate social
responsibility). It shows the importance of CSR in the aspect of company and outsiders.

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................2
..........................................................................................................................................................1
1.INTRODUCTION........................................................................................................................2
1.1 Literature review....................................................................................................................2
1.2 Purpose of literature review...................................................................................................3
2. LITRETURE REVIEW...............................................................................................................3
2.1 Definition of CSR according to the literature........................................................................3
2.2 Discussion about the topic.....................................................................................................4
2.3 Three key issues relating to the corporate social responsibility............................................4
3. ANALYSIS..................................................................................................................................5
4.RECOMMENDATIONS..............................................................................................................6
5.CONCLUSION.............................................................................................................................6
6. REFRENCES...............................................................................................................................7
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1.INTRODUCTION
Corporate social responsibility is a kind of modal that helps to the company to be social
for itself, general public and externals. It is responsibility of the company to impact all these
factors positively because due to these company exists in the environment. This project report
consists detailed information about the meaning of literature review and corporate social
responsibility. In today's context of the organisations corporate social responsibility is very
important because companies work in a kind of environment that includes general public,
internal and external parties and for these company should complete their responsibility. In the
absence of this it can be difficult for the company to survive in the environment. Eventually, if
company follow the model of CSR then it will benefit to not only to the public and others but
also it will help the company in goal achieving. Main purpose of this report is analysing the
importance of CSR and a literature review on the corporate social responsibility. As well as
aware the companies about their responsibility towards different factors of the external and
internal environment.
1.1 Literature review.
Literature review: It is a kind of research and depth evaluation on a particular chosen
subject or topic area. Basically, this is a comprehensive summary on a topic which is researched
ever before. The literature review analyse those articles, books and other resources that are
relevant to topic. A good literature review is needed to enumerate, describe and evaluate the
previous research. Apart from this, it is not only a summary but also this is a combination of the
summary and synthesis. Herein both have its importance, summary outlines the necessary
information about the topic and synthesis re- organises and restores that information. In addition
this type of review is used in the situation where researcher don't have enough time to do
research because it provides the guidelines. Overall a literature review includes following:
 Place the research topic in the aspect of the established task.
 Summarise, clarifies and integrate the information.
 Surveys only those information which have relation with the selected subject.
In addition, it prepares a landscape review for the readers that give them full understanding about
the task and focus the author's clarity about the work. So overall, this type of review is very
crucial for those who wants to do research.
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1.2 Purpose of literature review.
Literature review has multipal purposes due to its many features. It has own importance
in the context of the readers and for those who wants to do research. Main purposes of literature
review are discussed below:
 Demonstrate the knowledge on the subject- Literature review helps in
demonstrating the knowledge of the readers and researcher on the particular topic
or subject.
 Determine the contribution of source- This type of review determines the
contribution level of each source in the research. In addition it checks the level of
information which is provided by each source.
 Save the time of researchers- It saves the time and cost of those researcher who
wants to do research on any subject. In this situation literature review provides the
guidelines and reduce the work effort of the researchers.
 Identifies the methodologies which used in the past research- Literature
review identifies the methods of past research topic because it is a kind of
secondary research. It helps the readers in checking about the methods and
techniques.
 Analyse inconstancies- It identifies inconstancies like gaps and problems of the
previous research.
 Helps in identifying the need of additional research- Literature review justifies
the research by identifying about the requirement of any extra research on any
subject.
2. LITRETURE REVIEW
2.1 Definition of CSR according to the literature.
According to the Douglas and Emily, Corporate social responsibility is required to cope
up with the changing environment. Business environment is flexible, it can't be same as well as
need of external and internal parties change. In this situation companies are needed to be
implement various strategies and corporate social responsibility is one of them. It guides
companies to complete their responsibilities for stakeholders, shareholders. In addition, CSR is a
kind of dedication which is adopted by the companies to work in an ethical manner for welfare
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of the employees and their families as well as for economic development of the country. Apart
from above, corporate social responsibility is very important for increasing the profitability of
the companies in the changing business environment. As per the Friedman, main responsibility
of the the businesses is to achieve maximum profit and for this they are required to complete the
other responsibilities towards other aspects of the internal and external environment.
2.2 Discussion about the topic.
As per the Berkhout(2005), Major companies are applying the corporate social
responsibility as the important strategy because it has link with the profitability. Eventually, CSR
helps in increasing the profit by many ways like a company can earn high level of goodwill in
the market place by completing their responsibilities. As well as if companies makes policies by
considering both factors internal and external of the environment then their would be a
significant impact of the company to the public. For this purpose companies should provide job
opportunities to the general qualified people for completing external responsibilities. In addition,
if company try to maintain good relationship among the employees then automatically there
internal responsibilities will fulfil. On the other side, corporate social responsibility provides a
framework for removing the issues at the workplace like inequality, unfairness system of duty
and responsibility to the employees. It tries to make a common system of work for all the
manpower in the organisation.
2.3 Three key issues relating to the corporate social responsibility.
As per the Hancock, corporate social responsibility is related to maintain freedom and
democracy at the work place. In addition, there can be a lot of issues at the workplace which are
mentioned below:
 Inequality at work - It is a kind of issue which is related to the providing
unequal rights to the employees at the organisation. In this workforce divides
according to the religion, gender and income level etc. This impacts the
employees negatively and can decrease their motivation level.
 Unfair reward system- Reward system is needed to be fair and according to the
performance base but it is not followed by all organisations. Some companies
adopts a kind of reward system that is not based as per the performance of the
employees.
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 Discrimination and harassment – This issue is related to the discriminating the
employees on the basis of their personal factors. On the other hand, harassment is
a kind of act that includes bad behaviour with the employees and downsizing their
moral.
3. ANALYSIS
As per the (Lucio Lamberti, 2012) corporate social responsibility is useful for not only to
the big organisation but also it is a kind of compulsory element for the small medium sized
(SMEs) organisations. This is why because CSR consists those kind of functions which have
their significant impact on all kind of companies. For example there is a manufacturing company
that have employees less then hundred and there is problem that they are effecting the
environment negatively by pollution. Herein, this case they are required to apply CSR to fulfil
their responsibilities and they should try to produce environment friendly products.
According to (Habisch and Jonker, 2015) corporate social responsibility is linked up
with the financial performance of the companies. If organisations completes their duties towards
the society and for internal parties, then it will directly impact to the financial performance of the
companies. This is possible because if organisation is able to cope up with the business
environment in which it exists then it will not be difficult for the company to get profitability.
Like if a company which is completing their responsibilities for the employees then they will
work with full of efficiency and effectiveness. It will directly impact to the financial performance
positively.
As per the (Epstein, 2016) corporate social responsibility is aligned with the business
ethics because CSR is related to the completing the social and organisational responsibilities.
This is possible if organisation follows the business ethics because in the absence of ethics there
would be several conflicts and it would be difficult for the company to adopt the CSR. For
example a company which is totally unethical and tries to implement corporate social
responsibility then it would be impossible. Their employees will not know about the value of
CSR model as well as due to lack of ethics they will not follow the guidelines of the managers.
As per the (Collier and Esteban, 2017) CSR is a key requirement of today's companies.
As well as policies of corporate social responsibility are needed to be prepared according to the
all environmental factors. These should not to be done according to the commitment of the
employees. Though employees are important factor but CSR is designed according to the all the
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elements of environment in which business deals. Like if a company tries to formulate the plans
of corporate social responsibility according to the employees then they will not be able to
implement CSR effectively.
According to the (Attig and Guedhami, 2013) credit rating of the companies depends on
the efficiency of corporate social responsibility. This is why because if a company is completing
their social responsibilities towards the society then it will not impact the organisation in credit
getting. As well as financial institutions also checks the efficiency of CSR of the companies and
on the basis of allot the credit. Eventually, CSR helps in the determining the credit score of the
companies. Like a company whose CSR policies are not well, this will effect the company
negatively and it will reduce the credit rating of the company.
According to (Chandler and Werther, 2014) corporate social responsibility strategically
effects to the stakeholders and helps in creating sustainable value. It is so because if stakeholders
of the companies are satisfied with the CSR policies then they will invest much more as possible.
This will help the company in getting sustainable advantage.
4.RECOMMENDATIONS
On the basis of above description about the corporate social responsibility it has been
recommend that CSR is very important for the companies. This is why because it helps in the
creating the value of company in the market and if company has good market value and
goodwill then it will benefit. Herein, it is important that policies and plans of the corporate social
responsibility should not be according the internal purpose and responsibilities. These should be
designed according to the all the factors of business environment like general public,
shareholders and others. Apart from this CSR is needed to be apply by all sized organisations. It
is not only compulsory only for the large business but also for the small and medium sized
companies. In addition, it can be recommend that if companies wants to improve their credit
scores then they should follow the CSR policies and try to fulfil the responsibilities of each
factors.
5.CONCLUSION
From above project report it has been concluded that corporate social responsibility is a
model that have link up with the environment in which the organisation exists. Now these days
the need of CSR is increasing significantly because of internal purpose. In many companies there
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are many ethical issues like inequality, harassment etc. so in these kind of issues corporate social
responsibility model can help the companies in removing these issues. In the future context, CSR
will increase its significance and value for completing the responsibilities of the different parts of
business environment.
6. REFRENCES
Books and journals:
Lamberti, L. and Noci, G., 2012. The relationship between CSR and corporate strategy in
medium‐sized companies: evidence from I taly. Business Ethics: A European
Review, 21(4). pp.402-416.
Habisch, A., Jonker, J., Wegner, M. and Schmidpeter, R. eds., 2015.Corporate social
responsibility across Europe. Springer Science & Business Media.
Epstein, E. M., 2016. The corporate social policy process: Beyond business ethics, corporate
social responsibility, and corporate social responsiveness.California management
review. 29(3). pp.99-114.
Collier, J. and Esteban, R., 2017. Corporate social responsibility and employee
commitment.Business ethics: A European review. 16(1). pp.19-33.
Attig, N., El Ghoul, S., Guedhami, O. and Suh, J., 2013. Corporate social responsibility and
credit ratings.Journal of business ethics. 117(4). pp.679-694.
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Chandler, D. and Werther, W. B., 2014.Strategic corporate social responsibility: Stakeholders,
globalization, and sustainable value creation. Thousand Oaks, California: Sage.
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