Principles and Practice of CSR and its Impact on Balfour Beatty plc

Business Procurement
and Contractual
Practice
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Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
TASK...............................................................................................................................................3
Explain the principles and practice of CSR and its various benefits and impact on selected
company.................................................................................................................................3
Explain the benefits and limitation of having a local content clause in a construction contract
for a project related to the developing country.......................................................................8
Explain advantage & disadvantage of public private partnership arrangements for road project
related to project sponsor and members of construction team...............................................9
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12
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INTRODUCTION
Main objective of this report is to better understand the concept of business procurement and
contractual practices. Procurement is an act of obtaining various type of goods and services for
the purpose of business. While business procurement is the sourcing and purchasing of goods
and services for business which are use from an external source. A process of procurement
involve various points such as effectively identification of needs of customers and suppliers.
Select an effective tool for communicating with suppliers, preparing request for proposal and
request for quotes. A contract procurement is related to the procedure which is necessary for a
business to purchase goods and services and a procurement contract will help in developing
partnership with suppliers and ensuring the quality of products and services. For effectively
answer the first and second question in this report Balfour Beatty plc Company is taking into
consideration. It is a British multinational infrastructure group which is founded by George
Balfour and Andrew Beatty in 1909 and it’s headquarter is in Landon, United State. In 2018
Balfour Beatty was ranked as the biggest construction contractor in the UK. This report includes
various principles and practices of corporate social responsibility and its importance & impact on
construction market. Other than this it include advantages and disadvantages of having local
clauses in a construction contract. This report include various benefits and limitations of PPP
arrangements in context of project sponsor and members of the construction delivery team.
MAIN BODY
TASK
Explain the principles and practice of CSR and its various benefits and impact on selected
company.
Corporate social responsibility refers to a self-regulating model of an organisation which
helps companies to be more social accountable to itself and towards its stakeholders and public
(MARKET, 2018). Stakeholders of a company includes all those parties who have an interest in
business such as customers, suppliers, investors, employees and so on. By practicing corporate
social responsibility which is also known as corporate citizenship, an organisation is able to
impact on all aspects of society which also includes the economic, social and environmental. An
organisation is a part of society and established and use resources of society than organisation is
also responsible for give back something to society. For successfully fulfilling its corporate
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social responsibility company will operate its business activities in a way that it enhance values
for society and environment and does not negatively harm the society and environment. As
important as CSR for the society it is equally important and valuable for a company also.
Corporate social responsibility helps an organisation in creating a strong bond between the
company and employees which boost their morality and assist both employee and employer to
feel more connected with the world around them. Other than this corporate social responsibility
also help an organisation in creating a good brand image in market as customers and clients are
also wants to do business with a company which ethically perform its all business operations and
effectively fulfil its CSR activity (Chen, Dong and Lin, 2020).
In context of Balfour Beatty Company, it successfully fulfil its corporate social
responsibility. They try to reduce waste, energy consumption, emission and effectively use the
non-sustainable resources and consume water in an effective way and all these practices are
spreading to all their operating company across the world. They make effective strategy and
provide training to their employees for reducing the level of accidents on construction site.
Company create various essentials assists for society or for a country such as hospitals, schools,
road, rail and utility system. Company provide benefits to community in which they operate not
only from their work but also positively engaged and deliver additional social benefits. This is
the one reason because of which selected company is a top construction company of United
States.
Principles of corporate social responsibility
 Accountability- It refers to being responsible for the action and having the ability to
provide a valid or sound reason for that action. According to this principle of CSR
company is responsible towards their all action they perform. In context of selected
company, they are fully accountable and take responsibility that they does not conduct
any unfair activity during their work process and also accountable for not harm
environment. They effectively fulfil their all responsibility and take accountability for
their all action.
 Transparency- It refers to a activity of an organisation which ensure that all necessary
information is available that will be used for analysing the authorities performance and to
protect against any kind of misuse of powers. According to the perspective of
government corporate social responsibility is closely related to the transparency. This
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