Management Communication: Personal and Interpersonal Aspects, Crisis Communication, and Sustainability

This article discusses the personal and interpersonal aspects of communication, crisis communication, and sustainability in management communication. It covers topics such as personal communication channels, developing personal networks, grapevine, types of noise, and the importance of interpersonal communication. It also delves into crisis communication, its definition, objectives, theories, and effective strategies. Lastly, it explores the concept of sustainability and how communication can be used to communicate sustainable activities and achievements, carbon footprint communications, and corporate social responsibility. Course codes, names, and universities are not mentioned.

Running head: MANAGEMENT COMMUNICATION 1
MANAGEMENT COMMUNICATION
STUDENT’S NAME
COURSE
UNIVERSITY
DATE

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Table of Contents
EXECUTIVE SUMMARY.......................................................................................................................5
TOPIC ONE...............................................................................................................................................6
THE PERSONAL AND INTERPERSONAL ASPECTS OF COMMUNICATION.......................6
INTRODUCTION.................................................................................................................................6
PESRONAL ASPECT OF COMMUNICATION...............................................................................6
PERSONAL COMMUNICATION CHANNELS...............................................................................7
DEVELOPING PERSONAL NETWORKS........................................................................................9
THE GRAPE VINE.................................................................................................................................11
FEATURES OF GRAPE VINE..........................................................................................................11
TYPES OF GRAPE VINE..................................................................................................................12
SINGLE STRAND CHAIN.............................................................................................................12
GOSSIP CHAIN..............................................................................................................................12
PROBABILITY CHAIN.................................................................................................................12
CLUSTER CHAIN..........................................................................................................................12
INTERPERSONAL COMMUNICATION...........................................................................................13
INTERPERSONAL COMMUNICATION ELEMENTS.....................................................................13
People...................................................................................................................................................13
The message.........................................................................................................................................13
Noise.....................................................................................................................................................13
Types of noise...........................................................................................................................................14
Semantic noise......................................................................................................................................14
Physiological Noise..............................................................................................................................14
Psychological noise...............................................................................................................................14
Intellectual noise..................................................................................................................................14
Environmental noise............................................................................................................................14
Medium................................................................................................................................................14
Context.................................................................................................................................................14
Feedback..............................................................................................................................................15
IMPORTANCE OF INTERPERSONAL COMMUNICATION.........................................................15
Facilitates giving and collection of information.................................................................................15
Influences action..................................................................................................................................15
Formation of relationships..................................................................................................................15

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Facilitates decision making and problem solving processes.............................................................15
Expression of emotions........................................................................................................................16
Prediction of behavior.........................................................................................................................16
EFFECTS OF INTERPERSONAL COMMUNICATION IN THE WORK PLACE........................16
Clarifications can be made..................................................................................................................16
Promotes team work............................................................................................................................16
Fosters good relationship....................................................................................................................16
Creates a sense of belonging...............................................................................................................16
TOPIC FOUR..........................................................................................................................................17
CRISIS COMMUNICATION............................................................................................................17
CRISIS DEFINITION.........................................................................................................................17
Conventional approach.......................................................................................................................17
Strategic approach...............................................................................................................................17
CRISIS COMMUNICATION DEFINED..............................................................................................18
OBJECTIVES OF CRISIS COMMUNICATION............................................................................18
CRISIS COMUNICATION THEORIES AND MODELS...................................................................19
THE IMAGE RESTORATION OR REPAIR THEORY.................................................................19
SITUATIONAL CRISIS COMMUNICATION THEORY..............................................................19
SOCIAL MEDIATED CRISIS COMMUNICATION MODEL......................................................20
INTEGRATED CRISIS MAPPING MODEL...................................................................................20
VARIOUS TACTICS FOR CRISIS COMMUNICATION.............................................................21
Pre-crises..............................................................................................................................................21
Pro-active issues management............................................................................................................21
During the crises..................................................................................................................................22
POST CRISES PHASE.......................................................................................................................23
EFFECTIVE CRISIS COMMUNICATION STRATEGIES...........................................................24
CREATION OF ACTION PLANS................................................................................................24
TIMELY RESPONSE.....................................................................................................................24
BE TRANSPARENT.......................................................................................................................24
ASSEMBLING OF A CRISIS RESPONSE TEAM......................................................................24
DETERMINATION OF PRIMARY AUDIENCES......................................................................24
TEST VARIOUS SCENARIOS......................................................................................................25
ANTICIPATION OF THE QUESTIONS THAT MIGHT BE ASKED......................................25

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IDENTIFICATION OF A SPOKES MAN....................................................................................25
INCLUSION OF THE SOCIAL MEDIA IN THE PLAN............................................................25
GET THE FACTS...........................................................................................................................25
DON’T HURRY TO COMMUNICATE........................................................................................26
TOPIC THREE.......................................................................................................................................27
ASPECTS OF COMMUNICATION THAT RELATE TO SUSTAINABILITY...........................27
Introduction.........................................................................................................................................27
The concept of sustainability..............................................................................................................27
COMMUNICATION OF SUSTAINABLE ACTIVITIES AND ACHIEVEMENTS....................28
CARBON FOOT PRINT COMMUNICATIONS.............................................................................29
CORPORATE SOCIAL RESPONSIBILTY.....................................................................................30
TYPES OF CSR...................................................................................................................................31
ENVIRONMENTAL RESPONSIBILITY........................................................................................31
PHILATHROPIC INITIATIVES......................................................................................................31
ETHICAL BUSINESS PRACTICES.................................................................................................31
ECONOMIC RESPONSIBILITY......................................................................................................31
IMPORTANCE OF CSR....................................................................................................................32
IMPROVED ORGANIZATIONAL IMAGE....................................................................................32
INCREASED BRAND RECOGNITION AND AWARENESS.......................................................32
SUSTAINABLE COMPETITIVE ADVANTAGE...........................................................................32
ATTRACTION OF THE WORK FORCE........................................................................................32
GOVERNMENT FUNDING..............................................................................................................32
CUSTOMER RETENTION...............................................................................................................33
THEORIES OF CORPORATE SOCIAL RESPONSIBILITY...........................................................34
PROFIT AND VALUE MAXIMIZATION THEORY.....................................................................34
THE STAKEHOLDER THEORY.....................................................................................................34
THE REPUTATIONAL APPROACH..............................................................................................34
THE CLUSTER THEORY.................................................................................................................34
THE SOCIAL INNOVATION THEORY.........................................................................................35
THE MANAGERIAL DISCRETIONARY THEORY.....................................................................35
ETHICAL THEORY..........................................................................................................................35
References............................................................................................................................................36

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EXECUTIVE SUMMARY
Effective communication for a variety of subjects is essential in the organization especially
during the crisis. In order to achieve sustainability within the organization effective
communication is also essential. CSR can be effective through efficient communication within
the organization.

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TOPIC ONE
THE PERSONAL AND INTERPERSONAL ASPECTS OF COMMUNICATION
INTRODUCTION
Communication refers to the process of passing information from one party to the other through
a given medium (Danziger, 2016). There are various aspects of communication but our study is
going to focus on the personal and interpersonal aspects of communication.
PESRONAL ASPECT OF COMMUNICATION
This refers to the perception of an individual regarding communication and its
effectiveness in any given environmental setting (Baerjee et al., 2015). Individuals view
communication as the most significant component for the effectiveness of various activities since
the set objectives cannot be attained without an effective communication process.
Communication is where two individuals communicate directly with each other.

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PERSONAL COMMUNICATION CHANNELS
This refers to the various channels that facilitate direct communication between two or more
individuals. They include: mail, fax, internet, telephone, face to face etc. These channels are
efficient because they facilitate immediate feedback as individuals are addressed directly. The
organization can have a direct control over these personal communication channels in various
ways. When a new product has been launched by the company, personal communication
channels are the most effective for the creation of awareness to the target consumers. The
marketing department usually contact the target consumers through the sales personnel. In the
process, the sales personnel interact with the target consumers through face to face discussions
and guide the consumers on the usage of some new commodities which enhances a quick
understanding and easy to convince the target consumers to purchase the company products.
Personal communication can also entail use of online guides to advise consumers of the usage
of various products offered by the company to enhance purchases. The company can also make a
personal statement to the buyers regarding new ingredients that have been in corporated to some
of the existing products to attract the consumers. The use of a word of mouth usually has a great
influence to the consumers’ purchasing decisions for various products sold by the company.
Personal influence is essential for some of the products which are expensive hence the choice of
an effective personal communication channel is usually an added advantage for the company.
The company can take an initiative to come up with strategies for personal communication
channels for effective market attainability for various products offered. The company can create
opinion leaders who will always give their opinion regarding their brand which might influence
the consumers’ purchasing decisions.

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The companies that make an effective use of personal communicational channels enjoy a
wide market share and a sustainable competitive advantage over other firms in the industry.

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DEVELOPING PERSONAL NETWORKS.
Personal networking is defined as the process of acquiring and cultivating of personal
relationships between various departments, levels of management within the organization and it
also entails enhancement of good relationship between the firm and the outside world through
the public relations department of the organization. Smart managers should develop personal
networks of communication with others from different organization. This enhances the exchange
of knowledge in various areas of management which usually facilitate the organizational growth
and development.
The following is the criteria for developing personal communication networks in an effective
way:
Building the network
As a manager, you should start building a network of personal relations with other
organizations not necessarily waiting until when you are in need of something.
Be social
As a manager you should not eat lunch a lone but it is advisable that you join other
people in common places and in the process you will get to share ideas and even
exchange contacts for further clarifications that may be required.
Mutual benefit
Successful networking is a bout thinking about other people first. It should be a win-win
situation where you do not only focus on what you need to acquire but you also focus on
other people in the network getting what they want too.

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Appreciate diversity
A good network is developed among a diversified society since people have various
skills, abilities and even knowledge.

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THE GRAPE VINE
This refers to an informal person to person network of communication that is not from
the official desk (Sethi and Seth, 2016). This is where communication is done without
following the formal procedure for dissemination within the organization. In most cases it
occurs when people within the same level in the organization gather and discuss issues
according to the rumors trending within the organization (Baerjee and Singh, 2015).
Grape vine is merely an unofficial communication that occur in the organization as a
result of gossip or rumor (Ghani and Osman, 2016).
FEATURES OF GRAPE VINE
According to Hirst et al (2015) grapevine has several features as outlined below:
 Used to serve the self-interest of those individuals propagating the message.
 Employees perceive it as a more believable and reliable information.
 The management do not have the control of the information.
 It spreads faster throughout the organization than any other formal information.
 There is no record for future reference.
 Mainly leads to the distortion of the formal message.
 It is usually spontaneous as passes rapidly from top to the bottom level of the
organization.

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TYPES OF GRAPE VINE
Enuoh and Inyang (2016) state that there four basic types of grape vine in the
organization which are:
SINGLE STRAND CHAIN
This is where an information is passed to line of individuals before reaching the actual
recipient when totally distorted.
GOSSIP CHAIN
This is where an individual seeks information and disseminates it to everyone. So the
information which might not be official is received by others who keep on spreading the
message.
PROBABILITY CHAIN
An individual spreads the information to others according to the probability of the
situation happening. Those who receive the information also tend to spread the message
in a very similar way to others especially through social platforms.
CLUSTER CHAIN
This is where an individual selects a specific person and passes the information to him or
her and the chosen person also chooses another person and pass the information and the
cycle continues.

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INTERPERSONAL COMMUNICATION
This refers to the process through which individuals exchange various ideas through
verbal and non-verbal messages especially in the case of face to face
communication(Yasuyama et al .,2017).
INTERPERSONAL COMMUNICATION ELEMENTS
According to Hargie (2016) these elements include:
People.
For an efficient communication process at least two individuals should be involved.
Being a two way process one party should communicate while the other party responds to
the message.
The message
Information to be disseminated has to exist for interpersonal communication to take
place.
Noise
In the process of communication between the parties, there might be factors that may
prevent a clear reception of the message (Halim et al., 2015). These factors might be
language barrier which result to semantic noise. Back ground sounds might also interfere
with the interpersonal communication (Kotzen and English, 2014).

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Types of noise
Semantic noise
Occurs when the message cannot be understood by the other party and in most cases it
occurs due to language barrier.
Physiological Noise
Results from; discomfort, fatigue, personal illness and hearing impairment
Psychological noise
Results from confusion, anxiety, emotional arousal, bias, past experience and the sender
or receiver’s closed- , mindedness towards the information been conveyed.
Intellectual noise
Results from in adequate preparation to receiving or giving the message or may also be as
a result of information overload between the parties involved.
Environmental noise
Results from environmental destructions during the communication process e.g. hooting
of cars, people talking and laughing, bad smell from the surrounding etc.
Medium
Interpersonal communication cannot take place through a vacuum hence a relevant
channel must be used to convey the intended message.
Context
An environmental setting where the interpersonal communication occur is important for
effective retention of the information.

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Feedback
Interpersonal communication cannot be effective without the feedback from the other
party.
IMPORTANCE OF INTERPERSONAL COMMUNICATION
Walther et al (2015) states that Interpersonal communication is significant in the
following ways:
Facilitates giving and collection of information
Enhances the information exchange between various involved parties.
Influences action
Through interpersonal communication, an individual may be persuaded to do a given activity
especially in making purchasing decisions a consumer may be influenced by the seller to
purchase a given commodity.
Formation of relationships
Enhances formation of social relationships among various individuals which is usually
significant in many ways.
Facilitates decision making and problem solving processes.
Through interpersonal communication, individuals can bring their ideas together and come up
with a concrete solution for a given problem.

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Expression of emotions
Through interpersonal communication, individuals can express their emotions which might be a
state of sorrow, loneliness or fear concerning various issues in life.
Prediction of behavior
The behavior of an individual can be determined from the way he or she speaks.
EFFECTS OF INTERPERSONAL COMMUNICATION IN THE WORK PLACE
Clarifications can be made
Through interpersonal communication, the manager can clarify various issues that may
be of great significance for the achievement of set objectives in the organization.
Promotes team work
It facilitates team work among the employees who may share ideas on how to accomplish
various tasks in order to achieve the set goals.
Fosters good relationship
When individuals communicate with each other at the place work, they will form good
work relationship which is essential for effective organizational performance.
Creates a sense of belonging
It enhances a feeling of belonging to the organization when individuals are given a
chance to participate in the decision making process in various issues in the organization.

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TOPIC FOUR
CRISIS COMMUNICATION
CRISIS DEFINITION
A crisis may be defined as an issue that has escalated and may be something of very high
risk and they may be social, economic and technological. A crisis refers to any situation
that may threaten the safety of people and property within the organization and after its
occurrence it results to serious damage on people and the property. There various
approaches to crises and just to mention a few we have: conventional approach and
strategic approach.
Conventional approach
This approach perceive crisis as: trends, events, controversies or public developments
that may have a negative impact on the enterprise.
Strategic approach
This approach uses communication to for crisis management.

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CRISIS COMMUNICATION DEFINED
Crisis communication is a branch of the public relations profession that is usually purposed to
protect and defend the organization facing a public challenge to its reputation in relation to some
of the activities involved(Mazzei and Ravazzani,2015). This refers to the method for providing
the people with the information they need during a disruptive event.
OBJECTIVES OF CRISIS COMMUNICATION
 To provide immediate feedback to the general public regarding the situation that
has just occurred.
 Is a demonstration of concern for safety of lives by the organization to portray a
good image of the organization to the general public.
 To ensure the safety of the organizational assets and facilities
 To maintain a positive image of the company as a good corporate citizen.
In the circumstance where the manufacturing company is facing allegations
relating to the contaminated products that have caused health problems to the
public, the objectives of crisis communication shall be:
 To make clarifications about the extent of damages caused and the crisis
management steps that shall be pursued to address the problem.
 To communicate to the employees so that they will have the answer to give to the
media in case of questioning.

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CRISIS COMUNICATION THEORIES AND MODELS
Various theories have been formulated to discuss crisis communication. Each theory explains the
Crisis communication with a different approach (Coombs, 2014).
THE IMAGE RESTORATION OR REPAIR THEORY
The theory perceives the organizational image as an asset which needs to be protected during a
crisis (Liu and Fraustino, 2014). The organization should always strive to protect its image
during the crisis by application of various crisis management procedures. The theory suggests
that during a crisis the organization should
 Deny the accusations from the media and the general public.
 Avoid the responsibility.
 Reduce the offensiveness by outlining the measures that had been taken by the
organization before the crisis.
 Take a corrective action to protect further damages
SITUATIONAL CRISIS COMMUNICATION THEORY
This theory assumes that crises are negative occurrences that the stakeholders attempt to
associate the organization with the responsibility of the occurrence. This theory argues
about crisis on perceptional basis rather than a reality. It involves:
 Denial of responsibility by the organization
 Rebuilding the situation back to normal
 Reinforcement to protect further escalations.

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SOCIAL MEDIATED CRISIS COMMUNICATION MODEL.
This model relies on what individuals respond online during the crisis and try to integrate
the information from various individuals in order to come up with a general conclusion
regarding the crisis at hand. After a thorough analysis of different views the method
comes up with various strategies to handle the crisis.
INTEGRATED CRISIS MAPPING MODEL
This model focuses on stake holders’ emotional changes during the crisis. This theory has
an assumption that people usually interpret their emotion in times of crisis hence a proper
feedback should be provided by the concerned personnel to reduce the tension.

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VARIOUS TACTICS FOR CRISIS COMMUNICATION
According to Ulmer, Sellnow and Seeger (2017) there are three stages of a crises and
their communication and their communication requirements.
Pre-crises
Is the deliberate effort by the organization before a crises as issues builder.
Pro-active issues management
The communication purpose in this stage is to:
 Prepare to counter any crises
 Minimize the impact of crises on an organization
 Identify the crises and communicate to all stakeholders
 Communicate and educate all the staff
 Hold training sessions, seminars and workshops
 Anticipate a crises and prepare communication briefs and templates
 Appoint organization spokesman
 Cultivate a positive relationship with the media
 Information gathering and contacting a thorough research about various crisis risks that
the organization may be exposed to.
 Creation of a crisis management plan on various roles that shall be played by individuals
when the event occurs.

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 Carrying out various exercises in order to test the crisis management plan to determine its
effectiveness.
 Preparation of the message to be conveyed to the media by the public relations
department in the event of the crisis.
 Outlining the scalar chain to be followed by all the employees in the event of the crisis.
The communication team that shall respond during the crisis should be trained so that
they be reliable in case it is a matter of saving lives.
This stage mainly focuses on the identification of the potential risks that may lead to a
crisis.
During the crises
Once the crises occur, strategic communication require that:
 Let employees know a rough answer or comment to give to the media and public
 To choose an appropriate channel to brief public and media
 You communicate to media accurately and sinkly with statistics explained and the
content of the information should come from the highest office with both sides of the
issue
 Acknowledgement of the incident as a crisis by the crisis management team of the
organization.
 Gathering and processing of some important information by the crisis management team
to facilitate decision making.
 Passing the information regarding the crisis through the concerned department to the
internal and external publics of the organization.

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POST CRISES PHASE
This is the period after the crisis. At this stage the crisis communication tactics are:
 Following up on correcting crises record and stakeholders feedback
 Hold interviews with stakeholders to obtain their view regarding their solution to their
crises
 Shake memories by dealing with internal and external audiences
 Consolidate and continue to monitor progress responses
 Learn from the findings
 Evaluation of the successes and failures of the crisis management team so as to make
necessary implementations.
 Delivering the necessary information to the stakeholders in relation to the crisis as soon
as it is clear.
 Updating the stakeholders of the progress in recovery and healing from the crisis together
with the corrective actions that have been taken and the progress of the investigations
that are been carried out in relation to the cause.
 Conducting a thorough analysis of the crisis management effort in order to obtain the
lessons which are in corporated the organization’s crisis management system for future
application.
 Passing of encouraging messages to the affected families.

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EFFECTIVE CRISIS COMMUNICATION STRATEGIES
CREATION OF ACTION PLANS
Organizations should come up with various plans in case of a crisis in order to
know exactly what to do when the event occurs, this saves the organization’s time
and the financial resources incurred during the crisis (Coombs, 2015).
TIMELY RESPONSE
In the event of a crisis it is usually advisable for earliest communication to be
done in order to reduce the existing tension by promising the public together with
the stake holders that everything is under control. Timely response also helps to
reduce the rumor that exists among the people.
BE TRANSPARENT
Inspite of how the situation after the event is, it is very advisable to share the truth
with the public rather than lying to them that things are not bad and yet lots of
damages have been done.
ASSEMBLING OF A CRISIS RESPONSE TEAM
Put in place a crises management team and train them on rule and responses in a crises
DETERMINATION OF PRIMARY AUDIENCES.
During the crisis the whole event shall be covered by the media and many other people
shall be affected by the event. The message should be modified for each of the audience
as per the requirement.

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TEST VARIOUS SCENARIOS
You should explore all the risks that might face the enterprise and determine the key
actions for each of the outcome so that in case of the occurrence the impact shall be
minimal.
ANTICIPATION OF THE QUESTIONS THAT MIGHT BE ASKED
As part of scenario planning the organization should determine the best enquiries for
different kinds of scenarios and this is advantageous because it enhances quick responses
during crises.
IDENTIFICATION OF A SPOKES MAN
After the crisis it is usually advisable to have a common feedback hence the organization
should choose an ombudsman who shall communicate to the media on behalf of the
organization.
INCLUSION OF THE SOCIAL MEDIA IN THE PLAN
The social media will be very appropriate for communication during the crisis because a
large of people shall be able to know the progress. Twitter shall be very appropriate since
it has go very many users.
GET THE FACTS
The facts should be noted so ion order to be in a position to give the correct account of
the occurrence.

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DON’T HURRY TO COMMUNICATE
After the crisis, nobody should be in a hurry to communicate but a specific amount of
time should be taken while telling the public to allow you time to look into the matter and
give an ultimatum before giving the feedback.

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TOPIC THREE
ASPECTS OF COMMUNICATION THAT RELATE TO SUSTAINABILITY
Introduction
The concept of sustainability.
According to Maltseva, Fieseler and Trittin (2018) sustainability refers to the means of meeting
the needs of the current generation without sacrificing the ability of the future generation to meet
their needs. Sustainability strategy is the approach that creates long term stake holder value
through the implementation of a business strategy that incorporates every aspect of how the
business can operate in its social, ethical, environmental, cultural and economic spheres.
Sustainability integrates production and consumption in the most efficient way to build a society
where there is respect for both the individuals and the society. Attemene and Eguavoen (2017)
state that to achieve sustainability in the organization, the organization has to be:
environmentally friendly, economically stable socially just, culturally accepted by stakeholders.
Sustainability play a role in the organization through various actions such as voluntary cleaning
of environment in which it the organization operates which is a contribution to the social welfare
of the society. Sustainability should act as a guide for any given organization which enables the
organization to be ethical, efficient and act in a fair way in the course of its operations which
usually portrays a good image of the organization to the outside world.

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COMMUNICATION OF SUSTAINABLE ACTIVITIES AND ACHIEVEMENTS
Communication plays a crucial role in any strategy in relation to sustainability (Sutterlüty et al.,
2017). Sustainability cannot be achieved in an organization with poor internal communication
Processes. Communication enables the stakeholders to come up with strategies regarding the
sustainable practices to be pursued by the organization. Strategic communication by the
organization in relation to the sustainable activities has to be systematically and planned to
enhance the protection of the environment rather than focusing on how to develop the
environment. The sustainable interventions are usually initiated by the organization together with
the prime decision makers in the surrounding community. The activities to be undertaken by the
organization is usually a suggestion of the community hence the organization do not order what
is to be done but usually implements what has been proposed by the community. In any plan for
sustainability, communication plays a central role both internally and externally. In order to plan
and carry out sustainable acts by the organization, people have to express the interest through
various modes of communication because it is a voluntary activity hence the people should not
be forced in to it.

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CARBON FOOT PRINT COMMUNICATIONS
According to International Organization for Standardization (2017) carbon foot print is referred
to as the total amount of industrial gases emitted into the atmosphere which usually result to the
destruction of the ozone layer resulting to greenhouse effect which leads to global warming.
Sustainability requires industries to filter their smoke to remove the chemical carbon monoxide
which is very harmful when in haled by both man and animals. Human actions such as
deforestation, burning of coal and oil result to increase in carbon concentration into the
atmosphere. Carbon print communication entails the process where the organization educates the
people on the effects of the activities that results to global warming.
The success of a sustainability activity depends on frequent communication made between the
organization and the stake holders. This is because it shall enable the organization to achieve its
environmental and social goals which facilitates profit maximization and a good organizational
reputation. The organization can engage in tree planting activities where deforestation is rampant
and encourage those who are involved in the act to plant two trees where they cut one tree and
those who use coal should be advised on the alternative sources of fuels through creation of
awareness by the organization.

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CORPORATE SOCIAL RESPONSIBILTY
Many studies have been done by various scholars about corporate social responsibility
and there is no agreed definition of this term (Tai and Chuang, 2014). CSR refers to the
strategic operation of an enterprise in an ethical and environmentally friendly way for the
benefit of the society (Carroll, 2015). It also refers to the system of operation where the
companies direct responsibility of the impact of the social and environment to their
business operations (Suliman, Al-Khatib, and Thomas, 2016). It has also been defined as
the voluntary commitment of the enterprise to creating a sustainable ethical, social and
physical business environment for the well-being of the general community. Refers to the
ethical and sustainable operation of the enterprise towards the community, environment
and the society in which it operates.

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TYPES OF CSR
McWilliams (2015) states that there are four main types of corporate social responsibility
namely:
ENVIRONMENTAL RESPONSIBILITY
The sustainable environmental practices mainly focus on enhancing
environmental cleanliness and reduction of the greenhouse gases that usually
result to global warming.
PHILATHROPIC INITIATIVES
This is when the organization participates in charity work through donation of funds to
support the needy in the society. This enhances the organizational image to the outside
world.
ETHICAL BUSINESS PRACTICES
This is where the business enterprise carry out its operations in accordance with
the set code of ethics and conduct stipulated in its policies. The organization
provides goods of good quality to the consumers at affordable prices. The
business also operates as per the rules and regulations set by the government.
ECONOMIC RESPONSIBILITY
The organization operates in a way that it enhances the economic development of
the country. The company also ensures that it produces its goods at a low cost so
as to sell them at affordable prices for the general community.

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IMPORTANCE OF CSR
IMPROVED ORGANIZATIONAL IMAGE
Once the organization gives back to the society through the CSR activities, the society
shall be attracted to the organization which is an advantage to the organization which
shall have a wide market for its goods and services.
INCREASED BRAND RECOGNITION AND AWARENESS
An organization that is committed to ethical practices shall win the consumers’ trust
hence many people shall wish to consume its products.
SUSTAINABLE COMPETITIVE ADVANTAGE
A company that is involved in CSR achieves a sustainable competitive advantage over its
competitors in the market share as the community will love to promote an organization
that cares for its ethical, social and physical needs.
ATTRACTION OF THE WORK FORCE
During the recruitment process, the applicants shall be attracted because of the
organization’s sustainable practices hence the organization shall have constant flow of
labor.
GOVERNMENT FUNDING
In most cases organizations that play a role in sustainable activities usually get
government support through funds to enhance such activities e.g. tree planting

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CUSTOMER RETENTION
Consumers usually choose to do business with the organizations with good reputation. A
business that always serve its consumers in an effective manner shall always retain them.

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THEORIES OF CORPORATE SOCIAL RESPONSIBILITY
The following are the theories of CSR:
PROFIT AND VALUE MAXIMIZATION THEORY
This theory states that organizations engage in sustainable practices with future
perception of profit maximization. Organizations believe through CSR practices,
individuals are usually attracted to it and would consume its products which is translated
to huge profits in the long run.
THE STAKEHOLDER THEORY
This theory states that the firm has an obligation to justify its sustainability strategies to
all the stake holders who may decide to support at their own choice since it is a voluntary
activity. The stake holders may include the: suppliers, financiers, customers, employees,
trade unions etc.
THE REPUTATIONAL APPROACH
The business enterprise engages in sustainability activities in order to create a good
reputation to the consumers and other stake holders in order to attract investment. The
organizational reputation is very crucial for its success as it shall have many customers
for its goods and services. This theory postulates that positive reputation and a good
brand image are the key drivers of corporate social responsibility.
THE CLUSTER THEORY
This theory states that firms which engage in the corporate social responsibility in a
specific segment usually achieves a sustainable competitive advantage in the segment
over the other firms due to recognition within the community.

35
THE SOCIAL INNOVATION THEORY
The organization should focus on the innovation goals that satisfy the need of low income
population. This theory postulates that searching for opportunities for social Innovation is
the key driver of the corporate social responsibility.
THE MANAGERIAL DISCRETIONARY THEORY
This theory outlines that the attitude of the management towards the corporate sustainable
activities shall determine the extent of engagement of the organization in to corporate
sustainable activities.
ETHICAL THEORY
This theory stipulates that the organization that up holds sustainable business practices is
ethically and morally upright since CSR is about ethical business practices.

36
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