This article explores the critical roles played by corporate social responsibility (CSR) in reducing poverty, advocating for human rights, conserving the environment, talent management, and technology transfer.
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Running Head: MANAGING ACROSS BORDER1 Managing Across Border Name: Institution
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Managing Across Border2 Executive summary Corporate social responsibility refers to how organizations conduct their business operations in an ethical manner, social-friendly and in benefit to the community they operate from. This article has looked into the critical roles played by CSR in the world of today. Commonly, corporate social responsibility has helped in reducing poverty levels, advocating for human rights, conserving the environment, talent management and transfer of technologies. In reducing poverty, corporate social strategies such as charitable foundations and community empowerment help in improving the living conditions of communities in the marginalized areas. Donations such as food and clothing have assisted in countering natural calamities such as floods and droughts. Additionally, corporates have recently engaged in noble activities such As building shelters for such communities (Romani, Grappi & Bagozzi, 2013). CSR has also helped in advocating for human rights through the protection of critical labor rights. Organizations have been recently legislated as a corporate citizen and therefore carry the liability of employee protection. International organizations such as the United Nations are encouraging partnership with organizations to achieve this. The organizations are also tasked with conserving the environment. Increasingly, through CSR strategies, most organizations are adopting green energy and renewable forms of energy to conserve global resources. Additionally, organizations are becoming aware of the critical asset of human resources. In sustainable practices, it has become apparent that treating employees in the best way increases talent retention and productivity. Lastly, CSR practices in the transfer of technology encompass initiatives that will bring equality in the technology used across the globe. A technological transfer assist the developing nation in catching up with the already developed nations in terms of product quality and service delivered.
Managing Across Border3 Table of Contents Executive summary.........................................................................................................................2 Introduction......................................................................................................................................4 CSR in reducing poverty.................................................................................................................5 CSR advocating for human rights....................................................................................................6 CSR in environmental protection....................................................................................................7 CSR help in talent acquisition.........................................................................................................8 CSR role in the transfer of technology............................................................................................9 Conclusion.....................................................................................................................................10 References......................................................................................................................................12
Managing Across Border4 Introduction Corporate social responsibility is a condition that has been there since the 1950s. The concept of CSR has evolved in time to cover many aspects. The classical view of CSR was primarily limited to philanthropy but in the contemporary times, it has shifted to include the emphasis on business-society relations and how the business engage in practices that will empower the community in areas it operates on. In contemporary organizations, the management is highly encouraged to take initiatives for ethical practices and economies the use of resources by engaging in ethical practices. By engaging in this, the business is creating wealth with society and creating sustainable standards of living. The modern CSR is also referred to as corporate responsibility, responsible business, corporate social opportunity, and corporate citizenship. It is a concept where the world organizations are considering the welfare of the communities through engaging in practices that impact the activities of communities, environment, suppliers, as well as the workforce (Ismail, 2009). There exist legislation that also held the organizations in liability to ensure sustainable business practices. CSR encompasses the range of activities that a business operates ethically for a socially friendly environment. There has been increasing debate on the role of an organization in the society in relation to the huge corporate responsibilities also known as corporate social responsibility. Most of the global organizations have their own term and definition for their corporate social responsibilities activities. However, much of these definitions integrate how the organization is engaged in environmental and social responsibilities concern. Although CSR programs are regarded as voluntary initiatives, the increasing globalization and consumer awareness has shifted the focus from just voluntary to a critical requirement for the success of the organization. Additionally, non-governmental organizations and government are pilling pressure to the organizations to take responsibilities for social actions and sustainable business practices. CSR has been depicted in various ways. It is hugely about
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Managing Across Border5 creating a global economy that is sustainable and environmentally friendly. This report will focus on the roles that corporate social responsibility plays in the global market in relations to the operations of an organization. CSR in reducing poverty One of the key campaigns run by organizations today is charity foundations. These foundations are tasked with responding to natural calamities or provision of help to the disadvantaged people. Some of these initiatives include engaging in scholarship programs, food and clothing donation, and addressing natural calamities such as floods or droughts (Saeidi, S. P, Sofian, Saeidi, S, Saeidi, P & Saaeidi, S, 2015).For example Coca-Cola, a global soft drinks manufacturing company, established a purpose-built foundation in the year 1984. This foundation has donated more than 850 million US dollars to charitable outcomes (Karnani, 2014). Additionally, the company pledges to donate about 1 percent of its previous year operating income to charity. The Company says that the money is used in different initiatives such as economic empowerment through entrepreneurial programs, youth development programs and educations programs across the globe. Also, under the leadership of Bill Gates, Microsoft is regarded as one of the most philanthropy company worldwide (Fabrizi, Mallin & Michelon, 2014). The company operates Microsoft-philanthropies, a charity foundation which was established in early 2015. This foundation has been involved in charitable initiatives in developing countries such as donation of food and clothing and building of the shelter. Additionally, the employees of Microsoft have followed in the steps of Bill Gates, a known philanthropist and they have raised about 150 million US dollars collective individual donations in 2017. Microsoft has also donated about 1.3 billion US dollar worth of hardware and software to non-governmental organizations and governments to facilitate their running. The company has
Managing Across Border6 not only engaged in monetary donations but also the staffs gave up 700,000 hours of their time to engage in projects that enable sustainable living across the world. CSR advocating for human rights. Through the initiatives of “global impact”, the United Nations has urged companies to commit in the protection of the fundamentals of human rights. The global compacts is the largest voluntary corporate initiative that encourage organization across the globe to align their strategic operations within the borders of environmental conservations, protection of labor rights, and basic human rights (Du, Swaen, Lindgreen & Sen, 2013). By doing this, the organization help in fostering globalization and ensure the advancement of markets, technologies and finance are in the ways that benefit the society. These initiatives have resulted in the partnerships of governments, organizations, civil societies, non-governmental organizations, and the United Nations. Never before have the goals and objectives of the business communities and the international community been as aligned as displayed by the global compact. These programs have grown immensely to garner support in over 130 countries across the globe. Currently, these sustainability initiatives have over 4700 corporate organizations participants (Bobby, 2014). Some of the notable multinational organization partnering in the Global Compact program include Coca-Cola, Starbucks, Deloitte, and Walmart among others. Apart from supporting human rights campaigns, the global compact is a CSR program that is also tasked with creating environmental awareness and sustainable business practice.
Managing Across Border7 CSR in environmental protection One of the main roles of corporate social responsibility that is being advocated all around the world is the reduction of carbon footprint and conservation of the environment. The organizations are becoming aware that initiatives aimed at conserving the environment not only help in conserving the resources for future use but also increase the brand and social recognition of the company. Most multinationals companies are engaging in sustainable practices that help to conserve the environment as well as ensuring the resources are not depleted (Servaes & Tamayo, 2013).This has been catalyzed by the ongoing advocacy by non-governmental organizations and civil societies groups that are encouraging the organizations to move away from practices that degrade the environment and embrace the “going green” initiatives. “Green Peace mission” Is an example of a CSR program that offers benefits to the society in campaigning for environmental conservation. The organization acts to change the behavior and attitudes of multinational corporations towards embracing environmental protection for a sustainable future. One of its core campaigns is sustainable agricultural practices by advocating for ecological and socially responsible farming practices (Zhu, Sun & Leung, 2014). The organization uses lobbying, direct action and research for the achievement of these goals. Currently, Green peace mission is present in over 42 countries with both national and regional offices. The movement is autonomous and carries out sustainability campaigns in the context of the local communities. Some of the companies in the world that have notably been involved in environmental conservation include Walmart. Walmart is a notable global leader when it comes to environmental sustainability. The Company has exceeded its goal set in 2010 of eliminating over 20 million metric tons of greenhouse gases from its global supply chain. Additionally, 30 percent of the company electricity supply is renewable energy. In 2014, Walmart produced about 3,000 gigawatt-hours or renewable energy globally (Elder & Dauvergne, 2015). The company has also
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Managing Across Border8 taken an initiative to reduce waste. They have achieved this by encouraging the use of recyclable materials. Currently, the shopping bags at Walmart are 100 percent recyclable. Walmart also uses LED lighting in its stores. These LED lights are used in freezers and refrigerators as well as to light the stores and parking lots. It is estimated that LED lights use about 70 percent less energy as compared to fluorescent lighting. Walmart has recognized the importance of energy efficiency and environmental conservation as a key sustainable practice. CSR help in talent acquisition An organization with an effective corporate sustainability approach has the advantage of receiving global recognition and improve the reputation of the brand. This also strengthens the appeal of the organization as a global employer, attracting qualified people to the organization. When the workforce views their organization as being socially responsible, they act favorably and diligently in their duties and they tend to develop positive attitudes toward the organization. This increase the overall productivity of the organization (De Roeck, Marique, Stinglhamber & Swaen, 2014). The workforce develops the sense that the organization is not only about making a profit but also to ensure the alleviation of the living conditions across the globe, an increase of consumer satisfaction, and the reward for great service. These practices go a long way in boosting the culture of the organization. It encourages a harmonious working environment and gives purpose for individual employees. It also reduces absenteeism within the organization and reduces employee turnover rates. It ensures that there is a minimal brain drain from the competition and increases the social perception of the organization in relation to the consumers and the stakeholders. Google has achieved high rates of talent management based on their sustainability practices. The company held its employees in high regard and view them as a critical asset for the company. Sustainability approaches are not
Managing Across Border9 only limited to environmental conservation and community empowerment but also in how a company treats its workforce. Many people are attracted to work at Google due to its capability to innovate quickly and its role in facilitating sustainability, especially in developing countries. Google offers free digital skills education programs in many developing countries. Additionally, in addressing the interest of its employees, Google offers better compensation and a fun working place (Chernev & Blair, 2015). The working environment of Google at its Silicon Valley headquarters has been rated the best in the world. The company has facilities where workers can exercise and play games while interacting with each other. Additionally, there are more benefits such as free meals, high salaries, and flexible work shifts. Additionally, the company addresses the working condition of the employees of its suppliers through its elaborative Google suppliers Code of Conduct (Steiber & Alänge, 2013). The conduct covers areas such as health and safety, employment practices and labor rights. The company expects the suppliers to follow the code for effective business practices. Google is one of the best companies that regard talent management highly through its sustainable business practices. CSR role in the transfer of technology Corporate social responsibility practices can help in the transfer of technology by multinational corporations to the developing countries in which the corporation has a subsidiary. Multinational corporations have their business operations across the globe with the headquarters and centralized office in the home country. Some of these large corporations such as Google have very huge budgets that even exceed the business allocations in most developing countries. Through CSR practices, the multinational corporations can facilitate the transfer of technologies through the public sector technological support, the flow of human resources and education campaign to empower the population on the advent of technology (Story & Neves, 2015). The
Managing Across Border10 Multi Corporation through their CSR principles can also fund and support research in the developing countries and empower education institutions. The transfer of technology together with CSR principles help the target market gain in aspects of product development, quality and improved community welfare (Hiller, 2013). Google Corporation has facilitated this by enhancing digital skills in developing countries through its digital skills training program (Kim, Amaeshi, Harris & Suh, 2013). The company has identified the huge disparity in terms of technological exposure between the population in developed and developing countries and has initiated such programs to help cover the gap. Conclusion Corporate social responsibility is about the organizations, civil society, and governments working in collaboration to ensure each engages in sustainable practices. Socially, CSR practices should benefit the community as they are the one directly affected by the negative impact of organizations practices. The role of CSR in the contemporary era refers to how responsible behavior is perceived by the community and how such behaviors impact the community. The role includes sharing the cost of ineffective practices, such as how environmental degradation affects the wellbeing of the community. Some of the roles discussed have a positive effect on the community. These include poverty alleviation, transfer of technology, environmental conservation, talent management, and human rights preservation. For multi-national corporations, there are no definite set standards as on how to carry out sustainable practices. It mostly relies on the leadership and management of such institutions to formulate goals that will achieve effective corporate sustainability practices. The management understands the importance of good CSR practices, not only in catering for the wellbeing of the community and the world but how such practices also improve the reputation of the company. It is therefore critical for
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Managing Across Border11 these organizations to understandthat moving towards the achieving of economic goals should not put the social needs in jeopardy.
Managing Across Border12 References Bobby Banerjee, S. (2014). A critical perspective on corporate social responsibility: Towards a global governance framework.Critical perspectives on international business,10(1/2), 84-95. Chernev, A., & Blair, S. (2015). Doing well by doing good: The benevolent halo of corporate social responsibility.Journal of Consumer Research,41(6), 1412-1425.. De Roeck, K., Marique, G., Stinglhamber, F., & Swaen, V. (2014). Understanding employees' responses to corporate social responsibility: mediating roles of overall justice and organisational identification.The International Journal of Human Resource Management,25(1), 91-112. Du, S., Swaen, V., Lindgreen, A., & Sen, S. (2013). The roles of leadership styles in corporate social responsibility.Journal of business ethics,114(1), 155-169. Elder, S. D., & Dauvergne, P. (2015). Farming for Walmart: the politics of corporate control and responsibility in the global South.The Journal of Peasant Studies,42(5), 1029-1046. Fabrizi, M., Mallin, C., & Michelon, G. (2014). The role of CEO’s personal incentives in driving corporate social responsibility.Journal of Business Ethics,124(2), 311-326. Hiller, J. S. (2013). The benefit corporation and corporate social responsibility.Journal of Business Ethics,118(2), 287-301. Ismail, M. (2009). Corporate Social Responsibility and its role in community development: An international perspective.Journal of International social research,2(9).
Managing Across Border13 Karnani, A. (2014). Corporate social responsibility does not avert the tragedy of the commons. Case study: Coca-Cola India.Economics, Management, and Financial Markets,9(3), 11- 23. Kim, C. H., Amaeshi, K., Harris, S., & Suh, C. J. (2013). CSR and the national institutional context: The case of South Korea.Journal of business research,66(12), 2581-2591. Romani, S., Grappi, S., & Bagozzi, R. P. (2013). Explaining consumer reactions to corporate social responsibility: The role of gratitude and altruistic values.Journal of business ethics,114(2), 193-206. Saeidi, S. P., Sofian, S., Saeidi, P., Saeidi, S. P., & Saaeidi, S. A. (2015). How does corporate social responsibility contribute to firm financial performance? The mediating role of competitive advantage, reputation, and customer satisfaction.Journal of business research,68(2), 341-350. Servaes, H., & Tamayo, A. (2013). The impact of corporate social responsibility on firm value: The role of customer awareness.Management science,59(5), 1045-1061. Steiber, A., & Alänge, S. (2013). A corporate system for continuous innovation: the case of Google Inc.European Journal of Innovation Management,16(2), 243-264. Story, J., & Neves, P. (2015). When corporate social responsibility (CSR) increases performance: exploring the role of intrinsic and extrinsic CSR attribution.Business Ethics: A European Review,24(2), 111-124.
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Managing Across Border14 Zhu, Y., Sun, L. Y., & Leung, A. S. (2014). Corporate social responsibility, firm reputation, and firm performance: The role of ethical leadership.Asia Pacific Journal of Management,31(4), 925-947.