Positive and Negative Impact of Corporate Social Responsibility on Local Communities

This report discusses the positive and negative impact of corporate social responsibility (CSR) on local communities. It examines how CSR affects employees, consumers, and society. The report also includes a critical evaluation of community-based information reported by Harvey Norman compared with JB Hi-Fi.

Research report

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
POSITIVE IMPACT OF CORPORATE SOCIAL RESPONSIBILITY ON LOCAL
COMMUNITIES.............................................................................................................................1
NEGATIVE IMPACT OF CORPORATE SOCIAL RESPONSIBILITY ON LOCAL
COMMUNITIES.............................................................................................................................3
CRITICAL EVALUATION OF COMMUNITY-BASED INFORMATION REPORTED
PUBLISHED BY HARVEY NORMAN COMPARED WITH JB Hi-Fi.......................................4
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................7

INTRODUCTION
Corporate social responsibility is kind of the private business self- regulation that aim to
be contribute to the societal, objectives of activist and support the ethically oriented practices. It
is management concept where firms integrate environmental and social concerned in business
operations with stakeholders (Crane and et. al., 2019). It is a responsibility of company to
operating within society to give contribution towards, environmental, economic and social
development that develops positive effect on society. Harvey Norman is Australia based
company and multinational drop shipping computers, bedding, consumer electrical goods and
furniture. Under this mention report will be studied about negative and positive impact of
corporate social responsibilities of company towards local communities. Critical evaluation on
community-based information compare with other company is going to discuss here.
POSITIVE IMPACT OF CORPORATE SOCIAL RESPONSIBILITY ON
LOCAL COMMUNITIES
The Corporate Social Responsibility is set of practices and the policies of company that
aids in interlinking many stakeholders consists environment and communities. The CSR
develops positive impact on the local communities such as consumers, society and employees.
This is commitment of business towards sustainability. In regards to this, CSR is done through
Harvey Norman in structured manner. This company aim is to developing value for customers
employees and shareholders. Harvey Norman is leading Australian organisation and listed in
Australian stock exchange. It operates as franchise with main brand of firm and operated the
stores are owned through ASX listed organisation Harvey Norman Holding Limited (Grayson
and Hodges, 2017).
Positive impact of Corporate Social Responsibility on Employee
Being responsible socially, firm can reinforce reputation of firm and develop its brand
image. CSR empowers staff members to leverage corporate resources at disposal to do better.
The organisations conduct Corporate Social Responsibility program, to enhance morale of staff
and also lead to the high productivity in workforce. Harvey Norman strives for improving safety
performance. Company believe for giving indigenous people with having better opportunities to
participating in sustainable employment that is main objective of diversity policy of firm. It
determines and does effective risk management that consists calculation of risk taking. On the

other hand, workplace policies and practices of firm covers fair and non- discriminatory
treatment of staff members and diversify policies (Kang, Germann & Grewal, 2016). This
prohibits discrimination and committed towards the healthy and safe working environment that
consists collective bargaining and also right to freedom. In regards to this, CSR activities of
Harvey Norman is in categories of product, compensation and benefits, labour rights, community
and others.
Positive impact of Corporate Social Responsibility on Consumers
Harvey Norman is retailer where consumer communicates with employee on each visit.
Strong Corporate Social responsibility framework is necessary to developing as well as
maintaining the trust among consumers and company (Hopkins, 2016). This can strengthen ties,
developing strong working relationships and develop alliances with current and new consumers.
CSR is one of the effective strategy of selling the firm in order to attract more customers. It has
close connection with customers. The main focus of Harvey Norman is to provide the high
quality of products to consumers so that they can gain benefits and make them loyal towards
company in an effective manner. This company charges the fair costs of its products so that
consumers can easily purchase it. In regards to this, it provides 24*7 customer services where the
consumers can complain regarding issues arising in their products and get satisfactory solutions.
It helps in provide the satisfactory services to consumers and also sustain them for the long
period of time.
Positive impact of Corporate Social Responsibility on Society
Corporate Social Responsibility is mutual way for firms to benefit society while benefited
in process. It is practical and thoughtful manner to provide back to society. It is one of the
effective way to show human face to business. Company deal with the people which can connect
with them by human language through showing some kind of humanity (Lins, Servaes &
Tamayo, 2017). The Corporate Social Responsibility initiatives is better manner to contribute
towards society and people. With the help of national or local charitable contributions, the
businesses can help society. Firms can get the involvement in society and also helps to progress
through taking better social incentives like homeless care activities for the refugees and investing
in the education programs for street and poor children. Harvey Norman firm considers that
creation of value is possible through serving environment and community. Company is strived
towards looking for better opportunities for saving energy and minimizing carbon footprint

(Kang, Germann and Grewal, 2016). On the other hand, keeping the social responsibility front
of the mind encourage company to act in an ethical manner and also consider the environmental
and social impact on business. Harvey Norman firm develops strong business environment that
underpinning through cohesive and inclusive community environment.
NEGATIVE IMPACT OF CORPORATE SOCIAL RESPONSIBILITY ON
LOCAL COMMUNITIES
Corporate Social Responsibility is an issue that organisation can not afford to be ignore.
There is a requirement to allocate the budget to the CSR reporting (Kang, Germann & Grewal,
2016). The negative impact of Corporate Social Responsibility is cost that needed for execution
purpose, it needs high labour workload. On the other hand, proper execution of Corporate Social
Responsibility needs more changes to be made to several processes that consist enhanced
reporting. There will be requirement to hire additional personnel for managing the Corporate
Social Responsibility initiatives.
Negative impact of Corporate Social Responsibility on Employee
It is established fact that main aim of the company is to develop profits. CSR needs
company to keep the interest of people that can cause conflict in business objectives while
making necessary decisions. Employees are those people which assigned role of managing
resources of company and assuring that firm set objectives can be met. They mainly have job
description or task of which they are in charge to be carried out. They give contribution to
company by performance of responsibilities effectively. Under this, execution of the Corporate
Social Responsibility needs heavy workload and it many reduce morale of employees which are
already working in company. If the staff members have additional work that they will require to
work more in same pay. In regards to this, they would like to quit job and seek towards some
other places (Liang and Renneboog, 2017). It will enhance labour cost for firm as they left out
with other option than hire the new staff and also equip them with required training that would
burden on capital of firm.
Negative impact of Corporate Social Responsibility on Consumers
Consumers are largest stakeholder of company. They have choice of choosing from the
alternative goods through judgement of what they are getting instead of Money, they paid money
for product is contribution to company. Under this, consumers believe that CSR reduces value of
goods because the stigmatized population many contaminate goods through transferring negative

properties to goods by process of production. The main focus of CSR on society development
that involve poor, middle and high class people. Company mainly conduct the activities for poor
class people and do not consider the middle class people (Lins, Servaes & Tamayo, 2017). It
does not consider the social development of people and negatively impact on mindset of
consumers.
Negative impact of Corporate Social Responsibility on Society
In this, getting indulge in Corporate Social Responsibility activities can be result in
enhancing expenditure of firm. When company plan the Corporate Social Responsibility strategy
then it need to implementing. Main part of Corporate Social Responsibility is to display that
Harvey Norman care regarding the community and making consumes to feel better regarding
providing of business. In regarding to this, press releases will assists in get word out and
announced CSR plan effectively. Use the corporate social responsibility how consumers that
company follow promises but the press release prove to be the false promises that lead to
scrutiny from consumers and media (Lins, Servae and Tamayo, 2017).
CRITICAL EVALUATION OF COMMUNITY-BASED INFORMATION
REPORTED PUBLISHED BY HARVEY NORMAN COMPARED
WITH JB Hi-Fi
CSR practices are required to ensure that customer loyalty and trust can be achieved by
the company. Global experience in context to this indicates that the regulatory frameworks are
necessary to ensure that business activities are socially responsible. CSR's main goal is to control
prices, improve the firm's brand and also facilitate long-term financial success. Corporate Social
Responsibility is a thoughtful and practical way of returning the company. Once businesses are
aware of the world's environmental and social effects that society will gain from giving back and
also helping to find effective solutions to everyday problems (Kang, Germann & Grewal, 2016).
Harvey Norman is Australian company and it have more than 300 stores worldwide. It is retailer
where employee interact with the consumers on their every visit. In Corporate Social
Responsibility, Harvey Norman get included the people and also encourage them to come up
with the relevant initiatives which can own and also drive. Company listened to people in
engagement survey and also facilitated CSR project by empowering teams of stores for develop
plans (Petrenko and Hill, 2016). CSR is necessary part of company as this assist forms in

managing process for developing positive impact on society. Harvey Norman incorporates the
consideration of environmental sustainability in to operations to minimize environmental impact
of operations in best interest of staff, suppliers, shareholders and society while meeting with
regulatory obligations. On the other hand, Harvey Norman has attained consistent outcomes in
recycling costs and also stage reductions to landfill becoming National Packaging Covenant
signatory (Lins, Servaes & Tamayo, 2017). This company will continue motivate franchisees and
also employees to make improvement in waste minimization strategies, staff awareness and
recycling practices. In regards to this, Sustainability Committee gives recommendations and
guidance to Harvey Norman and the franchisees to promote the cultural changes across stores,
warehouses and offices through encouraging to operate businesses sustainability through
environment friendly choices. JB Hi-Fi
JB Hi-Fi is an Australian organization that sales and specialises in consumer goods. It is
engaged in selling consumer electronics, various kinds of small and major appliances. The main
focus of this company CSR is to provide the high quality of consumer goods. This company
focuses on fulfilling needs and wants of consumers by providing goods on the basis of their
requirements (Kuliukas, Oehlers & Berlingeri, 2017). This company has been frequently aspired
for maintaining the excellence standard on the basis of integrity and honesty. The services of JB
Hi-Fi takes responsibility and quality assured approach that helps them in enhancing overall
quality of product and product in order to provide customers with high quality of products within
needed time period. On the other hand, company focuses on treating all of their potential and
existing staff members equally so that they can work in a better manner and focus on attaining
the specific objectives in an effective manner (Wang and et. al., 2016). Towards environment JB
Hi-Fi has committed themselves in minimizing the environmental impact from operations
through striving for its excellence in safety management and environment by using better
operational techniques and continuous process improvements. JB Hi-Fi conduct its business so
that challenges related to environment are managed as internal part of changing and current
business strategies.
CONCLUSION
It has been concluded from above mention report that company conduct CSR activities to
develop positive impact on different stakeholders. Under given report has been discussed
regarding positive and negative impact of Corporate Social Responsibilities of an organisation

towards the consumers, society and employees. The company rely in clear set of the values or
prioritise them by considering expectations, core values, vision and strategies. The stakeholders
give their contribution in implementing the CSR activities effectively and efficiently. The critical
evaluation about two different organisations regarding Corporate Social Responsibilities has
been discussed here in detailed manner.

REFERENCES
Books & Journals
Crane, A. & et. al., (2019). Corporate social responsibility: Readings and cases in a global
context. Routledge.
Grayson, D., & Hodges, A. (2017). Corporate social opportunity!: Seven steps to make
corporate social responsibility work for your business. Routledge.
Hopkins, M. (2016). The planetary bargain: corporate social responsibility comes of age.
Springer.
Kang, C., Germann, F., & Grewal, R. (2016). Washing away your sins? Corporate social
responsibility, corporate social irresponsibility, and firm performance. Journal of
Marketing. 80(2). 59-79.
Kuliukas, L. J., Oehlers, K., & Berlingeri, J. (2017). An interprofessional day of hi-fi simulation
of Family and Domestic Violence with midwifery students and social work students.
Journal of Interprofessional Education & Practice. 6. 33-36.
Liang, H., & Renneboog, L. (2017). On the foundations of corporate social responsibility. The
Journal of Finance. 72(2). 853-910.
Lins, K. V., Servaes, H., & Tamayo, A. (2017). Social capital, trust, and firm performance: The
value of corporate social responsibility during the financial crisis. The Journal of
Finance. 72(4). 1785-1824.
Petrenko, O. V., & et. al. (2016). Corporate social responsibility or CEO narcissism? CSR
motivations and organizational performance. Strategic Management Journal. 37(2).
262-279.
Wang, H. & et. al., (2016). Corporate social responsibility: An overview and new research
directions: Thematic issue on corporate social responsibility.
Yakovleva, N. (2017). Corporate social responsibility in the mining industries. Routledge.
Online
The Importance of Corporate Social Responsibility for Your Business. (2020). [Online].
Available Through:<https://www.highspeedtraining.co.uk/hub/importance-of-corporate-
social-responsibility/>.

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