PDF Social Responsibility Of Business

SOCIAL
RESPONSIBILITY OF
BUSINESS

EXECUTIVE SUMMARY
CSR reflect the efforts which is initiated by company in respect of contributing some
positive impact to society. Through this activity, it helps employees to know each other and also
became familiar with the Airdrie working and also achieving targets with accurate strategies. In
this report, the whole study is based upon the SME and the various models which is used to
reflect the working and using the best CSR activity. As stakeholders under SME had different
perspective and thoughts regarding accomplish the target as comparison to shareholder. Thus,
their reviews and judgement are also discussed through the appropriate case study. By adapting
the CSR pyramid models and EFQM excellences model it represents in setting the goal in
achieving the better performance. At last, the ethics are to be maintained so that it helps Airdrie
to behave ethically and also treat every employees equally.

Table of Contents
EXECUTIVE SUMMARY ..........................................................................................................2
INTRODUCTION...........................................................................................................................4
A) Concepts of CSR in Small medium enterprises. ........................................................................4
C) Models applied in CSR activity..................................................................................................6
D) Ethics to maintain sustainability in business..............................................................................8
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Corporate social responsibility refers to the responsibility which is performed by the
business in respect of providing the positive impact to society through adapting the economic,
political and environmental effect in better way. The main purpose of conducting the CSR
activity in business is that it helps companies to behave ethically and also carry various activity
in fair perspective. Present report is based upon the study of Airdrie which deals in hand dryer
manufacture and also located in North Lanarkshire, Scotland. They are engaged with around 47
employees carrying their business to promote the usefulness of hand dryer products. Report will
includes the concept of social responsibility in small mediums enterprisers. It also includes the
various models and theories which is used to represent the working of CSR activity. Lastly the
report ends with examining the ethics which is used in maintaining the sustainability in Airdrie.
A) Concepts of CSR in Small medium enterprises.
Corporate responsibility is to provides the best services to their employees so that they
feel motivated to provide better productivity. Thus, in relation to contrasting the concept of CSR
under the small medium enterprises is relating to helping the Airdrie to build trust among the
employees in market and also to reduce cost in respect of promoting their business at large scale.
They can bring innovation in their work premises by motivating their employees to provide
freedom to take their own decision and also implement them to raise better productivity.
Through the activity of CSR, it results in gaining more attention of employees to bring quality
results (Crane, Matten and Spence, 2019). Thus, SME mainly adapts the triple bottom line theory
which stipulates that Airdrie mainly focus on securing the social and environmental impact so
that they can maintain the livelihood in effective way. This can be summarized through three
aspects such as: Profit: Airdrie mainly motive is to be gain much profits so that they maintain their
sustainability in the business. This theory stipulates that the Airdrie had to maintain the
economic benefits so that they can achieve goal in better perspective. People: It represent that they had to maintain the social responsibility in respect of not
discriminating any person in respect of caste, culture, sex or any other aspects. Thus, it
reflects that they are socially responsibly to carry any rules and regulation which is
beneficial for employees.

 Planet: Airdrie mainly focus on environmental concerns so that they can save
environment from reduction of any waste or can use innovate reuse products. This, attract
the interest of customer towards the innovative products and services (Elkington's triple
bottom line, 2019).
Illustration 1: Elkington's triple bottom line
Source: Elkington's triple bottom line, 2019
In case of theory of stakeholders V theory of shareholder the main differences raised is
that shareholder only concentrates of such person where there are chances of getting good return
of investment. But in case of stakeholder they takeover the completed control of the business so
that they can manage the overall activity of the business. In respective of the stated case relating
to Friedman V Freeman, Friedman is in supportive of the statement raised through theory of
shareholder and Edward Freeman is agree with the theory of the stakeholders (Grayson and
Hodges, 201).
Friedman stated with this statement that the main motive of the Airdrie is to make profits
and not engaged with any social activity to satisfy their needs and wants to earn profits and to
manage accounts at larger scale (Wang and et.al., 2016). In respective of theory of stakeholder, it
is the manager duty to maintain the individual interest towards their products so that can increase
wealth and also increase capability of employees to engages their interest in bringing better

productivity. In respect of SME, the shareholders are the owner of the company whose main
motive is to earn products and also sustain their business to gain longer term growth. But they
also play dusty in managing the CSR activity so that they can maintain the interest of customer,
employees, investors, supplier in Airdrie with performing the effective social and environment
concerns (Hopkins, 2016). Thus, in such perspective it is examined that CSR is important in
respect of gaining long term profits as through this activity they are motivating employees to
bring innovative ideas and thoughts. In such manner, CSR activity are covered under following
points which is to be useful for SME as:
 It result in providing security at work places and also get medical help in case of any
incidents occurs
 Provides quality products with less cost.
 Maintaining ethical factors in work premises
 protecting the right of the people in case of any illegal activity.
C) Models applied in CSR activity
As per the Carroll CSR model, it defines as the model which determines the overall
activity of the Airdrie and also stated that which activity comes on first priority of the business
(Schrempf-Stirling, Palazzo, and Phillips, 2016). Through this model it helps, SME Airdrie to
gain as much profits and also manage their business to retain in market for longer time period.
This model mainly carries four stages such as:
Stage 1: Economic: The main stage which reflect through preferring the CSR activity is to gain
profits through motivating employees. As this is only way through which, the company to retain
in market for longer time period.
Stage 2: Legal: Through this aspects, it helps Airdrie to work under the rules and regulation
which is imposed by government (Jamali and Karam, 2018). For SME, they had to follow the
laws such as employment law or health and safety norms through which they take care of the
employees in better way.
Stage 3: Ethical: In this stage, Airdrie had to follow the ethical norms and also it is the duty of
the employees to behave ethically at the time of attaining any work. Thus, in such perspective,
they had to maintain the moral values and norms at the time of accomplishing any task to get
better results.

Stage 4: Philanthropic: After attaining to all the stages, the last stage is relating to the
philanthropic stage in this stage, it mainly occurs to give back everything which is achieved from
society in respect of donation or organising the charitable function to done any amount of profits.
Through this procedure, it results in giving positive sign to local customer regarding preferring
the particular products (Carroll's CSR Pyramid. 2018).
Illustration 2: Carroll's CSR Pyramid
Source: Carroll's CSR Pyramid, 2018
CSR in excellence model: This model is mainly stipulated for SME to improve the
performances of the Airdrie in respect of dealing in more quality products or also innovating new
products in market. Thus, in such aspects the CSR is managed through adapting the excellences
model. In respective of imposing the EFQM excellence model, it is mainly stipulated to set the
target in Airdrie regarding improving the performances through adapting various procedure
(Petrenko and et.al., 2016). In context of SME, they mainly adapt this model so that they can
sustain the business and also results in having continuous flow of success in Airdrie. By using

this Europeans Foundation For Quality management tool, it mainly uses by Airdrie to improve
performance so that they can earn profits through this perspective.
D) Ethics to maintain sustainability in business
Ethics refers to the norms and standards which is implemented by the Airdrie for
maintaining the interest of customer and employees towards their work premises. As Airdrie
implemented various ethics to their employees so that they work according to the company
norms and also maintain culture values and norms (McWilliams, 2015). This result in reflecting
the positive impact upon business and also involves systematising working, defending any illegal
activity and also recommend people to work under the ethical rules and regulation.
In respective of SME, the ethics are to be maintained in respective of undertaking the
needs and wants of the employees as the issue raised regarding less retention in small enterprises.
Thus, they had to manage the ethical values by providing attractive polices which helps them, to
retain their interest for longer time period (Liang and Renneboog, 2017). Thus, various ethical
values, polices, codes and programme are to be conducted so that they can make the strategies
which is adapted by large companies to retain the employees. In context of CSR, ethics are
important as through the aspect of maintaining confidentiality in information and also it
motivated other employees to work as team instead of having different culture of people working
in that same premises.
CONCLUSION
From the above study, it is concluded that CSR is mainly adapted by Airdrie to contribute
economic, social and environmental aspects and also secure the rights of the employees to retain
them in SME for longer time period. There are various models which is used in respect of
describing the working of the SME. As stakeholder and shareholder also had different
perspective regarding the Airdrie working and thus it resulting in examining the theories to
interpret the results. Through the FFQM models, it helps SME to set some targets regarding
achieving the goal through attaining the performances of the employees and motivating them to
reach within stipulated time. At last, the topic is discussed through the aspects of maintaining
ethics at the time of conducting the CSR activity. This is the major aspects as it reflects the
company stability, integrity and reputation to stand in market. Through this aspects they
represent the Airdrie for retaining in longer time period.

REFERENCES
Books and Journals
Crane, A., Matten, D. and Spence, L. eds., 2019. Corporate social responsibility: Readings and
cases in a global context. Routledge.
Grayson, D. and 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.
Jamali, D. and Karam, C., 2018. Corporate social responsibility in developing countries as an
emerging field of study. International Journal of Management Reviews. 20(1). pp.32-
61.
Liang, H. and Renneboog, L., 2017. On the foundations of corporate social responsibility. The
Journal of Finance.72(2). pp.853-910.
McWilliams, A., 2015. Corporate social responsibility. Wiley encyclopedia of management,
pp.1-4.
Petrenko, O.V., and et.al., 2016. Corporate social responsibility or CEO narcissism? CSR
motivations and organizational performance. Strategic Management Journal. 37(2).
pp.262-279.
Schrempf-Stirling, J., Palazzo, G. and Phillips, R. A., 2016. Historic corporate social
responsibility. Academy of Management Review. 41(4). pp.700-719.
Wang, H. and et.al., 2016. Corporate social responsibility: An overview and new research
directions: Thematic issue on corporate social responsibility.
Online
Carroll's CSR Pyramid. 2018. Online. Available through:
<https://www.tutor2u.net/business/reference/carrolls-csr-pyramid>.
Elkington's triple bottom line. 2019. Online. Available through:
<https://www.aqa.org.uk/resources/business/as-and-a-level/business-7131-7132/teach/
teaching-guide-elkingtons-triple-bottom-line>.