Strategic Corporate Social Responsibility
23 Pages6052 Words159 Views
Added on 2019-12-17
Strategic Corporate Social Responsibility
Added on 2019-12-17
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Strategic Corporate SocialResponsibility2
TABLE OF CONTENTSINTRODUCTION................................................................................................................................3TASK 1.................................................................................................................................................3AC 1.1 Arguments for CSR related with internal and external objectives.......................................3AC 1.2 Impact of CSR strategies on internal and external stakeholders..........................................4AC 1.3 Review of company's strategies for alignment with CSR strategies....................................5AC 1.4 Corporate social responsibility strategy that supports company's objectives......................6Task 2....................................................................................................................................................7AC 2.1 Company’s value chain for alignment with CSR strategy...................................................7AC 2.2 Methods for agreement and engagement with all stakeholders for CSR strategy...............8AC 2.3 Implementation plan for CSR strategy.................................................................................9Task 3..................................................................................................................................................10AC 3.1 Internal report measurement for evaluating the impact of CSR strategy...........................10AC 3.2 External reporting measurements to evaluate impact of CSR strategy..............................10AC 3.3 Methods to refresh and reinforce CSR strategy.................................................................11CONCLUSION..................................................................................................................................12REFERENCES...................................................................................................................................14
INTRODUCTION With the rapidly changing expectations and demands of consumers, employees andregulators, becoming the best in world is a tough job. Business organisations are now also expectedto be the best in the world i.e. to socially and environmentally responsible, sustainable and ethical.Business owners are required to know the way of creating shared value and managing stakeholdersalong with employees and the community in which they are operating (Guzman and Becker Olsen,2010). This is important because of the financial, moral and relational reasons. Strategic corporatesocial responsibility is about integrating the strategies, core activities and competitive advantagewith social responsibilities of company. This report is prepared to understand the background ofstrategic CSR in context of Tesco. The report will include arguments for CSR along with methodsfor agreement and involvement with all stakeholders. TASK 1AC 1.1 Arguments for CSR related with internal and external objectivesCorporate social responsibility refers to those business practices which include initiativesthat benefits the society. It consists of a wide range of tactics consisting of offering a part ofcompany's profits to charity to implementing “greener” business operations. Below are thefollowing arguments that comply with internal and external objectives of cited firm, Tesco:Environmental Efforts: If the organisation focuses on environmental issues and make sureto minimise the damages that it is giving to natural resources then external objectives areachieved in relation with the corporate social responsibility.Philanthropy: When Tesco will donate to the local and national charities, it will be makinga positive impact on the external shareholders. This in turn will help in accomplishing theexternal objectives. The firm is having adequate resources which can benefit charities andlocal community programs (Werther and Chandler, 2010).Ethical labour practices: By treating the employees in a fair, just and ethical manner, citedfirm can demonstrate its corporate social responsibility. It will benefit the company to alarge extent as if the employees who are internal stakeholders will be happy and satisfiedthen it will reflect their productivity and performance.Volunteering: Attending volunteer events and programs tell a lot about a company'ssincerity. By doing good work without expecting anything in return, Tesco will be able toshow their concern for particular issues which will support it in achieving the externalobjectives. Undertaking corporate social responsible initiatives is truly a win-win situation for Tesco.4
This will not only appeal to socially concerned consumers and employees but it will also make areal difference in the corporate world. As the consumers are becoming smarter about global issuesand trends, it is important for organisation to give attention to corporate social responsibility. Bydoing this, company will receive positive responses (Orlitzky Siegel and Waldman, 2011). Aforementioned initiatives when engaged in the current business processes can increasebrand value of Tesco. Corporate strategy which has ethical governance and employee motivation asthe prime objectives can help in supporting these initiatives. Moreover, the company has to developits corporate strategy which has more concern towards people and environment for attainingsustainability. Hence, the proposed corporate strategy is to develop a technique which can grabmore attention of potential customers. The investment of resources for crafting business portfolioand developing more brand value is the corporate strategy of company.AC 1.2 Impact of CSR strategies on internal and external stakeholdersIf Tesco does not have honesty and integrity then it would not be able to build strongrelationships with any of its stakeholders. Stakeholders lay down the foundation for success andfailure of any business enterprise. They have interests, rights or ownership in a company and itsactivities. The internal or primary stakeholder of cited firm are suppliers, employees andshareholders. Every one of them has a concern that how the firm is performing and interacting withthem. These stakeholders can get benefitted by the success and growth of cited organisation also getharmed by its errors (McWilliams and Siegel, 2010). Secondary or external stakeholders are alsoimportant as they can take action which can harm or support the firm. These include government,unions, non-governmental organisations, activities, political action groups and media.5
Organisation should adopt the model of corporate social responsibility to serve theirstakeholders in an ethical and social manner. If the cited organisation develops ethical and socialelements in its operating philosophy and align them in its business model, it will possess a selfregulating mechanism that guides, monitors and assures adherence to law, ethics and norms in thefunctioning of business. It ensures the serving of interests to all stakeholders. The motive of beingsocially responsible business firm is accomplished when its activities fulfil the expectations anddesires of all its stakeholders (Peloza and Shang, 2011). There can be primary or secondary expectations for the stakeholders. Primarily, they expecta return on investment in the shares. Secondary expectation is to add value to their assets. For theemployees, their key concern is getting enough pay scales before work satisfaction. The customersare concerned more about supply of products and services more than the quality of product. For thecreditors, primary concern is credit worthiness and then security. Quick payment is expected by thesuppliers first and then long term relationships are expected. The government and its organisationsare concerned primarily about compliance to laws and policies and then it is expected to increasecompetitiveness. Community is concerned about the safety and security in their regions. After that,they expect contribution that will benefit them.For instance, Tesco develops a corporate social responsibility of giving 2% of the total profitwhich is acquired by the company every month to the orphanages and old-age homes in UK. ThisCSR strategy is considered as a philanthropic approach towards business functioning. Considering6Illustration 1: Types of stakeholders(Source: Hellriegel, Jackson and Slocum, 2009)
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