Corporate Social Responsibility (CSR) Model

This project report provides an analysis of the corporate social responsibility (CSR) model, its benefits, and recommendations for implementation. The report highlights the importance of CSR in earning management, economic development, and employment opportunities. It also emphasizes the need for companies to complete their responsibilities, including paying taxes on time, to contribute to national development.

STUDY SKILLS FOR
HIGHER
EDUCATION(Corporate
social responsibility)

EXECUTIVE SUMMARY
The project report summarise detailed information about the corporate social
responsibility. It abstracts about different issues regarding to the CSR as well as impact of this on
the organisations. In addition, report outlines the literature review of different theorists on the
corporate social responsibility.

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................2
1.INTRODUCTION........................................................................................................................2
1.1 Literature review....................................................................................................................2
1.2 Purpose of the literature review.............................................................................................3
2. LITERATURE REVIEW............................................................................................................3
2.1 Definition of Corporate social responsibility according to the literature review...................3
2.2 Detailed discussion on the topic Corporate social responsibility..........................................4
2.3 Issues related to the Corporate social responsibility..............................................................4
3. ANALYSIS..................................................................................................................................5
4. RECOMMENDATIONS.............................................................................................................6
5.CONCLUSION ............................................................................................................................7
6.REFRENCES................................................................................................................................7
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1.INTRODUCTION
Corporate social responsibility is a model that is adopted by the companies to complete
their responsibilities in the business environment. It is necessary for the companies to implement
this because in the absence of this organisations can't survive in the market. In addition, CSR
provides the framework that indicates the companies about their duties towards society, for
employees and external parties. Basically, CSR plays a leading role for the companies in
profitability because if company's CSR policies and plans are oriented towards the all factors of
the environment then they will be able to achieve the sustainable advantage. The main purpose of
this report is to provide detailed knowledge on the corporate social responsibility and
understanding the value of this. In addition, it tells about the basis of solving issues like
inequality at work place etc. due to absence of the CSR. With the effective implementation of
this model, it will not only benefit to the company but also impact the other parts of the
environment.
1.1 Literature review.
Literature review- It is a kind of review article on a particular subject or topic. This is
mostly like a secondary research on any subject which was researched before in the past.
Literature review is the combination of the summary and synthesis in which summary recaps the
past information and synthesis rebuilds and shuffle the information of previous research.
Generally, literature review is used in the science lab reports, social research etc. and it is
categorised into many parts which are mentioned below:
 Narrative literature review- This review basically concludes the topic in a short
form. This type of review requires focus on the entire research because in the
absence of it, narrative review is not possible.
 Theoretical literature review- It is a kind of review that is conducted on the
different theories to understand the relation among theories.
 Integrative literature review- This literature review is used on those researches
which does not involve any primary data analysis.
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So these are the types of reviews which are adopted by the researchers as per their needs and as
well as the nature of subject. Except from this, it is used from the researchers who wants to do
the research but don't have time.
1.2 Purpose of the literature review.
Literature review is very important, it has many kind of purposes for the readers and the
researchers. Some important achievements of the literature review are mentioned below:
 Highlights the key findings- Literature review focus on the key findings of any
research report. It helps to the readers and new researcher to understand about the
research in less time.
 Analyse the format of research- It helps in the identifying the format and
methodologies which is used in the research. This makes easy for the new readers
to evaluate about the research.
 Justify the research- Literature review justifies the previous research and analyse
that whether particular subject need additional research or not.
 Helps to the new researchers- This review helps to those researchers who are
unknown about the research topic, then it provide detailed information regarding
to the particular subject.
 Focus on the sources- Literature review is useful in focusing about the
knowledge provided by different sources. It measures the level of information of
different sources.
 Helps in avoiding plagiarism- It is useful in preventing the plagiarism. New
researchers do literature review before start any research on any topic. This
ensures whether that topic is used or not.
2. LITERATURE REVIEW
2.1 Definition of Corporate social responsibility according to the literature review.
As per the Blowfield, Corporate social responsibility has no any particular mean. It's
mean changes as per the different aspects of the business environment like general public,
outsider parties of the company and internal factors. In addition, as time has gone the concept of
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CSR has also changed. In the initial time, it was just limited to the context of organisation. In
early nineteenths, companies like Norsk Hydro, considers the corporate social responsibility as
the contribution towards the society. In today's context CSR includes all the factors of the
business environment in which company exists. As well as it consists CSR sustainability which
is related to the maintaining this model for long time period. Apart from it, now these days
corporate social responsibility is directly linked up with the financial and non financial
performance. This is why because if an organisation has good reputation among the society due
to effective plans and policies of corporate social responsibility then it will impact their
profitability. On the other side, if their employees are satisfied with the CSR then they will be
motivated to achieve the organisational goals.
2.2 Detailed discussion on the topic Corporate social responsibility.
According to Gatti and Snehota, corporate social responsibility is directly linked up with
the brand image of the organisation. This is possible because if all the aspect of business
environment are satisfied with the company there would be goodwill and brand image in the
mind of all factors. As well as organisations are determining the plans and policies of the CSR as
per the including all the factors like shareholders, general public etc. Corporate social
responsibility has now versatile features and importance, at starting it was just a way of
completing the duties towards the society but now it is becoming as an important part of
strategies. In the absence of this companies are failing to sustain in the environment. Apart form
it, in the context of economic development, CSR is playing a crucial role because if companies
pay regular taxes according to the policy of corporate social responsibility then it will help the
countries in development.
2.3 Issues related to the Corporate social responsibility.
As per the Windsor, CSR is a kind of framework that helps companies in completing the
responsibilities towards the business environment. Some companies do not follow it accurately
and it results in an issue. Herein, some issues related to the corporate social responsibility are
given below:
 Inequality at workplace- This is a kind of issue which occurs due to unequal
behave from the employees. It raises because of income level, gender and religion
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etc. This issue impacts the employees negatively. As well as it shows that
companies are not completing their duties towards the workforce.
 Prevent from tax pay- Some companies avoids themselves from tax paying on
the generated revenue which impacts the economic development of the countries.
If company do not pay this, then it arise as an issue of corporate social
responsibility.
 Poor working condition- Working condition refers to the working environment
which includes many factors like job hours, work place, rights and duties of
employees etc. If companies put employees in typical working condition then it
shows that they are not paying attention on the CSR plans about the
responsibilities towards the employees.
3. ANALYSIS
According to the (Hilson, 2012), Corporate social responsibility is typically combined in
helping the developing countries towards development. This is why, because if industries of a
particular country makes CSR policies and plans as per the society and country's people then it
can help in development. Due to this companies pay taxes for the development of the country
that can help the country. On the other side if organisations are designing the corporate social
responsibility for their personal purpose then it will harm not only to the company but also their
country's economic development.
As per the (Lioui and sharma, 2012), Financial performance of a company depends on
many factors and one of the important factor is corporate social responsibility. If organisations
are implementing the CSR as an important part of their strategies then it help them in better
financial performance. This is possible because if companies are completing the all
responsibilities towards society, external partners of company and for internal parties then it will
impact the profitability. Specially if employees are satisfied with the CSR plans and policies then
they will work with full of efficiency and motivation.
According to ( Jones Christensen, Mackey and Whetten, 2014) Creation of corporate
social responsibility's rules and regulation is not a task of single man. It is required coordination
of all members of the companies. In addition, the leaders should actively involved in the
preparing and formulating the CSR. In the absence of this corporate social responsibility model
can not be implement effectively. For example if a company is preparing the CSR in the active
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presence of the leaders then their model will be very successful for all aspects of the business
environment.
As per the ( Skudiene and Auruskeviciene, 2012) Corporate social responsibility
contributes the companies in motivating the employees towards objectives. This is so because if
CSR is oriented towards the workforce of the company, then all the employees will be
motivated. Effective corporate social responsibility includes the welfare of the workers and
improved working condition. For example if a company is preparing the corporate social
responsibility model excluding the employees, then they will not success in further. Due to this
their employees will not perform their task and duties effectively and that can harm the company
resulting in loss. So it is important to motivate the employees by making CSR according to the
all business environmental factors.
According to (Jiraporn, Boeprasert and Chang, 2014) Companies need the credit for
many purposes but it depends on the credit rating of the company that how much loan the can
get. Herein, corporate social responsibility plays an important role in improving the credit rating
of the companies. If companies are completing their social responsibilities and goodwill is high,
then their credit score will be high. So credit score is typically linked up on then performance of
CSR.
According to ( Scholtens and Kang, 2014) Corporate social management model helps the
companies in earning management. This why because if companies are focusing the strategies of
CSR in the multi pal aspect of the environment then they can earn goodwill as well as high
revenue. For this it is necessary that whether they are completing their responsibilities or not. So
eventually CSR helps to the companies in the management of earning.
4. RECOMMENDATIONS
From above project report it has been recommend that corporate social responsibility is
needed to be implement by the organisations mandatory. In addition, companies should
determine the plans and policies of the CSR according to the various aspects of the business
environment. If companies do not follow above pattern then it can be huge issue of failure. Now
these days, this model is contributing to a large part of the environment. Like it is contributing in
the economic development of the country and in providing employment to the public. So herein,
it is required that companies should complete the responsibility by paying tax on time so that it
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can help in country's development. On the other hand, it can be recommend to the all companies
that corporate social responsibility is an important element of strategies and they can't avoid
themselves from it. As well as organisations should divide their responsibilities into different
segments like for general public, external and internal parties of company etc.
5.CONCLUSION
From above project report it has been concluded that corporate social responsibility
model is very crucial for internal and external development of the company. CSR is adopting by
many countries at globally. In addition, it is becoming a reason of financial and non financial
success. On the other hand the in the future, the role of corporate social responsibility will be
more important and crucial. In further time it may be compulsory for all the industries for
economic and organisational development.
6.REFRENCES
Books and journals:
Hilson, G., 2012. Corporate Social Responsibility in the extractive industries: Experiences from
developing countries. Resources Policy. 37(2). pp.131-137.
Lioui, A. and Sharma, Z., 2012. Environmental corporate social responsibility and financial
performance: Disentangling direct and indirect effects. Ecological Economics. 78.
pp.100-111.
Jones Christensen, L.I.S.A., Mackey, A. and Whetten, D., 2014. Taking responsibility for
corporate social responsibility: The role of leaders in creating, implementing,
sustaining, or avoiding socially responsible firm behaviors. Academy of Management
Perspectives. 28(2). pp.164-178.
Skudiene, V. and Auruskeviciene, V., 2012. The contribution of corporate social responsibility to
internal employee motivation. Baltic journal of management. 7(1). pp.49-67.
Jiraporn, P., Jiraporn, N., Boeprasert, A. and Chang, K., 2014. Does corporate social
responsibility (CSR) improve credit ratings? Evidence from geographic
identification. Financial Management. 43(3). pp.505-531.
Scholtens, B. and Kang, F. C., 2013. Corporate social responsibility and earnings management:
Evidence from Asian economies. Corporate Social Responsibility and Environmental
Management. 20(2). pp.95-112.
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