The Corporate Social Responsibility of Rolex

This report examines the corporate social responsibility (CSR) initiatives of Rolex, a Swiss luxury watch manufacturer. It analyzes the issues faced by the company in society and the economy, and evaluates the impacts of stakeholder views on the approaches taken by Rolex to address these issues.

The Corporate Social
Responsibility of Rolex

EXECUTIVE SUMMARY
In the changing business environment needs and wants of customers are changing where
it is important to conduct the market analysis and brings the innovative products that supports to
increase performance. The main objectives of Rolex is to increase the business activities and
sales by attaining more customers. The selected organisation is having vital role in CSR which
helps to build the good relationship with people. This report would develop the understanding
about social responsibility and competitive advantages which can be attain by managing all
activities and functions.

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................2
1.0 Introduction................................................................................................................................1
2.0 Critically analyse the issue more extensively you chose for Cw1.........................................1
2.1 Issues .....................................................................................................................................2
2.1.1 Background.........................................................................................................................2
3.0 Identify and critically evaluate the impacts of the issue on the chosen company society and
the economy.................................................................................................................................3
3.1 Society....................................................................................................................................3
3.2 Environmental........................................................................................................................4
3.3 Organisational .......................................................................................................................4
3.4 Socio environmental .............................................................................................................4
4.0 Analyse critically the impacts of stakeholder views on the approaches taken by your
chosen organisation to deal with the issue you have chosen.......................................................5
4.1 Approaches taken by organisation for solving issues ...........................................................6
5.0 CONCLUSION......................................................................................................................9
REFERENCE...................................................................................................................................1

1.0 Introduction
Corporate social responsibility is type of international private business by considering
rules and regulations that are contributing to societal goals of philanthropic activist, or charitable
nature by engaging all working that can help to attain the business goals. CSR is defined as type
of business regulations that are important to follow as it influence the people and develop the
image. Every organisation has dream to increase their productivity and profitability by offering
better quality of products and services (Adnan, Hay and van Staden, 2018). To understand the
needs of customers and providing products is creating the value of organisation in changing
environment. While running a business, there are many issues arises that needs to be solve so it
can operate their business and attain the business profitability. CSR is larger concept which are
implementing by companies to boost the morale and influence the people that provides
competitive advantages. The topic chosen for organisation is Rolex that is Swiss luxury watch
manufacturer based in Geneva, Switzerland. The report covers analyses the issues more
extensively, critically evaluation of impacts and issues that are facing by chosen company In
society and economy. Moreover, it involves impacts of stakeholders views on the approaches
that are taken by company.
2.0 Critically analyse the issue more extensively you chose for Cw1
Leadership and management is the main practices for any organisation as it involves
various task and motivational activities that are needed to complete timely. For any business,
leader and management is important as leader is a person who understand the goals and get ready
to all staff who are working in organisation so that each task can be accomplish properly. In
other words, management is process of planning, organising, directing, and controlling the all
activities which are important to complete and maintain the higher profitability. In contemporary
environment, different issues are facing by Rolex company such as economical, political,
technological, and legal that affects the organisational performance and productivity (About
CSR, 2021).
It has been seen that financial risk is facing by organisation as it introduces new models
and design of watches that create the higher cost for business and affected the profits. The
management set the budget in manufacturing and marketing activities that needs to complete in
decided budget and manage the all functions. The political issues are facing by company as
1

government has changed many rules and regulations that should be follow by organisation in
order to operate business. This create an issues for Rolex to follow the new rules and regulations
in relation to leadership that affected the running business. It is nit easy for company to follow
new regulation in case of running business in other location as it reduced the sales and
profitability (Bhardwaj and et.al., 2018).
2.1 Issues
Rolex is multinational Luxury watch company that faced the issue of technological
change as to bring new products and services by using area of science, art, culture and new
technology is difficult. The management decide the goals by bringing innovation and share with
leaders so all work could be done properly. If all work is not done properly then it became an
issue for business as lower sales and productivity. The another challenge which is facing by
chosen organisation is societal change as needs and wants of customers are changing who wants
better quality and design of products at right cost that can attracts the people and increase
business performance. Ethical issues is defined as main issue that is operating at macro,
corporate, department and individual level as it pressures on organisation what changes can be
acceptable quickly.
2.1.1 Background
Rolex is Swiss Luxury watch manufacture based in Geneva, Switzerland which was
founded in 1905 by Hans Wilsdorf and Alfred Davis in London. The company registered Rolex
as the brand name of its watches in 1908 and became Rolex Watch CO. Ltd. In 1915. Rolex SA
and its subsidiary Montres Tudor SA design, manufacture, distribute and service wristwatches
sold under the Rolex and Tudor brands. This is most valuable brand that manufacture best design
and quality of products to influence the customers. It is providing products over the worldwide
and number of employees are 4000 approximately. The revenues are generating by organisation
is $5.2 billion (2019) that helps to increase the brand awareness and profitability. In this,
shareholders and management are taking important decisions as conduct CSR policies and
reducing workplace absenteeism cost.
2

3.0 Identify and critically evaluate the impacts of the issue on the chosen company society and
the economy.
To run a business successfully it is essential to focus on activities and functions that are
mainly uses to provide the different types of products and services to their customers. CSR is the
activity which is performing by management and leaders of business by managing their working
style and making effective business decision. Rolex is playing the vital role for social
responsibility as it received “Rolex Award” by analysing all activities and contributing in all
activities (Chen, Dong and Lin, 2020). The organisation runs different programmes for the
purpose of aware people, improving their lives and managing the cultural heritages. The
management of selected company analysis the business performance and allocate the work
between employer and employees which can help to to increase the business performance. The
contemporary issues which are facing by Rolex should be resolved by following all rules and
regulations in relation to business that might be improve the business performance in changing
environment. The management are unable to follow all ethical standard and behaviour that create
the challenge for operational.
Issues are like problems which arises while running a business that affected the
organisational productivity by reducing number of customers and sales. CSR is the system of
regulations, practices and societal activities that should be properly manage and increase the
business operations. Political, social, financial, and technological risk faced by Rolex that has
impacts on society and economy are as explained:
3.1 Society
The management of Rolex is not following employment legislations as it discriminate
between male and female at workplace that affects the organisational productivity as they does
not work properly and feel demotivation. This create the challenge for organization as how it
manage all work and provide the satisfaction to employees. Thus, issues are impacting on society
and economy negatively as it reduced the organisational profitability. The selected organization
is focusing on needs and wants of society where business has established that can help to
increase the business performance by maintaining good relations.
3.2 Environmental
The reports states that Rolex is watch manufacturing company that is creating the
pollution from production process that damage the ecosystems and public health in the region.
3

This is environmental issue which is facing by organisation which running business. Moreover,
changing in climate is another challenge that affect the sales and performance of luxury watch
company.
3.3 Organisational
Unethical leadership and toxic work culture is affecting the business productivity
negatively as leaders are unable to provide the right direction to their working staff and also
create toxic work culture in which employees feel work pressure. This is creating challenge for
organisation to getting the work done properly resulting less of working activities (Crane, Matten
and Spence, 2019). Other than this, Rolex has develop the more influential relationship with
Switzerland government by recognising and utilizing the power of size and contribution by
driving changes.
3.4 Socio environmental
It has been seen that rate of death and health related issues are increasing day by day in
Switzerland where Rolex is facing the problem of low productivity and performance. Moreover,
Spraying (IRS) programme by using DDT can induce vomiting and seizures. This affects the
health of employees who are working in organization and increase the employees turnover.
Negative impacts of issues on society and economy
Conflict with profit motive: CSR practices are related to rules, regulation and ethics that
should be followed by organisation. In case of Rolex, not following ethical and political
regulation can be affect the business productivity as it create the conflicts in operation and
reduce the profitability (El Ghoul and et.al., 2019).
Lower image: In case of not following technological and social changes then issues
faced by Rolex company that gives result of low image of business organisation inn changing
environment and reduction in profitability.
Create the competition: Not offering products and services by management and also not
focusing on employee's training sales and productivity of chosen company can be create the
higher competition and affected the production level (Hoi, Wu and Zhang, 2018).
Thus, from the discussion it has been evaluated that contemporary issues which are
facing by Rolex is impacting badly on economy and society as it reduced the sales, increase
competition, create cost, job dissatisfaction between people.
4

4.0 Analyse critically the impacts of stakeholder views on the approaches taken by your chosen
organisation to deal with the issue you have chosen
Stakeholder analysis is defined as tool organisation which can be use by organisation to
identify key stakeholder for particular project and other activity. This means people who have
interest in organizational activities and give their contribution to complete the project which can
help to operate the business and increase the profitability. The aim of business organisation is to
eliminate the issues which they are facing in running the activities by following the different
practices. The management is having important role in organisation as it decide the goals and
allocate the work between employees that can help to complete the project timely. In this, leaders
is also having vital role as it understand task and provide right direction to all working staff
which can help to manage all activities and functions accurately (Jamali and Karam, 2018).
A stakeholder analysis in context to Rolex is defined below:
Stakeholders analysis
LEVEL OF
INTEREST
LEVEL OF
INTEREST
LEVEL OF POWER HIGH LOW
HIGH Management, Owners Government
LOW Staff members Customers
High power, High interest: This can be explained as management and owners who are
involved in business activities that can help to complete task and attain the profitability. In
context to Rolex, CFO, CEO and other management are playing important role who decide the
goals and allocate the activities according to budget which can help to increase the business
productivity and profitability.
High power, low interest: This involve those people who have high power but working
with lower interest that can help to work accordingly. In context to Rolex, Government is
playing an important role as it formulates different trade regulation that should be followed in
operate the business effectively. The government has power of changing regulation and tax rates
but does not have interest in profit share (Kim, Kim and Qian, 2018).
5

Low power, high interest: It showing staff members and employees who are working in
organisation and completing the task effectively. In case of Rolex, staff members is having low
power as it cannot make decision or interfere in business activities. These people also having
high interest in organisational activities as they works which are assigned by top executives and
get the salary timely that motivate to work properly.
Low power, low interest: This entails customers who buys the products and services
after analysing their needs and wants. In relation to Rolex, customers is having lower power and
low interest who can get watches from another brand in case of cost and design is not suitable to
them (Moon and Knudsen, 2018).
Thus, by using the stakeholder analysis, Rolex company is managing all stakeholders and
provide them benefits by providing job satisfaction. This also helps to increase the business
productivity and profitability as it brings changes in their task and provide better design of
watches that develop the brand image.
4.1 Approaches taken by organisation for solving issues
Compliance Based approach – This can be explained as important approach in which
organization obey the rules because it have to follow the all regulations that can help to manage
the all functions effectively. This shows general ethics which might be little more than values,
statements, and compliance base legislations that should be follow by company in order to
operate their business effectively and increase the performance. Herein, employees are obliged to
comply with rules like securities and exchange regulations, trade policies, health and safety and
others that can help to provide the benefits and increase business values. In this, it also deliver
the better design and quality of products that influences the number of customers by managing
all functions and activities. In relation to Rolex, management follows the compliance approach
by following the all regulations that can help to operate the business and increase business value
in changing environment (Wickert and Risi, 2019).
Integrity based approach – This means activities are going beyond the minimum traits
that can help to complete the project. Integrity is an intricate and important part of all business
ethics that involves moral consistency, honesty, and personal wholeness that are uses to manage
the all activities properly. This mainly emphasis on managerial responsibility for ethical
behaviour and formulate strategies to complete the task properly. In relation to Rolex,
management follows the integrity approach by focusing on honesty and moral principles that can
6

help to integrate with all organisational functions and complete the task. This increases the
business performance and profitability by targeting the people and develop sales as well as brand
image.
Thus, Integrity and compliance based approach is following by Rolex that is
multinational watch company operating their business activities by solving the contemporary
issues that will provide competitive advantages to organisation and also increase the brand
image.
To participate in CSR activities and working for social benefits management and leader of Rolex
company is required to be follow principle of Ethics that are as explained:
Integrity – This means being straight forward and honest by an individual to perform
their duties effectively. The employees and management should not be involve in activities that
is fraudulent, and preventing from performing their duties. This also avoid the conflicts of
interest, recognising and communicating one's personal and professional limitations. This can
help to share the information between employer and employees properly and increase the
business performance.
Objectivity – This is defined as another ability which uses to avoid, allowing, bias,
conflict of interest and outside influence that can help to complete the task. In relation to Rolex
organisation management are following self interest, self review, advocacy, familiarity or trust,
intimidation and others that increase the confidence level of individual to work properly. This
also develop the business performance in changing environment as it brings the changes in task
and make efforts to done it properly.
Professional and technical competence – The CFO and other employees who are
working at different profile make sure that they have professional knowledge and skills that
ensures products and services are provided to customer by such people. This helps to manage the
all functions and task effectively as people have proper knowledge and experience in particular
area and make competent person. The management are playing an important role as they brings
the changes in their task and develop the business performance by doing their work with
proficiency.
Professional Behaviour – This involves different aspects such as creditability,
professionalism, quality of service, and confidence that are important to adhere in business
organisation as it make feel happy to people and operate the functions smoothly. Moreover,
7

professional should provide right direction to their staff as what they can do and how all changes
can be accept which can help to attain the business goals.
Following steps should be follow by professional in stakeholder engagement
Define the task or organizational goals – This is defined as first and important step
which should be use by top management and executives in order to operate their business
regularly and increase the competitive advantages. The task should be related to business and
expansion which can help to increase the profitability.
Formulation of strategies and planning – This stage is uses to formulating the different
planning and strategies which can help to complete the work on project and manage the all
business activities. The HR management and CFO of Rolex organisation build the different
strategies by analysing all goals and task so that each work can be complete and attain the higher
performance.
Sharing with stakeholders and members – Once goals has decided by management
then after strategies and planning should be discuss with employees which can help to complete
the project by getting opinions from different stakeholders. This can help to arrange the funds
and money which uses to perform the all functions effectively and increase the business
performance (Jamali, and Karam, 2018).
Allocation of work with following ethics and CSR – The roles and responsibilities
should be divided between employees by analysing their skills and talent which can help to
operate the business effectively. This also increases the business transaction by managing funds
according to budget and complete the project. In between all regulations that related to ethics and
CSR should be followed by management as they maintain good relation with employees and
customers that influence people to buy the products and services. On the other side, Rolex
organisation is participating a share of their profits in social activities that supports to develop
the brand image and increase profitability.
Training and guidance to employees – In relation to Rolex, proper training and
guidance should be provided to all working staff which build their confidence to work with
proficiency and increase the business activities effectively. This also increase the business
performance by accomplishing organisational as well as individual goals (Zhou,Wang and Zhao,
2020).
8

Working collectively – This shows as ethical practices that should be followed by
management of Rolex company as it understand the problem of employees and provide them
motivational factor that encourage them to work collectively and increase the business
profitability. Moreover, management avoid the issues which arises in business that related to
social, economical, technological and ethical. This can help to increase the image of business and
also provide competitive advantages.
Thus, from the above steps of engaging in work should be followed with ethical practices
such as BEST Practice which motivate the employees to give their best by managing their all
functions and activities. This also helps to increase the business productivity by following all
steps as it brings the perfection in their work and develop the brand image.
Moreover, CSR is the management concept in which company integrate social and
environment concern with business operations and their stakeholders. Rolex is participating in
CSR activities by contributing some part of their profits which uses in running schools, road
construction, and providing products to customers at lower prices which can help to attain the
higher performance.
5.0 CONCLUSION
From the above report it can be concluded that CSR is the social responsibility that
should be followed by organisation in order to run their business and complete the project. The
main object behind using CSR is to increase the brand image by contributing in society
beneficial activities and running their business properly. The management should be analysis
their performance and needs to make right business decision by following ethical principles and
practices which can help to get the higher performance.
9

REFERENCE
Books and Journal
Adnan, S. M., Hay, D. and van Staden, C. J., 2018. The influence of culture and corporate
governance on corporate social responsibility disclosure: A cross country analysis.
Journal of Cleaner Production. 198. pp.820-832.
Bhardwaj, P. and et.al., 2018. When and how is corporate social responsibility profitable?.
Journal of Business Research. 84. pp.206-219.
Chen, T., Dong, H. and Lin, C., 2020. Institutional shareholders and corporate social
responsibility. Journal of Financial Economics. 135(2). pp.483-504.
Crane, A., Matten, D. and Spence, L. eds., 2019. Corporate social responsibility: Readings and
cases in a global context. Routledge.
El Ghoul, S. and et.al., 2019. New evidence on the role of the media in corporate social
responsibility. Journal of Business Ethics. 154(4). pp.1051-1079.
Hoi, C. K., Wu, Q. and Zhang, H., 2018. Community social capital and corporate social
responsibility. Journal of Business Ethics. 152(3). pp.647-665.
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.
Kim, K. H., Kim, M. and Qian, C., 2018. Effects of corporate social responsibility on corporate
financial performance: A competitive-action perspective. Journal of Management.
44(3). pp.1097-1118.
Moon, J. and Knudsen, J. S., 2018. July. Corporate social responsibility and government. In
Academy of management proceedings (Vol. 2018, No. 1, p. 12777). Briarcliff Manor,
NY 10510: Academy of Management.
Wickert, C. and Risi, D., 2019. Corporate social responsibility. Cambridge University Press.
Zhou, H., Wang, Q. and Zhao, X., 2020. Corporate social responsibility and innovation: a
comparative study. Industrial Management & Data Systems.
Online
About CSR. 2021. (Online). Available through:
<https://www.unido.org/our-focus/advancing-economic-competitiveness/competitive-
trade-capacities-and-corporate-responsibility/corporate-social-responsibility-market-
integration/what-csr>