Corporate Social Responsibility Report: Bank's Image and Strategy

This report provides a comprehensive analysis of a bank's Corporate Social Responsibility (CSR) strategy, focusing on the challenges of social and organizational isolation. It examines the bank's past scandals and their impact on its public image, particularly concerning issues like individual ...Read More

Running head: Corporate Social Responsibility 1
Corporate Social Responsibility
Name of Student
Name of Institution
Name of Course
Date of Submission

Corporate Social Responsibility 2
Abstract
The environment of a business organization plays a crucial role in defining its sustainability and
the consistency with which the brand thrives in the given area. The consumers as well as the
workers all make up a business environment. Most importantly, the society in which an
organization’s is established is a pivotal component of successful business ventures. Due to the
importance of the society in enhancing the well being of an organization, it is important to put in
place the right strategies which ensure that healthy relations are established between an
organization and the people in the immediate environment. The bank has been marred with
scandals and has in the past incorporated strategies which indicate isolation from the society
hence leading to poor brand presence. In a bid to restore its image, the bank has started an
initiative which targets the vulnerable women in the society as a CSR measure. This report
entails a series of perspectives and recommendations to the bank’s executive board on the factors
to consider and the aspects to follow in the process of implementing the CSR strategy. The ideas
entailed in this report are meant to avert a possible negative response towards the marketing
campaign by the public.

Corporate Social Responsibility 3
Table of Contents
1. Introduction………………………………………………………………..………..4
1.1 Problem Statement…………………………………………………………..………4
1.1.1 Perspective of social isolation (individual)………………………………………..4
1.1.2 Perspective of organizational isolation ……………………………………………5
2. Methodology…………………………………………………………………...……..6
3. Literature…………………………………………………………………….……….9
3.1 Critical Perspectives on CSR………………………………………….……..………9
4. Risk analysis Recommendations……………………………………………………10
4.1 Addressing social isolation………………………………………………………….10
4.2 Addressing organizational isolation from society………………………..………….11
5. Critical discussions and conclusion……………………………………………....…12
6. References……………………………………………………………………..…...…14

Corporate Social Responsibility 4
1. Introduction
1.1 Problem Statement
It would be prudent to note that the happenings at the organizations have done very little
in enhancing a positive image especially from the society’s point of view. The chronicles seem to
have made the bank famous for all the wrong reasons. One of the core aspects of societal
wellness is integrity and honesty. A case study of the bank reveals that it has breached a number
of anti laundering laws hence indicating lack of openness and integrity not only in dealing with
the clients but the society as a whole. There are aspects of isolation which can be categorized
either as individual or organizational. For instance the board membership lacks inclusivity. Each
of these aspects has led to negative impacts on the image of the bank which has in turn pierced
its brand presence. The main objective of the marketing campaign is to increase brand awareness
while in scripting a positive image of the organization in the eyes of the public. This strategy is
likely to be faced with a number of challenges despite the positive reception of the idea by the
bank’s executive board.
1.1.1 Perspective of social isolation (individual)
The bank has been faced with scandals in the past which victimized individuals unfairly.
There is the case of deceased customers being charged for services which were never offered. At
the same time, the bank was faced with a scandal involving failure to release insurance payouts
to clients (Baron, 2014). There are other challenges involving breach of anti laundering laws
which in one or the other affected individuals affiliated to the bank. Each of these aspects reveals
elements of individual isolation. The victims of these unprofessional approaches at the bank

Corporate Social Responsibility 5
include individuals who deserved better treatment. Consequently the bank’s connection with the
affected parties has been adversely affected.
1.1.2 Perspective of organizational isolation
It is a fact worth noting that the scandals have effectively isolated the bank from the
society. The management approaches at the organization have led to serious repercussions on its
image. The board membership lacks diversity. From a humanistic point of view, a holistic
inclusion into the structure of the organization goes a long way in enhancing ties between the
bank and the society (Fields, 2012). By ignoring the vital role a diverse membership, the bank
has delinked itself from the portion of the society especially the group that lacks a fair
representation in the board. The bank’s lack of proper CSR approaches in the past has made
matters worse. The marketing campaign would therefore be a welcome idea but due to the
public’s perception of the organization, the implementation ought to involve carefully and
tactical steps.

Corporate Social Responsibility 6
2. Methodology
Neohumanism and radical structuralism
In order to adequately address the problem identified above, a neohumanist perspective is
proposed. This perspective shall also be laced with the principles of radical structuralism.
Neohumanism is based on the philosophy of universalism. This school of thought advocates for
unity within the society in addition to a collective rather than individual approach to problems.
According to this perspective, no grouping is encouraged within the society which therefore
implies that life is elevated to the level of universalism (Richard, 2011). Every individual within
the society ought to be treated with the same intentions irrespective of class, cultural background,
level of education or gender just to mention but few.
In the process of implementing the marketing campaign, it would be important for the
board and related leaders to review the strategy and ensure that it fits the universal standards
proposed by this perspective. A historical approach to the problem would be an important step
towards enhancing the success of the project. In this case, the organization needs to note some of
the areas in which it has failed to enhance universalism especially in relation to the society in
which the bank is established. In the past, clients have been mistreated by being charged for
services which were not offered (Fry, 2012). This brings up the aspect of isolation where an
individual is treated based on their class or level of economic ability. In addition, the bank failed
to remit insurance payouts. This inconvenienced clients hence causing them to develop a
negative attitude towards the bank. The membership of the bank lacks diversity. This indicates a
clear absence of universalism. The bank may definitely need to review this structure in order to

Corporate Social Responsibility 7
ensure that the team comprises individuals from various backgrounds as this elevates the level of
universalism.
The marketing strategy is aimed at the renewing a positive image hence placing the brand
uniquely. The elements of this approach are aimed at benefiting women as one of the objectives
of the funds donated is to help reduce violence against women. It would be important to note
that the society comprises both the men and the women hence the marketing campaign ought to
be aimed at instilling better experiences not only among the women but the male members of the
society as well (Koschmann, 2012). The bank’s base of clientele equally comprises both men and
women. A good marketing strategy would therefore be one that reaches out to each of these
parties. However, the idea to impact the vulnerable women is a good one as it would generally
create a good picture of the bank especially to the public. The CSR efforts in this case therefore
need to cover a wide variety of members of the society in order to restore healthy connections
and interactions (Gilovich, 2012).
On the other hand, the principle of radical structuralism looks at the basic elements which
collectively lead to societal cohesion and success especially in business ventures. Based on this
perspective, an organization needs to enhance individual needs as this would go a long way in
allowing a universal satisfaction (Henisz and Zelner, 2010). When all the individuals who are
attached to the organization are treated to the right standards, the strategies collectively build a
positive image within the public. The bank therefore needs to review its company-consumer
interactions in order to ensure that these interactions lead to good experiences. For instance, a
client who is served professionally is likely to rate the organization highly and even suggest the
services to a friend or a relative. This enables the organization to build a strong network which in
turn has positive impacts on the brand. The scandals at the bank affected individuals; however, it

Corporate Social Responsibility 8
is important to note that this has created the wrong perspective in the members of the public.
Consequently, concentrating on the building blocks/elements is an effective CSR strategy which
leads to collective progress.

Corporate Social Responsibility 9
3. Literature
3.1 Critical Perspectives on CSR
According to Bansal, (2010), corporate social responsibility diverts an organization’s
attention from making profits into ventures that equally lead to social good. The author outlines
the benefits of CSR by noting that it closely knits the society to the organization which in turn
enhances its market presence in one way or the other. As emphasized by Bulkeley, (2011), an
organization may choose to enhance CSR strategies by venturing into the immediate society and
identifying the social gaps such as diseases, crime, violence and drug abuse just to mention but
few. The CSR strategy ought to be aimed at finding possible solutions to the identified problem.
This approach does not only enhance the effectiveness of the strategy but equally ensures
positive experiences among the members of the society. When the right memories are created by
an organization within the society, the attachment is increased. This process leads to positive
impacts on the organization’s brand image.
As noted by Fields (2012), the effectiveness of a CSR strategy can be gauged by the
extent to which it addresses the immediate needs of the society. For instance, an organization
established in an environment characterized by diseases and poverty would work out a CSR plan
which involves free medical camps and distributing of relief food. At the same time, the
organization would work in collaboration with other bodies to initiate the members of the society
into activities which create independence such as farming and small businesses. The author is
keen to note that an ailing society may not offer the best environment for an organization. This
becomes worse especially when the organization depends on this very society as a portion of its
market (Wei, 2011). A successful CSR strategy would therefore be pivotal in enhancing the

Corporate Social Responsibility 10
living standards and economic strength of the members of the public. This in turn increases the
people’s ability to seek services from the organization hence an increase in sales. In a nut shell,
corporate social responsibility when precisely executed does not only benefit the society but
equally leads to positive impacts on the organization. Such perspective on CSR would be worthy
point of reference for the bank in its bid to restore a positive image among the members of the
public.
4. Risk analysis Recommendations
4.1 Addressing social isolation
Before venturing into the implementation phase of the marketing campaign, the
organization needs to have a good grasp of the risks related to the venture. A number of
recommendations shall also be relayed in a bid to address such risks. In line with the aspect of
individual or social isolation, it would be a fact worth noting that the bad experiences by some of
the clients and stakeholders could have created irreversible damage in line with their attitude
towards the organization. This poses a potential threat to the success of the marketing plan as it is
likely to face resistance especially from the individuals who were victims the various scandals
that marred the bank (Keddy, 2017). For instance, those who were inconvenienced by the aspects
of money laundering and delay in insurance payout are likely to have a negative influence on the
public hence minimizing the actualization of the campaign’s objectives. A failure would mean a
loss for the company as a lot of funds have been allocated for the campaign.
As a recommendation, the organization may need to identify and reach out to the victims
in a bid to restore relationships. This would mean paying up any balances owed to the clients in
addition to dish outs aimed at covering for the inconveniences caused. This stage would also

Corporate Social Responsibility 11
involve the company meeting its list of stakeholders in a bid to clear any bad past records and
promise better strategies moving forward. Despite the fact that some of the affected individuals
may still not buy this idea, it would be a step in the right direction towards gaining the public’s
support and reception to the marketing idea.
4.2 Addressing organizational isolation from society
Honesty, integrity and openness are crucial virtues especially when the transactions
involve transfer of money. Members of the public have faith in banks that have assured them
safety and professionalism. The case study reveals that the bank was involved in money
laundering scandals which went against the stated moral standards. This created the company in
bad standing with the public hence acting as a hindrance to the successful implementation of the
marketing plan. As an escape plan, the organization may need to restore good records with the
legal entities (Bishop, 2009). This may involve a publicized audit of the company by a renowned
firm. The outcome of the audit is shared with the members of the public to ensure the right image
is created in line with the company’s level of transparency and openness when dealing with the
funds entrusted to them by the members of the public.

Corporate Social Responsibility 12
5. Critical discussions and conclusion
The highlights above reveal the need for a concrete strategy before implementing the
marketing campaign. To begin with, the bank needs to have a careful review of its past records
as this knowledge would guide the bank’s steps moving forward. The main reason behind the
marketing campaign is to renew the company’s image and enhance its brand. Consequently, the
marketing plan ought to be keen on addressing the needs of the immediate society.
One of the core approaches in this phase would be an attempt to restore the right relations
between the bank and the public. This involves reaching out to the individuals who had been
affected by the former incompetent strategies and making up for the losses. It is important to
note that the organization may need to allocate funds for this process as well (Baron, 2014). The
strategy in this case may involve slicing a portion of the budget allocated for the marketing
campaign to be used as a remission to the victims of the scandals. This would not only restore
the public’s trust on the bank but also create the right pathway before the implementation of the
project.
After making attempts to restore the right relationship between the clients, other
stakeholders and the organization, the next phase involves venturing into the society to identify
the specific gaps. This would be critical in ensuring that the goals of the CSR strategy are
effectively aligned to the needs of the members of the public. This phase may involve a revision
of the marketing strategy. For instance is violence against women the most predominant social
gap within the society? Are there other social issues which are more pressing compared to the
bank’s chosen approach? In order to gain the most support from the public, it would be important
to relate the marketing plan and the CSR strategy to the society’s most pressing need.

Corporate Social Responsibility 13
Once the organization has decided on the crucial elements of the marketing plan, the budgetary
allocation ought to be reviewed in connection to the associated risks. The bank needs to have in
place the right performance indicators which would be important in identifying an impending
failure or loss to the company. The sources of funding are then identified to ensure that the
proceeds are adequate for the actualization of the process. Finally, there is need to have a counter
strategy in case the plan fails or receives a negative backlash. Apart from controlling the amount
of funds released for this project, the bank might venture into other investments aimed at making
profit. This is mainly due to the fact that the funds given out for the CSR strategy are donations
to a non-profit making organization hence not an investment.

Corporate Social Responsibility 14
References
Bansal, P. (2010). "Why Companies Go Green: A model of Ecological Responsiveness". The
Academy of Management Journal. 43(4): 717–736.
Baron, J. (2014). Thinking and deciding. Cambridge, UK: Cambridge University Press.
Bishop, J. (2009). Epistemology and the Psychology of Human Judgment. New York: Oxford
University Press.
Bulkeley, H. (2011). "Governing climate change: the politics of risk society?". Transactions of
the Institute of British Geographers. 26 (4): 430–447.
Fields, S. (2012). "Sustainable Business Makes Dollars and Cents". Environmental Health
Perspectives. 10 (3): A142–145.
Fry, L. (2012). "Corporate Contributions: Altruistic or for Profit?". The Academy of Management
Journal. 25(1): 94–106
Gilovich, T. (2012). Heuristics and biases: The psychology of intuitive judgment. Cambridge,
UK: Cambridge University Press.
Henisz, W. and Zelner, B. (2010). Hidden Risks in Emerging Markets. New York: Harvard
Publishers
Keddy, J.(2017). Human dignity and grassroots leadership development. Social Policy, vol. 31,
pp. 48-53
Koschmann, M. A.( 2012). Developing a communictive theory of the nonprofit. Management

Corporate Social Responsibility 15
Communication Quarterly,vol. 26, pp. 139-146.
Richard H. (2011). Anomalies: The Endowment Effect, Loss Aversion, and Status Quo Bias.
The Journal of Economic Perspectives. American Economic Association. 5 (1), pp. 193– 206.
Wei, K. (2011). "Corporate Social Responsibility". 1 (1). International Journal of Governance.
25(1): 94–106