Othm Level 5 Diploma in Business Management: CSR Impact Report

This report examines the impact of Corporate Social Responsibility (CSR) on business, focusing on the case of Alteo Group in Mauritius. The analysis covers how CSR initiatives, including community engagement, environmental sustainability, and employee involvement, affect brand image, stakeholder relationships, and financial performance. The report highlights the importance of CSR in enhancing brand positioning, improving employee motivation, and contributing to overall business success. Furthermore, it assesses the potential impact of changes in CSR strategies on business outcomes, emphasizing the integration of CSR principles across the supply chain and its role in addressing environmental and social issues. The conclusion underscores the need for further research to fully understand the multifaceted influence of CSR on businesses and their stakeholders.

othm level 5 DIPLOMA IN BUSINESS MANAGEMENT
SUBJECT: BUSINESS ETHICS
UNIT REFERENCE: L/616/3036

Contents
INTRODUCTION.................................................................................................................................2
TASK 2.............................................................................................................................................3
2.1 Analyse the impact of CSR on the business.................................................................................3
4.2 Assess the potential impact of changes in CSR on business performance...................................4
Conclusion.........................................................................................................................................5
References.........................................................................................................................................6
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INTRODUCTION
This article will discuss about the different impact of Corporate Social responsibility (CSR)
on business. CSR is about the investments a corporation provides to society through its main
business activities, social investment, and charity initiatives. CSR is gaining prominence for two
reasons: first, businesses are realizing that CSR is critical to their success, and second,
charitable groups require funding, which motivates businesses to engage (Lichtenstein,
Drumwright, & Braig, 2004). In its 2007 financial budget, the Minister of Finance adopted a
legislative policy requiring all registered firms to donate a specific proportion of their book
profit to programs designated by the Government of Mauritius that contribute to the country's
social and environmental development.
Alteo group in Mauritius is selected as the target of this study because they are assisting
education programs in the neighbourhood. In addition, the firm raises donations for needy
children (Alteo, 2018). Alteo continuously analyses and manages the major air pollutants
emitted by industrial facilities. They follow all applicable environmental legislation and
standards in each of the countries where they do business such as Kenya and Tanzania.
A variety of actions in every supply chain have an influence that extends beyond the products
and services that the chain is focused on. Implementing corporate social responsibility
principles is taken into account at Alteo Group to guarantee that supply chain impacts are
minimally negative and maximally good.
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TASK 2
2.1 Analyse the impact of CSR on the business.
According to Hamidu et al. (2015, p.89), the primary motivation for most companies to
engage in CSR activities and invest in CSR programs is to satisfy their stakeholders, who
represent a group that has an indirect impact on the company's aims and objectives. Thus, to
effectively engage with the community, Alteo has built an operational network. In all of the
countries where the company operates, committees have been formed to react to the interests
and concerns of this stakeholder group, based on the principles of inclusion, conversation,
and transparency
CSR programs have the potential to improve a company's brand positioning and image.
Municipalities and educational institutions are also involved in CSR projects. By 2025, they
want to have spent at least 500 working hours per year on philanthropic initiatives at the
Group level. Alteo Group will continue to make every decision contribute to making the
Earth a better world to live in. This was the path set out on when founded in 2008. Alteo
Group thus take part in volunteer programs relating to sustainability and the environment, and
fundraise for certain organizations.
Employees' participation and engagement in CSR, as observed by Makasi et al. (2014,
p.2597), favourably improves their motivation and willingness to do their responsibilities.
One of the sustainability program's primary goals of Alteo is to organize CSR activities on a
regular basis, assist their staff, and encourage them to participate in additional CSR projects.
By 2025, they hope to have developed a more complete CSR plan and spend a minimum of
500 working hours per year on voluntary initiatives at the Group level.
.
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4.2 Assess the potential impact of changes in CSR on business performance.
CSR has an indirect impact on financial success through developing intellectual capital (Lin
et al., 2015). In environmentally sensitive businesses (such as oil and gas), the direct impact
of CSR on financial performance is quite high. Thus, from the acquisition of raw materials
through the delivery of products to customers, socially responsible applications and practices
should be included into all phases and steps of the supply chain process.
Incorporating CSR in their activities, Alteo Group has gained several recognitions. In 2021,
they were awarded the following:
 Issuer Transparency Mid-Cap Award
 Issuer of the Year with the Highest Share Price Increase in the Premium Category
 Responsibility, Sustainability, Responsible Corporate Governance Award
Since the company is continuously looking for cooperation opportunities through which they
can contribute to resolving today’s economic, social and environmental issues. They are now
members and active participants in the sustainability initiatives in Hungary.
Supply chain leaders must understand the public concerns about the environment, health
and safety. As consumers have grown more accustomed to the impact of companies
around the globe, demand for better integration of CSR and supply chains has come to
the forefront. In order to operate sustainably, the Alteo Group is dedicated not only to
growing the usage of renewable energy sources in its power generating portfolio, but
also to decreasing environmental imprint. As a result, they are working to reduce
greenhouse gas emissions as much as feasible. Alteo Group made CSR-conscious decisions
through decreasing waste and also started waste recycling resulting in better financial
performance and profitability
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Conclusion
To summarize, CSR enables businesses to strengthen their customers' and workers'
commitments, as well as enhance sales and engage in new business activities (Omran and
Ramdhony, 2015, p.40). Nonetheless, more study is needed into the notion of corporate social
responsibility in order to fully understand its influence on businesses and their stakeholders
(Hur et al., 2014, p.82). Some companies, for example, may utilize CSR as a greenwashing
tactic to boost their brand image and look greener than they are
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References
1. Hamidu, A., Haron, H. and Amran, A. (2015) “Corporate Social Responsibility: A
Review on Definitions, Core Characteristics and Theoretical
Perspectives”, Mediterranean Journal of Social Sciences, 6 (4), pp. 83-95.
2. Hur, W., Kim, H. and Woo, J. (2014) “How CSR Leads to Corporate Brand Equity:
Mediating Mechanisms of Corporate Brand Credibility and Reputation”, Journal of
Business Ethics, 125 (1), pp. 75-86.
3. Lichtenstein, D. R., Drumwright, M. E., & Braig, B. M. (2004). The effect of
corporate social responsibility on customer donations to corporate-supported
nonprofits. Journal of Marketing, 68(4), 16-32.
http://dx.doi.org/10.1509/jmkg.68.4.16.42726
4. Lin, C., Chang, R. and Dang, V. (2015) “An Integrated Model to Explain How
Corporate Social Responsibility Affects Corporate Financial
Performance”, Sustainability Journal, 7 (1), pp. 8292-8311.
5. Makasi, A., Govender, K. and Munyoro, T. (2014) “The Effects of Corporate Social
Responsibility (CSR) on Corporate Brand Positioning”, Mediterranean Journal of
Social Sciences, 5 (20), pp. 2597-2607.
6. Omran, M. and Ramdhony, D. (2015) “Theoretical Perspectives on
Corporate Social Responsibility Disclosure: A Critical
Review”, International Journal of Accounting and Financial
Reporting, 5 (2), pp. 38-55.
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