Business Development: Motivation and Corporate Social Responsibility

Desklib provides past papers and solved assignments for students. This report analyzes motivation and corporate social responsibility.

Context of Business
1

Table of Contents
Introduction....................................................................................................................................3
Assignment 1: Motivation.............................................................................................................4
Assignment 2: Corporate Social Responsibility..........................................................................7
Conclusion....................................................................................................................................11
References.....................................................................................................................................12
2

Introduction
The following assignment focuses on the context related to the business mainly focusing on
Motivation and Corporate Social Responsibility (CSR). The change in the nature of the business
is studied. The importance of motivation is studied along with the theories of motivation. The
need for the individuals and organisations to manage responsible, sustainable and behave
ethically in relation with social, cultural, economic and environmental issues that arise in a
business environment and what affect motivation has on them are studied. Next focus is made on
Corporate Social Responsibility, by taking in consideration an international firm having a
presence in the UK. A brief summary of the organisation is provided, providing major details of
the organisation. The CSR ranking of the organisation is analysed with focusing on the corporate
actions taken by the organisation that resulted in the company’s ranking. The influence of CSR
on purchasing decisions is studied with further analysing the necessity of CSR in the current
business environment.
3

Assignment 1: Motivation
Motivation is one of the most important aspects of the successful working of the organisation.
One of the important management skill is knowing how to motivate employees. The performance
of an employee depends on numerous factors which include their ability, work environment and
motivation. Motivation is very important because it is a determinant of the performance.
Direction forces the employee to perform a certain task to achieve the goal, but motivation builds
a determination in the employee to complete the given task and achieve the goal effectively. For
motivating the employees, management of the organisations is taking various steps which have
caused a dynamic change in the nature of the businesses (Burton, 2012). From the very
beginning of the establishment of human organisations, various approaches have been applied
resulting in a number of theories of motivation. A brief of the two most popular theories of
motivation is as follows:
1. Maslow’s Need Hierarchy Theory:
It is one of the well-known theory of motivation. Maslow’s Need Hierarchy theory is based on
human needs, which are classified from low to high. According to Maslow’s theory, the
satisfaction of the given level of need no longer motivates the man, but after that, the next higher
level of needs is needed for motivating. The level of needs proposed by Maslow are as follows:
a) Physiological Needs
b) Safety Needs
c) Social Needs
d) Esteem Needs
e) Self-Actualisation
2. Herzberg’s Motivation-Hygiene Theory:
Frederick Herzberg was a psychologist who extended the work of Maslow and provided a new
motivational theory which is known as Herzberg’s Motivation-Hygiene Theory. Herzberg
proposed this theory by conducting a motivational study on 200 accountants and engineers
employed in firms of Western Pennsylvania. In this theory Herzberg provided two things co-
exist in any organisation which are Motivation and Hygiene. Motivation is the factor providing
satisfaction and Hygiene leads to dissatisfaction (Badubi, 2017).
Herzberg’s Hygiene and Motivational Factors are as follows:
4

i. Hygiene (leading to job dissatisfaction)
a) Organisational policies and administration
b) Supervision
c) Working Conditions
d) Salary
e) Status
f) Security
ii. Motivators (leading to job satisfaction)
a) Achievement
b) Recognition
c) Responsibility
d) Growth
Understand the dynamic and changing nature of the business and the consideration of the
future of organisations within the global business environment.
There has been a dynamic change in recent times in the nature of the business. The businesses
are taking numerous steps for motivating their employees. In the dynamic world today, change in
the workplace is very important. This change has an important influence on the business
(DNCGL, 2018).
For the purpose of motivating employees and bringing change in the organisation, the
management focuses on the theories of motivation and work according to that. The elements of
motivation on which the organisation's focus include efforts, persistence and direction towards
organisational goals. Motivating the employees and keeping them active increases the
productivity of the organisation, and helps in the success of the business. Keeping the employees
motivated will only allow the business to expand itself which is very crucial for international
expansion. Productivity needs to be increased to meet the demands, the employees need to work
more and also efficiently so that the business can survive competition in the global market
(Pieterse, et. al., 2012).
Identify the need for individuals and organisations to manage responsibly and sustainably
and behave ethically in relation to social, cultural, economic and environmental issues.
The need for the individuals and organisations to manage responsibly and behave ethically in
relation to social, cultural, economic and environmental issues because for the purpose of
5

surviving in the society and contributing to the environment as well. Sustainability has become
one of the most important aspects for the organisations, which can be defined as creating a long
term value by focusing on the operation of the organisation in respect with the ecological, social
and economic environment. Both the organisations and individuals associated should focus on
social, economic as well as environmental issues to survive longer in the market. The need for
which individuals and organisations need to focus on sustainability is that it helps to protect the
natural environment, ecological health along with providing innovation (Pieterse, et. al. 2012).
Behaving ethically in relation to social issues helps the organisation in surviving in the society.
With the growing social unrest and social issues, the individuals and organisations operating in
the society need to focus on the rising social issues. Focusing and discussing social issues helps
in creating awareness and a better understanding of problems and helps in the development of
strategies for tackling social issues.
The need to focus on cultural issues is because the society in which the organisation is
established and working consists of people from numerous cultures. For the protection of vast
cultures present all over the world and protect the tradition of the people, every individual and
organisation must focus on reducing the cultural issues. The organisations also need to frame
such policies that its existence isn’t harmful for the culture and tradition of any particular
community. Focusing on cultural issues is most important for the purpose of globalisation and
surviving in the country has a different culture. Along with social, cultural and environmental
issues, economic issues also need to be considered. Economic issues related to the issues like
financial problems of the organisation itself and also of the whole economy. Economic issues are
important because they help in determining the success of the organisation.
6

Assignment 2: Corporate Social Responsibility
Corporate Social Responsibility is a concept in which the organisation considers the social
interests and focuses on and takes responsibility for the impact caused by their activities on
employees, customer, community and environment. This is set for the purpose of making the
organisation comply with the legislation and take steps for the purpose of improving the quality
of employee’s life as well as benefitting the society and environment. Whether based on genuine
interest or self-motives, a number of organisations are showing interest in fulfilling social
responsibilities. Development of business ethics is one of the methods which can help the
business to rise.
The following assignment focuses on the implementation of corporate social responsibility in
IKEA. IKEA is a Swedish founded multinational company. IKEA sells ready to assemble
furniture, kitchen and home appliances and other useful products for home services. As in
today’s business world, CSR is an important part of many multinational organisations, IKEA has
also included CSR in its planning processes and implemented on that. Only because of the
implementation and focusing on CSR, IKEA has been ranked number 2 in 2016 RepTrak score
which is the ranking of top responsible companies. IKEA has been taking their responsibility
seriously regarding the environment, society and culture. The social responsibility of IKEA is led
by its Chief Sustainability Officer, Steve Howard. The CSR efforts of IKEA includes numerous
efforts such as supporting local communities, educating and empowering workers, addressing the
issues such as gender inequalities, and minorities. The organisation focuses on reducing its
energy consumption and use alternative sources of energy. One more CSR issue IKEA focuses
on is sustainable sourcing.
Discuss leadership, management and development of people.
The effective steps were taken by IKEA towards leadership, management and development of
people have only made it successful for it to rank at number 2 in the most socially responsible
organisation of UK (Winston, 2016). The corporate actions which resulted in the company’s
ranking are as follows:
 Economic Responsibility
IKEA has been providing products according to the needs and demand of society, which also
helps in increasing the profit for the organisation. The organisation used to operate on the basis
7

of a profit-oriented goal to increase the profit earning of the organisation. Choosing the path of
economic gain and treating it as a social responsibility brought troubles for the organisation.
 Discretionary Responsibility
Discretionary responsibility means the contributions made by the organisation to a social
environment. It includes the contributions which are generously done and expects no payback in
return. It is one of the highest contributing factors of CSE, as the contribution towards the
welfare of society is beyond expectation. IKEA should understand the interest of the groups
associated with the organisation which includes customers, employees, shareholders etc. The
products of IKEA are manufactured under acceptable working conditions. The prices of the
products are set accordingly so as to meet the needs of the general public as well. IKEA believes
in healthy and safe working conditions are very important for proper business conduct. The
management of IKEA constantly focuses on fulfilling its social and environmental
responsibilities (Hawn, 2012).
 Ethical Conduct of IKEA
IKEA has set its vision focusing on the betterment of the life of many peoples. The company
provides a wide variety of furniture products at lower prices so that they are affordable for
everyone. The availability of well-designed quality products at affordable prices help people to
fulfil their needs.
IKEA is focusing on three main business ideas:
 Product Range and Innovation: The products of IKEA are well popular for its quality
and innovation. They provide unique products, providing furnishing solutions, meeting the daily
needs of the customers.
 Low prices: The management of IKEA has focused on controlling cost. Controlling cost,
managing operational management and focusing on product innovation helped the organisation
to reduce the prices of its products by 2-3% in the past 10 years. The products designed and
produced by IKEA are properly designed and cost-effective.
 A better life: IKEA has taken an approach to furniture business with the development of
furniture by focusing on the price factor. This makes IKEA make proper utilisation of the raw
materials and provide products to customer fulfilling their needs and preferences at an affordable
price. This is done with the purpose of improving the everyday lives of people (Dudovskiy,
2017).
8

Influence of a company’s approach to CSR on purchasing decision.
The modern business era is constantly evolving, so organisations need to investigate and find out
various alternatives which can set them apart from other competitive organisations. The most
important factor considered for that purpose is sustainable development. Sustainable
development means growth strategies that meet the needs of the present and also doesn’t
compromise with the needs of the future. Organisations nowadays are focusing on improving
business practices and have also focused on other factors apart from only profit development.
The rising trend of sustainable development has shown a huge impact on Corporate Social
Responsibility (CSR). CSR has included all the three factors of sustainability which are social,
economic and environmental factors. With being in the area of interest the main objective is to
find out the contribution to sustainable development by focussing on CSR. The focus of the
organisation towards the implementation of CSR in their planning hugely affects the purchasing
behaviour of the customer.
The consumer can support the organisation in their long run by their purchase decisions. CSR
has the ability to produce positive consumer attitude and purchasing behaviour towards the
organisation. Increased sales are often a result of various corporate actions including
sponsorship, promotions and social responsibility. The basis of the purchasing intention of the
customer is their positive attitude and mindset towards the product and organisation. Corporate
Social Responsibility has a positive effect on corporate evaluation and corporate evaluation has a
positive effect on the product and brand evaluation. Independent variables of Corporate Social
Responsibility have an impact on the dependable variables of purchasing intentions of the
customers (VILLAGRA, 2016).
Discuss the development of appropriate policies and strategies within a changing
environment to meet stakeholder’s interests.
IKEA is growing only when its employees are growing. For achieving success in IKEA, learning
new things and taking responsibility for development is much more important than previous
knowledge. For learning purpose, IKEA has its own learning and training system according to the
specification of the job. A new employee will be given proper information about the operation of
the company, various principles for maintaining customer friendly relations, rules and
regulations of the company along with an approach to social and environmental responsibilities.
Development talks are arranged by the manager at least once a year. It is a friendly meeting
9

involving everyone to plan and discuss on future developmental plans. This helps the employees
to take decisions and steps to move forward and the management helps in the development of the
employee. IKEA uses a tool known as a developmental centre, which enables to assess the
strengths and weaknesses of the employees along with their abilities which provides other
employees and objective to achieve the same potential and qualities and improves themselves
(Afrah, 2017).
IKEA has developed a special program for the growth and developmental purpose of managers
which focuses on improving their professional and leadership skills along with their personal
development. CSR is still relevant in the current business environment. With the increase in a
number of environmental and social issues and continuous growth in the number of organisation,
CSR plays an important role in making the focus of an organisation towards environmental
issues. Even a small step taken by any organisation helps a lot in minimising the rising
environmental issues. The social responsibility program of an organisation and the awareness of
consumers that creates the image of the organisation. The organisations can improve their public
image by public image by publicizing their efforts and this will make the organisation favourable
in the eyes of customers along with benefiting the environment. Employees also like to work
with the organisation having a good public image.
Having engaged with CSR’s makes the employees feel proud about the contribution towards
environment and society and keeps them motivating increasing their productivity level.
Commitment to ethical practices increases brand awareness and recognition at a global level.
Sustainability offers many changes which also helps in decreasing the production cost.
Implementation of CSR, make the organisation stand-alone from the competitors, as it
established the organisation as a moving one step ahead towards social and environmental
factors. A sustainable system can be considered a thing to show off by the organisation. Showing
of use of sustainable systems and making everyone aware of it increases the engagement of
customers with the organisation. Engaging with CSR provides a benefit to the employees by
providing positive and productive workplace, along with the encouragement of personal and
professional growth.
10

Conclusion
From the following assignment, two things are analysed which are having an important role in
the business environment. First, a report is provided on Motivation which depicts two different
most popular motivational theories that are Maslow’s Need Hierarchy Theory and Herzberg’s
Motivation-Hygiene Theory. The dynamic change occurring in the nature of business in recent
times is studied. Change done by the employees for the purpose of motivating the employees is
studied. An identification of the needs of individuals and organisations in relation to social,
cultural environmental issues are focused which provided the factors and the importance of
focusing on environmental factors. The next factor affecting the business nowadays is Corporate
Social Responsibility. For the purpose of understanding the importance of Corporate Social
Responsibility in today’s business world, analysis of the CSR policies of IKEA is made. The
leadership, management and development of people are analysed in IKEA with an analysis made
on various factors and decisions made to make to the number 2 ranking of CSR. The areas on
which IKEA focuses are studied and how they impact the organisational performance and its
implementation of CSR. The steps taken for contributing to sustainable development are studied
and how CSR would impact the purchasing behaviour of a customer. Further, an analysis is
made whether CSR is required in the current business environment or not.
11

References
 Afrah, S. and Rani, M., 2017. The Importance of CSR Practices in Business: A Case
Study of RMG Sector in Bangladesh. SSRN Electronic Journal.
 Badubi, R., 2017. Theories of Motivation and Their Application in Organisations: A Risk
Analysis. International Journal of Innovation and Economic Development. vol. 3, no. 3. pp. 45-
46
 Burton, K., 2012. A Study of Motivation: How to Get Your Employees Moving. SPEA
Honors Thesis Spring 2012. pp.4-6.
 DNCGL, 2018. IMPACT transforming business, changing the world. The united nations
global compact. pp.26-40.
 Dudovskiy, J. 2017. IKEA Corporate Social Responsibility. [online] Research
Methodology. Available at: https://research-methodology.net/ikea-corporate-social-
responsibility/ [Accessed on 23 February 2019]
 Hawn, O. and Ioannou, I., 2012. Do Actions Speak Louder than Words? The Case of
Corporate Social Responsibility (CSR). SSRN Electronic Journal.
 Pieterse, J. H., Caniëls M. C.J., Homan T., 2012, Professional discourses and resistance
to change, Journal of Organizational Change Management, vol. 25, no. 6 pp. 798-818.
 VILLAGRA, N., 2016. Communicating Corporate Social Responsibility: re-assessment
of classical theories about fit between CSR actions and corporate activities. Communication &
Society, 29(2), pp.133-146.
 Winston, M. 2016. Leadership of renewal: leadership for the twenty‐first century.
Management Development Review, 9(7), pp.15-19.
12