Analyzing the Impact of CSR on Business Sustainability

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Context of Business
Assignment 1: Individual Essay
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Table of Contents
Introduction......................................................................................................................................3
Discussion........................................................................................................................................3
Conclusion.......................................................................................................................................6
Reference List..................................................................................................................................7
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Introduction
The changing pattern of business environment across the globe requires organisations to develop
improved business procedures in order to maintain a sustainable advantage. Technological
improvements with time were adopted in business operations to enhance the transactional
process for companies as well. Considering the efficiency implementation of technology presents
to organisations and individuals, it is essential to maintain business ethics and practice
sustainability in context to the business macro-environment factors. The following study will
provide a brief description of the dynamic and changing nature of business and need for
individuals and organisations in performing their CSR activities in the global business context.
Discussion
LO1: Understand the dynamic and changing nature of business and the consideration of
the future of organisations within the global business environment
Business operations are performed by organisations in relations to the external and internal
environment. Any fluctuation within the business environment would modify the functioning of
companies that operate in terms of policies, leadership, management and marketing tactics. In
global context, the changing business nature is identified through the variation of external and
internal factors that provoke changes in business policies and performance (Teece et al., 2016).
The macro factors in business environment including the political, social, technological, legal,
economic and environmental aspects of business environment are constantly changing in the
global context and these affect the way organisations function and operate. The dynamic nature
of business environment is identified through the variations of these factors and their implication
on the global business scenario.
The political changes across the world have affected the internal workings for organisations in
every sector. Liaisons and transactional policies of companies in the retail sector vary as per the
political scenarios within the domestic and international environment (Prajogo, 2016). The socio-
economic factors of business environment influence the decision-making tactics developed by
organisations to maintain the sustainability of operations. According to the statement derived by
Birkinshaw et al. (2016), it is identified that the changing business environment provides
organisations the opportunity to modify their functionalities in order to gain profits and achieve
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their business goal in the global environment. The future operations of organisations are based
on the changes that companies implement in their business tactics as per the modifications in the
external factors.
Advancement in technology has improved the scope of doing business at a global level through
the development of various technical implementations. It has been identified that operators of the
retail industry had gained maximum benefits through the tenets of digital marketing, application
of RFID technology and inventory management techniques. Technology enhances the
efficiency of business operations and this affects the successful integration of different
techniques in business performance. The use of technology in retail sector also presents
organisations with the opportunity to develop sustainable business plan for the future.
Organisational ability to adapt to the changing business scenario is based on the attributes of
internal and external factors that enable the companies to frame their operational structure and
functioning (Teece, 2018). It is determined that the environmental and legal factors influence
the business decisions of the companies in retail sector as these engage with the operational
fundamentals of business. According to the views of Handoyo and Anas (2019), technology and
the dynamic business sphere enhances the future prospects for organisations in gaining
competitive advantage and maintaining sustainable operations in business.
The use of technology enhances the efficiency of organisations in developing their business
goals and objectives through the creation of better strategies that are relevant to the
organisational development. The scope of technological advancement allows organisations to
connect to the consumers across the global business environment. Thus, organisational
implementation of technological advances would enhance the opportunity to reach a larger
consumer group and communicate their business procedures efficiently.
LO2: Identify the need for individuals and organisations to manage responsibly and
sustainably and behave ethically in relation to social, cultural, economic and environmental
issues
Organisations operating in the global business scenario needs to follow aspects of business ethics
in order to generate better revenues through their transactional activities. The ability of
companies in the retail sector to modify their strategies according to their business goals and
achieve them in a sustainable manner is attained through leadership and management activities.
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Companies need to follow strict guidelines of corporate social responsibility (CSR) since these
policies will allow the organisations to develop their progress in a sustainable and ethical manner
(Rasche et al., 2017).
The management of organisations need to follow the tenets of CSR in conducting their business
strategies, as it would allow the companies to generate better profits through community
involvement and enhance the economy of the region. Business procedures need to be
responsible, sustainable and ethical in the global business scenario since it would promote
improved brand image and result in consumer satisfaction in the global market scene (Aagaard,
2016). It is important for organisations to operate their operational framework in accordance to
the CSR policies as these allow the companies to maintain socio-cultural balance within their
target business environment. Sustainable and responsible business operations ensure the
companies are able to develop the economic situation of the market sector (Amin-Chaudhry,
2016). By performing sincere and responsible business tactics, the company would be able to
reduce the environmental issues that affect the economy as well as the organisations.
The impact of CSR policies on the organisation is identified through the improvement in the
brand image and increased profitability. This ensures the employees are motivated within their
job roles and are able to perform efficiently (Janssen et al., 2018). CSR activities and policies
influence the overall performance of the company in the business sector and global market by
increasing the brand image and awareness among the consumers. The leadership of companies
need to identify the aspects of cultural, social, environmental and economic aspects of business
environment that may influence the operations of the business (Hopkins, 2017). The CSR
activities of organisations influence the leaders’ decisions regarding the functionalities of the
company, as it requires the formation of policies within the organisational framework for better
performance.
For instance, similar scenario is observed in case of the leadership operations of Co-operative
group and their CSR policies. The members of the organisation own the retail company and
provide benefits to their individual communities as per the profits earned by the brand (Co-
operative.coop, 2019). The board of directors of the organisation conducted a campaign on the
safety of their colleagues and their communities after recognising several safety issues that the
staff experienced frequently. This earned amendments in modifying the Offensive Weapons Bill
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in 2018. The passing of the bill enhanced safety for local communities by restricting the sale of
harmful objects to under-age individuals (Co-operative.coop, 2019).
Conclusion
The study provided a brief overview of the dynamic business nature and environment that
influences the operations of the company as well as the impact of CSR policies on organisational
operations. Thus, it can be stated from the above discussion that implementing policies according
to the changing environmental factors enhance the operations for companies in the global
business scenario.
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Reference List
Aagaard, A., 2016. Sustainable business: Integrating CSR in business and functions. Stylus
Publishing, LLC.
Amin-Chaudhry, A., 2016. Corporate social responsibility–from a mere concept to an expected
business practice. Social Responsibility Journal, 12(1), pp.190-207.
Birkinshaw, J., Zimmermann, A. and Raisch, S., 2016. How do firms adapt to discontinuous
change? Bridging the dynamic capabilities and ambidexterity perspectives. California
Management Review, 58(4), pp.36-58.
Co-operative.coop. 2019. Crime campaign. [online] Available at: https://www.co-
operative.coop/campaigning/crime-campaign [Accessed 29 May 2019].
Co-operative.coop. 2019. What is a Co-operative?. [online] Available at: https://www.co-
operative.coop/about-us/what-is-a-coop [Accessed 29 May 2019].
Handoyo, S. and Anas, S., 2019. Accounting Education Challenges in the New Millennium Era:
Impact of Advanced of Technology and Dynamic Business Environment. Journal of Accounting
Auditing and Business, 2(1), pp.25-33.
Hopkins, M., 2017. CSR and international development. In CSR and Sustainability (pp. 88-108).
Routledge.
Janssen, K.L., Blazevic, V. and Lauche, K., 2018. Integrating CSR in Innovation Value
Networks. In Innovation Management and Corporate Social Responsibility (pp. 75-97).
Springer, Cham.
Prajogo, D.I., 2016. The strategic fit between innovation strategies and business environment in
delivering business performance. International Journal of Production Economics, 171, pp.241-
249.
Rasche, A.N.D.R.E.A.S., Morsing, M.E.T.T.E., Moon, J.E.R.E.M.Y. and Moon, J., 2017. The
changing role of business in global society: CSR and beyond. Corporate Social Responsibility:
Strategy, Communication and Governance; Cambridge University Press: Cambridge, UK, pp.1-
28.
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Teece, D., Peteraf, M. and Leih, S., 2016. Dynamic capabilities and organizational agility: Risk,
uncertainty, and strategy in the innovation economy. California Management Review, 58(4),
pp.13-35.
Teece, D.J., 2018. Business models and dynamic capabilities. Long Range Planning, 51(1),
pp.40-49.
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