Corporate Social Responsibility Analysis: Reebok's CSR Report

This report provides a comprehensive analysis of Reebok's Corporate Social Responsibility (CSR) practices. It begins with an introduction to CSR and its importance, followed by an examination of Reebok's CSR within the context of regulatory frameworks, specifically in the UK. The report delves into environmental issues, such as waste management, carbon footprint, and plastic use, and analyzes social and community-related issues including employee welfare, product sustainability, and community involvement. The report assesses the benefits of CSR to employees, analyzes its impact on the supply chain, and explains its influence on senior management and business performance. It then reviews the CSR policy of a chosen clothing manufacturing company, recommends changes for Reebok's CSR policy, and assesses the potential impact of these changes on business performance. The report concludes by evaluating the extent of voluntarism within the CSR policy, offering a thorough overview of Reebok's approach to CSR and providing recommendations for improvement.

Corporate Social
Responsibility
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CONTENTS
Contents...........................................................................................................................................2
INTRODUCTION...........................................................................................................................4
TASK 1............................................................................................................................................4
AC 1.1 Analysis of regulatory framework of Corporate Social Responsibility..........................4
AC 1.2 An analysis of environmental issues in CSR..................................................................5
AC 1.3 Analysis of the social and community-related issues in CSR.........................................6
AC1 M1 Changing attitude of CSR.............................................................................................7
AC 1 D1 Success of organisation in managing CSR issue..........................................................7
TASK 2............................................................................................................................................8
AC 2.1 Assess the benefits of CSR to our employees.................................................................8
AC 2.2 Analyse the impact of CSR on our supply chain............................................................9
AC 2.3 Explain how a CSR policy will impact on the Senior Management Team and business
performance...............................................................................................................................10
AC 2 M1 Assess potential conflict that arises while satisfying need and expectation of
different stakeholder..................................................................................................................11
TASK 3..........................................................................................................................................11
3.1 Review over CSR policy of chosen clothing manufacturing...............................................11
3.2 Recommended changes to CSR policy................................................................................12
AC 3.3 An assessment of the potential impact of changes in CSR on business performance. .13
AC3 D1 Extent of voluntarism within CSR policy...................................................................14
CONCLUSION..............................................................................................................................15
REFERENCES..............................................................................................................................16
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INTRODUCTION
Corporate social responsibility is a kind of self regulation which put emphases toward
contributing the efforts toward societal goals of the activist, philanthropy or charitable nature by
voluntarily operating business over ethical code of conduct. The main focus of CSR is to reduce
the negative impact of operations preformed by an organisation over the community and
environment in which business is executed and performing each operations ethically toward
providing the benefit to all the stakeholder of company. The current report is based on Reebok
which is a international retailer of sports footwear and apparels throughout several different
countries (Crinis, 2019). It mainly focuses toward producing and distributing the fitness running
and cross fit sportswear by maintain several stores and also involve a range of CSR practices. It
works toward welfare of employees, customers, community and environment by reducing its
negative impact. To further analyse this in depth this study is performed which includes
explanation regarding the regulatory framework of CSR along with environmental, community
and social issue. Other than this evaluation regarding benefit of CSR to employs, impact on
supply chain along with influence over management team and business performance. At last it
explains about CSR policy of another company, recommendation for Reebok and potential
impact as such changes in CSR.
TASK 1
AC 1.1 Analysis of regulatory framework of Corporate Social Responsibility
Corporate social responsibility is mainly defined as the self-regulatory mechanism which
aims toward becoming the socially accountable. Its main focus remains to give some extra
efforts toward executing the operations of organisation or building up the policies in order to
provide more ethical treatment to its stakeholder which is as per the standards set by the
government. These stakeholders can be both internal as well as external with which an
organisation mainly perform the socio-economic as well as environmental responsibilities
(Virtanen, 2020). Mainly the concept of CSR revolves around three areas such as making the
planet suitable for living, performing actions toward welfare of people and earning profit by
serving product that are good for consumers.
As the competition is rising day by day, large organisation also becoming more concern
about adopting CSR practices in order to enhance the goodwill of company by engaging in social
practices that help it in developing a positive relationship with its stakeholder and achieving
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competitive edge. When it is about Reebok, it has been seen that company is facing more
regulator issues in CSR as compare to other local traders in sport clothing which in turn results
into negative publicity of brand. In order to develop a positive image in from of stakeholder
Rebook must involve in CSR practices and to perform it in systematic manner it must comply
with CSR framework which is prevailing in UK. The Framework elaborates about the human
right, environmental protection and health & safety at workplace.
From this the British government has enact a Country Planning Act 1948 which provide
guidance over controlling the disposal of industrial waste, carbon use and some of the related
issues that work toward safeguarding the environment and society at large. Other than this the
Reebok is also required to perform all its practices as per the ISO2600 international standard.
This is an international standard which is developed for helping an organisation in assessing as
well as addressing the social responsibility which remain significant to their vision, mission,
operations, stakeholders and environmental impact. There are certain legislator frameworks to
which Reebok can comply for covering the factors of ISO26000. These mainly incldes Health
nad Safety at work 1974 which can cover the clause 6 and chapter 6.4 of ISO26000. This law is
for maintaining the health and safety of people several act has been enacted by the government to
ensure that people get safety at workplace (Reilly and Larya, 2018). This is Health and Safety at
work Act 1974, which represent general responsibilities that an employer have toward employee
at workplace and benefit that must be provided to employees while he is having any sort of risk
while working. Despite of all this for ensuring eth human right and better treatment of employees
as a part of CSR practice certain laws are enacted by UK government. This includes
Employment Right Act 1996, Minimum wage Act 1998, employment relation Act 1999 etc.
other than this fair remuneration, Anti-discriminatory policies, Equality act 2010 etc. are also
related with clause 6 and chapter 6.4 of ISO26000 that ensuring better environment for
employees to work. Hence, in order to perform well within the country, Rebook must focuses
toward adopting and complying with all these rules, regulations and legislator requirements
under British government so that it become free from any kind of CSR issues and be able to
maintain positive image within the market of UK.
AC 1.2 An analysis of environmental issues in CSR
Corporate social responsibility is also consisting of an environmental aspect where it
focuses toward adopting the way in which a company can incorporate with environmental issues
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within their operations to eliminate issues such as waste, carbon emission, maximising the
productivity and efficiency of resources and avoiding practices that harm environment (Konya,
2018). In order to cope up with issues the Rebook must focuses toward formulating such internal
practices and policies in order to perform CSR practices.
Increasing pollution due to waste: The Rebook deal in manufacturing of sports clothes
which in turn after getting used become scrap and are very much harder to degrade or dispose
which in create pollution within environment. Hence, the government of country focuses toward
developing several; guidelines in order to ensure that organisations mainly work toward
producing products that remain less harmful to the environment. Therefore, Rebook must focuses
toward creating policies toward recycling of residual as well as used product so that negative
impact can be minimised and at the same time it become able to indulge with CSR practices.
Increasing carbon footprint: This is also one of the common issues that a cloth
manufacturing company mainly faces. The raw material used by Rebook for manufacturing its
product are made up fabric that provide more elasticity such as rubber to provide a better fit. But
this in turn further affect the environment as it production emit more carbon footprint (Brown,
2017). So, Rebook must focus toward making use of natural resources or raw material which
results into emission of less carbon such as cotton.
Negative impact of plastic use: - Another major issue to environment is making use of
plastic material for packaging but it remains harmful to environment as it can’t be disposed or
degrade easily and when it is burnt then its flame create huge carbon. Hence this remain major
concern for both government as well as organisation. So Rebook must focuses toward adopting
such material for packaging which is easier to recycle or dispose without leaving any kind of
harmful effect.
AC 1.3 Analysis of the social and community-related issues in CSR
Despite of several environmental issues that Rebook may face, there are some other areas
of issue that are required to address by Rebook. There are number of social issues that may found
by Rebook such as safety of employees at workplace, manufacturing product that do not harm
people, sustainability of product, quality of product etc. These are some sort of issues that are
mainly faced by Rebook when it performs its operation within the community. These can be deal
by the organisation by managing CSR practices within its operations, such as,
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 Rebook must formulate workplace policies in such a manner that employees working for
it must get better compensation and benefit over their effort (White, Nielsen and
Valentini, 2017). Additionally, there must be arrangement of facility in such a manner
that less possible chances remain for any kind of accident which can affect the safety of
employees and in case of any accident the compensation must be made.
 Rebook must also try to provide job to the people who are disable and disadvantaged
people so that they become able to earn their wellbeing. Other than this it can also work
toward welfare of society by spending some percent of their earning toward the
development of backward society as well as poor society by exerting them with
appropriate education and health related facilities.
 The major issue faced by society is in disposing the sports clothing as their fabric are
having low degradable quality. So, Rebook can open up its centre where it can collect the
used clothes for recycling so that it doesn’t left any kind of negative impact over the
society and environment too.
 Reebok can also perform some of the volunteer social work which may be opening the
educational centres, providing scholarship to the brilliant students which are poor to
promote education.
 Other than this the Reebok can also establish certain plants in order to dispose the waste
that is created by factory which help in reducing the pollution and can also take initiative
toward reducing the extend of carbon dioxide emission.
 Reebok can work toward establishing the social enterprises such as hospitals, educational
institutions, sports academy, utility service provider that help in serving the need of
several society group.
 The poor section of society faces issue related with managing tehir education along with
sports activity. So, reebok can also sponsor certain programs along with social
organisations where it can invest money to provides free training sessions and provide
scholarship program for providing them fund to continue their sports intrest along with
study.
AC1 M1 Changing attitude of CSR
The choice and references of stakeholder are changing with the time and now the more focus
of industry players remains over reducing t negative effect of operations performed by a business
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over community as well as environment and tries to bring positive impact over society which
remain suitable for living. In todays time period the more efforts are being implemented toward
increasing awareness about corporate social responsibility among industry players that targeted
toward removing issues such as global warming, pollution, forest degradation, inequality in
employment etc. But this generation is more conscious about such practices as employees are
now started demanding for the equal opportunity, rights, healthy environment etc. in order to
perform work within effective and positive working environment (Köksal, Strähle, Müller and
Freise, 2017). Other than this customer are also like to buy products that are performed with
sustainable procedure and people value such brand who is involve in CSR practices. These are
certain perspectives which are changing among the stakeholders which in turn influencing the
attitude of people as well as organisation toward CSR and are getting more involve in such
practices to perform operations in more technical manner.
AC 1 D1 Success of organisation in managing CSR issue
When it is about a clothing and footwear industry, the Reebok is always appreciated for its
effort toward working betterment of the society and other people linked with company. The
Reebok has historically seen as a anti-Nike when a comparison is made over the corporate social
responsibility within labour practices. Reebok remains free from any kind of controversy as other
brand remains. Reebok has strategically positioned itself as a socially responsible company
which also make it successful in implementing its human right focused CSR strategy. The
company follows several CSR policies within its business operations such as human right, forced
labour, minimum wages and fair working hours, environmental requirement from the suppliers,
health and safety policies within the organisation. These all support in managing the business
operations in ethical manner while promoting fair treatment for employees as well as other
stakeholder of Reebok.
But Reebok was criticised in year 1992 for violation of workers regarding their basic rights
which bring up a huge impact over its market performance nod also affected brand image. As the
people working within Reebok in China rea forced to work faster and hard but still they get less
payment. But when its brand image get affected then without spending any time Reebok respond
to this situation by instantly creating a new policy “Human Right Production Standard”. There
was eight sections guided within human right policies such as non-discrimination, working hour,
fair wages, No child labour, No forced labour, Non harassment, Freedom of association, safety
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and healthy work environment. These all policies support Rebook to gain its market image back
with more positive view of stakeholder towards it. later on it created “reebok Human Right
Award” where it honoured young activity 80 awarded in 36 countries which present a great
success story of CSR for Reebok.
TASK 2
AC 2.1 Assess the benefits of CSR to our employees
Corporate social responsibility is consider to be most advantageous practice for the growth
and success of an organisation as it help in developing a positive image in front of its stakeholder
that further support it in achieving competitive edge at marketplace. CSR is truly devoted to the
welfare and well being of organisation’s stakeholder and employees are one among them. CSR
practices for employees are consider to be very much crucial for better performance of
organisation (Diddi and Niehm, 2016). As in case when employees are not in favourable
condition and find themselves treated unfairly then it directly affect their engagement in work
and morale which in turn directly influence the productivity of employees to a great extent.
Hence, it can be said that Rebook must focuses toward adopting the CSR practices in
order to keep employees satisfied with their work and workplace. Following are certain benefits
of CSR to employees,
 Positive working culture: With the implementation of CSR practices at workplace, the
employee will get benefit with getting fair remuneration, equal opportunity, right to be
heard and growth opportunity. These all contribute toward creating a positive image in
front of employees which in turn further improve the working condition to operate work
within the organisation. Other than this Rebook also become able to keep its employees
motivated and satisfied with the managerial policies that help them in performing well.
 Improve employee relationship: - When an organisation implements the best practices
related with CSR in organisation them employees also get more likely to engage within
the cooperative behaviour toward their peer members and organisation as well. This in
turn help Rebook in developing positive working culture while keeping the employees
happy (Yadlapalli, Rahman and Rogers, 2019). The employees get benefited with a better
organisational behaviour where their co worker help them in working and also assist best
practices to perform a particular task. Hence, it promotes the high quality and close
relation among the employees.
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 Increase creativity among them: The implementation of CSR practices require an
organisation to comply with the regulatory requirement such as human rights, health and
safety act, equality act etc. The application of such laws by Rebook provide a safety
assurance to employees which in turn allow them to work freely without nay fear. This
further enhance their creativity as employee engagement get increased which in turn
further contribute toward the development of employees.
AC 2.2 Analyse the impact of CSR on our supply chain
Supply chain is referring to as a system consist of people, organisation, activity, resources
and information work toward supplying of a product or services to the consumer. It involve set
of activities involve from the movement of raw material to the finish goods. Hence, this function
of an organisation requires more attention and management for the success of a company. There
are number of activities involve during supply chain where the raw material is transferred to
finish good by Rebook where its processing involve several things which emit carbon and bring
several other impact. But by involving CSR the functions of supply chain can be performed in
more organised and systematic manner (Al Jarah and Emeagwali, 2017). The main function of
Rebook is related with eth production where extra care is required to exert in order to avoid
unethical practices which can harm society and community when it became a final product to be
used. At this the CSR practices to be adopted by Rebook is to make use of such kind of raw
material which od not harm environment, emit less carbon and easy to be recycle. Additionally,
while dealing with supplier it must ensure that fabric provide by the supplier must be natural
made and not are created with animal skin, rubber etc. Other than this it must also ensure that its
practices do not involve cut down of tree which adversely affect the climate and society as well.
Despite of this, Rebook must also ensure that processing of raw material to final product
must not emit more carbon and try to reduce its emission from factor process. There are certain
changes that are seen within the inbound and outbound logistic in recent time that have a direct
impact over production and distribution process. This created awareness among people and
changing the process of logistic segments efforts are being imposed to make green supply chain
organisation which consist of only ethical practices to ensure that not any activity performed by
organisation may harm its stakeholder. For this organisation started reducing use of fuels and gas
and adopted hybrid vehicle that do not emit carbon, keep environment safe and reduce
transportation cost. Other than this Rebook also focuses toward reducing the transportation
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practices as much possible in order to avoid pollution, ensure easier access to product to
consumers, information about the supplier and consumers must be kept secure and do not be
misused, adopting right pricing policy so that products remain affordable to customers and do
not exploit them in term of economic manner.
AC 2.3 Explain how a CSR policy will impact on the Senior Management Team and business
performance
The CSR practices when involved within policies of organisation contribute a lot in
enhancing the operational efficiency as well as performance of the management. This is so
because it brings up accountability as well as responsibility within the actions taken within the
organisation. Reebok presents its greater involvement within the CSR practices from years and
also adopted some of the new and changing trends that help in implementing the CSR practices
effectively which is the reason that make it a successful sports producer globally. The regular
management of CSR policies within the organisation, Reebok become able to enhance its
organisational performance as it helps in,
Boosts up sale and profit : This is considered as key to success for a busines when it
become able to involve CSR policies within organisation and be able to implement this on
organisational performance (Gulati, Lund-Thomsen and Suresh, 2018). When the policies of
organisation are developed in ethical manner that it leads to maximum employee satisfaction.
This is so because CSR activities performed within the organisation toward treating employee
fairly then it help in boosting up their motivational level and with this the employees try to put
their best possible efforts which in turn help in increasing their quality of performance. As
employees put more efforts toward interacting with customers in positive manner and
maintaining better relationship with them. This in turn help in keeping employees engaged
within the operation to boost up their productivity which in turn help in getting more sales in
market that further enhance the profitability in marketplace. Other than this also try to offer best
possible product that ensure maximum customer satisfaction. This in turn help in increasing the
sales of company which further increases overall profitability.
Competitive edge and stakeholder interest: Within this world of competitiveness the
brand creates value in front of its stakeholders will become able to survive. Reebok put several
efforts in this regard by adopting range of CSR practices. Like it try to adopt eco-friendly
material to produce product and try to offer product at price that worth customers in term of its
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quality and durability. This in turn help in brining more sales within company as customer likely
to switch brand to Reebok when they are being valued. Other than this it help in creating a good
brand image in market which also create interest of shareholder in brand to invest more and also
increases interest of employees to remain connected with brand which is much involve in
performing their work in ethical manner. So to maintain the positive relationship with
stakeholder the senior management of Reebok must focuses toward improving the organisational
culture to get more and more stakeholders engagement. The more involvement of employees
along with senior management for formation of action plan and strategy is crucial for improved
performance of Reebok. The involvement of CSR within organisational policies the management
of Reebok become able to develop a positive working culture which creates more cooperation
among employees toward management. This in turn also allow the management team of Reebok
to remain capable of managing all the things in right manner and directing employees toward
organisational goals and hence enhance the performance.
Hence it can be said that CSR policies involvement support in enhancing the internal
operational efficiency and more employee engagement which further contribute toward
improving the performance of Reebok. The influence of CSR can be identified through
increasing in sales and brand reputation of Reebok within market. Other than this adoption of
ethical practices also supported Reebok in enhancing the motivation level of employees which
allow them to present their best possible work for enhancing the productivity as well as
profitability (Hills, Walker and Barry, 2019). Despite of all this the CSR practices also influence
the overall brand image in front of the customers which further help in reducing the brand switch
among customers or even attract customers of competitor to come and buy the products. Hence it
allowed to achieve the competitive advantage which help Reebok in achieving market
sustainability.
AC 2 M1 Assess potential conflict that arises while satisfying need and expectation of different
stakeholder
It remains the major responsibility of Reebok is to keep its stakeholder satisfy in order to get
support from them by adopting the CSR policies. But still there are lots of potential conflicts that
may arise in front of company due to need and expectation of different stakeholder. Among all
the stakeholder the conflict between two i.e. customers and shareholder remain high. As it is
harder to determine the whether o pass profit to shareholder for getting more investment or to
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pass it to customer in form of discount for retaining them. If the profit is offered to shareholder
then they get satisfied but the customer wouldn’t be able to get innovative product which affect
the growth of company which slow down the pay of employees. Hence this is the potential
conflict that may be arise in front of the company among stakeholder when they are trying to
satisfy the need and expectation that the stakeholders are having toward brand.
TASK 3
3.1 Review over CSR policy of chosen clothing manufacturing
Nike is one of the most popular brand within sport clothing and footwear production. Past
year the Nike faced several kinds of controversies regarding child labour as well as ethics in
supply chain. But in recent year it has made a lot of efforts and investment toward CSR practices
and sustainability (Di Benedetto, 2017). It takes several actions toward reducing the impact of
carbon footprint, adopting renewable energy, managing diversity and inclusive culture. These all
are the actions that Nike take toward adopting CSR practices and sustainability within its
business. But apart from all this the overall CSR policy of Nike is being arranged within three
main pillars such as transforming the manufacturing, unleash human potential and last is to
minimising the environmental footprint.
Unleash human potential: Within the innovative manufacturing model, Nike focuses
toward keeping the workers as well as their voices at the centre. Apart from it all the by
enhancing the workers’ role for growing up the participation and engagement, the brand is
getting more focused toward investing within the innovative technology in its manufacturing unit
as well as supply chain. With this the code of conduct are set for suppliers and technologies like
Flyknit, Pegasus etc. are used by Nike which support it in reducing the carbon footprint.
But despite of all these CSR practice involvement, one thing seems missing in this area
which is human issue rights which are crucial to be involve within CSR policies for the welfare
of all the people who are connected with the organisation.
Transforming manufacturing: The second milestone for Nike in term of CSR is about
transforming the manufacturing by reducing the child labour within the workforce as company
remains within controversy regarding the child labour practice adopted by Nike (Drebes, 2016).
Other than this the sustainability sourcing of raw material from supplier. It took action toward
sourcing the sustainable cotton which help in saving more than 32 billion of water and around 73
per cent of Nike apparels using several kind of recycling material.
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