Corporate Social Responsibility and Ethical Challenges in Business

This report delves into the realm of Corporate Social Responsibility (CSR) and its significance in modern business practices. It examines the ethical challenges faced by prominent corporations, including Nestle, Toyota, and Apple. The report analyzes specific instances of unethical behavior, s...Read More

Managing CSR

Table of Contents
INTRODUCTION...........................................................................................................................3
Unethical promotion and child labour of Nestle.........................................................................3
Safety issues at Toyota................................................................................................................4
Miserable working conditions in apple.......................................................................................6
CONCLUSION................................................................................................................................7
REFERENCES ...............................................................................................................................8

INTRODUCTION
Corporate social responsibility can be defined as a model by which companies contribute
to societal goals of activities for improving relations with stakeholders and improving business
activities (Grayson and Hodges, 2017). This study is going to show importance of CSR models
and theories by which companies can solve their issues related to CSR and ethics. The main aim
of applying CSR practices and models is to improve brand image of the company and make the
business sustainable. Further, it will also show different types of CSR and ethical issues which
can be solved put by making an effective use of ethical practices and models.
Unethical promotion and child labour of Nestle
Description of the event: Nestle is a Swiss multinational food and beverage company. It
offers several products such as baby food, dairy products, coffee, tea etc. But it is identified that
Nestle promotes its products in an unethical manner and distributes free formula samples to
maternity wards in hospitals. But after leaving hospitals this formula is no longer free. There are
several countries who are still boycotting Nestle. It is claimed because of its marketing
promotion activities of baby milk formula (Nestle is One of the Most Hated Companies In the
World, 2020). This multinational company has been accused of violating and performing ethical
marketing codes. People also claimed that it mislead nutritional values about baby milk formula.
In addition, it is stated that many mothers and people said that for increasing sales and revenue,
Nestle has ignored nutritional advice in advertising for baby milk products.
It is also stated that labour are forced in Nestle to work for more than working hours due
to work pressure. It was one of the main unethical practice. It is stated that Nestle is considered
one of the most hated companies in the world. The main reason behind this is, it did not follow
ethical practices and forced labours to work for longer hours. So, it was main unethical issue of
Nestle.
Application of theoretical framework
It is important for Nestle to make an effective use of some effective models of
sustainability and CSR in order to reduce negative impacts on its own performance as well as on
environment and natural products. With the help of triple bottom line, company can solve all its
problems and claims. This theory states that business can have smaller impacts on the
environment and natural resources. By making an effective use of this theory, Nestle can prove
itself that it has not made any illegal and unethical practice regarding baby milk and bottled

water. Now company is taking sustainability seriously and focusing on providing excellent
quality of products and services to people (Hammer and Pivo, 2017). By promoting nutrition
education as well as physical activities among children of rural areas, it can have positive
impacts on its performance and can also improve its brand image. It is also stated that this
company was also claimed for forced labour so, by providing them equal and effective pay for
performance, effective working environment, protecting them against hazardous working
environment and others, it can motivate employees towards accomplishing goals. It also needs to
improve its recruitment and selection process for getting skilled workforce and improving overall
productivity (Hunt, 2017).
Reflection on usefulness of theory
In the context of triple bottom theory, I can say that it is very effective sustainable theory
whose main aim is to measure social, financial as well as environment performance of an
organization. This theory states that company should focus on customers, employees and its
stakeholders along with profit. If company only focuses on increasing profits and ignore people
than it cannot account for the full cost of doing business. It can impact on its performance as well
as image which is one of the main key and asset of the success. So, I can say that by
implementing triple bottom theory, it can make several changes in its policies, quality of
products which will definitely support it in a positive manner (Tate and Bals, 2018). In addition,
I can also say in the context of effectiveness of this theory that, with its help company can
know the difference between the right and the wrong acts. It will help it out in improving
performance and focusing on needs of employees. It can also help it out in condemning violence
and racism and increasing morale of employees.
Safety issues at Toyota
Description of the event:
In the context of unethical behaviour it can be said that it includes all those activities and
actions which hurt other people and natural resources. In the context of Toyota, it is stated that
Toyota was claimed because of ineffective working environment which does not only decrease
productivity but also affect on employees health in a negative manner. Toyota has approximate
364,445 employees and considered one of the world's market leader in sales of electric hybrid
vehicles. It is stated that Toyota ignored safety concerns which decreases its brand image. In the

year of 2010, it made several unethical failure (Kehr and Proctor, 2017). Due to ignorance of
safety concerns, it faces problem of getting as well as attracting skilled workforce. It increases
the total number of staff turnover which decreases its productivity and sales as well. It is also
stated that is almost 320,000 vehicles recalled due to safety issues. Due to poor quality and safety
issue in vehicles, it had to face penalty and several problems.
Application of theoretical framework
Stakeholder is one of the most important by which company can manage its all activities
in an efficient manner as well as provide safety to all stakeholders. One of the main aim of any
type of organization is to satisfy its stakeholders because their satisfaction is the key of the
success (Jones, Wicks and Freeman, 2017). Stakeholders have power to influence everything in
both positive and negative manner and it all depend upon practices and activities performed by
company. So, it can be said that by making an effective use of stakeholder theory, Toyota can
solve all problems and satisfy needs of its stakeholder whether it is related to products quality,
safety and others. The Toyota should have development of communication plan which will be
effective for further development.
Usefulness of framework-
The stakeholders' theory will help in analysis and influencing the stakeholders with respective
level of opinions which will helps in shaping the projects in more respective manner. This
theoretical framework will have the better positional of project towards success. The different
level of representations with regard to project and company among stakeholders will have the
clear attention for understanding to have the condo level of development
(Jones, Wicks and Freeman, 2017 ). The company should have proper level of identification for
the different needs and perceptional of the consumer to meet up the expectoration. Stakeholders
have power to influence everything in both positive and negative manner and it all depend upon
practices and activities performed by company

Miserable working conditions in apple
Description of the issues- Foxconn's enormous Longhua plants is considered to the major level
of manufacture among of the apple products. The present level of condition in this plant is all
about the to be considered as so miserable that is tends to have the clears level of comparison as
anti suicidal nets that have been installed beneath the windows. These windows are considered to
be whopping 17 employees leap to the deaths against of protest of such think of such things at
horrific level. This is considered to be the failure companion rotten apple companies in which
employee have to faces these issues at daily basis. The point of manufacturing is considered
among the one of secretive and seal off manufacturing unit of apple. The company also face the
major level of issues due to increase level of child slaves who are basically forced to work in
such condition for more than 10 hours in all days of week. Apple have turning it has the image of
profitability. Apple should pay major level of focus of the resolving the issues in more effcetive
manners.
Theoretical framework- The company should have the clears level of implication of “Protect,
Remedy and respect” framework along proper guiding principles in such a manners' so that the
working condition of the employee workings in apple can turned out to be in more suitable
manner. This framework has the proper implication of business and human rights as resting on
the three level of basic principle that providing the protection against the party abuse. The next
is about the maintenance appropriate level of corporate respectability along with human rightists'
acceptability. This framework in considered to be every useful as it will help the employees of
apples to have the effective level of focus on the addressing human right abuse. Apple tends to
have the major focused of the engaging major level of corporate impressionability which is
eventuality to have stoppage of the activities within territory (The United Nations “Protect,
Respect, Remedy” Framework for Business and Human Rights and the United Nations Guiding
Principles for Business and Human Rights, 2020). The apple should have the implication of
accurate level of legislation over various level matter along with adjustment and regulations. The
company should have proper adjustment towards revising the policies in such as a manner to
have prohibitions in the child salves in order to have entreating the employee with all level of
respects and dignity which cam have major level of conscientiousness in company
superconductivity.
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Usefulness of theory- This fretwork is turning out to be an important part in order to have the
proper level of protection in the human rights of the individuals that are working in the
companies in respective manner. This framework will help the company apples to have the work
within the various level of facts which is needed to be performed with major level of diligence.
The company will get proper level of benefit by eventuality proper implementation of the
framework ta greater level of productivity and growth. The implication of the such standards
company apple will make the better conditioned for employee. This will result in proper issuance
of effective level of conflicts by paying major focus on the conducting the suitableness operation
in more ethical and reliable manner. It helps in providing better prevalence to the victims in
order to attain high operational goals and objectives within the organization. This will help the
company apple to have the proper level of protection of the rights of the employee along with
proper level of abolition of child slaves in the manufacturing unit of company. The company will
be able to have the working in the operation in more perfects accuracy and ethical manner.
CONCLUSION
Form the above report it can be concluded that the CSR activities have been major level of
respectability among the corporate company in order to be successful in competitive market.
This is considered to bean important practices which is effective in integrating the
environmentalism and social aims to have successful caring out of business operation. The above
study have the clears level of implication of 3 journal entries nestle is having unethical level of
promotional of the infant formula which is considered to major misleading among consumerism.
On the other hand the safety issues in Toyota along with unethical practices for employee along
with child labor has been turned to major concern for company to operation in business market.
The theoretical framework will help in establishing the clear understanding regarding themselves
which is affections the business and engages into ethical practices.
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REFERENCES
Books and Journals
Books and journals
Hammer, J. and Pivo, G., 2017. The triple bottom line and sustainable economic development
theory and practice. Economic Development Quarterly. 31(1). pp.25-36.
Hunt, S.D., 2017. Strategic marketing, sustainability, the triple bottom line, and resource-
advantage (RA) theory: Securing the foundations of strategic marketing theory and
research. AMS Review. 7(1-2). pp.52-66.
Tate, W.L. and Bals, L., 2018. Achieving shared triple bottom line (TBL) value creation: toward
a social resource-based view (SRBV) of the firm. Journal of Business Ethics. 152(3).
pp.803-826.
Grayson, D. and Hodges, A., 2017. Corporate social opportunity!: Seven steps to make corporate
social responsibility work for your business. Routledge.
Kehr, T.W. and Proctor, M.D., 2017. People Pillars: Re‐structuring the Toyota Production
System (TPS) House Based on Inadequacies Revealed During the Automotive Recall
Crisis. Quality and Reliability Engineering International. 33(4). pp.921-930.
Jones, T.M., Wicks, A.C. and Freeman, R.E., 2017. Stakeholder theory: The state of the art. The
Blackwell guide to business ethics, pp.17-37.
Online
Nestle is One of the Most Hated Companies In the World. 2020. [Online]. Available Through:
<https://www.zmescience.com/science/nestle-company-pollution-children/>.
The United Nations “Protect, Respect, Remedy” Framework for Business and Human Rights and
the United Nations Guiding Principles for Business and Human Rights. 2020. [Online].
Available through:<https://www.ituc-csi.org/IMG/pdf/12-04-
23_ruggie_background_fd.pdf>
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