MA619 Accounting Research: Corporate Social Responsibility Report

This research report delves into the critical realm of Corporate Social Responsibility (CSR), examining its definitions, influencing factors, and strategic implications within the banking industry. The report explores the impact of CSR on consumer behavior and the challenges associated with implementing CSR initiatives. A comparative analysis of the CSR activities of Commonwealth Bank and ANZ Bank is conducted, highlighting their respective approaches and strategies. The methodology employed includes an interpretivism philosophy and an inductive approach, utilizing secondary research design and content analysis. The research addresses key questions about CSR, its factors, and strategies for enhancing performance, offering valuable insights into the role of CSR in improving business outcomes within the financial sector. The report concludes with recommendations for banks to adopt advanced CSR approaches, aiming to improve their performance and address stakeholder expectations.

Business research

Abstract
Corporate Social Responsibility (CSR) has become vital for every organisation to conduct its
operations effectively. CSR is a progressing corporate exercise which incorporates
sustainable advancement into the business model of the organisation. CSR has optimistic
influence on the social, economic and ecological factors. A strong CSR program is
deliberated as a prospect to validate their good business citizenship. It helps organisation to
safeguard from the external risk. Through CSR, a company can attain an equilibrium of
economic, environmental and social obligations. It also addressed the anticipations of the
shareholders and stakeholders. CSR brings competitive advantages like augmented access to
the capital and market, enhanced sales and revenues, efficient human resource base and
enhanced brand image and status. CSR is helpful in attracting positive attention for the efforts
made by the company. This paper has researched on the topic “Corporate Social
Responsibility”. The research paper includes the questions on CSR. The CSR activities of
two banks namely Commonwealth Bank and ANZ Bank have been compared and contrasted
in the paper.
At the last, it can be recommended that banks should use a more advance CSR approach to
improve the business performance within the industry.

Contents
Abstract.................................................................................................................................................1
Introduction...........................................................................................................................................3
Literature review...................................................................................................................................3
Research question..................................................................................................................................5
Methodology.........................................................................................................................................5
Data analysis.........................................................................................................................................8
Conclusion...........................................................................................................................................13
References...........................................................................................................................................14
Appendix.............................................................................................................................................16

Introduction
Nowadays, an updated customer who is socially conscious like to spend money with the
organization prioritizing to the CSR (Corporate Social Responsibility) activities. CSR is the
business exercise which incorporates sustainable development into the business model of the
organisation. CSR has confident impact on the social, economic and environmental aspects.
CSR impacts positively to an organization by enhancing reputation of the company and
builds the brand. The positive image makes a name for the company as being socially liable
and conscious. As the usage of corporate responsibility is expanding, it has become
enormously significant to have communally cognizant image. The employees, customers, and
stakeholders have started to prioritize CSR in choosing a brand or organization. A CSR
program is a prospect for the organizations to validate their good corporate citizenship. It
even helps companies in safeguarding themselves from the external risk by considering the
whole social and environmental sphere which surrounds the organization. As per the
research, the customers also like to purchase the products from the organizations which are
supported to solve issues cared by the customers. More than 75% of the customers refuse to
purchase the products from the organizations if it is experienced that there is issue contrary to
their beliefs. It takes cost to be socially liable like it requires time, money and resources.
Every little bit can assist the environment.
This paper defines Corporate Social Responsibility. The specific questions have been
mentioned have been stated in the report concerning CSR. Further the CSR activities of two
banks, Commonwealth Bank and ANZ Bank has been compared and contrasted.
Literature review
According to Ismail, 2009, CSR states to the organizations conducting trade in a
method which is moral, community-oriented and advantageous to the society in terms of the
advancement. CSR is moreover a state in which management encourages to take ingenuity in
nurturing ethical standards and impartiality in the society. CSR deliberates the concern of
society by undertaking accountability for the impression on customers, employees, suppliers,
shareholders, communities, and stakeholders. The organizations are required to obey with the
legislation and take ingenuities in order to enhance the welfare of the communities.

As per the opinions of Hamidu, Haron & Amran, 2015, the organizations have
identified an idea of revolution of CSR from an inappropriate idea to indispensable
constituent in attaining organizational objectives. The managers are using CSR as a device to
strategies along with setting standards and enhancing reputation of the corporation. It has
even transmuted from philanthropy to controlled practices. The organizations also now days
are progressively getting more stress on obedience with the guidelines on transparency, and
environmental regulation. The attention of the CSR has shifted from ethics alignment to the
performance alignment. The initiative for the CSR comprises sustainable development
applies, transparency, and responsibility, maintaining good association management,
sponsorship on several phases of human privileges, justice and self-governing principles,
obedience with the conventional global values on CSR and ethical business exercise.
As per the opinions of Bani-Khalid & Ahmed, 2017, the organization is paying
attention to form profits and increase wealth of the shareholders along with pursuing to make
a positive impact on the society and maintaining optimistic and unified association with the
stakeholders. The trend of CSR is continually growing and becoming trend in the coming
time. CSR is deliberated to be a self-interest safeguarding the mechanism of the organization
for its benefit. CSR is identified to be a generic term and can be categorized into two major
accountabilities, Corporate Financial Responsibility (CFR0 and Corporate Social and
Environmental Responsibility (CSER). Therefore, CSR is stated to the duties of businessmen
to seek these policies while making decision and are needed in the objects and values toward
society. CSR reflects the several benefits and outlook of diverse stakeholders whether they
have financial notice or not in the organization. As per the stakeholders, CSR is an essential
part of societal rights and the organizations have several accountabilities and duties towards
the society operated. CSR can be ruthlessly an intentional initiative to serve society and
environment. In the views expressed, CSR is deliberated to be a means to advance the
performance level and positive activity within the society and the environment. The CSR
concept has been construed by the dimensions of responsibility like profit responsibility,
stakeholder responsibility, and social responsibility. In the broad view, CSR comprises
economic, ethical, legal and humanitarian accountabilities.
According to Kaur, 2012, CSR has identified to be prerequisite for the advancement
of any corporation. The organizations are taking up welfare activities time to time by
involving people and planet. CSR is relevant in the organizations belonging to all societies; it
is mainly significant for the emerging nations. The significance of CSR can be identified

from trends like changing social expectations, increasing affluence, and globalization. The
customers and community anticipate from the organizations whose products are purchased. It
has attracted intention of the companies towards them. It has been considered that the
prosperous customers can pick and choose any product. The internet promotes
communication among the customers and the minded people by sanctioning messages and
offering them a means to coordinate collective action.
The method of doing CSR by small and medium organizations has been investigated.
The report depicted an organized way to deal with the problems faced by the organizations
while conducting CSR activities. The organization’s cultural exercises relied on the analysis
of cost of benefit. It has been experienced that the small organizations struggle more for the
reputation and minimizing the threat. In this scenario, CSR comes as a trust in the
organizations. The large administrations are expected to have a significant number of assets
for the execution of CSR activities. On the other side, small and medium organizations have
less number of assets. The small and medium organizations can limit their threat and manage
CSR by offering much data along with the legitimate usage of the assets. The deeds made by
the organizations to safeguard the environment, improve employee diversity and satisfaction,
involve in numerous community services and sponsor the cultural activities.
Research question
 What is CSR?
 What are the factors affecting CSR?
 What are the CSR strategies for improving the performance of Common Wealth Bank
and ANZ bank?
Methodology
Introduction
The research methodology is a process which is utilized to collect proofs and statistics with
the purpose of attaining research in a practical way. Add on, methodology is a hypothetical
and systematized investigation of several means which are predominantly executed in the
concern of the research study. This paper represents the empathetic concerning Corporate
Social Responsibility (CSR) comprising questions like what is CSR, factors affecting CSR
and CSR strategies for improving performance of Common Wealth Bank and ANZ bank. The

CSR activities of both organisations have been analyzed. Such constituents are helpful to
group the necessitated material for resolving the research matter. It is quite active to
accomplish the research goal magnificently. This research paper necessitates details on CSR
along with comparing and contrasting the CSR activities (Lins, Servaes & Tamayo, 2017).
Research philosophy
Research philosophy is substantial to evaluate the development of the specific research while
toting value to the body of information. It is quite advantageous to construct theoretical
indulgent with research to investigate the matter and its features. Several types of philosophy
can be utilized by researcher namely positivism, realism, and interpretivism. Such
philosophies could be illustrious from each other in the different conducts linked with nature
and choice. The interpretivism philosophy has been used in the research paper over realism
and positivism because of the independent nature of research. This research is even beneficial
to the researcher to gather sights and ideas of the research concerning the influence of
business ethics on managerial performance (Saeidi, et al. 2015). This research required to
gather questions to clearly state CSR. Along with this, interpretivism philosophy is utilized to
attain thorough material concerning the research topic, which could not be possible by
utilising positivism and realism. Whereas the positivism philosophy is not selected in the
research paper as there is no obligation of collecting numerical and technical information
concerning research topic.
Research approach
The research approach is considered fragment of the research methodology which is executed
by the researcher to comprehend the cause behind selecting precise method and procedures.
Moreover, several research methods can be enabled by the researcher such as inductive and
deductive approaches (Flammer, 2015). The inductive approach has been used in the paper
and the deductive approach has been neglected with the intention of this research paper. As
the qualitative data has to be interpreted to attain thorough understanding concerning the
research matter. This approach has been also utilised to attain great amount of information
linked with the influence of business ethics on organizational performance (Schrempf-
Stirling, Palazzo, & Phillips, 2016). On the other side, deductive approach is not chosen as
there is no requirement of making hypothesis which is even not pertinent to the interpretivism
research philosophy.

Research strategy
The research strategy is a method of gathering evidences and statistics systematically. The
research strategy ensures the presence of material to accomplish the aims of the research. An
extensive range of strategies has been used in the paper like observation, focus group,
interview, grounded theory, literature review, content analysis, and cross-sectional studies in
order to obtain research in the understandable method. The secondary research design has
been applied by the research in order to accomplish the goal and purposes of the research.
This manner, several internal sources are retrieved by the researcher like annual reports of the
companies and company websites (Liang & Renneboog, 2017). Add on, external resources
are also accessed by the researcher such as information published on internet, newspapers and
government sources. The literature review has been stated in the paper to validate the beliefs
of several authors concerning CSR and its impact on two banks, Commonwealth Bank and
ANZ bank. This strategy has been used to comprehend the different concepts and rationalized
to attain precise results. Literature review generates an inclusive way to evaluate the research
issue because of the illustrative nature of research. Finally it can be said that exploratory
research is operative to advance the capability of the association to treat with the effects of
CSR.
Research design
The research design is just additional constituent of research methodology which is
advantageous to attain the research is inconsistent and legal manner. The means used in the
research are qualitative and mixed research method. The mix research design has been used
in the paper to attain research goal and purposes. The research comprises the features of
qualitative research design. The qualitative research design is applied to assess and compare
CSR activities of Commonwealth Bank and ANZ bank.
Research purpose
The Research purpose simplifies the researcher to produce and develop the understanding
concerning research apprehension. This manner, research can practice exploratory,
descriptive and expounding research issue according to the nature of the research matter. The
research paper also depends on the previous experience than just using the prevailing
experience. In the divergence, exploratory research design is not utilized by the researcher

because of no requirement of evaluating how and why CSR practices have influence on the
concert of the organizations (Harjoto, Laksmana & Lee, 2015).
Data collection method
Data collection is a practice to gather and evaluate the evidences concerning the research
matter. Add on, several kinds of data collection process are utilized to gather the proofs and
figures namely primary and secondary research method. The primary data has been collected
by focus group, survey, questionnaire, interview, and observation (Chernev & Blair, 2015).
On the other side, secondary data is gathered through sources like several factors such as
annual report, articles, journals, academic magazines, official websites, newspapers, and
financial websites. With the aim of extensive research, secondary method is used because of
the relevancy with assessing the influence of CSR on organizational performance. The
secondary data has been collected from several internal and external sources. The data from
the secondary sources is obtained at higher costs but it is more appropriate and reliable as the
information is assessed by the several experts (Grayson & Hodges, 2017). Add on, secondary
data is gathered from the literature review. The secondary data is even efficient in order to
enhance the understanding concerning research issue.
Data analysis
CSR is a self-regulating business model which helps an organization to be socially liable to
itself, public and the stakeholders. By practicing CSR, an organization becomes aware of the
type of influence they are having on whole facets of the society like economic, social and
environmental. Engaging in the CSR activities reflect an organization is operating in the
conducts which improve the society and environment in spite of contributing negatively. The
CSR activities even assist in foregoing a robust bond between employee and the organization.
Article1: Corporate Governance Quality and CSR Disclosures
CSR is driven by aspects, moral responsibility, and commercial interests. Other than earning
return from the stakeholders, Commonwealth bank is having an extensive moral
responsibility towards employees, environment and local communities. Being socially
responsible, the bank has been successful in attaining and retaining most talented people. The
Commonwealth Bank has stated that its controlled entities are not subject to any specific
environmental regulation under the law of state. The bank can advanced credit policies to

make sure this is managed properly. Whenever bank re-possesses land then the bank becomes
accountable for the environmental problems linked with the land. The banks repossess the
land in case the borrower defaults on the loan. Since the bank incurs environmental liability
as lender than it has to make sure it lends to manage social and environmental responsibilities
appropriately.
Article 2: Voluntary CSR disclosure works! Evidence from Asia‐Pacific banks
CSR comprises taking actions which minimises the degree of conveyed costs and evade
distributional struggles. It is the pledge of business to subsidize to sustainable economic
advancement through functioning with the employees, their families, and the local communal
in order to enhance the quality of life. ANZ bank undertook CSR activities through offering
debt facility to assist advancement of the Gunn pulp mill in the environmentally subtle Tamar
Valley.
CSR is the activity what an organization does to influence society in a positive manner. CSR
is affected by internal and external influences. The internal factors include ethical labor
practice, effective CSR communication, commendable leadership, and effective stakeholder
management. On the other side, external factors comprise investment in the environment
cause, legal practice, and political stability. The ethical labor practice state to the
advancement of safe and compliant working standards, reasonable working hours. The CSR
communications influence to initiative in the eye of stakeholders and community. It enhances
community engagement along with the promotion of the products. Commendable leadership
influences the culture and the way people act within the organization. It contributes to the
advancement of public perception regarding the organization. The stakeholder management
entails consistent communication with the stakeholders by comprehending wants and
anticipations. The investment in the environment proliferates the financial performance of the
organization. The legal practices influence the working of the organization and the way it
operates. The political stability influences the allocation of the resources in the economy
along with the aspects like customer confidence and international trade.
Article1: Major-bank sustainability focus: CommBank
The CSR factors influence Commonwealth Bank to safeguard and enhance financial security
of the people, organization and the community. Commonwealth Bank is influenced by factors
like education, invention, and good business practices. Under the education category, the

bank has taken initiative to instil children value of money and assist the staff to prepare for
the future. The innovations make use of capability to inspire people, organization and
community. Whereas good business practices include representing community’s diversity and
role model reconciliation. The bank deliberates the need of the stakeholders and invests
responsibly (Kanganews, 2019).
Article 2: ANZ Bank: Sustainability essential to our reputation
ANZ has undertaken several factors like increase in lower carbon power generation, an
upsurge in the number of women in the management to 40% and more contribution of the
employees towards community activities. The bank has enhanced ability of the staff in order
to assist customers by offering training on the issues. The literacy program is offered by the
bank and investment is made in the low carbon and sustainability solutions. Sustainability is
reflected in the way staff is engaged in the policies, procedures, and operations (Canstar,
2019).
CSR initiatives are measurements which are put in place to benefit the community. The
recommended CSR strategies for improving performance of the organizations are
environmental sustainability ingenuities, direct benevolent giving, moral business practices
and concentrate on the economic accountability. The environmental sustainability ingenuities
are used by the organizations in mainly two concerns restricting pollution and minimizing
greenhouse gases. As long as the insight of the environmental matters is growing, the
organizations are required to take initiative to reduce pollution in order to develop good
corporate citizenship. On the other side, philanthropic initiatives comprise contribution to the
society in the form of contribution of time, money or possessions to the charities. Such
donations are directed to the several causes comprising human privileges, clean water, natural
disaster, education programs and more. The CSR undertakes ethical business observes offer
fair labor practices for employees and suppliers. Fair business practices comprise equal pay
for equal work and wage ingenuities. The economic responsibility centres on the exercises
which enable long term growth of the corporate along with meeting standards of ethical,
environmental and benevolent applies. The balance of the economic decisions with the
operations can engage sustainable practices.
Article 1: Commonwealth Bank: Sustainable business practices a constant focus

Commonwealth Bank broadcasted a CSR policy focusing on ecological, social and
governance and practices to assist exertions in making an optimistic impact throughout the
way trade is conducted. The sustainable strategies included an extensive range of sustainable
business factors like the way administrations poise social, environmental and governance
performance along with offering superior returns to the investors (Canstar, 2015). The bank
has developed a responsible framework incorporating environmental, social and governance
deliberations into the investment applies. The bank disclosed the funded carbon emissions
rise from the business advancing portfolio.
Article 2: Corporate Social Responsibility at ANZ
ANZ has adopted a green strategy and encourages people to utilize less plastic and have keep
ups. The employees of the organization are even offered with the program. The clean energy
efficiency commitment is given to the asset finance and volunteered days-beach clean-ups.
The bank is totally carbon neutral. ANZ advance to the communities with good sustainability
practices and has embedded sustainability in the business process and culture.
As per the views of Freeman, 1984, the establishments have an obligation concerning several
groups and individuals which influences the business activities. The CSR of Commonwealth
Bank integrates association between the group and most of its stakeholders, customers,
workers, and communities. The community service, enhancement of the relationship with the
personnel, safeguarding environment, and creation of jobs is the social responsibility of the
Commonwealth Bank. CSR made bank to enhance friendly impact with the general public.
The bank enhanced its social interests along with the several advantages. It even assisted
bank to assist in the long haul valuable effects on the common public. On the other side, the
ANZ bank attained efficient results of CSR from the business connections in society. Caroll’s
model investigation assisted bank to ascertain three advancing options of CSR such as
instigation of the accountability, global corporate citizenship and stakeholder management
practices. The cultural exercises of ANZ bank rely on the analysis of cost of benefit. The
bank makes effort in order to enhance reputation and minimize hazard. ANZ bank has
substantial resources for the execution of CSR practices. By offering data and legitimating
use of the assets, bank has been successful in limiting its hazards and manages CSR. ANZ
bank has turned out to be ethical in the constituent of social duty as the bank unveiled its CSR