Sayyad Sport & Safety Wear Inc. CSR Analysis Report

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This report provides a comprehensive analysis of Corporate Social Responsibility (CSR) for Sayyad Sport & Safety Wear Inc., a trading company based in the United Arab Emirates facing negative publicity due to worker issues. The report begins with an introduction to CSR, its benefits, and the challenges faced by the company. It delves into the regulatory framework for CSR in the UAE, analyzing environmental and social issues related to the company's operations. The report assesses changing attitudes towards CSR, evaluates the benefits of CSR to employees, and analyzes its impact on the supply chain. It also examines the impact of a CSR policy on senior management and business performance, addresses potential conflicts among stakeholders, and reviews the CSR policies of a chosen clothing manufacturer. The report concludes with recommended changes to the CSR policy to benefit stakeholders and an assessment of the potential impact of these changes on business performance. The report also evaluates the success of the organization in managing CSR issues and the extent of voluntarism in CSR policies.
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Corporate
Social
Responsibility
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Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK 1............................................................................................................................................3
1.1 An analysis of the regulatory framework for CSR................................................................3
1.2 An analysis of environmental issues in CSR........................................................................4
1.3 An analysis of social and community issues in CSR............................................................5
M1 Assess changing attitudes to CSR........................................................................................6
TASK 2............................................................................................................................................6
2.1 Assess the benefits of CSR to our employees.......................................................................6
2.2 Analyse the impact of CSR on our supply chain..................................................................6
2.3 Explain how a CSR policy will impact on the Senior Management Team and business
performance................................................................................................................................7
M2.Assess the potential conflicts which may arise when we try to satisfy the needs and
expectations of different stakeholders through our CSR policy.................................................8
TASK 3............................................................................................................................................8
3.1 A review of the CSR policy of chosen clothing manufacturer.............................................8
3.2 Recommended changes to the CSR policy to benefit the groups of stakeholders................9
3.3 An assessment of the potential impact of changes in CSR on business performance........10
D1. Assess the extent of voluntarism in CSR policies..............................................................10
CONCLUSION..............................................................................................................................10
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INTRODUCTION
Corporate social responsibility is refers as concept of management where organisations
are integrate with social as well as environmental benefits by conducting their business activities
or operations. By conducting this a company gain various goodness such as increment in brand
recognition, customer loyalty, growth of firm, financial performance and many more. On the
other hand there are some issues which firm while conducting CSR such as management of
environment, adoption of eco efficiency raw material, engagement of staffs and stakeholders,
working condition and so on (Attig and et. al., 2013). Organization selected for respective project
is Sayyad Sport & Safety Wear Inc. which is a trading company that offer variety of sports
products like leather jackets, leather pants, trousers, leather gloves, Leather bags and so on. The
respective company is located at United Arab Emirates and in current situation they are receiving
bad publicity because their workers reported some issues like abasement, low wages as well as
improper physical working environment. Topics included in this report are regulatory
framework, environment issues, social and community issues related to CSR. Benefits, impact
and policy of CSR as well as it will also include review of CSR policy, recommendations for
changes on diverse factors and impact of changes on CSR.
TASK 1
1.1 An analysis of the regulatory framework for CSR
Regulatory framework is define as legal documents which contain several factors like
procedure, code of conduct, guidelines, regulatory framework and many more. It is necessary for
each and every company to follow regulatory framework which are developed by government
bodied because through it they able to conduct their work in effective as well as in legal manner
(Bondy, Moon and Matten, 2012). Their are also regulatory frameworks are given for Corporate
social responsibility that are necessary to followed by Sayyad Sport & Safety Wear Inc, from
which some are mentioned below:-
According to regulatory framework of UAE all commercial companies can conduct
corporate social responsibility activities which include financial institutions, banks,
private companies and branch of foreign companies (CSR Law in the UAE: Are you
Ready?, 2019).
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For this it is necessary for companies to adopt as well as follow various rules like they
need to adopt eco friendly policies for production or conducting operations. Along with
this they can also contribute to social development through monetary or any other project
or program.
According to frameworks companies also need to contributes to solutions of problems
which are faced by society or environment. As well as it also essential for companies to
provide proper salary to their staffs and maintain their physical working condition.
In respect of frameworks UAE government divide whole CSR track into 11 programs
such as CSR Smart Platform, CSR National Index, CSR passport, CSR Label, CSR
Forum and many others (Corporate Social Responsibility, 2017).
In context of regulatory frameworks developed by government if a company want to gain
Social responsibility Mark then they need to contribute AED 10,000 as well as if they
want to get Social Responsibility permission they need to contribute AED 15,000.
These are some of the regulatory frameworks which is essential for Sayyad Sport &
Safety Wear Inc to follow in order to overcome from their bad publicity as well as satisfy their
staffs.
1.2 An analysis of environmental issues in CSR
Environmental issues is one of the major problem which are faced by every country and
it take place due to harmful human activities on biophysical environment (Crane, Matten and
Spence, 2019). It is bifurcated into several types such as air pollution, garbage pollution, water
pollution, deforestation, climate change and many more. Now a day it is essential for every
company to conduct CSR (corporate social responsibility) activities so that they can contribute to
the solution of environment problems. In context of Sayyad Sport & Safety Wear Inc., there are
several environmental issues which occur due to their operations and functions as well as it will
also impact on their CSR work, from which some major are mentioned below:-
The respective company use raw material which are not biodegradable or eco friendly
due to which leads to environmental issues.
Sayyad Sport & Safety Wear Inc not use their waste material even it can be recycled due
to which it leads to environment issues for local peoples because cause various health
issues.
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This firm also release their waste garbage or chemical at near location which leads to
pollution in environment as well as it will also leads to several other issues like health
problem in human, death of fish due to mix of chemical in water and many more.
So in order to avoid or minimise environmental issues Sayyad Sport & Safety Wear Inc
can conduct several Corporate social responsibilities activities such as they can adopt eco
friendly or biodegradable raw materials, use recycle material. Along with this they can also reuse
their waste material in manufacturing other products as well as they must use natural colours or
material for manufacturing sports products.
1.3 An analysis of social and community issues in CSR
In current time there are various social and community issues occur due to improver
activities of a firm and it will leads to bad publicity. Social issues is define as problems which
impact on individuals with in an organisation, there are various type of respective issues such as
discrimination, poverty, casteism, populations, regionalism and many more (Dam and Scholtens,
2012). On the other hand community issues is define as problems which are face by whole
society or community such as lack of clean drinking water, child or employees abuse,
environmental contaminations, ethical conflict and many more. In context of Sayyad Sport &
Safety Wear Inc, their management conduct various activities or operation which leads to social
and community issues as well as it impact CSR activities directly and indirectly. From which
some major are mentioned below:-
The respective company manager abuse their employees, provide low wage as well as
there is also not proper working condition.
The company also realise their waste and chemical in nearby water area which leads to
unhealthy situation for society and community.
Sayyad Sport & Safety Wear Inc also not use biodegradable or eco friendly raw material
which leads to high amount of wastage which impact on environment and then on
society and community directly or indirectly (De, 2012).
In order to avoid issues related to social and community management of Sayyad Sport &
Safety Wear Inc can conduct or adopt several practices related to CSR such as they can plan
more trees which help in improving society condition. Along with this they must provide equal
salary and better working condition to employees, there should be no abuse activities should take
place with employees and many more.
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M1 Assess changing attitudes to CSR
Attitude of society and business are changing day by day in respect of corporate social
responsibilities because through it both are getting benefits in different ways. In respect of
business or companies by conducting CSR activities they able to get numbers of benefits such as
there is enhance in brand image and reputation at market, develop strong relation with workers,
Ensure sustainability development. It will also help organisation's in risk management,
enhancing productivity, dedication of workers and many others. On the others hand society also
get various benefits like their problems get solved in various aspects such as technology and
infrastructure get improved, natural environment get protected, enhance in education system,
economy of nation increased and so on. So now attitude of society as well as company are
changing in positive manner in respect of corporate social responsibilities.
D1 Evaluate the success of a chosen organisation in managing CSR issues
When a company conduct corporate social responsibilities they go through various issues
and problems which sometime impact on their productivity and operation. And when they
resolve or overcome from it, this will provide them various benefits which will also leads to
enhancement in business goodwill and market shares. There are various other factors which help
in evaluating succession of Sayyad Sport & Safety Wear Inc by managing corporate social
responsibilities issues. For example through it they able to increase their market reputation and
market image, this will also enhance employees motivation level and relationship which leads
accomplishment of work effectively. Through resolving CSR issues company also able to
increase their profitability, reduction in cost, establishment of good relationship with employees
and stakeholders and many others.
TASK 2
2.1 Assess the benefits of CSR to our employees
For every employer it is necessary to conduct proper corporate social responsibility
activities at their workplace because through it they able to gain various benefits such as improve
working condition, retain employees, increase staffs moral and many more (Fleming, 2012). In
context of Sayyad Sport & Safety Wear Inc they are going through situation of bad publicity
because there is occurrence of some improper activities such as abuse of employees. They also
provide low wage, there is also not proper physical working condition, they not use recycle
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process and many more. So it is necessary Sayyad Sport & Safety Wear Inc them to conduct
corporate social responsibility activities because it will be beneficial for their employees in
several ways such as:-
Improve working condition: According to implementing CSR practices respective
company need to develop and maintain proper working condition so that they can provide
safe and secure workplace. Through this employees get effective working condition
which have proper facility that ensure their safety and security from any misshapenness.
Increase in wages and motivation level: In respect of CSR practice it is essential for a
company to provide proper wage to their staffs as well as it is also necessary to conduct
activities in order to enhance motivation level. In respect of respective company
employees by this CSR practice they able to get proper wage according to their work,
skills, knowledge and experience. As well as it will enhance their motivation level and
quality of work. It will also leads to decrease of abuse or discrimination situation.
By these CSR activities or practices Sayyad Sport & Safety Wear Inc able to resolve
issues of employees and encourage them to work effective which is beneficial for both
employees as well as employers.
2.2 Analyse the impact of CSR on our supply chain
Supply chain is define as network which required involvement of individuals,
technology, resources, organisation and activities that leads to manufacturing and selling of
goods and services (Harjoto, Laksmana and Lee, 2015). The supply chain of a company get
impacted through its corporate social responsibilities, this impact can be positive or negative
manner it will be based on operations. In respect of Sayyad Sport & Safety Wear Inc by adopting
and conducting proper corporate social responsibilities they able to gain various benefits in terms
of reduction of emission, risk minimization and many other. Such as by this respective company
able to reduce as well as reuse its waste material which help them in improving society and
environment (Hilson, 2012). Along with this it will also enhance procedure of supply chain. But
on the other hand there are also some limitations of CSR activities on supply chain like for
conducting CSR practices company required more time and money. This will also show down
Sayyad Sport & Safety Wear Inc manufacturing procedure.
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2.3 Explain how a CSR policy will impact on the Senior Management Team and business
performance
Corporate social responsibilities is essential for a company because it will directly and
indirectly help them in conducting their work in effective as well as impressive manner. When a
firm adopt CSR practices, it will consider beneficial for both long term as well as short term. In
respect of Sayyad Sport & Safety Wear Inc when they adopt corporate social responsibility
activities it will impact on their Senior management team and business performance. By
implementing CSR senior management team able to take proper decision in respect to reducing
poor image at marketplace (Lee and et. al., 2012). But CSR impact on them on both negative and
positive manner, it will totally based on company situation. For example when they adopt
several CSR practices for resolving issues they gain various benefits as long run such as adopting
recycling of waste material, use eco friendly products, provide proper salary and working
condition to employees and so on they get benefits like employees get happy.
It will also leads to development of effective environment, they also able to enhance
goodwill and so on. But on the other hand at short term Senior management team may go
through some negative factor like their financial budget get disturb because they have to buy
machine which convert waste material into reuse raw material. Their will be also delay in
manufacturing process because in process one more step get added. Along with this CSR
activities also impact on performance of the business such as if Sayyad Sport & Safety Wear Inc
adopt practices they able to develop more effective products or sports cloth which help in
enhancing company goodwill and customers loyalty (Mahoney and et. al., 2013). But while
adopting CSR practices the performance of respective company may affect negatively because
when then adopt new technique they need to train staffs, they also need to recycle waste material
which is time taking and many more. At the end it can be analysis that if Sayyad Sport & Safety
Wear Inc adopt CSR it will impact their Senior Management Team and business performance in
negative manner as a short run but it will affect positively on a long term.
M2.Assess potential conflicts which may arise when we try to satisfy the needs and expectations
of different stakeholders through our CSR policy
In an organisation there are various stakeholders such as employees, customers, investors,
society, government, suppliers and many other and when a company conduct any practice it is
essential for them to fulfil requirement and need of all stakeholders. But it is very difficult for
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company's management to consider all stakeholders while developing strategies or product. In
respect of Sayyad sport & safety wear Inc while trying to satisfying requirement and expectation
of diverse stakeholders by conducting corporate social responsibilities activities they go through
various conflict situation. Such as they face relationship conflict because every stakeholder have
different need and expectation so company not able to fulfil each and every person expectation
and requirement which impact on their relationship. Along with this, respective type of conflict
impact on respective company working, decision making process and procedure because all the
stakeholders plays an essential role in firm.
TASK 3
3.1 A review of the CSR policy of chosen clothing manufacturer
CSR policies are very much important for an organisation to build a positive image on
environment and major stakeholders of an organisation such as investors, consumers and
employees to sustain in the marketplace. In context of Apparel Group which is a global fashion
and lifestyle manufacturer and retailer conglomerate company, established in crossroads at
Dubai, UAE (Hopkins, 2012). They majorly focus on the CSR activities by building eco friendly
products and services to showcase level of commitment to become a responsible organisation.
They follow and supports united nations compact principles related to human rights, labour
welfare, environment and anti corruption activities by making important part of principles of
their business strategy and day to day operations.
They also engage in various projects relate with CSR projects such as UN's sustainable
development to eliminate poverty, save environment to ensure development till 2030. they also
signs kinds of pacts and agreements such as UN women's empowerment principles enables to
promote gender equality and security of employees at work place (CORPORATE SOCIAL
RESPONSIBILITY, 2019). By releasing annual sustainability reports which shows their constant
efforts towards society, various stakeholders at workplace. To comply with commitments
regarding sustainability by aligning goals and objectives with UAE international agenda to
remain competitive in marketplace by protect environment and self interest of people for
delivering right value and attributes.
They established paid partnership with various institutions that work for sustainability by
contributing in CSR activities such as Dubai chamber of sustainability network and won various
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prizes by contributing for environment protection that are Dubai CSR label from Dubai chamber
of commerce for sustainability initiatives (Hsu, 2012).
In context of Sayyad Sport & Safety Wear Inc to build one of effective CSR policies they
can take help or consider Apparel Group CSR policy. This is so because it will help them in
resolving issues as well as overcoming from negative image in effective manner.
3.2 Recommended changes to the CSR policy to benefit the groups of stakeholders
If a company adopt change in their CSR policies it will impact positively on every
stakeholders of a company. In respect of Sayyad sport & safety wear Inc they can adopt various
CSR practices which will help them in conducting effective work and reducing negative poor
image (McWilliams, 2015). For example they may adopt recycling procedure, use
biodegradable raw materials, plant trees, provide proper salary and working condition to staffs,
help to local peoples by opening hospitals, schools and many more. By conducting this the
stakeholders of Sayyad sport & safety wear Inc get various benefits, which are mentioned
below:-
Suppliers- By these CSR activities suppliers not get much benefits but their goodwill get
increase that they are working working with such company that conduct effective
corporate social responsibility activities.
Customers- By these CSR activities customers of respective company get good quality
sport clothing which are made up of eco friendly material that are also skill friendly
(Rupp and et. al., 2013).
Employees- Through these CSR practices recommendations respective company
employees able to get various benefits like they get proper wages based on their work,
expectations and skills. This will also provide them safe as well as secure working
environment.
Environment- By these CSR recommendations respective company able to develop as
well as maintain proper environment. This is so because they use eco friendly and
biodegradable raw material, plan trees and so on.
Community- Through CSR activities conducted by Sayyad sport & safety wear Inc
community also get benefits like they get proper and healthy environment having
minimum pollution .
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3.3 An assessment of the potential impact of changes in CSR on business performance
For an organisation it is very much necessary to change in CSR activities to overcome
from the bad publicity that are faced by Sayyad sport & safety wear Inc.. To improve work
environment and enhance motivation level of employees they planned to provide health and
safety measures and various kinds of compensation while performing well (Hopkins, 2016).
The another issue faced by them which is that their raw material is not bio degradable for that
they opt to purchase raw material from other suppliers which is eco friendly in nature. So they
aimed to change in CSR activities that enhance motivation level of employees and society to
make buying decisions frequently. Change in CSR activities impacts both short term and long
terms respectively for a firm. Initially in short term it occurs costly and time consuming activity
and people assumes changes hazardous for them but adopting changes for long time provides
many benefits (Watson, 2015). These benefits are in context of both organisation as well as
individual that firm builds brand loyalty and sustain for long time in market on other hand
employees get motivated to work with such a responsible organisation. Society purchase
products easily that are eco friendly in nature and enhance their loyalty towards them.
D2. Assess the extent of voluntarism in CSR policies
Voluntaries are those people or individuals to take part in corporate social
responsibilities. Each and every company have to full fill its social responsibilities and its
employees are volunteers which partake in charitable and community improving activities. This
can be consider as a voluntarism in CSR policies. Participating in social initiatives and
corporative responsibilities are beneficial for society, organisation as well as employees.
Voluntarism in CSR policies will help in improving reputation of organisation as well as
developing positive brand image in market. By conductive social responsibilities there will be
welfare of society and lead to solving major issues of society.
CONCLUSION
By analysing above mentioned topics it can be analyse and summarise that now a day
every company need to conduct corporate social responsibility because it will help them in
various ways. For example help in creating positive image at marketplace, increase customers
loyalty, improve financial performance, enhance sales and many more. This will also help those
company receiving bad publicity and for this a firm management must adopt diverse type of
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regulatory which provide proper guidelines. But while conducting this organisation may face
several issues related to environment, society and economy like low availability of eco friendly
raw materials, low involvement of stakeholders and so on. Along with this CSR impact on
company senior management team and their performance so it is necessary for them to conduct
proper analysis and develop strategies according that will also help in maintaining effective
supply chain. There are also several factors which a firm management must be consider when
they are develop or conducting change in corporate social responsibility activities such as
stakeholders, suppliers, customers, employees, environment and community.
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