Corporate Social Responsibility Strategy Report for AB Sugar Company

This report provides a comprehensive analysis of AB Sugar's corporate social responsibility (CSR) strategy. It begins with an executive summary highlighting the importance of CSR for the company's integration with environmental and social concerns. The report explores the six core characteristics of CSR, relating them specifically to AB Sugar's practices. It then delves into various theoretical avenues and concepts in CSR, including stakeholder theory and business ethics, and connects these theories to AB Sugar's operations. Furthermore, the report examines the strategic approaches AB Sugar currently employs to fulfill its community responsibilities, such as environmental conservation and community involvement. Finally, the report offers recommendations for developing a more sustainable CSR strategy for the company, concluding with reflections on the overall approach and findings. The report covers various aspects of CSR including ethical business practices, environmental impact, stakeholder engagement, and the application of different CSR models and theories to a real-world case study. The report also includes references to support the findings and analysis.

Running Head: Management
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AB SUGAR company
CORPORATE SOCIAL RESPONSIBILITY
3/22/2020

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Executive Summary
CSR is an important aspect for the company as it helps in integrated with the
environment and the social concerns and helps the company to be socially accountable. In this
report, the six characteristics of the CSR has mentioned and it is aligned with the company AB
Sugar. The stakeholders and the ethical theory of CSR have also explained which helps in
protecting the interest of stakeholders and helps in ethically conducting the business activities.
The company AB Sugar enhances ecological responsibilities by reducing the impact on the
natural environment and conserving the ecosystem. The company has fulfilled its community
responsibilities by involving a certain range of activities with the local communities which has
clearly stated in this report.

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Contents
Introduction......................................................................................................................................3
Explore corporate social responsibility and focusing on the six core characteristics of CSR.........3
Explore the variety of theoretical avenues and the diversity of theoretical concepts in CSR and
relate them to the chosen organization............................................................................................5
Examine strategic approaches used currently by the chosen corporation in fulfilling their
community responsibilities..............................................................................................................6
Recommendations identifying how a more sustainable CSR strategy can be developed for the
company...........................................................................................................................................7
Conclusion and Reflection...............................................................................................................8
References......................................................................................................................................10

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Introduction
CSR is the concept of the management where the companies are integrated with the
environment and the social concerns and do the business operations in contributing to the goals
of the society. This report is made regarding the CSR strategy for AB SUGAR Company in
which the main focus will be done on the six core characters' tics of the CSR. The models and
the theories of the CSR will also be explained (Galant and Cadez, 2017). The company AB
SUGAR had chosen some strategic approaches in fulfilling the responsibilities of the community
so in this report the explanation of that will also be done. The recommendations will be done so
that the company can become more sustainable. AB sugar is the part of the ABF which deals
with the international ingredients. The company was founded in April 2018 and deals in the
world's leading sugar business.
Explore corporate social responsibility and focusing on the six core characteristics of CSR
CSR is the management concept which helps the company to be socially accountable. It
is the self-regulating business model in which the companies operate their activities in the
economic, social and environmental concept and they do not want to harm the environment. To
raise morale in the workplace also CSR is created. It is an important concept for both consumers
and the companies as the programs of the CSR grown the business and helps in setting the
standards in an ethical manner (Flammer, 2015). The main role of the CSR in the company is
that it helps in controlling the cost of the company, enhances the brand of the company, helps in
attracting the quality product and also provides the long term goals to the company.
By adopting the concept of CSR, the company AB sugar has the potential benefits as they
get better brand recognition in the market. The company has a great reputation in the market by
serving the best facilities in the society. When the company operates its functions which are
effective to the environment then it helps in increasing their sales and increasing the loyalty of
the customers (Arslanb, et al., 2016). The financial performance of the company has also
enhanced through the CSR programs as it helps in attracting the talent and retaining the staff in
an effective environment.
The six major characteristics of the CSR are:

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CSR programs have the voluntary activities only that are prescribed by the law: As
per the section of the 135 of the companies act, CSR has is the program which was prescribed by
the law and it has the journey from voluntary to forced contribution (Hategan, et al., 2018). The
company AB sugar has also permitted certain activities under the CSR practices which are
promoting education, reducing the morality of the child, and promoting gender equality at the
working place and also empowers the women.
Managing the externalities by reducing the pollution: As per the CSR practices, the
externalities in the company are maintained by charging penalties’ or taxes on the one who
creates negative externalities. The negative externalities can be removed by reducing pollution,
generating value by pollination and by using the resources of the environment in an effective
way (Scherer, et al., 2016). The company AB Sugar manages the externalities by reducing its
environmental impact and by focusing on crisis management.
Focusing on the multiple stakeholder orientation: CSR practices focuses on the
multiple stakeholder orientation such as customers, employees, and suppliers of the company.
The company is also responsible for the society in the CSR as they are operating their functions
in society only. The company AB Sugar also focuses on multiple stakeholder orientations such
as employers, customers, suppliers, society and all the other stakeholders who have a business
relationship with the company.
To maximize the profitability of the company, the CSR program is aligned with the
social and economic responsibility: It is one of the important characteristics which companies
follow to maxims ether profits in the company. The company AB Sugar is also engaged in
socially responsible things and it is a large company so it helps in enhancing the stock price and
more profitable to shareholders (Manchiraju and Rajgopal, 2017). CSR builds a good image of
the company in the market which helps in booster the profit of the company.
Give importance to the practices and values: The companies need to give importance
to values and the practices of the CSR as it helps in leading to the greater productivity at the
working place of the AB Sugar company and also helps in boosting the morale of the employee.
CSR programs are also valued in the company as it helps in ensuring ethical and sustainable
practices.

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Mention the CSR more than philanthropy alone: The business practices done by the
company do not change with the philanthropic work done but it is the core function of the
companies to mentioning the CSR as it makes the AB Sugar company more sustainable in the
market. To make the company into the more responsible business CSR program can be changed
into effective business practices (Michaels and Grüning, 2018).
Explore the variety of theoretical avenues and the diversity of theoretical concepts in CSR
and relate them to the chosen organization
The stakeholder theory of CSR: It is the important theory of the CSR ad it helps in
making a good relationship of the company with the stakeholders and helps in creating value for
them (Benlemlih and Bitar, 2018). The main focus of this theory is on the stream of business
responsibilities so this theory is very essential in the company AB Sugar as it helps in ensuring
that business does delivery creating value by making an effective relationship with the local
communities and society at large. This theory focuses on the three main arguments which are
violation obligation to the stakeholder, covering wrongdoing and creating false dichotomies.
CSR and the stakeholder theory: This theory has a great relationship as they talk about
business ethics. In the company AB Sugar, some tensions are sorted by the company through
ethical practices (Servaes and Tamayo, 2013). As per the major, this theory the major
stakeholders of the company are the communities and the society and the company mainly
focuses on the environmental efforts and to the ethical labor practices. This theory is majorly
concerned with protecting the interest of stakeholders which are operating in business activities
like employees, suppliers, customers, etc.
The business ethics theory of CSR: This theory is based on the moral duty and the
social obligation which the company has towards society. As per this theory, the company AB
Sugar is using the resources of the society so they are obliged to do something be towards
society. The company AB Sugar needs some good business decisions so it can be done with
ethical practices. This theory justifies the ethical grounds by emerging and changing social
expectations. The social problems in the environment can be solved through the social
responsiveness which this theory focuses on. This theory of CSR also gives value to the AB

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Sugar for giving importance to the intrinsic and eternal value such as human rights, fairness and
social justice (Wickert, et al., 2016).
In the company AB Sugar, there are some universal principles and normative norms that
help the company in responding to ethical values like equality between men and women. This
theory views CSR as ethical responsibility and more as philanthropic which helps the company
AB Sugar in making the better citizen in the society and also helps in contributing to the
wellbeing of the society.
CSR Pyramid model: It is the model of the CSR which help the company in meeting
their social responsibilities. This model is built on the foundation that the company should earn
the profit first then ensures that it has complied with the laws and regulations effectively. As per
this model of CSR the company has to fulfill the four responsibilities which are philanthropic,
ethical, legal and economical (Du, et al., 2011). The company AB Sugar uses this model of CSR
Pyramid in which they fulfill the philanthropic responsibility by contributing the resources to the
community and by improving the quality of life by serving the effective sugar in the market. The
ethical responsibility of the company is that they just do fair things and obliged to do the right
things only. The company AB sugar also follows the rules and regulations to contribute the
society effectively. The economical responsibility of the company is that its main foundation
above all the responsibilities is to earn the profit.
Examine strategic approaches used currently by the chosen corporation in fulfilling their
community responsibilities.
The company AB Sugar uses the strategic approaches of environmental conservation
where the company is concern about global climate change. The company has also raised the
issue of spilling toxic chemicals. While making the sugar some chemicals are also used so to
minimize the environmental problems the company AB Sugar has taken the step of reducing the
overall carbon footprints (Choi and La, 203). The company has not just made the commitments
of taking care of the environment in an effective way but they have made it by reducing the
pollution and greenhouse gas emissions. The company has a great mill so they have focused on
the recycling program also so that wastes can be minimized. The company also tries to save the

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environment by using the alternative source of energy ta their sugar plants such as solar and wind
power so that they can save electricity and effectively use solar energy.
The company AB Sugar uses the toxic chemicals so their strategic approach is to use the
alternatives of the green cleaning and reduce the impact of the harsh cleaning toxic chemicals on
the environment (Tilt, 2016). The company has also fulfilled its community responsibility by
using the approach of philanthropic in which the company has improved its technology and
effectively doing the innovations so that they can earn the higher profits and can also build the
next generation capable.
This strategic approach has given the platform to the company is effectively doing the
business by supporting the case of ethical conduct. The company has fulfilled its community
responsibilities by involving a certain range of activities with the local communities so that a
good working relationship can be build up with the customers and their families. The company
also performs certain activities that are sustainable for the environment and conserving the
environment by integrating into the environmental and social goals (Wickert, et al., 2016).
Recommendations identifying how a more sustainable CSR strategy can be developed for
the company
The company AB Sugar can become more sustainable by developing and believing in the
CSR strategy. It is recommended that the company should encourage its employees and the other
public to make participate in doing activities which are good for the environment. It is
recommended that the core purpose of the company is that they should align the CSR with the
business strategy as it helps in reducing the wastage and enables more success in the company
(Kinderman, 2013).
It is recommended that the company can ethically perform their activities if they earn
support from the top management levels so that they can guide them on what is right and what is
wrong. The company should effectively take responsibilities by contributing them to the
strategies so that sustainable activities can be conducted (Lins, et al., 2017). It is also suggested
to the company that the company should adopt the new technology so that the new drivers of the
innovation can be made and helps the company in achieving higher growth.

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The company can become more sustainable by reducing the use of carbon emissions and
the use of toxic chemicals. It is also recommended that the company AB Sugar should use solar
energy resources and recycle waste products so that the environment can become sustainable
(Lanis and Richardson, 2013). The company also communicates that CSR strategy to the
stallholders through the social media channels as it helps to bring attention to the people and
creates value for the company. The company should focus on the issues which are matter to the
customers and the society so that they could resolve the matters. The company should also
recommend measuring the ROI so that more sustainable CSR programs can be built.
The company can enhance social welfare through fulfilling the utility of the society so the
company AB Sugar should improve the quality of the sugar (Dewi, et al., 2017). The company
also enhance their CSR strategy in regards to the recruitment and retention of employees by
providing an effective environment and reducing the negative impact at the working place. The
company AB Sugar enhances ecological responsibilities by reducing the impact on the natural
environment and conserving the ecosystem.
Conclusion and Reflection
From the above report, it is concluded that the CSR strategy is very essential for the
companies as it helps in engaging them towards a sustainable environment and helps in ethically
doing the business. The report is made in regard to the company AB Sugar and its CSR strategy
in the market has studied. In this report, the six characteristics of the CSR has mentioned and it
has aligned with the company. Three theories of CSR which are the stakeholder theory of the
CSR, CSR and the stakeholder theory and the CSR Pyramid model have stated. Environmental
conservation and the philanthropic approach are used by the company for fulfilling the
community responsibilities which has stated in this report.
I have learned that CSR is an important aspect for every business as it helps the
companies to maximize the profitability of the company by aligning the CSR program with
social and economic responsibility. I have analyzed through this report that the environment can
remain more sustainable by reducing pollution, generating value by pollination and by using the
resources of the environment effectively, reducing the use of carbon emissions, reduce the use of

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toxic chemicals, etc. I have also learned that by applying the theories of CSR the company can
do its business activities more ethically and sustainably.

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References
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responsibility on meaningful work and organizational identification, via perceptions of
ethical leadership. Procedia-Social and Behavioral Sciences, 235, 259-268.
Benlemlih, M., & Bitar, M. (2018). Corporate social responsibility and investment
efficiency. Journal of Business Ethics, 148(3), 647-671.
Choi, B., & La, S. (2013). The impact of corporate social responsibility (CSR) and customer
trust on the restoration of loyalty after service failure and recovery. Journal of Services
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