Analysis of Corporate Social Responsibility and Sustainability

This essay delves into the realm of Corporate Social Responsibility (CSR) and sustainability, particularly within the manufacturing sector. It highlights the increasing importance of CSR due to heightened competition and the pursuit of long-term survival. The essay explores various sustainability issues from economic, social, and environmental perspectives, using real-world examples to illustrate the challenges and consequences of unethical practices. Companies like Volkswagen, Adidas, and Tyco International are examined, showcasing how they manage (or fail to manage) ethical, environmental, and social responsibilities. The analysis further considers the impact of millennial consumers and the role of supply chain management in achieving CSR goals, concluding with a discussion on the need for ethical practices and the benefits of sustainable actions for organizations.

CORPORATE SOCIAL
RESPONSIBILITY

Introduction
With the increase in the number of manufacturing organisations, there exist a cutthroat
competition, which has enforced the organisations to engage each possible action in order to
surge for the huge profits and stand apart to seek for greater profits. Sometimes organisation
unintentionally engages in unethical actions in competitive market blindly so that they can
use their potential to large extent with an aim to achieve goals. The concept of sustainability
upsurged with an aim to emphasise on long-term survival (Confino, 2012). Currently,
companies have accepted that it is important to comply with financial and environmental
essentials, which is benefited from sustainable actions of business. Sustainability has
emerged to strengthen the social, economic, and environmental perspective of the
organisation as it minimises the opposing effect of preserving the natural resources. It is
important to consider the CSR activities and comply with the mandatory strict rules such as
donating money, improving the society, health safety measures and environmental friendly
policies. Further, sustainability encourages the manufacturing organisations to regulate with
legal compliances. This essay brings out an discussion on several sustainability issues on the
basis of economic, social and environmental perspectives with examples. It is seen that many
organisations are not able to succeed due to being trapped in unethical issues. Even after
being renowned as blue chip shares, some organisations are not able to comply with
environmental friendly regulations (Alhaddi, 2015).
Sustainability issues among manufacturing companies
Sustainability is an important factor affecting the success of the manufacturing organisations.
Corporate sustainability is well-defined as managing the triple bottom-line that can handle the
social risks, environment, financial, obligation, and opportunities (Alhaddi, 2015). With
emphasising on the manufacturing sustainability, generation has valued the CSR and created
the environment protection policies (Alhaddi, 2015). This generation has focused on caring

for the environment and has sentimental awareness that is reflected in the buying habits
(Confino, 2012). Ten out of 9 customers are brand centric and analyse how effectively the
company has been complying with the environment and social aspects. The company
promotes sustainable balances between work-life balances for each employee. Sustainable
manufacturing not only creates value but also makes it more marketable and on the other
hand ignoring the sustainability can hamper the sales. For instance- exchanging the use of
electric bulbs from the energy efficient fluorescent lamps, which could last for more than
three times as compared to electric lamps and consumes ( Daneshkhu, 2018). 25% less
energy. Some practises are undertaken to pace up the corporate sustainability and finally
support the company to move on track from poor thinkers and foot-draggers to great
influential person. The undertaking practises are stakeholder meeting, disclosure, reporting,
life cycle, and environmental management system. Companies who do not comply with
sustainability have proved that they attract and retain employees due to less brand image and
more financial risk (Rodger, and George, 2017). It is observed that healthcare cost of the
company have been increasing because of considerable strain on the delicate manufacturing
structure of costs (Daneshkhu, 2018). Another example of sustainable organisation is Adidas
where the German-based company where it is a general approach where it found to find the
balance between expectations of the shareholders by respecting the human rights and the
needs of the employees. The organisations have to be aware of rising costs and manage the
cost in order to ensure that healthcare services do not increase the price of the commodities. It
is important to undertake the concerning action for the environment that is beneficial for the
local environment. Regulations regarding sustainability always remained unnecessary
expense for the organisation. For instance- Volkswagen is not recognised among investor-
focused CSR ranking (Hepler, 2015). It has been seen that automobile producers that
preferred business priorities, which have commenced with an aim to integrate social equity,

climate risks, resources scarcity and digitalisation connected with the corporate responsibility
(Alhaddi, 2015). EPA bangs that software-cheating releases have led challenging of 11
million that has been possessed by the customers. This has supplementary resulted to air
pollution that have created respiratory disorders and demises, which have further increased
the environmental targets such as business groups have underway prioritising the
environmental targets and strategies. Recently, Volkswagen is seeking to lead the
sustainability in the automobile industry (Hepler, 2015). It is the purpose of the organisation
to create decisive contribution so that it can mitigate the risks associated with the quality of
air and climate changes. Another example is in the case of Mitsubishi Motors that has led to
emission scandal (White, 2014). Blue chip shares companies have not become successful in
order to accomplish the sustainability activities and this essay discuss some of the cases.
Another company struggles while integrating with the supply chain. This case elaborates that
Cadbury involves child as their slaves. The enterprise has been paying close consideration to
the wellbeing of the labourers. Apart from this, it is important to take appropriate actions in
order to sustain and avail same level of sustainability in order to ensure whether the supply
chain is operated well or not. For example- Exxonmobil is one of the famous as world`s
biggest oil and gas company in terms of the market share but on the other hand, it does not
represent the same level of leadership which the small peers represents (Alhaddi, 2015). The
biggest “Ford” famous flop recognised as “Edsel” introduced new vehicle in the name of
experimental cars and wraps. In this situation, the company has lost $250 million in 1959
because of disappointment of its marketing plan. It is the potential of the company to
maintain its sustainability, leave a optimistic legacy, and regulate through till it functions in
the corporate world (Álvarez, Bárcena, and González, 2017). As a business is a continuous
entity and it cannot consider one-time benefit as it is more important, degrading the
environment without being caught red handed and finally are penalized. Sometime

governmental officials penalise due to their deeds that finally affect the long-term
sustainability. On the other hand, some organisations undertake and perceive that even after
being penalised, it signifies that more profits are left. Paying penalties have of low cost as
compared to profit making. Incurring penalties is cheaper as compared to causing harm to the
environment that affects the company’s long-term sustainability that further inspires the
younger group to perform the same thing without caring about the atmosphere. The
organisation may make several benefits of performing ethical actions in relation to economic,
social, and environmental perspectives. Socially, non-compliance of sustainability will lead
to loss of consumer base. For example- several protesters from UK have reported that mining
organisations have breached the human and environmental rights. It is seen that expansion of
automobile and mining organisations have hampered the water supply of Torres islanders.
For instance-, Rio Tinto Group remained as global largest mining companies but it had
breached the environmental and human rights. It spoils the water bodies and the living
reptiles in it as deposing plastics in seas hampers the respiratory system of fishes. Moreover,
organisations have been side-tracking water deprived of caring of the local community
existing around it (Neate, 2013). Although, the organisations release the deep level aquifers
so that it can provide Torres islander “pure water” and a seasonal water that are diverted for
the usage of mines. While considering and measuring the environmental perspective of the
organisational sustainability, it is seen that organisation suffer from equal imbalances from
social and economic perspective (Daneshkhu, 2018). For instance- Tyco international is a
manufacturing organisation, which deals in manufacturing of electric appliances and
components, which undoubtedly creates a risk of fire, security, and health care. Example of
Tyco international suffer from social issues such as fraud employees in the company where
the company`s CFO and CEO were caught because of robbery of money nearly money of
$600 million from the company that finally left worst impression on other stakeholders where

responsible executives are not at all loyal (Tatari, Kucukvar, and Onat, 2015). Majorly,
decision-making power lies in the hand of the top-level management but in this situation
shareholder of Tyco international have suffered a huge loss by trusting the CEO and CFO
who turned fraud to the organisation. Tyco international suffers from bad brand image in
sustainability. Another example- Enron is a well-known company in terms of power, smart,
and wealth. However, the company has suffered from spectacular bankruptcy due to which
painstaking planned to fraud accounting that has been faced by the accounting companies
(Daneshkhu, 2018). Although, the organisation suffered from drop in the share price that has
vanished the savings invested in company by the stakeholders. Other social problems such as
health risk in the procedure, unfaithful employees, sexual harassment finally disturb the
social sustainability at the end (Sunday Telegraph, 2013). Mining, electric, and infrastructural
organisations confront risk associated with subordinate`s health rises in these operations.
Therefore, in order to overcome such issues, organisations will have to undertake crucial
procedures so that it can protect the employees from health services in company (Jason,
2018). Nevertheless, it is seen that almost 71% millennial need food industry in order to serve
healthy products to customers. Further, it is seen that they are even ready to incur more
money in order to minimise overloading expenses of the healthcare services. Millennial have
changed their food habits and trends over the last few years as they forced the organisation to
undertake such activities, which can promote trust among the food producers. Multinational
organisations have started listening to the customer preferences so that it can maintain
transparency in regards to production methods and the ingredients (Pedersen, Gwozdz, and
Hvass, 2018). Young generation prefer healthy food that has enforced the food industry in
order to engage high fibre and low fat. According to statistical reports, younger consumer’s
first look at the label stickers in order to see whether the material used in the food is organic,
natural, and sustainable (Siew, 2015). If companies have become more conscious of what

they are helping to its clients as millennial developed their interest in organic food. Millennial
often take interest in the way companies source their products and finds the effect of carbon
footprint. Long-standing sustainability remained an importance for the organisation
particularly when helping the patrons while purchasing food at these stores (ICAEW, 2018).
Other environmental issues have awaked the millennial, which has affected the food industry
in order to employ environmental practises that are friendly much. Other than electronic,
food, mining industry, it is agreed that major clothing industry including ZARA, topshop and
H&M that has been concentrating on the discontinuation the manufacturing of those attires
which monitored the claim of animal unkindness (Kaspereit, and Lopatta, 2016). CSR
concerns and ethical concerns that has enforced meeting of expensive and natural raw
material, which do not disturb animal`s survival which comfort the organisation to create its
image itself as its operating company in order to achieve sustainability (Maas, Schaltegger,
and Crutzen, 2016). H&M and Zara are often criticised because of using the angora wool
especially after unethical practises for the Chinese suppliers (Kozlowski, Searcy, and
Bardecki, 2015). It is seen that these organisations have stopped the manufacturing of angora
material after the plucking of Chinese factories. It is seen that, in short run, these
organisations have incurred enormous cost in order to treasure the alternates of the angora
products that can help the organisation in order to maintain the sustainability. Finding of
substitutes has indicated shifting the consciousness of the customers that are ready to incur
more for ethical clothing outsourcing (Marketviews, 2018). The time when self-assurance of
people are hit by the horsemeat disgraces and other possessions that are worried with fatness
and diabetes. With an aim to accomplish the sustainability and CSR, large MNCs have
planned to create public relations, policies, and more commitments in regards to supply chain
management, which has focused on improving the capitalist system (Industry News, 2017).
While outsourcing the raw materials, products such as cocoa, soy, coffee, corn and potatoes,

it is seen that farmers face inequality and injustice. Several CSR and company`s sustainability
reports have been criticised in order to focus on specific concerns such as environmental
concerns, water usage, fair prices to the small farmers, and identifying out the main cause of
hunger and below poverty line because of which organisation lack proper policies which can
guide supply chain (Daneshkhu, 2018). On the other hand, some of the other sustainable
companies of recent years are corporate knights, which is a media based company where
research conduction says that companies has to undertake activities that are more
environmentally concerned. Organisation named “Oxfam” has positioned the organisations
such as Coca-Cola, Nestle, and Unilever ensures that it comply with the employee`s rights
and growers which includes slide in the processes of the supply chains, to minimise the
negative impact of climate changes, improper usage of land and water, protection of human
rights (Industry News, 2017). Companies has to sustain by complying with the legislations by
including financial and human capital. For instance- biogen is a leading developer of several
therapies who suffer from autoimmune diseases. Although, it is an carbon neutral
organisation which has the activities of reducing the offset projects (Maas, Schaltegger, and
Crutzen, 2016). Among the employees, the company targets the talented women that guide
them by engaging them into the leadership roles. Moreover, Brexit have major impact on the
social as well as economic environment of the company (Maas, Schaltegger, and Crutzen,
2016). It is seen that UK`s consumer shares is seen to be cheap valuation metrics which
brings out price adjusted earnings where it fails to take into consideration the level of loans
and maintain the poor cash flows. Further, it has been exhibited a certain level of debt and
preserve a level of working capital cash flows which are exposed to cyclical which
pressurises the effect of increasing cost and corporate profit margin (EPA, 2018).

Conclusion
From the above discussion, it is seen that it is necessary to consider the sustainable and more
CSR activities in regulating the business organisation in the corporate world. It is quite
visible that competition has extended the importance of sustainability reports as shareholders
seek for huge profitability with long-term sustainability. Other benefits are discussed in the
essay after executing the sustainability reports and actions that gives brand recognition,
increases the existing customer base, organisational growth, saves the cost of operation, as
finally it will lead to employ great talent and retain the effective staff. This essay undertakes
to illustrate many examples related to clothing, mining, and transportation industry because it
is found that their actions are spoiling the natural resources and hampering the existence of
animals. It is observed that when examining the sustainability issues as per the emission
trading system, fights under European countries with 45 percent gas emission and other
11000 power stations. Apart from benefits, it is important to see the sustainability benefits
and fulfils the sustainability context leading to huge costs such as change in the process of the
supply chain and seeing the elements, which are more nutritious in the industry.

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