The Role of CSR in Globalization: A Literature Review and Case Studies

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CSR ACTIVITIES
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Table of Contents
Assessment 2 (LO3, LO4 & LO 5)..................................................................................................3
Question 1....................................................................................................................................3
Definition of literature review.................................................................................................3
Purpose of the literature review...............................................................................................3
Question 2....................................................................................................................................5
Definition of CSR....................................................................................................................5
Principles of CSR....................................................................................................................5
Globalization and CSR............................................................................................................5
Motives behind CSR................................................................................................................7
Usefulness of CSR...................................................................................................................7
CSR not for the profitable organization...................................................................................8
CSR practices...........................................................................................................................9
Reference.......................................................................................................................................11
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Assessment 2 (LO3, LO4 & LO 5)
Question 1
Definition of literature review
It can be seen that a literature review or a narrative review is described as a part of the research
which is used to review the articles based on the research topic. This review is done by gathering
information collected from different sources which are being written by different writers.
Further, the literature review is a scholarly paper which tends to include all the current
knowledge (Booth, Sutton and Papaioannou, 2016). This includes substantive findings as well as
theoretical and methodological findings of a particular topic. The sources of the literature review
are generally secondary in nature and do not include any original or experimental work. This is
mostly related to the reviews that are found in academic journals and should not be confused
with book-reviews which might be included in the same version from where the literature is
being taken. Thus, the literature review is the main portion of the research. On the other hand,
narrow literature may be a part of the research where peer review of the journal article may be
presented so as to serve the reader a new context and a body with relevant literature. Therefore, it
can be observed that in such research, the review precedes with a methodology and result in
sections for the same work. It should be noted that literature review is a part of graduate and
postgraduate student which includes preparation of thesis or dissertation (Christmals and Gross,
2017).
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Purpose of the literature review
The main purpose of the literature review is to gain an understanding of existing research in the
form of a written report. Therefore the purposes are:
Understanding the state of things
It is seen that literature reviews are found at the beginning of the research. This is done to show
the research community about the progress of the work and to highlight the gaps that the research
might have. Further, it also helps in understanding the specific issues that the previous research
might have and to demonstrate the appropriateness of the areas from where the resources are
gathered (Machi and McEvoy, 2016).
Evaluation of sources
This is the stage where the literature which is gathered is evaluated in the form of an annotated
bibliography. This helps to evaluate sources based on how each source relates with the other to
form a debate.
Identification
The main purpose of the literature review is to identify the potential sources through which the
quality of research can be increased. Further, it will help in interpreting new ways of analyzing a
particular research topic and identify the gaps that the previous research might possess (Hart,
2018). Thus, the identification of the gaps can help in solving the issues in an effective manner.
Placing own research
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The most important purpose of the literature review is to place the undertaken research within
the context of various literature (Booth, Sutton and Papaioannou, 2016). This is mainly because
of the fact that it helps in making a business case and highlights the need for further study
through deriving the relationships on the context the topic and other cited works.
Question 2
Definition of CSR
Corporate Social Responsibility is defined as the concept which has already become an
important aspect in the business domain. This is leading to a situation where each organization
has to prepare policies concerning CSR and to prepare a report on an annual basis in order to
detail their activity. This helps in the sustainable development of the business through delivering
the social, economic and environmental benefits to the concerned stakeholders of the business.
Principles of CSR
The main principles of CSR are being discussed below:
- It is essential that an organization should develop governance structures procedures and
practices so that all the activities conducted should be done in an ethical manner
- CSR activities help in ensuring that goods and services that the business uses should be
sustainable in nature. This helps in using resources in a more optimal way
- Through the help of CSR activities, the organizations should ensure and promote well
being of the employees
- Lastly, the organizations should respect the interest and responses made by the
stakeholders who might be a bit vulnerable to certain situations or marginalized
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Globalization and CSR
It can be observed that globalization is helping in free movements of goods and services. This is
a major integrating process which is connecting the world economy and culture with technology
and governance. Thus, globalization is covering all the dimensions of the world economy which
is very much changing drastically. Therefore, the need for CSR activities is also rising where
government and multinational companies need to adapt to various CSR activities for
safeguarding the overall economy and domestic market from getting ruptured due to rapid
changes.
Lunenberg, Gosselt, and De Jong, (2016) opines that that standard of living has increased
significantly due to globalization. Therefore, the need of having moral values has also increased
which provides a greater economic benefit. It was pointed out in the research work of Hopkins,
(2017) that moral values have a deeper impact on the economic growth and development of
society. This is mainly because of the fact that economic growth will have a deeper impact on the
community which might lead to several bad consequences. Hence, the need of having proper
moral values is very much essential so that moral implications can be easily implemented.
Rangan, Chase and Karim, (2015) opines that managers and other associates of business take
actions on the basis of market structure and consumer behavior. This is increasing the need for
taking care of the stakeholders so that CSR principles can be easily applied. However Marano
and Kostova, (2016) argues about the misbehavior and illegal operations that some companies
do. They tend to disobey the stakeholders so as to earn higher profits and do not provide them
any long term benefit. This is evident in the research work of Ramesh et al., (2019) where it
states about the nature of the stakeholders who want to work with sustainable companies for
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generating long term benefits. Thus, it should be noted that sustainability can be brought in
through the help of implementing various CSR activities and principles. So organizations should
ensure to meet the expectations of the shareholders by supporting the social responsibilities.
Motives behind CSR
Lunenberg, Gosselt, and De Jong, (2016) opines that CSR activities tend to influence a variety
of factors which helps a company to engage in various activities for the betterment of the
company. This is mainly because of the fact that the fundamental objective of the company is to
provide quality products to the customers without hampering the environment. Hence, these
organizations tend to undertake CSR activities for the long term sustainability of the
organization. For this, they might collaborate with other agencies or governments to safeguard
the organization and support the firms by implementing CSR activities. Rusmanto and Williams,
(2015) points out that CSR practices tend to benefit all the parties as they are also responsible for
maintaining the overall environment in which they are conducting the business. However,
Sharma et al., (2018) talks about the problems that society might face due to t intense use of CSR
activities. For instance, a mining company doing business may help the community by providing
job opportunities but may tend to degrade the surrounding environment. Further, the CSR
activities are being used for deriving competitiveness through building strong relationships with
the stakeholders.
Usefulness of CSR
Lim and Greenwood, (2017) opines that the demand for CSR activities has increased drastically
over the years through which the business organizations are expected to develop and implement
CSR initiatives. This increases the need for maintaining good relations with the stakeholders by
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implementing CSR initiatives. This is quite evident in some UK retail companies who are putting
more stress on implementing CSR activities by creating good relationships with the employees
and the following traits of ethical entities. Through this, the companies are helping the other
communities to develop and satisfy the needs as well which tends to reside below the poverty
line.
Nyuur, Ofori and Debrah, (2016) opines about the many companies want to build a positive
image in the market. Hence, for this, companies tend to implement CSR activities for enhancing
such reputations. This image is being used by the companies to attract customers, employees
with good potential and various shareholders who will invest in the company. Further, it also
helps in reducing interventions from the government. Thus, it can be noted that good image helps
in long term benefit of the company and the management should use CSR initiatives during the
time of making any crucial decisions.
Abugre and Nyuur, (2015) opines that CSR initiatives have a greater emphasis on the customers
by satisfying their needs. This is mainly because of the fact that customer satisfaction is the link
between the CSR and the market value of the firm. This is quite notable when customer
awareness increases. This was being backed by Lim and Greenwood, (2017) who states that not
only CSR influences market share but also provide the much needed competitive advantage.
Hence, the competitive advantage is only gained through proper interactions with the
shareholders, i.e. the customers. This could easily increase the performance of the organization
and resulting in inventing innovative ways to increase the performance for increasing market
share and getting a competitive advantage in the market.
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CSR not for the profitable organization
Hopkins, (2017) opines that it is very much important to consider the nature of the sector as the
importance of non-profit organization is growing to safeguard the interest of the customers and
the other associated stakeholders. This is quite evident in Europe where 40% of the GDP is being
dominated by such organizations. Therefore, Ramesh et al., (2019) suggests that profit motive
organizations do not put much stress on CSR activities. This is mainly because of the fact that
implementing CSR activities might decrease their profit margin when they are asked to reduce
their impact on the society through using green production process or to increase the dividend
rate. For instance, a company who has earned a profit of 40% and aims to create a reserve profit
rate of 38% then they might only pay dividend around 2%. They will not pay dividend more than
2% as the reserve rate may be decreased. This gives rise to NPO (Non-profit organizations)
whose intention is to safeguard the interest of the society and eradicate any social issues that may
arise due to not implementing CSR activities properly. The social issues arise when the company
does not take CSR values seriously. For instance, a company might not pay the managers in
accordance with their performance level. Thus, for this alternative thinking arises and
Lunenberg, Gosselt, and De Jong, (2016) backs the idea that CSR is not for profit motive
organizations whose only intention is to earn profit only and ignoring the impacts it might have
on the society.
CSR practices
Rangan, Chase and Karim, (2015) opines that business organizations can have several options to
implement CSR activities for the betterment of the organizations. Hence, for this CSR functions
should be clearly defined and clearly understood by all the organizations. This will allow the
managers to bring in the much-needed changes in the environment and link the CSR activities as
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their part of the business strategy. For this, the need arises for the top management to pay
attention to implement CSR activities at various levels of the organization.
de Jong and van der Meer, (2017) opines that diverse skills are needed for successful
implementation of the CSR activities. This is mainly done by engaging the right people in
various CSR activities. For instance, physicians may be used by organizations to conduct health
campaigns or any environmentalist to help organizations to implement green production process.
Marano and Kostova, (2016) opines about the various cost-effective CSR practices which would
help in understanding the internal and external environment of the organizations. In order to
judge the nature of the CSR projects, it is very much essential to know the size of the
organization. This will help the organizations to understand the needs of the CSR activities
raised by the stakeholders for judging the changes that CSR activities will bring in for the
betterment f the organizations.
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Reference
Abugre, J.B. and Nyuur, R.B., 2015. Organizations’ commitment to and communication of CSR
activities: insights from Ghana. Social Responsibility Journal, 11(1), pp.161-178.
Booth, A., Sutton, A. and Papaioannou, D., 2016. Systematic approaches to a successful
literature review. Sage.
Christmals, C.D. and Gross, J.J., 2017. An integrative literature review framework for
postgraduate nursing research reviews. European Journal of Research in Medical Sciences
Vol, 5(1).
de Jong, M.D. and van der Meer, M., 2017. How does it fit? Exploring the congruence between
organizations and their corporate social responsibility (CSR) activities. Journal of business
ethics, 143(1), pp.71-83.
Hart, C., 2018. Doing a literature review: Releasing the research imagination. Sage.
Hopkins, M., 2017. CSR and international development. In CSR and Sustainability (pp. 88-108).
Routledge.
Hosoda, M. and Suzuki, K., 2015. Using management control systems to implement CSR
activities: an empirical analysis of 12 Japanese companies. Business Strategy and the
Environment, 24(7), pp.628-642.
Lim, J.S. and Greenwood, C.A., 2017. Communicating corporate social responsibility (CSR):
Stakeholder responsiveness and engagement strategy to achieve CSR goals. Public Relations
Review, 43(4), pp.768-776.
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Lunenberg, K., Gosselt, J.F. and De Jong, M.D., 2016. Framing CSR fit: How corporate social
responsibility activities are covered by news media. Public relations review, 42(5), pp.943-951.
Machi, L.A. and McEvoy, B.T., 2016. The literature review: Six steps to success. Corwin Press.
Marano, V. and Kostova, T., 2016. Unpacking the institutional complexity in adoption of CSR
practices in multinational enterprises. Journal of Management Studies, 53(1), pp.28-54.
Mostafa, R.B. and ElSahn, F., 2016. Exploring the mechanism of consumer responses to CSR
activities of Islamic banks: the mediating role of Islamic ethics fit. International Journal of Bank
Marketing, 34(6), pp.940-962.
Nyuur, R.B., Ofori, D.F. and Debrah, Y.A., 2016. The impact of FDI inflow on domestic firms’
uptake of CSR activities: The moderating effects of host institutions. Thunderbird International
Business Review, 58(2), pp.147-159.
Ramesh, K., Saha, R., Goswami, S. and Dahiya, R., 2019. Consumer's response to CSR
activities: Mediating role of brand image and brand attitude. Corporate Social Responsibility and
Environmental Management, 26(2), pp.377-387.
Rangan, K., Chase, L. and Karim, S., 2015. The truth about CSR. Harvard Business
Review, 93(1/2), pp.40-49.
Rhou, Y., Singal, M. and Koh, Y., 2016. CSR and financial performance: The role of CSR
awareness in the restaurant industry. International Journal of Hospitality Management, 57,
pp.30-39.
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