Individual Report: Exploring the Link Between CSR and Business Success

Desklib provides past papers and solved assignments for students. This report reviews the impact of CSR on business performance.

1LITERATURE REVIEW
Assignment 2: Individual Report on Literature Review
Student’s ID:
University Name:
Author’s Note:

2LITERATURE REVIEW
Table of Contents
1. What is a literature review and what does it achieve?.................................................................3
2. Write a literature review on “Corporate Social Responsibility?”................................................4
Introduction..................................................................................................................................4
What is CSR?...............................................................................................................................4
Impact of CSR on business..........................................................................................................5
How businesses benefits from CSR.............................................................................................5
CSR examples of certain business performances........................................................................6
Benefits of CSR from the Stakeholders.......................................................................................7
Conclusion...................................................................................................................................7
References........................................................................................................................................8

3LITERATURE REVIEW
1. What is a literature review and what does it achieve?
A literature review is considered as a critical analysis associated with the published sources and
other particular topic. It is ideally an assessment that will provide classification, summary and
evaluation. At post-graduate level, literature review may be incorporated into an article, or a
research report. According to Connolly et al. (2012), literature can also be explained on the view
of several opinions of authors, so that a good contrast can be found critically. The terminology of
a literature review is organised in a comprehensive manner, which draws on an argument and
discussions based on the given theme. Because literature review is associated with three parts as
Introduction, body and conclusion, it can also be denoted in terms of an annotated bibliography
having each source one after one (Aveyard, 2014). However, the idea to conduct literature
review is because it helps to provide an overview of the key concepts, and the working patterns
of certain relations of the chosen topic. In quest, it also helps to find us a clear gap in the
research, so that a solid background to the research paper investigation can be found.
As opined by Parris and Peachey (2013), literature review could be included with appropriate
material where illustration of scholarly sources, including authoritative and current evidence can
be made. It is initiated that an extensive review for such relevant material in a literature review
could include the reports, books, conference papers and other web sources. Now, another relative
aspect of a literature is to critically analyse what has been found from the research (Aveyard,
2014). It has to be done with the reflection of key concepts and terms, relevance of the article’s
specific topic, major patterns and trends, author’s arguments, and credibility in sources, which
can be structured or unstructured. A key phase of a literature will generically start with the
introduction where the purpose of literature with the scope and selection criteria will be analysed
(Gimenez and Tachizawa, 2012). Hence, the best stage of the literature to acquire will heavily
concentrate on the body paragraphs. It is because it will synthesize several reviewed readings
with the previous study of the topic chosen or the historical background.
The ideal phase of literature will also acknowledge on the mainstream vs. alternative viewpoints
with that of the principal questions being asked. Moreover, the literature will be finally achieved
through a theoretical framework on the overall points of the study, with that of the conclusions
being drawn. From the viewpoint of Durst and Runar Edvardsson (2012), literature review also

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has a set purpose, which will help to understand direction of further research. It also provides
access to information, just by picking sources that are relative, meaningful and valid. With a
detailed analysis, the literature will also be eventful to identify the key finding and contradictions
for the existing sources.
2. Write a literature review on “Corporate Social Responsibility?”
Introduction
CSR has been bringing certain benefits in a business, and the idea for such enterprises is to find
liabilities in societies beyond making profits for the shareholders. Over the last few years, the
MNCs have influenced highly in the global economy, and due to this, the demands of corporate
responsibility has increased heavily. This topic will ideally focus on how CSR affects business
performance of major firms. It can be illustrated that most companies are paying attention with
their core values, and their development senses effective customer retention management. Thus,
this literature will critically explore the concepts of CSR towards business performance with the
help of author opinions, and ideas, so that a perception can be reached to develop the study.
What is CSR?
In the recent years, most organisations have embraced CSR as a philosophy where company
tends to set expected actions, not just producing a reliable product but also charging a fair price
with good profit margin. According to Malik (2015), many firms work in terms of social
endeavours and tend to share information with communities and customers, where they do the
business. Since CSR could be conducted with good faith, it is also beneficial to stakeholders and
companies. It is highly true for the stakeholders, which they tend to give low priority or
community members living near corporate sites. From the outlook of McWilliams (2015), CSR
also forms large focus on managers in order to demonstrate social good for new products. Thus,
it could be framed that a good response to the criticised corporations faces long track for harming
communities in an effort to be highly profitable. CSR also has been the benchmark where
continual development of large firms has directed the business (Lee et al. 2013). Hence, it has
accounted the practice from economic, ethical and legal areas of the business.

5LITERATURE REVIEW
Impact of CSR on business
Since CSR has become a key element in today’s business, most employees are looking for the
company that stands out not just for benefits but also for social responsibility. From the argument
of Cavaco and Crifo (2014), sustainability is a credible element in a business, and that stands
with CSR with association of Director’s board. For being responsible in a business, CSR acts as
a social investment that can build reputation in order to seek competitive advantage in a firm.
Besides, companies favour the suppliers, which have allied policies to reflect on how the
customers observe and see those (McWilliams, 2015). For being responsible, sustainable
business could make it easier for recruiting new employees or retaining the existing ones. From
the opinion of Smith and Alexander (2013), CSR matters in the present day, on how it will affect
business today, or how this will be implemented successfully. In fact, it is found that 66% of the
online customers will pay more for the services and products from companies, which they are
accountable socially. The same will be applied for the consumer goods brand, with a need of
commitment to draw sustainability.
Besides that, the possible loss for the socially liable customers, CSR can make a major impact on
the business ability in order to attract the top talent. According to Maas and Reniers (2014), it is
found that the next generation of the workers are also entering workforce, as it seeks out the
employers with a clear CSR strategy. Businesses that do not prioritise a CSR strategy may find
risk in losing the top talent to the firms, which are practising so. In the event, CSR is satisfied
with the purpose of investing more on employees, and working hard to create workplace that the
employees enjoy returning each day. Ethically, social media also has affected importance of CSR
presently. It is accounted that most companies with the unethical business practices exposes
harshly on the social media. Alternatively, Rexhepi et al. (2013) have identified that social media
works as a tool to implement CSR with ethical business, which can lead to increased sales or
reach a wider target audience.
How businesses benefits from CSR
Companies always try to reveal their commitment to the varied causes that are being perceived
as philanthropic. According to Lee et al. (2013), a company’s image could be the mercy of its
social liability programmes, and they know how aware they are with their programmes. It can be

6LITERATURE REVIEW
asserted that a firm can develop their public image by supporting non-profit by donations, strong
partnerships and volunteerism. From the ideology of Brown et al. (2013), it can be asserted that
CSR works well in forming relations with the local media outlets. This is because companies
tend to participate in production or other activities, which bring negative community effects.
Media visibility can be a key factor that can shed positive light for the firm. CSR also tries to
boost employee engagement on how it works considerably for positive reasons. Around, 60%
employees being proud of the company’s liability are engaged to the jobs. In the review of Smith
and Alexander (2013), some of the investors are also pouring huge money into firms, so that the
funds could be used properly. Forging partnerships could be a key element that works for the
firm, so that major marketing campaigns could be carried out well.
A positive workplace environment is a key factor where business drives CSR. It is that stage
where a strong culture within every employee from the “top down” approach will help to build a
positive environment for thriving employees. From the statement of Maas and Reniers (2014),
employers have also identified creativity, as one of the key leadership qualities from employees
is a credible element. In that case, being philanthropic will help employees to be productive for
the companies.
CSR examples of certain business performances
Some of the industry examples has evidenced that CSR has a large role to play towards business
performance. This Vermont-based brand, Ben & Jerry is known well from their CSR. In fact, it
could be the cornerstone of how the company will operate. According to Cavaco and Crifo
(2014), the brand uses fair trade ingredients by developing a Sustainable Programme for the
dairy farms in the Vermont. It could also be a great example, which is prioritising social issues in
donating to charities, and organisations. Some of the critics have claimed that corporations
cannot just afford to priorities the social environmental justice, for being profitable (McWilliams,
2015). In that case, Target proves it wrong. The big giant has worked since 1946 for providing
local environmental support to the communities where stores are located. Since then, the firm has
donated $875mn to education alone, and has become headline for the social justice when it came
with Pro-transgender bathroom policy.

7LITERATURE REVIEW
From the ideology of Malik (2015), Google could be an excellent example for business, which is
working for society’s betterment. It works with the CSR initiatives where it has already been
successful with the environmental policy, called the Google Green. Now, there has been a large
effort to utilise resources effectively to support the renewable energy sources. Further, it has also
led to the reduction in power needs for the data centres by 50%. Now, it can be equated that
customers want to do business from which they can find trust factor. In event of this, business
will find a sustainability report, so that CSR initiatives will be put in place. To remain
competitive in the present marketplace, businesses have to practice CSR. From the opinion of
Spence (2016), this will help to retain the top talent and continue to increase sales.
Benefits of CSR from the Stakeholders
CSR has always showed faith to reshape orientation of MNCs to their stakeholders. In order to
position as the stakeholders in a global community, the reliable firm could be regarded as
exemplary. According to Crane and Matten (2016), they could help to demonstrate the interest
by improving ways to manufacture delivery of services and goods to serve the global and local
environment. In quest, they can also return to the communities, as much it tends to foster
financial reinvestment where people will be willing to work. In return, Chell et al. (2016) have
opined that the global companies will also have the sustainable business models, which they look
beyond the short-term growth forecast. They would work in terms of sustained growth so that the
stakeholders requirements are followed are right time. Besides, the ethical stakeholder relations
also grow the opportunity and wealth in a dynamic fashion. Without such, the global customer
economy might fail.
Conclusion
It can be concluded from the overall literature that most firms practice CSR to be successful in
the present workplace. The ideal practice of CSR requires good commitment to the stakeholder,
which have a healthy existence on the workplace they operate. CSR by far has been effective, as
it shows the diversified opportunity so that social friendly initiatives could have long-term effect
in executing superficial CSR efforts. It is probably a conundrum on how the MNCs will react to
their CSR agenda, so that they can be successful in order to promote sustainability.

8LITERATURE REVIEW
References
Aveyard, H., 2014. Doing a literature review in health and social care: A practical guide.
McGraw-Hill Education (UK).
Brown, J.A. and Forster, W.R., 2013. CSR and stakeholder theory: A tale of Adam
Smith. Journal of business ethics, 112(2), pp.301-312.
Cavaco, S. and Crifo, P., 2014. CSR and financial performance: Complementarity between
environmental, social and business behaviours. Applied Economics, 46(27), pp.3323-3338.
Chell, E., Spence, L.J., Perrini, F. and Harris, J.D., 2016. Social entrepreneurship and business
ethics: Does social equal ethical?. Journal of business ethics, 133(4), pp.619-625.
Connolly, T.M., Boyle, E.A., MacArthur, E., Hainey, T. and Boyle, J.M., 2012. A systematic
literature review of empirical evidence on computer games and serious games. Computers &
education, 59(2), pp.661-686.
Crane, A. and Matten, D., 2016. Business ethics: Managing corporate citizenship and
sustainability in the age of globalization. Oxford University Press.
Durst, S. and Runar Edvardsson, I., 2012. Knowledge management in SMEs: a literature
review. Journal of Knowledge Management, 16(6), pp.879-903.
Gimenez, C. and Tachizawa, E.M., 2012. Extending sustainability to suppliers: a systematic
literature review. Supply Chain Management: An International Journal, 17(5), pp.531-543.
Lee, E.M., Park, S.Y. and Lee, H.J., 2013. Employee perception of CSR activities: Its
antecedents and consequences. Journal of business research, 66(10), pp.1716-1724.
Maas, S. and Reniers, G., 2014. Development of a CSR model for practice: connecting five
inherent areas of sustainable business. Journal of Cleaner Production, 64, pp.104-114.
Malik, M., 2015. Value-enhancing capabilities of CSR: A brief review of contemporary
literature. Journal of Business Ethics, 127(2), pp.419-438.

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McWilliams, A., 2015. Corporate social responsibility. Wiley encyclopedia of management,
pp.1-4.
Parris, D.L. and Peachey, J.W., 2013. A systematic literature review of servant leadership theory
in organizational contexts. Journal of business ethics, 113(3), pp.377-393.
Rexhepi, G., Kurtishi, S. and Bexheti, G., 2013. Corporate social responsibility (CSR) and
innovation–the drivers of business growth?. Procedia-Social and Behavioral Sciences, 75,
pp.532-541.
Sheehy, B., 2015. Defining CSR: Problems and solutions. Journal of business ethics, 131(3),
pp.625-648.
Smith, K.T. and Alexander, J.J., 2013. Which CSR-related headings do Fortune 500 companies
use on their websites?. Business Communication Quarterly, 76(2), pp.155-171.
Spence, L.J., 2016. Small business social responsibility: Expanding core CSR theory. Business &
Society, 55(1), pp.23-55.